FuboTV Inc. (NYSE:FUBO) stock slid on Tuesday after it reported earnings for the first quarter of 2026.
Revenue of the sports-first live TV streaming platform rose 40% year-over-year (Y/Y) to $1.549 billion, topping the analyst consensus estimate of $1.096 billion.
Pro Forma revenue (giving effect to Fubo’s combination with Walt Disney Company’s (NYSE: DIS) Hulu + Live TV business) of $1.683 billion, compared to $1.588 billion Y/Y.
FuboTV reported a fourth-quarter loss of 2 cents per share, missing Wall Street's estimate of a 1-cent loss.
The company’s adjusted EBITDA margin stood at 2.5% versus 1.4% Y/Y.
Fubo reported North America revenue of $1.543 billion for the quarter, compared to $1.106 billion in the prior-year period. On a pro forma basis, North America revenue was $1.675 billion for the quarter, compared to $1.579 billion during the prior-year period.
On a combined basis, Fubo ended the quarter with 6.2 million North America total subscribers, down from 6.3 million Y/Y.
In the Rest of the World, revenue was $5.8 million for the quarter, compared to $0 million Y/Y, and paid subscribers declined to 335,000 from 362,000 Y/Y.
On a pro forma basis, Rest of World revenue of $8.6 million for the quarter, compared to $9.4 million.
Cash Position And Cash Burn
As of December 31, FuboTV held $458.6 million in cash and equivalents.
The company used $200.3 million in operating cash during the quarter, sharply worse than the $42.6 million outflow a year earlier.
ESPN Partnership
Fubo and ESPN have revealed plans to form a reseller and marketing partnership to increase the reach and distribution of Fubo services.
Fubo Sports, which already includes ESPN Unlimited, along with FOX and CBS programming, will be available for purchase through ESPN’s commerce platform.
Furthermore, ESPN will promote Fubo across various digital properties. This partnership is pending the negotiation of definitive agreements.
Reverse Stock Split
Fubo announced its plan for a reverse stock split of its Class A and Class B common stock, with an exchange ratio ranging from one-for-eight to one-for-twelve.
The final ratio will be determined by Fubo’s Board of Directors.
The Board has approved the reverse stock split, and it has also received unanimous written consent from stockholders holding a majority of the company’s outstanding voting interests.
David Gandler, co-founder and CEO of Fubo, reflected on 2025 as a transformative year for the company following its significant business combination with Hulu + Live TV.
Fubo planned to continue to revisit issuing guidance in future quarters pending better visibility on the timing and impact of its combined company initiatives.
FUBO Price Action: FuboTV shares were down 19.82% at $1.820 during premarket trading on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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