fuboTV (FUBO) AI Stock Analysis

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fuboTV

(NYSE:FUBO)

Rating:69Neutral

Price Target:

$3.00

▼(-14.29%Downside)

fuboTV's overall score of 69 reflects a company undergoing significant financial improvements, with strong revenue growth and improved profitability metrics. However, technical indicators suggest caution, and the valuation appears fair. The earnings call highlighted successes in subscriber growth and profitability but also pointed out challenges in advertising revenue and future subscriber projections, adding a cautious note to the overall outlook.

Positive Factors

Financial Performance

The company has settled its litigation with the Venu Sports JV partners and is receiving $220 million in aggregate payment, which can be used to repay the 2026 Convertible Notes.

Profitability

Fubo achieved positive EBITDA in the quarter and should return to subscriber growth as it looks to begin offering skinny bundles.

Strategic Partnerships

The proposed combination with Hulu is expected to provide the company with an improved financial profile, moving to cash flow and EBITDA positive at close.

Negative Factors

Business Environment Challenges

Challenges in the business environment, including limited pricing power and growing distribution expenses, make it difficult to push for profitability despite strategic efforts.

Content Relationship

Loss of a content relationship with Univision and uncertainty around the Hulu combination negatively impact the company's guidance and revenue estimates.

Subscriber and Revenue Forecast

Fubo introduced Q2 guide below Street expectations, with revenue and subscribers forecasted lower than prior estimates.

fuboTV (FUBO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.22B

Dividend YieldN/A

Average Volume (3M)19.26M

Price to Earnings (P/E)18.2

Beta (1Y)0.22

Revenue Growth13.18%

EPS GrowthN/A

CountryUS

Employees590

SectorCommunication Services

Sector Strength86

IndustryBroadcasting

Share Statistics

EPS (TTM)0.55

Shares Outstanding341,539,800

10 Day Avg. Volume15,316,563

30 Day Avg. Volume19,255,984

Financial Highlights & Ratios

PEG Ratio92.48

Price to Book (P/B)<0.01

Price to Sales (P/S)0.00

P/FCF Ratio<0.01

Enterprise Value/Market Cap46.11

Enterprise Value/Revenue8.80

Enterprise Value/Gross Profit94.63

Enterprise Value/Ebitda-114.11

Forecast

1Y Price Target

$3.34

Price Target Upside-4.57% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering6

fuboTV Business Overview & Revenue Model

Company DescriptionfuboTV Inc. (FUBO) is a leading live TV streaming platform primarily focused on delivering sports content to its subscribers. The company operates in the digital entertainment and media sectors, offering a wide array of live sports, news, and entertainment channels. fuboTV aims to provide a comprehensive over-the-top (OTT) streaming experience, with its core products including live TV streaming services and on-demand video content accessible across multiple devices.

How the Company Makes MoneyfuboTV generates revenue primarily through subscription fees paid by its users for access to its streaming services. The company offers various subscription plans, each providing different levels of access to its content library, which includes live sports events, TV shows, and movies. Additionally, fuboTV earns money through advertising, leveraging its platform to display targeted ads to subscribers. The company also partners with networks and content providers, which can include revenue-sharing agreements that further contribute to its earnings. fuboTV's focus on sports content allows it to attract a dedicated user base willing to pay for premium access to live sports coverage, which is a significant driver of its subscription revenue.

fuboTV Key Performance Indicators (KPIs)

Any

Total Subscribers

Total Subscribers
Tracks the number of active subscribers, indicating the company's market penetration and potential for future revenue growth.

Chart InsightsFuboTV's subscriber count has shown volatility, with recent growth peaking at the end of 2024. However, the latest earnings call reveals a cautious outlook, with North American subscribers slightly exceeding guidance but still down 2.7% year-over-year. The company faces challenges with declining ad revenue and projected subscriber declines in Q2 2025. Despite these hurdles, FuboTV has made significant strides in profitability and cost control, improving net income and EPS, which could stabilize future performance if growth strategies are effectively implemented.

Data provided by:

Main Street Data

fuboTV Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q1-2025)

% Change Since: 19.45%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

While Fubo exceeded its subscriber forecast and achieved revenue growth in North America, challenges remain with declining advertising revenue, a projected decline in Q2 performance, and a drop in subscribers both in North America and Rest of World. The company's focus on profitability and cost control has led to significant improvements in net income and EPS, but the outlook remains cautious.

Q1-2025 Updates

Positive Updates

Exceeding Subscriber Forecasts

Fubo's global streaming business exceeded subscriber forecasts, delivering 1.47 million paid subscribers in North America, surpassing the Q1 guidance of 1.46 million at the high point.

Revenue Growth in North America

Total revenue in North America was $407.9 million, up 3.5% year-over-year, meeting the revenue guidance for the region.

Improvement in Profitability Metrics

Fubo improved global profitability metrics by more than $100 million over the trailing 12 months, highlighting ongoing execution and focus on profitability.

Net Income and EPS Improvement

Net income from continuing operations was $188 million, or $0.55 per diluted share, compared to a net loss of $56.3 million and a loss per share of $0.19 in the prior year period. Adjusted EPS loss improved to $0.02 from a loss of $0.14 a year ago.

Progress in Cost Control and Efficiency

Adjusted EBITDA was negative $1.4 million, a $37 million improvement year-over-year, underscoring focus on cost control and efficient growth.

Interactive Ads Growth

Interactive ad revenues grew by 37% year-over-year, with ad products overall up 41% year-over-year for the first half.

Negative Updates

Subscriber Decline in North America

North American subscribers were down 2.7% year-over-year, despite exceeding guidance.

Advertising Revenue Decline

Ad revenue for the quarter was $22.5 million, down 17% year-over-year, largely due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks.

Guidance for Q2 Decline

Guidance for Q2 2025 in North America projects subscribers of 1.225 million to 1.255 million, a 14% year-over-year decline at the midpoint, and revenue of $340 million to $350 million, a 10% decline at the midpoint.

Rest of World Performance

Rest of World subscribers are projected to decline by 17% year-over-year in Q2, with revenue expected to decline by 15% at the midpoint.

Company Guidance

During Fubo's first quarter 2025 earnings call, key metrics highlighted included surpassing subscriber and revenue guidance for their global streaming business, with 1.47 million North American subscribers, slightly exceeding the 1.46 million guidance at the high point, despite a 2.7% year-over-year decline. North America revenue reached $407.9 million, marking a 3.5% increase year-over-year. The company improved global profitability metrics by over $100 million on a trailing 12-month basis. Ad revenue, however, saw a 17% year-over-year decline, attributed to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks. Net income from continuing operations was $188 million, or $0.55 per diluted share, compared to a $56.3 million net loss the previous year, largely benefiting from a $220 million gain on litigation settlement. The adjusted EPS loss improved to $0.02 from $0.14 a year ago. Adjusted EBITDA was negative $1.4 million, a $37 million year-over-year improvement. For Q2 2025, North America guidance projects a decline in subscribers to between 1.225 million and 1.255 million and revenue between $340 million and $350 million. Additionally, the Rest of World segment anticipates a 17% subscriber decline and a revenue drop of 15% at the midpoint.

fuboTV Financial Statement Overview

Summary

fuboTV exhibits significant financial improvement, particularly evident in the latest TTM data, with strong revenue growth and profitability metrics. The balance sheet stability and improved cash flow position are positive indicators, though historical volatility suggests careful monitoring of financial strategies moving forward.

Income Statement

Positive

fuboTV shows a strong revenue growth trend, especially in the latest TTM period, indicating a robust expansion phase. The TTM Net Profit Margin is exceptionally high, suggesting a significant profit turnaround. However, historical annual data reveals past challenges with negative net income and EBIT margins, indicating potential volatility.

Balance Sheet

Positive

The company's balance sheet reflects a moderate debt-to-equity ratio with improving stockholder equity, indicating a strengthening financial position. The equity ratio has shown improvement, suggesting better asset management. Historical data shows fluctuations in equity levels, posing some risk.

Cash Flow

Very Positive

The cash flow statement highlights substantial improvement in free cash flow in the TTM period, showcasing effective cash management. The operating cash flow to net income ratio has turned positive, indicating sustainable operations. Historical cash flow challenges suggest potential areas for caution in consistent cash generation.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.64B	1.62B	1.37B	1.01B	638.35M	217.75M
	Gross Profit
592.52M	203.91M	86.15M	-41.10M	-10.45M	-16.04M
	EBIT
-158.13M	-196.02M	-289.35M	-411.86M	-359.42M	-479.90M
	EBITDA
32.48M	-197.23M	-238.07M	-372.73M	-287.47M	-545.76M
	Net Income Common Stockholders
72.24M	-172.25M	-287.45M	-425.05M	-382.96M	-599.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
168.85M	161.44M	245.28M	337.09M	374.29M	134.94M
	Total Assets
1.14B	1.08B	1.23B	1.28B	1.37B	859.35M
	Total Debt
429.69M	378.42M	443.02M	442.80M	363.90M	33.51M
	Net Debt
260.83M	216.99M	197.74M	105.71M	-10.40M	-101.44M
	Total Liabilities
907.54M	896.65M	948.82M	874.44M	698.90M	236.40M
	Stockholders Equity
248.43M	196.37M	295.58M	403.33M	670.88M	622.95M
Cash Flow		Free Cash Flow
161.04B	-95.31M	-199.57M	-322.69M	-206.08M	-150.73M
	Operating Cash Flow
161.39B	-79.48M	-177.62M	-316.70M	-192.60M	-150.56M
	Investing Cash Flow
-3.71B	-15.84M	-25.42M	-12.42M	-76.17M	-838.00K
	Financing Cash Flow
2.50B	11.46M	111.23M	296.27M	511.96M	280.00M

fuboTV Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.50

Price Trends

50DMA

3.03

Positive

100DMA

3.37

Positive

200DMA

2.51

Positive

Market Momentum

MACD

0.18

Negative

RSI

58.91

Neutral

STOCH

62.17

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUBO, the sentiment is Positive. The current price of 3.5 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 3.03, and above the 200-day MA of 2.51, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 62.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FUBO.

fuboTV Risk Analysis

fuboTV disclosed 78 risk factors in its most recent earnings report. fuboTV reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 3 New Risks

Our principal asset after the completion of the Business Combination will be our interest in Newco, and, accordingly, we will depend on distributions from Newco to pay our taxes and expenses, including payments under the contemplated Tax Receivables Agreement, and to pay dividends. Newco's ability to make such distributions may be subject to various limitations and restrictions. Q4, 2024

The Business Combination may not be completed on the terms or timeline currently contemplated, or at all, and failure to complete the Business Combination may result in material adverse consequences to Fubo's business and operations. Q4, 2024

Fubo and Hulu will be subject to business uncertainties and contractual restrictions while the Business Combination is pending that could adversely affect either of them or, in the event the Business Combination is completed, Newco. Q4, 2024

fuboTV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUBO	69 Neutral	$1.22B	18.23	21.67%	―	13.18%	―
TGNA	68 Neutral	$2.65B	5.78	16.07%	2.99%	6.34%	-0.26%
GTN	67 Neutral	$434.82M	1.67	9.92%	8.29%	9.08%	―
SSP	66 Neutral	$195.59M	2.42	11.23%	―	6.28%	―
CURI	66 Neutral	$391.11M	―	-12.13%	1.31%	-4.04%	84.17%
Sector *	61 Neutral	$14.27B	5.87	-4.20%	3.70%	2.75%	-35.76%
IHRT	48 Neutral	$185.73M	―	86.54%	―	3.31%	-39.47%

* Communication Services Sector Average

Performance Comparison

FUBO

fuboTV

3.50

2.25

180.00%

SSP

E. W. Scripps Company Class A

2.35

-0.31

-11.65%

GTN

Gray Television

3.99

-1.47

-26.92%

TGNA

TEGNA

16.66

2.66

19.00%

IHRT

iHeartMedia

1.37

0.34

33.01%

CURI

CuriosityStream

6.87

5.88

593.94%

fuboTV Corporate Events

M&A TransactionsLegal ProceedingsBusiness Operations and Strategy

FuboTV and Disney Merge Hulu + Live TV

Positive

Jan 6, 2025

FuboTV Inc. and The Walt Disney Company have reached an agreement to merge Disney’s Hulu + Live TV business with Fubo, forming a new virtual MVPD company. Disney will own a 70% stake in the new entity, while Fubo’s existing management team will continue to lead operations. The merger aims to enhance consumer choice with flexible programming options, leveraging a combined subscriber base of over 6.2 million in North America. Additionally, the transaction includes a settlement of all litigation between Fubo and Disney, ESPN, FOX, and Warner Bros. Discovery, with Disney and its affiliates making a substantial cash payment to Fubo and committing to a future term loan. This strategic move is expected to strengthen Fubo’s market position and financial standing, offering potential benefits to stakeholders through synergies and increased profitability.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.