Earnings Call Insights: fuboTV Inc. (FUBO) Q2 2025
Management View
- CEO David Gandler opened the call highlighting Fubo’s first quarter of positive adjusted EBITDA, calling it “an important milestone for our business.” Gandler reported that “our global streaming business exceeded both revenue and subscriber expectations in the second quarter.” In North America, total revenue was $371 million with 1,356,000 paid subscribers, while Rest of World revenue was $8.7 million with 349,000 paid subscribers.
- Gandler stated the company has “filed a preliminary proxy statement seeking shareholder approval of our agreement with the Walt Disney Company to combine Fubo with Hulu+ Live TV,” and maintained the anticipated timeline to close the transaction in “the fourth quarter of calendar year 2025 or the first quarter of calendar year 2026.”
- The company announced the upcoming launch of “Fubo Sports, a skinny content service for sports fans,” and noted the recent launch of a pay-per-view feature, allowing both subscribers and nonsubscribers to access live events on a one-off basis. Gandler referenced the content partnership with DAZN, saying this expands Fubo’s reach and gives subscribers access to the DAZN1 channel.
- CFO John Janedis stated, “We delivered North America revenue of $371 million and North America paid subscribers of 1.36 million, and we are pleased with our ability to deliver outperformance in the second quarter versus expectations.” Janedis also noted, “Ad revenue in North America totaled $25.5 million, a 2% year-over-year decline, primarily due to the loss of certain ad-insertable content from Warner Bros. Discovery and TelevisaUnivision.”
- Janedis emphasized, “Net loss narrowed to $8 million or $0.02 per share compared to a loss of $25.8 million or $0.08 per share a year ago,” and highlighted second quarter adjusted EBITDA of $20.7 million.
Outlook
- No explicit financial guidance figures for future quarters were provided in the transcript, but management reiterated its “ongoing focus on driving operating leverage in the model to best position the company for long-term growth.”
- Gandler reaffirmed excitement about the Hulu+ Live TV combination, stating, “The anticipated time line to close this transaction is currently the fourth quarter of calendar year 2025 or the first quarter of calendar year 2026.”
- Management discussed the expectation of a “typical seasonal uptick alongside of reactivations” in the fall sports season.
Financial Results
- Second quarter North America revenue was reported as $371 million, with paid subscribers of 1.36 million.
- Rest of World revenue was $8.7 million, with 349,000 subscribers.
- North America ad revenue was $25.5 million, a 2% year-over-year decline, attributed to the loss of certain ad-insertable content.
- Net loss was $8 million or $0.02 per share, compared to a loss of $25.8 million or $0.08 per share a year ago.
- Adjusted EBITDA reached $20.7 million, marking the company’s first-ever positive adjusted EBITDA quarter.
- Net cash used in operating activities was $34.6 million; free cash flow was negative $37.7 million. The company ended the quarter with over $285 million in cash, cash equivalents, and restricted cash.
Q&A
- Patrick William Sholl, Barrington Research, asked about subscriber expectations for Q3 and marketing in a competitive landscape. John Janedis responded that July “finished in line…with what we expected in terms of subscribers,” and that “with the fall sports season starting soon, we would expect to see the typical seasonal uptick alongside of reactivations.”
- Laura Anne Martin, Needham, questioned the impact and strategy behind the French acquisition and free streaming services. Gandler explained the integration of technology teams and ongoing negotiations for sports rights in France, expressing optimism for upcoming opportunities.
- Martin also asked about competitive positioning and ideal consumer experiences. Gandler noted, “We’ve seen a nice uptick on the stand-alone offers that we put out there,” and emphasized the need for “broad packages” and value at different price points.
- Alicia Spring Reese, Wedbush, inquired about ad trends and the impact of tariffs. Janedis cited continued softness in auto advertising but noted growth in retail e-commerce and tech. He described FAST channels as “a modest positive tailwind, if you will, to the overall ad growth.”
- Joseph Louis Spiezio, BTIG, asked about the sustainability of EBITDA profitability. Janedis said, “Historically speaking, 2Q has been our strongest adjusted EBITDA quarter of the year,” reflecting seasonality in profitability.
- Douglas Middleton Arthur, Huber Research, asked about subscriber guidance and the effect of content partner terminations. Janedis pointed to better-than-expected retention and conversion on the Latino product after the Univision drop, and Gandler described stabilization efforts in advertising and focus on skinny sports services.
Sentiment Analysis
- Analysts focused on sustainability of profitability, competitive positioning, subscriber retention, and advertising trends; tone was generally constructive but probing, particularly regarding future profitability and product strategy.
- Management expressed confidence, frequently referencing milestones and emphasizing operational discipline. Janedis described being “extremely pleased” and Gandler consistently projected optimism about strategic direction and upcoming initiatives.
- Compared to the previous quarter, management’s tone shifted from cautious optimism focused on path to profitability to celebratory confidence about achieving positive adjusted EBITDA. Analyst tone remained consistent, with a continued focus on core metrics and emerging challenges.
Quarter-over-Quarter Comparison
- The current quarter marked Fubo’s first positive adjusted EBITDA, while the previous quarter reported negative adjusted EBITDA of $1.4 million.
- North America revenue declined from $407.9 million in Q1 to $371 million in Q2, and subscribers decreased from 1.47 million to 1.36 million. Rest of World revenue increased, while subscribers continued to decline.
- Management in Q2 highlighted new product initiatives (Fubo Sports, pay-per-view) and the DAZN partnership, compared to Q1’s focus on launching skinny bundles and preparing for the Hulu+ Live TV merger.
- Guidance language in Q2 was less explicit, with no new financial targets provided, but the company maintained momentum toward the Hulu+ Live TV merger timeline.
- Analysts continued to press on profitability and retention, but management’s confidence was more pronounced following the adjusted EBITDA milestone.
Risks and Concerns
- Management acknowledged the “loss of certain ad-insertable content from Warner Bros. Discovery and TelevisaUnivision” as a headwind for advertising revenue.
- The competitive streaming environment and consumer price sensitivity remain ongoing challenges.
- Subscriber attrition, particularly in the Rest of World segment, was noted, but management described ongoing negotiations for new sports rights and technology deployment as mitigation strategies.
- Analysts questioned the sustainability of EBITDA profitability, the impact of content partner terminations, and the risk of further audience or revenue declines without new content deals.
Final Takeaway
Fubo achieved a milestone by delivering its first quarter of positive adjusted EBITDA, driven by disciplined execution and focused product innovation. The company remains on track with its pending merger with Hulu+ Live TV, targeting a close in late 2025 or early 2026. Despite ongoing industry challenges, Fubo is advancing new sports-centric offerings and expanding its content partnerships, while maintaining financial flexibility and operational momentum.