FuboTV Earnings Beat Amid Revenue Drop: What Retail Investors Should Know

• FuboTV (NYSE:FUBO) reported Q3 2025 earnings of $377.2 million, a 2.3% decline year over year, but exceeded revenue, EPS, and EBITDA estimates by 4.9%, 4.4%, and 9.1%, respectively according to earnings data.
• Despite the earnings beat, the stock has fallen 28.9% since the report and currently trades at $2.69, reflecting investor concerns about revenue contraction and subscriber attrition as reported.
• FuboTV lost access to NBCUniversal channels due to a failed multi-year deal, which could impact subscriber retention and ad revenue during key sports seasons according to industry analysis.
• FuboTV repurchased $140.2 million in 2026 convertible notes to reduce conversion risk, but this move does not address core issues like declining revenue and high operating costs as financial data shows.
• FuboTV trades at a P/E ratio of 8.33 and a P/S ratio of 0.55, significantly below industry averages, indicating market skepticism about the durability of its profits according to stock analysis.
• Free cash flow yield is strong at 14.84%, but liquidity concerns, including a current ratio of 0.69 and a debt-to-equity ratio of 0.93, remain key red flags for investors as financial metrics indicate.
• The next earnings report on February 27, 2026 will be critical for investor sentiment, with a focus on EBITDA margin trends, subscriber churn rates, and ad revenue momentum according to analyst commentary.

FuboTV's recent earnings report highlights the company's improved cost management and profitability amid a challenging streaming landscape. Despite a 2.3% revenue decline, the company managed to beat analysts' expectations on multiple metrics. This performance demonstrates that FuboTV is tightening its cost structure and optimizing its operational efficiency. However, these gains have not translated into strong investor confidence, as the stock has fallen 28.9% since the report. The disconnect between financial results and stock price points to broader concerns about the company's long-term sustainability. FuboTV's subscriber attrition and high operating costs remain significant issues, and the loss of NBCUniversal channels further complicates its ability to retain users and generate advertising revenue. The company's repurchase of $140.2 million in 2026 convertible notes is a positive move for capital structure, but it does not address the core problem of declining revenue. For now, investors are watching closely for signs that FuboTV can stabilize its subscriber base, secure new content deals, and maintain its earnings momentum. The next earnings report will be a key event to determine whether the company can build on its Q3 performance and address these structural challenges.

Why Did FuboTV (NYSE:FUBO) Report Strong Earnings Despite a Revenue Decline?

FuboTV's Q3 earnings beat analysts' expectations despite a 2.3% revenue decline due to strong cost control and operational efficiency. The company managed to exceed revenue, EPS, and EBITDA forecasts by 4.9%, 4.4%, and 9.1%, respectively according to earnings data. This performance highlights FuboTV's ability to manage its expenses and improve its profitability, even in a difficult market. The streaming sector faces intense competition and high content costs, and FuboTV's ability to control its burn rate and maintain margins is a positive sign for its long-term viability. The company's improved unit economics also suggest that it is generating more value from each subscriber, which is a key metric for streaming services. That said, the revenue decline raises questions about the sustainability of the company's business model and its ability to grow its user base. FuboTV's focus on live sports and news content is a strategic differentiator, but it also makes the company vulnerable to content disputes and carriage issues. The loss of NBCUniversal channels is a case in point, as it could hurt subscriber retention during key sports seasons. For now, investors are weighing the positives of FuboTV's Q3 performance against the risks of its business model and market position.

Is FuboTV (NYSE:FUBO) Stock a Buy at Current Levels?

FuboTV's stock is trading at a significant discount to industry peers, with a P/E ratio of 8.33 and a P/S ratio of 0.55. This valuation suggests that the market is skeptical about the durability of the company's profits and the long-term sustainability of its business model according to stock analysis. Some analysts, like Benzinga and Simply Wall St, argue that the stock is undervalued, with a fair value estimate near $4.50 compared to recent trading levels between $2.50 and $2.70 as reported. However, others remain cautious due to the company's liquidity concerns and high leverage. The current ratio of 0.69 and a debt-to-equity ratio of 0.93 highlight potential risks related to the company's balance sheet according to financial metrics. At the same time, FuboTV's free cash flow yield is strong at 14.84%, and the company has demonstrated an ability to manage its operating expenses effectively. These factors suggest that FuboTV has the potential to improve its financial performance and reduce its debt burden over time. However, the key question for investors is whether the company can stabilize its revenue and subscriber base while maintaining profitability. The next earnings report on February 27, 2026 will be a critical test of FuboTV's ability to sustain its margins and grow its business. If the company can deliver continued strong performance and address its structural challenges, the valuation discount may narrow, and the stock could become more attractive to long-term investors.