5 days ago
FuboTV Inc (FUBO) Q2 2025 Earnings Call Highlights: A Milestone Quarter with Positive Adjusted ...
North America Revenue: $371 million, down 3% year over year.
North America Paid Subscribers: 1,356,000, down 6.5% year over year.
Rest of World Revenue: $8.7 million, up 4.7% year over year.
Rest of World Paid Subscribers: 349,000, down 12.5% year over year.
Ad Revenue in North America: $25.5 million, a 2% year-over-year decline.
Net Loss: $8 million or $0.02 per share, compared to a loss of $25.8 million or $0.08 per share a year ago.
Adjusted EBITDA: $20.7 million, marking the first quarter of positive adjusted EBITDA.
Net Cash Used in Operating Activities: $34.6 million.
Free Cash Flow: Negative $37.7 million, a decline of $2.4 million year over year.
Cash, Cash Equivalents, and Restricted Cash: Over $285 million at the end of the quarter.
Warning! GuruFocus has detected 5 Warning Sign with FUBO.
Release Date: August 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
FuboTV Inc (NYSE:FUBO) reported its first quarter of positive adjusted EBITDA, marking a significant milestone for the company.
The global streaming business exceeded both revenue and subscriber expectations in the second quarter.
FuboTV Inc (NYSE:FUBO) launched a pay-per-view feature, expanding its reach and creating a pathway to convert casual viewers into subscribers.
The company formed a content partnership with DAZN, enhancing its sports streaming offerings and increasing visibility.
FuboTV Inc (NYSE:FUBO) introduced personalized features like Catch Up To Live and Game Highlights, optimizing the live sports viewing experience.
Negative Points
North America revenue decreased by 3% year over year, and paid subscribers declined by 6.5%.
In the Rest of World, paid subscribers fell by 12.5% year over year.
Ad revenue in North America declined by 2% due to the loss of certain ad-insertable content.
Free cash flow declined by $2.4 million year over year to negative $37.7 million.
The company faces a competitive market environment, impacting marketing efforts and subscriber growth.
Q & A Highlights
Q: Congrats on the EBITDA profitability. Can you discuss subscriber expectations for the third quarter, considering the competitive environment and new product launches? A: John Janedis, CFO: July finished in line with expectations for subscribers. With the fall sports season approaching, we expect a typical seasonal uptick and reactivations. The market is competitive, so we focus on subscriber acquisition cost (SAC) conversion and churn. David Gandler, CEO: We see strong retention in our core English product and believe efficient marketing will lead to greater retention into the football season.
Q: Can you update us on the French acquisition and its impact on Fubo? A: David Gandler, CEO: The acquisition has integrated our technology teams, enhancing our technology stack. We are discussing significant sports rights in France, which we expect to come online soon. We haven't yet provided Molotov with our ad technology, but plan to do so by the end of Q4 2025 or early 2026.
Q: How are ad trends performing, and is the Fubo Sports Network FAST channel offsetting any declines? A: John Janedis, CFO: Auto softness continues, but overall ad decline isn't significant. Retail e-commerce and tech categories are strong. The FAST channels contribute high single digits to ad revenue and are growing in strong double digits, providing a modest positive tailwind.
Q: Without guidance this quarter, what is the directional trend for EBITDA? A: John Janedis, CFO: Our business is seasonal, with Q2 typically being the strongest for adjusted EBITDA. In the back half of the year, while we grow subs, marketing costs also increase. Normal seasonal trends for profitability should continue.
Q: What were the factors behind the revised subscriber guidance for Q2? A: John Janedis, CFO: We exceeded the original guide by about 100,000 subscribers due to strong interest in the Latino product after a price reduction and better retention trends. David Gandler, CEO: Despite losing content partners like Warner Bros. Discovery and Univision, we've seen strong conversion on Latino packages and stabilized the advertising business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
