Fubo Targets $300 Million Adjusted EBITDA by 2028 on Strengthened Financial Position
FuboTV Inc. (NYSE:FUBO) just drew a new roadmap for investors, projecting Adjusted EBITDA of $80–$100 million in Fiscal 2026 and targeting at least $300 million by Fiscal 2028. In a shareholder letter, CEO David Gandler stressed that the company is in its strongest financial position to date—citing a clear trajectory toward profitability, robust cash reserves, and no plans for equity dilution despite a recent reverse stock split.
Cash Flow Turns Positive in 2027, Debt Under Control
Fubo’s strategy includes reaching positive free cash flow in Fiscal 2027, with expectations of maintaining that momentum in 2028. The company forecasts ending Fiscal 2026 with at least $200 million in cash and cash equivalents. Debt remains manageable with current obligations of $323 million and no maturities until 2029—while its 2029 bonds trade near par, an indicator of market confidence in its credit profile.
| Fiscal Year | Pre-Combination Net Loss ($M) | Pro Forma Net Loss ($M) | Adjusted EBITDA ($M) |
|---|---|---|---|
| 2022 | -424.57 | — | -321.80 |
| 2023 | -317.98 | — | -226.31 |
| 2024 | -207.89 | — | -127.51 |
| 2025 | 120.66 | -178.03 | 58.52 |
Margin Expansion, Contractual Upside, and Content Strategies
A key driver behind Fubo’s outlook: expanding wholesale fee agreements with Hulu + Live TV. The company’s wholesale fee ratio increases from 95% in 2026 to 99% by 2028, giving strong visibility into future earnings. Guidance also factors in expected margin improvement from contract renewals and ad tech synergies as Fubo integrates Disney’s ad platform.
Cost management is center stage with planned reductions in content costs as scale increases. Notably, while Fubo’s own service no longer includes NBCUniversal content, the company leverages its relationship with Hulu + Live TV to retain and cross-market to sports and entertainment viewers, as demonstrated with expanded MLB coverage this season—including all three New York RSNs and LA Dodgers games.
No Need for New Equity: Reverse Split About Market Access, Not Dilution
Addressing shareholder concerns, the company reiterated it has no immediate plans for new equity issuance. The recent reverse split, management emphasized, was designed to attract a broader institutional investor base, align the share count, and bolster long-term capital markets access—not to raise further capital.
Compounded Growth and Investor Takeaways
At the core of Fubo’s vision is an 80%+ CAGR for Adjusted EBITDA between 2026 and 2028, driven by operational discipline, a growing subscriber base, and contractual revenue streams. In the words of CEO David Gandler, “Our financial stability, which we do not believe is reflected in our stock price, has continued to improve. Importantly, this is a trajectory that we expect to continue.”
For investors, the key question: will market sentiment eventually reflect Fubo’s confident outlook and improving financials? With no major debt maturities until 2029, rising cash flows, and a runway for margin growth, Fubo’s next earnings call and integration progress with Hulu + Live TV could offer more clues about whether this confidence translates to valuation—and, ultimately, shareholder returns.
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