FUBO Q2 Deep Dive: First Positive Adjusted EBITDA and Product Expansion Amid Subscriber Decline

Live sports and TV streaming service fuboTV (NYSE:FUBO) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 2.8% year on year to $380 million. Its non-GAAP profit of $0.05 per share was $0.02 above analysts’ consensus estimates.

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StockStory’s Take

fuboTV’s second quarter was marked by its first-ever quarter of positive adjusted EBITDA, a milestone management attributed to disciplined cost control and a focus on delivering flexible content options. CEO David Gandler emphasized that this achievement was driven by ongoing efforts to optimize the company’s technology stack, improve user experience, and adapt to a competitive streaming landscape. Management also noted that despite declines in both revenue and domestic subscribers, improved retention and targeted marketing contributed to stability in the core business. CFO John Janedis highlighted that the quarter’s performance reflected “continued execution against our strategic priorities and profitability goals.”

Looking ahead, fuboTV’s leadership is concentrating on expanding its product suite and leveraging recent technology integrations to address evolving consumer preferences. Management is optimistic about the upcoming launch of Fubo Sports, a streamlined service for sports fans, and new pay-per-view offerings designed to attract casual viewers. Gandler stated, “We continue to focus on super serving customers with flexible content options at appropriate price points.” However, management cautioned that competition remains intense and seasonal marketing investments could impact future profitability trends.

Key Insights from Management’s Remarks

Management identified the shift toward targeted content offerings and improved operating leverage as the key factors behind quarterly performance. The product roadmap and international strategy were also focal points.

• Subscriber retention focus: The company reported better-than-expected retention, particularly in its core English-language product, credited to more effective and efficient marketing efforts targeting value-conscious consumers.
• Content portfolio adjustments: fuboTV responded to channel losses, including Warner Bros. Discovery and Univision, by reducing prices in Latino packages and introducing stand-alone offers, which helped offset some churn and drove a “strong conversion uptick.”
• Ad business stabilization: Despite a decrease in advertising revenue tied to lost ad-enabled channels, growth in retail e-commerce and technology categories, along with strength in the FAST (free ad-supported streaming TV) channels, provided a positive offset.
• International technology integration: Integration of the technology teams—especially after the acquisition of Molotov in France—has unified fuboTV’s tech stack, setting the stage for potential launches of localized services and supporting international growth.
• New product launches: The introduction of pay-per-view live events and the partnership with DAZN (a sports streaming platform) expanded both audience reach and content options, with the upcoming Fubo Sports “skinny bundle” aimed at sports-centric viewers.

Drivers of Future Performance

fuboTV’s outlook hinges on product innovation, content partnerships, and ongoing cost discipline, tempered by competitive pressures and seasonal factors.

• Launch of new offerings: Management expects the introduction of Fubo Sports and expanded pay-per-view options to attract new segments, especially price-sensitive and casual sports fans, enhancing subscriber growth potential.
• Advertising revenue dynamics: While FAST channels are contributing a growing share of ad revenue, management acknowledged ongoing softness in certain advertiser categories and the loss of key ad-insertable content, which could weigh on future ad growth.
• Seasonal and competitive marketing: CFO John Janedis noted that subscriber and profitability trends will remain subject to traditional seasonal patterns, with higher marketing costs expected in periods coinciding with major sports seasons and increased competition from rival streaming platforms.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the adoption rate and subscriber impact of Fubo Sports and new pay-per-view features, (2) stabilization or growth in advertising revenue as FAST channels expand, and (3) the outcome of new sports rights negotiations in international markets such as France. Execution on channel partnerships and maintaining retention rates will also be critical to future performance.

fuboTV currently trades at $3.62, down from $3.69 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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