fuboTV Sets $300 Million EBITDA Target for 2028, Projects Positive Cash Flow

Sports-focused streaming company fuboTV published its first formal long-term financial guidance since completing its merger with Disney's Hulu + Live TV business, setting an adjusted EBITDA target of at least $300 million for fiscal 2028 and projecting positive free cash flow by fiscal 2027 without requiring additional financing.

The April 6 shareholder letter and press release from CEO and co-founder David Gandler laid out a sequential profitability path: pro forma adjusted EBITDA of $80 million to $100 million in fiscal 2026, stepping up to $300 million two years later, with at least $200 million in cash and equivalents on hand by the end of September 2026. The company reported pro forma adjusted EBITDA of $59 million in fiscal 2025, meaning the 2026 midpoint target implies roughly 50 percent year-over-year improvement in that metric. Gandler wrote that fuboTV is in "the strongest financial position in our history based on our current outlook."

The architecture of those targets rests heavily on contractual carriage fee arrangements tied to the Hulu + Live TV integration. Under the current structure, wholesale carriage costs are covered at 95 percent in fiscal 2026, rising to 97.5 percent in fiscal 2027 and reaching 99 percent in fiscal 2028 and beyond. That contractual staircase gives management an unusual degree of forward visibility into margin expansion, sidestepping the guesswork that typically dogs sports rights negotiations. Management also pointed to planned renegotiations of content deals as existing contracts roll, with scale advantages from the combined platform expected to improve programming economics over time.

The targets carry weight in a sector where the pivot from growth to profitability remains incomplete for most players. Netflix projected first-quarter profit of $3.26 billion on revenue of $12.2 billion, while Disney's combined streaming segment posted $450 million in profit with 72 percent year-over-year growth. Against those benchmarks, fuboTV's $300 million EBITDA goal positions the company as a mid-tier profitability story rather than a large-cap peer, but the comparison underscores the scale of the gap still to be closed and the precision of execution that the 2028 target demands.

Several assumptions embedded in the guidance carry meaningful execution risk. Content renewals negotiated outside the Hulu carriage structure will test whether fuboTV's scale actually translates into pricing leverage with rights holders, particularly in live sports where contract values have continued to climb. Subscriber churn in a crowded live-TV streaming market, where Hulu + Live TV, YouTube TV and others compete aggressively on price and bundle depth, could erode the revenue base that underpins the margin projections. And while the contractual carriage step-ups provide visibility, any structural disruption to the combined platform's wholesale arrangement would materially reshape the EBITDA curve.

fuboTV shares rose on the announcement as investors priced in the clearer near-term profitability timeline. Whether the 2028 number becomes a floor or a ceiling will depend on how cleanly the company executes content renegotiations over the next 18 months, a period that will test whether Gandler's merger rationale holds under competitive pressure.