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Overall the call conveyed a predominantly positive tone driven by strong adjusted EBITDA improvement, record quarter revenue (as-reported), a healthy cash balance, early ad-monetization upside from the Disney ad server migration, clear contractual levers (95%→99% wholesale fee) and multiple product/partner initiatives (ESPN integrations, segmented product bundles, planned AI Assistant). Notwithstanding these positives, there are near-term headwinds and execution risks: modest pro forma revenue growth (~1% YoY), a small year-over-year subscriber decline (~3.4%), seasonality that implies H2 deceleration and increased marketing spend, longer timelines to realize content-cost synergies, and comparability noise from prior-year litigation gains and one-time tax items. Taken together, the positives and structural tailwinds presented were judged to significantly outweigh the challenges discussed on the call.
The company reiterated pro forma fiscal 2026 adjusted EBITDA guidance of $80–$100 million and a long‑term target of at least $300 million of adjusted EBITDA by 2028, with positive free cash flow expected in fiscal 2027 and fiscal 2028; Q2 reported revenue of $1.566 billion (vs. $1.125 billion a year ago; pro forma prior year $1.556 billion, +1% YoY), Q2 adjusted EBITDA of $37.7 million (first half totaled ~$79 million), trailing‑12‑month pro forma adjusted EBITDA now above $100 million, a Q2 net loss of $6.2 million (EPS −$0.07), 5.7 million North American subscribers (versus 5.9 million a year ago), $244 million of cash on hand and an expectation to finish the year with >$200 million, a commercial wholesale fee at 95% in calendar 2026 scaling to 99% by 2028, ad‑server migration to Disney (begun in Feb., with CPMs and fill rates improving and full migration expected by year‑end leading Fubo ad ARPU to converge with Hulu Live), and an expected Fubo Sports integration into ESPN’s e‑commerce flow in H1 2027.
Q2 North America revenue was $1.566B (as-reported), up from $1.125B prior year (+39% as-reported). On a pro forma basis vs. prior year revenue of $1.556B, revenue grew ~1% year-over-year. Adjusted EBITDA for Q2 was $37.7M versus pro forma $1.4M in the prior year (increase of ~$36.3M; >25x improvement). Management called it the strongest Q2 in company history on an adjusted EBITDA basis.
Pro forma trailing 12-month adjusted EBITDA exceeded $100M, a material milestone supporting the company’s target of at least $300M in adjusted EBITDA by fiscal 2028.
Net loss for the quarter improved to $6.2M versus a reported net loss of $40.9M in the prior year period. EPS was a loss of $0.07 for the quarter. Management highlighted a $6.5M above-the-line tax benefit in the quarter (one-time).
Cash, cash equivalents and restricted cash at quarter-end were $244M, and management expects to finish the fiscal year with more than $200M on the balance sheet.
Migration of Fubo inventory to Disney’s ad server began in February; management reported early improvements in CPMs and fill rates, with CPM improvement coming faster than expected. Full migration expected by year-end and Fubo ad ARPU expected to converge with Hulu Live afterward.
First full quarter as a combined company with Hulu + Live TV; contractual wholesale fee at 95% in 2026 scaling to 99% by 2028 provides strong earnings visibility. Company expects pro forma adjusted EBITDA of $80M–$100M for fiscal 2026 and positive free cash flow in fiscal 2027 and 2028.
Launched Hulu + Live TV Español and Fubo Latino to better segment customers (price points as low as $9.99 for Latino package; Hulu Español around $30). Aggregated storefront now offers Fubo and Hulu + Live TV portfolios. ESPN integrations (Where to Watch linkouts and reseller e-commerce for Fubo Sports) expected to create new acquisition channels; ESPN reseller launch expected H1 2027.
Announced planned launch of an AI conversational feature (AI Assistant) this fall to search DVR content and drive engagement; company reports ~35% of code development now leveraging AI and ~200 employees using AI tools to improve productivity.
Management added multiple RSN/local baseball teams (cited ~14 teams plus Dodgers, Braves, Mets) ahead of MLB season and said they have successfully navigated the loss of NBCU with minimal incremental churn and strong reactivations during baseball season.
Good morning, and welcome to the Fubo Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Ameet Padte, SVP, FP&A, Corporate Development and Investor Relations. Thank you. Please go ahead.
Thank you for joining us to discuss Fubo's Second Quarter Fiscal 2026 Results. With me today is David Gandler, Co-Founder and CEO of Fubo; and John Janedis, CFO of Fubo. Full details of our results and additional management commentary are available in our earnings release and letter to shareholders, which can be found on the Investor Relations section of our website at ir.fubo.tv. Before we begin, let me quickly review the format of today's call. David will start with some brief remarks on the quarter and our business, and John will cover the financials and guidance. Then we will turn the call over to the analysts for Q&A. I would like to remind everyone that the following discussion may contain forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding our financial condition, our expected future financial performance, including our financial outlook, guidance and long-term targets, business strategy and plans, including our products, subscription packages and tech features, our partnerships and other arrangements, the benefits of the business combination, including expected synergies and integrations and expectations regarding growth and profitability. These forward-looking statements are subject to certain risks, u...