fuboTV (FUBO)

Live sports and TV streaming service fuboTV (NYSE:FUBO) announced better-than-expected revenue in Q3 CY2025, but sales fell by 2.3% year on year to $377.2 million. Its non-GAAP profit of $0.02 per share was significantly above analysts’ consensus estimates.

Company Overview

Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.

The advent of the internet changed how shows, films, music, and overall information flow. As a result, many media companies now face secular headwinds as attention shifts online. Some have made concerted efforts to adapt by introducing digital subscriptions, podcasts, and streaming platforms. Time will tell if their strategies succeed and which companies will emerge as the long-term winners.

Competitors in the live TV streaming market include YouTube TV (owned by NASDAQ:GOOGL), Comcast (NASDAQ:CMCSA), Charter Communications (NASDAQ:CHTR), and DISH Network (NASDAQ:DISH).

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, fuboTV grew its sales at an incredible 50.5% compounded annual growth rate. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.

Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. fuboTV’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 12.5% over the last two years was well below its five-year trend.

We can dig further into the company’s revenue dynamics by analyzing its number of domestic subscribers and international subscribers, which clocked in at 1.63 million and 342,000 in the latest quarter. Over the last two years, fuboTV’s domestic subscribers averaged 7.3% year-on-year growth. On the other hand, its international subscribers averaged 6.1% year-on-year declines.

This quarter, fuboTV’s revenue fell by 2.3% year on year to $377.2 million but beat Wall Street’s estimates by 4.9%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges.

fuboTV’s operating margin has been trending up over the last 12 months, but it still averaged negative 10% over the last two years. This is due to its large expense base and inefficient cost structure.

This quarter, fuboTV generated a negative 5.3% operating margin.

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

fuboTV’s full-year EPS flipped from negative to positive over the last four years. This is encouraging and shows it’s at a critical moment in its life.

In Q3, fuboTV reported adjusted EPS of $0.02, up from negative $0.08 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects fuboTV’s full-year EPS of $0.03 to shrink by 58.3%.

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

fuboTV broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders.

fuboTV burned through $9.41 million of cash in Q3, equivalent to a negative 2.5% margin. The company’s cash burn was similar to its $1.12 million of lost cash in the same quarter last year.

Over the next year, analysts predict fuboTV’s cash conversion will fall. Their consensus estimates imply its free cash flow margin of 8.2% for the last 12 months will decrease to 2.6%.

EPS and free cash flow tell us whether a company was profitable while growing its revenue. But was it capital-efficient? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

fuboTV’s five-year average ROIC was negative 54.7%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer discretionary sector.

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, fuboTV’s ROIC has increased. This is a good sign, but we recognize its lack of profitable growth during the COVID era was the primary reason for the change.

One of the best ways to mitigate bankruptcy risk is to hold more cash than debt.

fuboTV is a well-capitalized company with $274.2 million of cash and no debt. This position is 5.6% of its market cap and gives it the freedom to borrow money, return capital to shareholders, or invest in growth initiatives. Leverage is not an issue here.

It was good to see fuboTV beat analysts’ revenue, EBITDA and EPS expectations this quarter. On the other hand, its number of international subscribers missed. Zooming out, we think this was still a solid print. The stock traded up 3.7% to $3.93 immediately following the results.

Updated: December 4, 2025 at 9:33 PM EST

We think that the latest earnings result is only one piece of the bigger puzzle. If you’re deciding whether to own fuboTV, you should also grasp the company’s longer-term business quality and valuation.

fuboTV doesn’t pass our quality test. Although its revenue growth was solid over the last five years, it’s expected to deteriorate over the next 12 months and its number of domestic subscribers has disappointed. On top of that, the company’s projected EPS for the next year is lacking.

fuboTV’s P/E ratio based on the next 12 months is 95.3x. This multiple tells us a lot of good news is priced in - you can find more timely opportunities elsewhere.

Wall Street analysts have a consensus one-year price target of $4.50 on the company (compared to the current share price of $2.90).

Although the price target is bullish, readers should exercise caution because analysts tend to be overly optimistic. The firms they work for, often big banks, have relationships with companies that extend into fundraising, M&A advisory, and other rewarding business lines. As a result, they typically hesitate to say bad things for fear they will lose out. We at StockStory do not suffer from such conflicts of interest, so we’ll always tell it like it is.