FuboTV Inc. 2026 Q3 Earnings Call

Good morning. Thank you all for joining us. I'm delighted to be here for my first earnings call as fuboTV's CEO. Before I share my early perspective and highlight some of our third quarter results, I'd like to take a moment to introduce myself to our investors and our analysts. Over the past 25 years, I have built my career in technology, operations, and consumer experience roles in news and streaming at large global media companies. I've led multiple media organizations through periods of significant transformation, helping them adapt to changing industry landscapes, and all with a focus on driving profitable growth. At The Walt Disney Company, I was part of the leadership team that built its global streaming business. I drove the launch of Disney+, and as its president, I helped to scale profitably that business into its market-leading position today.

I also led several relevant business integrations, including the integration of Hulu and Disney+ businesses. I led Disney+'s most recent global push into live events and sports. All these experiences have taught me that periods of disruption often create the greatest opportunities for companies willing to move swiftly and with discipline. They also taught me that the strongest media businesses require three things: compelling content, a product and experience that customers value, and an operating model capable of delivering scale. I joined fuboTV because this company has all three of these attributes, and I'm optimistic it will serve as a robust foundation for growth. While the media landscape broadly remains in a period of significant structural change, the enduring value of live programming, and especially sports, is increasingly clear.

This past quarter alone has shown that live events have a very unique ability to bring audiences together at scale, and we saw significant excitement and engagement around programming like the World Cup and the NBA Finals. At the same time, consumers are becoming more deliberate about how they assemble and pay for their entertainment, creating demand for options that range from comprehensive channel packages to more targeted and flexible offerings. Against that backdrop, I really believe fuboTV enters this next chapter with a compelling business model for profitable growth that will drive long-term shareholder value. Let me tell you why. First, in an environment where live TV is still a must-have, we operate in a sweet spot.

We bring to market two live TV streaming services, Hulu + Live TV and Fubo, that between them offer customers premium content, differentiated product quality, and the flexibility to bundle a well-priced plan that's right for them. We think Hulu + Live TV and Fubo's array of plan options gives us coverage for different customers all along the price to value curve and can maximize our reach. Second, since the combination with Hulu + Live TV last fall, fuboTV has reached a new inflection point and now has the increased scale Content relationships that drive customer optionality, and the ability to leverage industry-leading advertising technology via Disney that positions us to better monetize our entire offering. Third, Fubo does this on a technology platform that provides one of the most innovative user experiences in live TV.

Altogether, these strengths give us an opportunity to compete more effectively and deliver an increasingly differentiated experience for subscribers. While I'm continuing to work with the business on our future strategy, our performance this quarter has reinforced my confidence in both the quality of the foundation and the long-term potential. As I look to a few of the Q3 highlights, there are several areas of success that I see we will continue to build upon. First and foremost, we saw strong subscriber performance in the third quarter, reflecting our ability to attract and engage audiences around major live events like the NBA Finals and the World Cup. The 2026 World Cup, which concluded two and a half weeks ago, was a testament to the strength, innovation, and value of our programming.

Across our portfolio of offerings, we streamed content in both English via Fox and in Spanish via Telemundo and Universo, thanks to our renewed partnership with NBCUniversal on the Fubo service. Over the course of the tournament, our total subscriber base grew, and there was notable strength in our enhanced Spanish language offerings and the Fubo-branded services. While we expect some attrition, the World Cup was ultimately a powerful vehicle for introducing new, high-quality subscribers to our Fubo platform. Our previously announced inclusion of links from ESPN's Where to Watch feature to Fubo is also off to a promising start. Since its launch, customers referred to Fubo from ESPN have been converting from free trials to paid subscriptions at a higher rate than customers acquired from other channels and are showing favorable early retention indicators.

We're continuing to work on new ways to bring ESPN's highly engaged sports fans to Fubo's offerings. In a similar vein, we believe that Disney's progress towards integrating Hulu into Disney+, including the planned live TV integrations, will be another positive step in this direction. Finally, since migrating our advertising inventory to the Disney Ad Server, we've already achieved monetization improvements on the Fubo platform, with double-digit increases in CPM and fill rates compared to last year. This initiative is still only in its early stages, but with Disney's world-class advertising technology and data targeting capabilities, we believe our opportunity to improve the monetization of our direct-to-consumer engagement is sizable. This year, fuboTV was included in Disney's advertising upfront for the first time, marking another important milestone in our relationship with Disney.

I took this role because I believe that fuboTV is a fundamentally differentiated leader in the virtual vMVPD space. My first few weeks have affirmed my views that there is significant runway to scale this business further. As we look to this next phase of growth, I've been spending my time with the talented leaders and teams across fuboTV to better understand the strengths of our organization and where our greatest prospects lie. I want to ensure that the path forward is grounded in a clear assessment of our capabilities, the market, and in the interests of all of our stakeholders, including our shareholders, subscribers, content partners, and our advertisers. My vision is beginning to take shape in four strategic areas that I believe will deepen Fubo's strengths and pave the way to profitable growth.

One, optimizing our pricing and packaging segmentation to drive the appropriate flexibility, choice, and value that today's viewers demand. Two, expanding our content portfolio with our world-class partners to diversify our offering and better serve the broader market. Three, developing our distribution and marketing partnerships to maximize the scale and total breadth of audiences served by our portfolio of Fubo and Hulu + Live TV products. Four, continuing to invest in innovation, technology, and AI to improve our leading user experience, enhance customizations for viewers and advertisers, and increase our speed to market. There is still a lot of work to do to formalize our approach and execution, and I look forward to providing an update on these plans on our November earnings call.

Lastly, as we continue this important work, Alberto Horihuela, fuboTV's Co-founder and Chief Operating Officer, will begin a long-term transition from his current role into a new senior advisor role towards the end of the year. As a part of this transition, Alberto will remain with Fubo in the new role of Founder Advisor through all of 2027, continuing to work closely with me and the broader management team to refine and execute our long-term operating strategy. With that, I'll turn the call over to John to walk us through our Q3 results.

Thank you, Alisa. We are excited to begin this next chapter in our company's history. The third quarter of fiscal 2026 marked our second full quarter as a combined company following the close of our business combination with Hulu + Live TV. As a reminder, to facilitate comparability between periods, we will discuss our results on both an as-reported and a pro forma basis, which gives effect to the transaction as if it had been completed at the beginning of the first period presented. Turning to the results for the quarter. In North America, our revenue for the third quarter was $1.474 billion, compared to $1.074 billion in the prior year period. Pro forma revenue in the prior year period was $1.475 billion, approximately flat year-over-year.