FuboTV shares surged 19.8% in morning trading as the company issued upbeat guidance, including the expectation to be free cash flow positive by FY27 “if not sooner,” thanks to its relationship with Hulu (DIS) and migration of its advertising inventory to the Disney ad server.
Disney (DIS) acquired a majority stake in Fubo in October 2025 and merged it with Hulu + Live TV, obtaining a 70% stake in the combined entity.
In a letter to shareholders, FuboTV co-founder and CEO David Gandler sees the company in its “strongest financial position” in its history.
“We believe that our share price has not yet reflected the operational progress we have made nor the intrinsic value of the combined business. I hope today’s updates help to close that gap,” Gandler said.
The company now projects FY26 pro forma adjusted EBITDA to be between $80M and $100M and FY28 adjusted EBITDA of at least $300M (reflecting CAGR of more than 80%), with the latter driven by contractually obligated wholesale fees with Hulu. These are expected to increase from 95% in 2026 to 97.5% in 2027 and 99% in 2028. This provides FuboTV with “strong visibility” into its earnings profile and adjusted EBITDA expansion.
FuboTV also expects to be free cash flow positive beginning in FY27 with no need for additional outside financing through FY28 based on the current operating plan.
“While subscriber growth remains a key long-term driver of value, we are focused on pursuing that growth in an efficient and profitable manner. In the near term, this means prioritizing margin expansion and sustainable cash flow, which may result in periods of flat or modestly declining subscriber levels,” Gandler added.
To achieve these goals, FuboTV has begun to market Hulu + Live TV to customers of the Fubo service and will identify additional opportunities to more prominently feature Hulu + Live TV.
The company also believes there are opportunities to lower content costs over time, including lower subscriber-related expenses.
Guidance also includes eventual ad synergies tied to the migration of the Fubo service’s ad inventory to the Disney ad server.