Key Points
- Fubo outlined a path to profitability, targeting up to $100 million in EBITDA by 2026 and $300 million by 2028.
- The company is prioritizing margins and cash flow over subscriber growth following its integration with Hulu with Live TV.
- Fubo expects to become free cash flow positive by 2027 without needing additional financing.
Fubo has outlined new financial targets and a path to sustained profitability as it integrates operations with Hulu with Live TV, emphasizing margin expansion and cash flow over near-term subscriber growth.
The streaming cable television alternative said it expects to generate between $80 million and $100 million in pro forma adjusted earnings before interest, tax, depreciation and amortization (EBITDA) during fiscal 2026, with a longer-term target of at least $300 million by fiscal 2028.
Fubo also reaffirmed that it anticipates becoming free cash flow positive starting in fiscal 2027 and does not expect to require additional external financing through 2028.
Stock Price
The updated outlook follows a temporary pause in guidance earlier this year as Fubo evaluated the financial impact of its combination with Hulu with Live TV. Together, the services ended the first quarter with 6.2 million subscribers across North America; the company no longer counts its own subscribers separate from Hulu. Previously, Fubo said it had nearly 1.4 million customers of its own.
In a statement on Monday, Fubo CEO David Gandler said the company has improved its financial performance in recent years, including reducing net losses and improving adjusted EBITDA by roughly $100 million annually over a three-year period prior to the transaction. He indicated the current share price does not reflect those operational gains or the long-term value of the combined business.
Fubo’s near-term strategy prioritizes profitability, with executives acknowledging that subscriber growth may slow or decline modestly as the company focuses on improving margins and generating sustainable cash flow.
A key component of its earnings outlook is a series of contractual wholesale fee arrangements tied to Hulu with Live TV. Those fees are structured to increase over time, rising from 95 percent of carriage costs in 2026 to 97.5 percent in 2027 and 99 percent in 2028, providing visibility into future EBITDA expansion.
The company also expects to lower content costs by aligning and renegotiating programming agreements across both services as contracts expire, leveraging the combined scale of the platforms to secure more favorable terms.
On the advertising side, Fubo is integrating its ad inventory with the Disney Ad Server, a move expected to unlock additional revenue synergies and improve monetization.
Content differences between the two services remain: While Hulu with Live TV carries broadcast and cable channels from NBC Universal and Versant, Fubo continues to operate without those channels following a carriage dispute that started late last year. The company previously told investors that NBC Universal — which continues to handle carriage of channels owned by Versant — has expressed a preference to wait until Hulu’s contract is close to expiring before negotiating carriage of its channels on both platforms.
Fubo has offered a lower price across its core programming packages to offset the loss of NBC Universal and Versant channels, and has pointed sports fans toward Peacock as an alternative way to stream live sports from NBC networks.
