Shares of FuboTV plunged 10.2% in pre-market trading to $8.58 after the company's latest earnings report failed to convince Wall Street that its merger with Hulu + Live TV is paying off fast enough, despite headline numbers that looked solid on the surface. FuboTV Posts $1.48 Billion in Revenue but the World Cup Did the Heavy Lifting — Is the Hulu Merger Running Out of Steam?
Shares of FuboTV cratered 10.2% to $8.58 in pre-market trading after a Q3 earnings report that delivered big top-line numbers but left investors questioning whether the company can grow without a marquee sporting event propping it up. Global revenue hit $1.482 billion, up from $1.074 billion a year earlier — but that comparison is misleading. On a pro forma basis — meaning, adjusting as if last year's Hulu merger had already happened — revenue was essentially flat at $1.482 billion versus $1.484 billion.
• The World Cup Drove Nearly All the Subscriber Growth
North American paid subscribers reached 5.75 million, up 2% year-over-year from 5.63 million. That sounds reasonable until you look closer. Sequential growth from Q2 was roughly 20,000 subscribers, and CFO John Janedis disclosed that approximately 25,000 of the quarter's additions came specifically during the World Cup window — meaning the subscriber base actually shrank outside that event. Q4 (ending September 30) carries no comparable mega-event, since both the NBA Finals and World Cup final fell outside its window.
• Revenue Missed the Street, and Profitability Slipped
Revenue of $1.482 billion missed Wall Street's consensus estimate of approximately $1.50 billion.
The net loss narrowed to $25.7 million from $38.0 million a year ago , but adjusted EBITDA — a common measure of operating profit before certain accounting items — declined to $19.1 million from a pro forma $31.0 million. Translation: the combined company is making less cash from operations than the two separate businesses did a year ago, despite having more subscribers.
• The Ad Business Is Still a Work in Progress
Management is transitioning advertising inventory to the Disney ad server, crediting it for double-digit increases in ad pricing and fill rates.
Fubo also raised its full-year adjusted EBITDA guidance to $90–$100 million. But the raised floor amounts to a modest bump, and the company's cash position of $236.4 million gives it limited runway if subscriber trends weaken.
• Two Brands, One Problem
CEO Alisa Bowen described a "portfolio approach," keeping Fubo and Hulu + Live TV as distinct brands targeting different price segments. That strategy risks cannibalizing one service with the other while doubling marketing costs. In Q4, Fubo's NFL coverage will compete head-to-head with YouTube TV, which holds exclusive streaming rights to the NFL's out-of-market Sunday Ticket package.
The bottom line: the Hulu merger gave FuboTV scale, but this quarter showed it hasn't yet delivered momentum. Without a blockbuster sports calendar, the next quarter becomes a proving ground for whether 5.75 million subscribers is a floor — or a ceiling.