Fubo, the live television streaming company that completed a major business combination with Hulu + Live TV late last year, has released new financial projections that signal a clear shift toward sustained profitability and improved cash generation. Saying the company is Cash Flow Positive does not mean it is profitable, though.
The announcement on April 6, 2026, outlines specific targets for adjusted EBITDA in the current fiscal year and sets ambitious longer-term goals through fiscal 2028. These figures come as the combined entity, which operates both the sports-focused Fubo service and the broader Hulu + Live TV platform, works to capitalize on greater scale following the transaction with Disney.
For fiscal 2026, which ends in September, Fubo provided pro forma adjusted EBITDA guidance in the range of 80 million dollars to 100 million dollars. Pro forma results incorporate the performance of both businesses as if the merger had occurred earlier. The company also projected ending the fiscal year with at least 200 million dollars in cash and cash equivalents. Management indicated that, under the current operating plan, no additional outside financing would be required through fiscal 2028.
Looking further ahead, Fubo set a target of at least 300 million dollars in adjusted EBITDA for fiscal 2028. The company expects to generate positive free cash flow in both fiscal 2027 and 2028. By the end of 2028, the business is projected to reach a net cash position, meaning cash holdings would exceed outstanding debt. Based on the midpoint of the 2026 guidance, this trajectory implies a compounded annual growth rate in adjusted EBITDA exceeding 80 percent over the two-year period.
These targets build on recent progress. In fiscal 2025, the combined businesses on a pro forma basis delivered adjusted EBITDA of 59 million dollars while reporting a net loss of 178 million dollars. Early results from the post-merger period have shown improvement, with pro forma adjusted EBITDA reaching positive territory and nearly doubling year-over-year in the first quarter of fiscal 2026.
The merger, which closed in late October 2025, created one of the larger players in the U.S. pay television market. The combined company now serves approximately 6.2 million subscribers across North America and ranks as the sixth-largest pay TV provider overall. Disney holds roughly 70 percent ownership of the new entity, while original Fubo shareholders retain about 30 percent. The deal also included access to a 145 million dollar term loan from Disney in 2026 and brought together complementary strengths: Fubo’s emphasis on sports programming and Hulu + Live TV’s wider entertainment offerings. Both services continue to operate separately, maintaining their distinct apps and channel lineups.
Several operational factors underpin the improved outlook. A key element involves contractual wholesale fees tied to the Hulu + Live TV carriage costs. These fees are scheduled to increase over time, starting at 95 percent in 2026 and rising to 99 percent by 2028 and beyond. This structure provides predictable revenue visibility and supports margin expansion. Additionally, the company anticipates benefits from migrating advertising inventory to Disney’s ad server, which is expected to drive higher rates and improved fill rates. Content cost optimization represents another opportunity. As legacy programming agreements from both platforms come up for renewal, the larger combined scale should allow for more favorable terms and structurally lower per-subscriber expenses.
Fubo has emphasized disciplined execution in balancing growth with profitability. While subscriber numbers remain an important long-term driver, near-term priorities center on margin improvement and sustainable cash flow. This approach may lead to periods of flat or modestly declining subscriber counts as the company focuses on higher-quality economics rather than aggressive acquisition at any cost. The business has a demonstrated history of annual improvements in net loss and adjusted EBITDA of approximately 100 million dollars in each of the three years leading up to the combination.
Debt management has also strengthened the financial position. The company carries about 323 million dollars in debt obligations, with no maturities until 2029. Recent trading of those bonds near par value reflects growing confidence among credit investors. Cash resources are viewed as sufficient to cover operations, debt service, and targeted investments in growth without the need for dilutive equity raises.
The company recently implemented a reverse stock split. This move was intended to improve market perception and broaden the potential investor base, particularly among institutional holders who may face restrictions on lower-priced securities. It does not alter the underlying business fundamentals, cash position, or long-term earnings potential. Management has stressed that the action was proactive and strategic, aimed at aligning the share structure more closely with the company’s market capitalization and attracting longer-term fundamental investors.
Challenges remain in the competitive live TV streaming landscape. Traditional cable continues to lose subscribers, while rivals such as YouTube TV and standalone services vie for viewers. Content costs, particularly for premium sports rights, stay elevated across the industry. Fubo has navigated specific issues, including the absence of certain NBCUniversal channels on the core Fubo service. However, the combined platform allows cross-promotion, with Hulu + Live TV positioned as an option for customers seeking a more comprehensive lineup. The overall impact on the business has been described as modest given the scale differences between the services.
The latest guidance highlights the strategic benefits of the merger in creating a more resilient virtual multichannel video programming distributor. With enhanced negotiating power, advertising synergies, and contractual tailwinds, Fubo appears positioned to transition from historical cash burn toward consistent profitability. The focus on unit economics and operational efficiency suggests a maturing business model that prioritizes long-term value creation over short-term subscriber metrics.
As the streaming industry consolidates and cord-cutting accelerates, Fubo’s updated financial roadmap provides investors with greater visibility into the path ahead. The projections reflect confidence that scale advantages and execution discipline will drive meaningful expansion in earnings and cash flow over the coming years. While execution risks around content renewals and integration remain, the company has signaled that its financial foundation is now stronger than at any previous point in its history.
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Update: We updated the story that said Fubo would be profitable to make it clear they would be cash flow positive. Fubo asked us to remove a reference to Fubo being profitable.