FuboTV Swings to Profit on Litigation Gain, Revenue Stagnates

TL;DR

**FuboTV's 'profit' is a mirage from a lawsuit payout; don't get fooled, operational losses persist.**

AI Summary

FuboTV Inc. reported a significant turnaround in its financial performance for the nine months ended September 30, 2025, achieving a net income of $161.596 million, a substantial improvement from a net loss of $135.159 million in the same period of 2024. This positive shift was primarily driven by a $219.539 million gain on settlement of litigation. Total revenues for the nine months ended September 30, 2025, were $1.173 billion, a slight decrease from $1.179 billion in 2024, with subscription revenue at $1.094 billion and advertising revenue at $74.118 million. Operating loss narrowed considerably to $51.570 million for the nine months ended September 30, 2025, down from $157.620 million in 2024, largely due to a decrease in subscriber-related expenses by $88.939 million. The company's cash and cash equivalents increased to $274.150 million as of September 30, 2025, from $161.435 million at December 31, 2024. Total shareholders' equity more than doubled to $390.741 million from $180.782 million over the same period, reflecting improved financial health. However, the company still incurred a net loss of $18.866 million for the three months ended September 30, 2025, indicating ongoing challenges in achieving consistent quarterly profitability without one-time gains.

Why It Matters

This 10-Q reveals FuboTV's significant one-time gain from litigation settlement, which masked a slight revenue decline and continued quarterly losses. For investors, this means the reported net income isn't indicative of sustainable operational profitability, raising questions about long-term value creation in a highly competitive streaming market dominated by giants like Netflix and Disney+. Employees might face continued pressure to improve efficiency and subscriber growth, while customers could see pricing adjustments or content shifts as FuboTV navigates its path to consistent profitability. The broader market will watch if FuboTV can leverage its improved balance sheet to innovate and compete effectively, or if it remains a niche player struggling against well-capitalized rivals.

Risk Assessment

Risk Level: high — FuboTV reported a net income of $161.596 million for the nine months ended September 30, 2025, but this was primarily due to a one-time 'Gain (loss) on settlement of litigation, net' of $219.539 million. Without this gain, the company would have reported a significant net loss, similar to the $135.159 million loss in the prior year. Furthermore, the company still posted an operating loss of $51.570 million for the nine months and a net loss of $18.866 million for the three months ended September 30, 2025, indicating ongoing operational challenges and a reliance on non-recurring events for profitability.

Analyst Insight

Investors should exercise caution and look beyond the headline net income figure. Focus on FuboTV's core operational metrics, particularly subscriber growth, average revenue per user, and the trajectory of subscriber-related expenses. Consider this a 'hold' for existing investors, but new investors should wait for clear evidence of sustainable operational profitability before taking a position.

Financial Highlights

debt To Equity

2.07

revenue

$1,173,449,000

operating Margin

-4.4%

total Assets

$1,198,855,000

total Debt

$586,298,000

net Income

$161,596,000

eps

N/A

gross Margin

N/A

cash Position

$274,150,000

revenue Growth

-0.5%

Revenue Breakdown

Key Numbers

• $161.596M — Net Income (For the nine months ended September 30, 2025, a significant improvement from a $135.159M loss in 2024.)
• $219.539M — Gain on Litigation Settlement (Primary driver of the reported net income for the nine months ended September 30, 2025.)
• $1.173B — Total Revenues (For the nine months ended September 30, 2025, a slight decrease from $1.179B in 2024.)
• $51.570M — Operating Loss (For the nine months ended September 30, 2025, a substantial reduction from $157.620M in 2024.)
• $18.866M — Net Loss (For the three months ended September 30, 2025, indicating ongoing quarterly operational challenges.)
• $274.150M — Cash and Cash Equivalents (As of September 30, 2025, an increase from $161.435M at December 31, 2024.)
• $390.741M — Total Shareholders' Equity (As of September 30, 2025, more than doubled from $180.782M at December 31, 2024.)
• $88.939M — Decrease in Subscriber Related Expenses (From $1,004.361M in 2024 to $915.422M in 2025 for the nine-month period, contributing to reduced operating loss.)

Key Players & Entities

• FuboTV Inc. (company) — Registrant for the 10-Q filing
• New York Stock Exchange (regulator) — Exchange where Class A Common Stock is registered
• Google Cloud Platform (company) — Third-party service provider for FuboTV's operations
• Amazon Web Services (company) — Third-party service provider for FuboTV's operations
• Hulu Live (company) — Business integrated with historical Fubo business
• SEC (regulator) — Securities and Exchange Commission
• $161.596 million (dollar_amount) — Net income for the nine months ended September 30, 2025
• $219.539 million (dollar_amount) — Gain on settlement of litigation for the nine months ended September 30, 2025
• $1.173 billion (dollar_amount) — Total revenues for the nine months ended September 30, 2025
• $51.570 million (dollar_amount) — Operating loss for the nine months ended September 30, 2025

FAQ

Risk Factors

• Dependence on Litigation Settlements [high — financial]: The company's net income for the nine months ended September 30, 2025, was significantly boosted by a $219.539 million gain on settlement of litigation. This highlights a potential over-reliance on one-time events for profitability, as the company still reported an $18.866 million net loss for the three months ended September 30, 2025.
• Subscriber Acquisition and Retention Costs [medium — operational]: While subscriber-related expenses decreased by $88.939 million to $915.422 million for the nine months ended September 30, 2025, compared to $1,004.361 million in 2024, these costs remain substantial. Managing these expenses effectively is crucial for achieving sustainable profitability.
• Competitive Streaming Landscape [high — market]: The streaming industry is highly competitive, with numerous players vying for subscriber attention. FuboTV faces challenges in differentiating its service and maintaining subscriber growth against established and emerging competitors.
• Content Licensing and Sports Betting Regulations [medium — regulatory]: FuboTV's business model relies on securing content licenses, which can be costly and subject to negotiation. Additionally, expansion into sports betting is subject to evolving and varying state-level regulations, posing compliance risks.
• Cash Burn and Future Funding Needs [medium — financial]: Despite an increase in cash and cash equivalents to $274.150 million as of September 30, 2025, the company has historically experienced significant cash burn. Future profitability and potential need for additional funding remain key considerations.
• Technology and Development Investments [medium — operational]: Continued investment in technology and development is necessary to enhance the user experience and platform capabilities. However, these investments contribute to operating expenses and need to be balanced with profitability goals.
• Past Litigation and Potential Future Disputes [medium — legal]: The significant gain from a litigation settlement in the current period underscores the company's history with legal disputes. While this specific settlement was favorable, it indicates potential for future legal challenges that could impact financial performance.
• Advertising Revenue Volatility [low — market]: Advertising revenue decreased by 8.3% for the nine months ended September 30, 2025. This segment is susceptible to economic downturns and shifts in advertiser spending, adding to revenue uncertainty.

Industry Context

The live TV streaming market remains highly competitive, characterized by a constant battle for subscriber acquisition and retention. Major media companies and technology giants continue to invest heavily in content and platform development, increasing pressure on smaller players like FuboTV. Trends include the bundling of services, the rise of FAST (Free Ad-Supported Streaming TV) channels, and increasing consumer price sensitivity.

Regulatory Implications

FuboTV operates in an environment with evolving regulations, particularly concerning content licensing and, if applicable, sports betting operations. Compliance with these regulations is crucial to avoid penalties and maintain operational continuity. Changes in media ownership rules or data privacy laws could also impact the company's business model.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Nine Months Reporting Period — Reported significant net income driven by litigation settlement, narrowing operating loss, and increased cash and equity.
• 2025-09-30: End of Third Quarter Reporting Period — Reported a net loss for the quarter, indicating ongoing challenges in achieving consistent profitability.
• 2024-12-31: End of Fiscal Year 2024 — Previous period's financial position for comparison, showing lower cash and equity.

Glossary

Accumulated deficit

The total net losses of a company since its inception, minus any net profits. (FuboTV has a significant accumulated deficit of ($1,856,199,000) as of September 30, 2025, indicating historical unprofitability, though it has decreased from the prior year.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair market value of its net identifiable assets. (FuboTV has substantial goodwill ($631,052,000 as of September 30, 2025), suggesting significant past acquisitions, which carries impairment risk.)

Right-of-use assets

Assets representing a lessee's right to use an underlying asset for the lease term under a lease agreement. (These assets ($28,862,000 as of September 30, 2025) relate to FuboTV's lease obligations, such as for office space or broadcast facilities.)

Convertible notes, net

Debt securities that can be converted into a predetermined amount of the issuer's equity. (FuboTV has significant convertible notes, both current ($144,382,000) and long-term ($186,899,000) as of September 30, 2025, which represent future potential dilution for shareholders.)

Non-controlling interest

The portion of equity in a subsidiary that is not attributable to the parent company. (FuboTV reports a non-controlling interest of ($11,352,000) as of September 30, 2025, indicating ownership stakes in subsidiaries not fully owned by FuboTV.)

ARPU

Average Revenue Per User, a metric used to measure the revenue generated per user over a specific period. (While not explicitly stated in the provided text, ARPU is a key driver for subscription revenue growth in the streaming industry and likely influenced the slight increase in subscription revenue.)

Operating loss

The loss a company incurs from its normal business operations before accounting for interest and taxes. (FuboTV significantly reduced its operating loss from ($157.620 million) to ($51.570 million) for the nine-month period, showing operational improvements.)

Gain on settlement of litigation

A financial gain realized when a legal dispute is resolved through a settlement agreement. (This was the primary driver of FuboTV's net income for the nine months ended September 30, 2025, totaling $219.539 million.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, FuboTV reported a substantial turnaround in net income, largely due to a $219.539 million litigation settlement gain, shifting from a net loss of $135.159 million in the prior year. Total revenues saw a slight decrease of 0.5% to $1.173 billion. Operating expenses were reduced significantly, leading to a narrowed operating loss of $51.570 million from $157.620 million. Cash and cash equivalents increased by $112.715 million, and total shareholders' equity more than doubled, indicating improved financial health. However, the company still posted a net loss of $18.866 million in the most recent quarter, suggesting ongoing operational challenges.

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share FUBO New York Stock Exchange

Filing Documents

• fubo-20250930.htm (10-Q) — 1934KB
• fubo-20250930xexx311.htm (EX-31.1) — 9KB
• fubo-20250930xexx312.htm (EX-31.2) — 10KB
• fubo-20250930xexx321.htm (EX-32.1) — 7KB
• 0001628280-25-048241.txt ( ) — 9647KB
• fubo-20250930.xsd (EX-101.SCH) — 58KB
• fubo-20250930_cal.xml (EX-101.CAL) — 102KB
• fubo-20250930_def.xml (EX-101.DEF) — 329KB
• fubo-20250930_lab.xml (EX-101.LAB) — 773KB
• fubo-20250930_pre.xml (EX-101.PRE) — 557KB
• fubo-20250930_htm.xml (XML) — 1380KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 1 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 2 Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (unaudited) 6 Notes to Condensed Consolidated Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 47

- OTHER INFORMATION

PART II - OTHER INFORMATION 49 Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 92 Item 3. Defaults Upon Senior Securities 92 Item 4. Mine Safety Disclosures 92 Item 5. Other Information 92 Item 6. Exhibits 93

Signatures

Signatures 96 i Table of Contents BASIS OF PRESENTATION As used in this Quarterly Report on Form 10-Q ("Quarterly Report"), unless expressly indicated or the context otherwise requires, references to "FuboTV Inc.," "Fubo," "we," "us," "our," "the Company," and similar references refer (i) prior to the consummation of the Conversion and Business Combination (each as defined below), to fuboTV Inc., a Florida corporation, and its consolidated subsidiaries, and (ii) after the consummation of the Conversion and Business Combination, to FuboTV Inc., a Delaware corporation, and its consolidated subsidiaries.

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions, generally relate to future events or our future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as "believe," "may," "will," "estimate," "continue," "anticipate," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "should," "would," "target," "project," "contemplate," or the negative version of these words and other comparable terminology that concern our expectations, strategy, plans, intentions, or projections. Forward-looking statements contained in this Quarterly Report include, but are not limited to, statements regarding our future results of operations and financial position, anticipated cash requirements, industry and business trends, stock-based compensation, revenue recognition, business strategy, plans and market growth, legal proceedings, and our objectives for future operations, including related to investment in our technologies and data capabilities, subscriber acquisition strategies, strategic partnerships, impacts of the dissolution of our gaming business, the Business Combination (as defined below) and anticipated benefits therefrom, and our international operations. We have based the forward-looking statements contained in this Quarterly Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in Part II,

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FuboTV Inc. Condensed Consolidated Balance Sheets (in thousands, except for share and per share information) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 274,150 $ 161,435 Accounts receivable, net 83,439 71,078 Prepaid sports rights 28,564 24,821 Prepaid and other current assets 15,656 16,699 Total current assets 401,809 274,033 Property and equipment, net 5,777 6,080 Restricted cash 6,148 6,137 Intangible assets, net 113,954 133,703 Goodwill 631,052 615,399 Right-of-use assets 28,862 31,837 Other non-current assets 11,253 10,239 Total assets $ 1,198,855 $ 1,077,428 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 40,730 $ 67,844 Accrued expenses and other current liabilities 279,333 335,967 Notes payable 7,597 7,024 Deferred revenue 102,217 98,421 Convertible notes, net - current portion 144,382 — Long-term borrowings - current portion 704 1,042 Current portion of lease liabilities 3,723 5,024 Total current liabilities 578,686 515,322 Convertible notes, net 186,899 332,383 Lease liabilities 30,316 32,951 Other long-term liabilities 12,213 15,990 Total liabilities 808,114 896,646 COMMITMENTS AND CONTINGENCIES (Note 14) Shareholders' equity: Common stock par value $ 0.0001 : 1,000,000,000 and 1,000,000,000 shares authorized at September 30, 2025 and December 31, 2024, respectively ; 342,664,855 and 339,144,854 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 34 34 Additional paid-in capital 2,246,744 2,219,002 Accumulated deficit ( 1,856,199 ) ( 2,017,796 ) Non-controlling interest ( 11,352 ) ( 15,588 ) Accumulated other comprehensive income (loss) 11,514 ( 4,870 ) Total shareholders' equity $ 390,741 $ 180,782 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,198,855 $ 1,077,428 The accompanying notes are an integral part of these unaudited condensed consolidated financ