Live sports and TV streaming service fuboTV (NYSE:FUBO) fell short of the market’s revenue expectations in Q1 CY2025 as sales rose 3.5% year on year to $416.3 million. Its non-GAAP loss of $0.02 per share was $0.01 above analysts’ consensus estimates.
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fuboTV (FUBO) Q1 CY2025 Highlights:
- Revenue: $416.3 million vs analyst estimates of $584 million (3.5% year-on-year growth, 28.7% miss)
- Adjusted EPS: -$0.02 vs analyst estimates of -$0.03 ($0.01 beat)
- Adjusted EBITDA: -$1.42 million vs analyst estimates of -$6.23 million (-0.3% margin, 77.2% beat)
- Operating Margin: -6.1%, up from -15.7% in the same quarter last year
- Free Cash Flow was $157.7 million, up from -$67.39 million in the same quarter last year
- Domestic Subscribers: 1.47 million, down 41,000 year on year
- Market Capitalization: $1.00 billion
Company Overview
Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, fuboTV grew its sales at an incredible 57.5% compounded annual growth rate. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. fuboTV’s annualized revenue growth of 22.5% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
We can better understand the company’s revenue dynamics by analyzing its number of domestic subscribers and international subscribers, which clocked in at 1.47 million and 354,000 in the latest quarter. Over the last two years, fuboTV’s domestic subscribers averaged 13.4% year-on-year growth while its international subscribers were flat. 
This quarter, fuboTV’s revenue grew by 3.5% year on year to $416.3 million, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 33.6% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and indicates its newer products and services will fuel better top-line performance.
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Operating Margin
Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.
fuboTV’s operating margin has risen over the last 12 months, but it still averaged negative 13.9% over the last two years. This is due to its large expense base and inefficient cost structure.
This quarter, fuboTV generated a negative 6.1% operating margin. The company's consistent lack of profits raise a flag.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although fuboTV’s full-year earnings are still negative, it reduced its losses and improved its EPS by 59.7% annually over the last four years. The next few quarters will be critical for assessing its long-term profitability.
In Q1, fuboTV reported EPS at negative $0.02, up from negative $0.11 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast fuboTV’s full-year EPS of negative $0.16 will reach break even.
Key Takeaways from fuboTV’s Q1 Results
fuboTV's revenue missed significantly. While EBITDA beat, it was not enough for the market to get excited, and the stock traded down 1.9% to $2.85 immediately following the results.
Is fuboTV an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.