Fubo Shares Surge 8% as Q2 Net Loss Narrows Despite Revenue Decline

Fubo shares experienced a notable increase following the announcement of preliminary second-quarter results that suggest a narrowing net loss despite expectations of lower overall revenues. The sports-centric streaming platform projected Q2 total revenue for North America to surpass $365 million, compared to $382.7 million in the corresponding period of 2024. Additionally, the company anticipated a second-quarter net loss of around $8 million, an improvement from the previous year's net loss of $28.4 million for the same quarter.

Pre-market trading on Tuesday saw Fubo shares climb by 27 cents, or nearly 8 percent, reaching $3.80 after the release of its preliminary earnings figures. The streamer foresaw its Q2 subscriber base surpassing 1.35 million paid users, down from the 1.47 million recorded in Q1 of 2025. Furthermore, Fubo's global streaming business is expected to exceed the revenue and subscriber projections made in Q1 2025. Despite these promising figures, the company has decided to "pause" guidance for prospective outcomes as the proposed merger between Walt Disney's Hulu With Live TV and Fubo progresses towards completion.

The merger aims to establish a robust contender in the virtual multichannel video provider market, positioning itself to compete vigorously against YouTube TV. Once finalized, the new entity will operate under the Fubo name and be publicly traded. Disney will hold a 70 percent stake, appointing a majority of the board. The current management team, including co-founder and CEO David Gandler, will remain at the helm of the combined enterprise. Fubo is slated to release its complete second-quarter financial results on August 8.

The accelerated timeline for closing the merger with Disney has seen anticipation shift to the fourth quarter of this year or the beginning of 2026, pending regulatory approval from the Department of Justice. Fubo's shareholders need to authorize the merger, with the meeting date yet unspecified. Initially, the transaction was expected to wrap up in H1 of 2026. The agreement, formalized in January amid a legal dispute over a sports streaming venture called Venu, will allow Disney to attain majority ownership of the consolidated entity. As a result, Venu’s launch was delayed and eventually abandoned following a legal settlement with Fubo.

Post-merger, Fubo and Hulu With Live TV will continue as separate consumer offerings. Hulu With Live TV will remain in the Hulu app and be accessible as part of the larger bundle with Hulu, Disney+, and ESPN+. Meanwhile, Fubo will retain its operations within its proprietary app. The merger agreement permits Fubo to initiate a new Sports & Broadcast service that features Disney’s sports and broadcast channels, such as ABC and ESPN, and ESPN+, contingent on the merger’s outcome.

Ahead of the merger, pro forma financials for March 2025 projected combined total revenue of $1.56 billion, comprising $1.12 billion from Hulu + Live TV and $416 million from Fubo. The entity reported operating expenses of $1.64 billion, leading to an operating loss of $85 million. Notably, the pro forma net income reflected a substantial $134.8 million gain, bolstered by a $220 million benefit from the settlement with Disney and associated partners.

In late July 2025, Fubo unveiled a multi-year partnership with Weigel Broadcasting, introducing seven entertainment and sports networks while improving its earnings forecast for Q2 2025. The agreement showcased Fubo's capability in content enhancement across key markets and highlighted its progress in reducing net losses, projected at approximately $8 million—a substantial improvement over the corresponding period's loss in the previous year.

Fubo's strategic international expansion, announced recently, aims to bolster its user base and revenue streams further. Analysts speculate this move could significantly impact its growth by entering new markets with tailored offerings. Nevertheless, the company must address risks related to operational efficiency and potential overextension.

Fubo's ambitions reflect ongoing efforts to fortify its position amidst competitive pressures and evolving consumer preferences. As the landscape of streaming platforms remains dynamic, Fubo's strategic decisions will be critical as it navigates growth opportunities and financial sustainability. The focus remains on optimizing subscriber retention while expanding its service footprint in these new territories.