Live sports and TV streaming service fuboTV (NYSE:FUBO) fell short of the market’s revenue expectations in Q1 CY2025 as sales rose 3.5% year on year to $416.3 million. Its non-GAAP loss of $0.02 per share was $0.01 above analysts’ consensus estimates.
Revenue: $416.3 million vs analyst estimates of $584 million (3.5% year-on-year growth, 28.7% miss)
Adjusted EPS: -$0.02 vs analyst estimates of -$0.03 ($0.01 beat)
Adjusted EBITDA: -$1.42 million vs analyst estimates of -$7.04 million (-0.3% margin, 79.8% beat)
Operating Margin: -6.1%, up from -15.7% in the same quarter last year
Free Cash Flow was $161.1 million, up from -$67.39 million in the same quarter last year
Domestic Subscribers: 1.47 million, down 41,000 year on year
Market Capitalization: $1.01 billion
StockStory’s Take
fuboTV’s first quarter performance was shaped by ongoing shifts in its content portfolio and disciplined cost management, as management pointed to subscriber numbers and revenue in North America that were consistent with company guidance but below analyst expectations. CEO David Gandler highlighted progress on new packaging strategies, particularly the development of skinny bundles aimed at providing more flexible options for consumers, while also navigating the discontinuation of certain content deals that affected advertising revenue.
Looking forward, management stressed its commitment to achieving profitability this year, with CFO John Janedis citing improved efficiency and further cost controls as central to the strategy. While the company remains optimistic about its pending combination with Hulu + Live TV, Gandler acknowledged that near-term challenges around content negotiations and advertising trends are likely to persist. Management expects that expanding flexible package offerings and maintaining focus on operational discipline will be key to stabilizing performance in the coming quarters.
Key Insights from Management’s Remarks
fuboTV’s management pointed to a mix of product innovation and cost control as central to the quarter’s results, while also acknowledging ongoing headwinds from content changes and a competitive streaming environment. The revenue shortfall versus Wall Street expectations was mainly attributed to lower advertising sales and the impact of dropped content partnerships.
Content partnership changes: The absence of Warner Bros. Discovery and TelevisaUnivision networks led to a significant decrease in ad revenue, which management explained was due to the loss of ad-insertable hours from these networks.
Focus on skinny bundles: CEO David Gandler reiterated the company’s emphasis on offering slimmed-down content packages, with ongoing negotiations aimed at launching a new sports and broadcast-focused skinny bundle ahead of the fall sports season.
Ad product innovation: Management noted that interactive and “gamified” ad formats saw year-over-year growth, with interest from advertisers accelerating despite longer sales cycles. John Janedis highlighted that interactive ad revenue increased 37% year-over-year.
International business repositioning: The Rest of World segment, including Molotov, continued to prioritize profitability over subscriber growth, with management citing technology integration and controlled marketing spend as reasons for slower top-line momentum.
Profitability progress: The company emphasized improved operating margins and free cash flow, attributing these gains to ongoing cost discipline and strategic investments in technology and product development.
Drivers of Future Performance
Looking ahead, management expects fuboTV’s results to be influenced by content negotiations, advertising market dynamics, and the anticipated integration with Hulu + Live TV, with a strong emphasis on returning to profitability.
Content licensing strategy: The company is prioritizing renewed and flexible content agreements, with a focus on launching new skinny bundles that could attract different customer segments and reduce programming costs.
Advertising revenue recovery: Management is betting on interactive ad formats and the normalization of ad inventory following content partner changes to stabilize and potentially grow advertising revenue in future quarters.
Operational cost discipline: Continued focus on efficiency, including technology investments and targeted marketing, is expected to support margin improvement and progress toward sustainable profitability.
Top Analyst Questions
David Joyce (Seaport Research Partners): Asked for updates on negotiations with TelevisaUnivision and progress toward completing content deals for skinny bundles. Management said discussions remain open but must meet acceptable terms and that negotiations with non-Disney partners are ongoing ahead of the fall sports season.
Clark Lampen (BTIG): Inquired about macroeconomic impacts on churn and subscriber growth, as well as the impact of dropped content and sports events on near-term trends. Management stated churn in core packages was stable and that reactivations exceeded expectations in April.
Laura Martin (Needham): Questioned the structural outlook for international markets and the use of generative AI in advertising. Management responded that international remains a long-term priority focused on profitability, and technology integration is ongoing; AI was not highlighted as a near-term driver.
Laura Martin (Needham): Sought clarification on why ad revenue declined sharply despite plenty of inventory. Management explained that loss of ad-insertable hours from dropped networks directly impacted ad sales, but underlying ad performance excluding these effects was flat to slightly positive.
Alicia Reese (Wedbush): Asked about traction with interactive and gamified ad formats. Management reported a 37% year-over-year increase in interactive ad revenue and noted growing advertiser interest, especially as new formats are rolled out.
Catalysts in Upcoming Quarters
Over the next several quarters, the StockStory team will be closely watching (1) the launch and initial uptake of the new skinny bundle offerings, especially as the fall sports season approaches, (2) signs of stabilization or growth in advertising revenue as interactive ad formats mature and content partnerships evolve, and (3) progress on the pending Hulu + Live TV combination, including regulatory milestones and integration updates. Execution against these priorities will be important in assessing whether fuboTV can balance growth and profitability.
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