Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Needham maintained its Buy rating and $4.25 price target on fuboTV (NYSE:FUBO) following the company’s second-quarter earnings report. According to InvestingPro data, the stock is currently trading near its Fair Value, with a market capitalization of $1.33 billion.
The streaming platform reported second-quarter revenue of $380 million, representing a 3% year-over-year decline but exceeding Needham’s estimate by 2%. FuboTV lost 119,000 global subscribers during the quarter, a 102% decline compared to the same period last year, though this was 10% better than anticipated. The company’s trailing twelve-month revenue stands at $1.64 billion, with a gross profit margin of 15%.
North American average revenue per user (ARPU) increased 3% to $81.57 per month, while rest-of-world ARPU decreased 3% to $6.54. The company’s pending transaction with Disney (NYSE:DIS) is expected to close in the fourth quarter of 2025 or first quarter of 2026. Notable is fuboTV’s impressive year-to-date return of 193.65%. Get deeper insights into fuboTV’s performance metrics and 12+ additional ProTips with InvestingPro.
Needham believes fuboTV’s value proposition will shift toward bundling, marketing strategies, and technology-focused user experience after the Disney deal closes. The firm notes fuboTV will gain extensive sports rights through the transaction.
The research firm expects higher returns on invested capital for fuboTV with this business focus and believes the company will no longer face financial distress risk, improving the overall risk/reward profile for investors.
In other recent news, FuboTV announced its Q2 2025 earnings, delivering a surprising EPS of $0.05, which outperformed the anticipated -$0.05. The company’s revenue also surpassed expectations, reaching $371.3 million against the projected $353.72 million. Despite these positive financial results, the market responded with caution, partly due to a decline in North American subscribers. Analysts noted the mixed signals from the earnings call, which may have contributed to the subdued market reaction. There were no reports of any mergers or acquisitions involving FuboTV during this period. Additionally, no significant analyst upgrades or downgrades were noted for the company. These recent developments highlight the complexities of FuboTV’s current market position.
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