fuboTV Inc. (FUBO) Income Statement

The dramatic revenue scale-up beginning in 2025Q4 almost certainly reflects a material acquisition rather than organic subscriber or pricing gains, given the simultaneous collapse in gross margin (analyzed below). Post-acquisition, year-over-year growth rates of 2.5-2.9% in the three most recent quarters appear anemic for a business that previously posted 20%+ organic growth. This deceleration, occurring even at the much larger revenue base, suggests management faces a difficult narrative: the acquired revenue stream may not be growing meaningfully, and the pre-existing business may be reaching saturation in its addressable market. Investors should look for disclosure on organic vs. inorganic revenue splits to properly assess growth durability.

The margin compression is not merely cyclical — it reflects a structural shift in revenue composition. Even within the legacy period (2024Q1–2025Q3), gross margins were volatile, ranging from 6.9% to 20.4%, likely reflecting sports programming cost seasonality and content licensing timing. Post-2025Q4, margins appear permanently reset to a 5-8% band, which suggests the acquired business operates on economics more akin to a low-margin distribution intermediary. Compared to sector peers like WBD (28.2% gross margin) and FOXA (36.6%), FUBO's current margin profile is deeply sub-scale, raising questions about whether meaningful margin recovery is achievable or whether this is the new structural baseline.

The operating loss trajectory shows improvement from 2024 (operating margins of -15.7% to -8.7%) to a best of -0.6% in 2026Q1, but this narrowing appears driven more by gross profit recovery in the legacy period than by disciplined overhead management. The SG&A jump to $126.8M in 2025Q4 — roughly doubling sequentially — suggests the acquired operations brought disproportionate corporate overhead, which may not scale down easily. R&D expenditure, which held steady around $19-21M per quarter through 2025Q3, dropped to $13.6M in 2025Q4 and $0 in 2026Q2 (the latter appearing to be a data anomaly or reclassification). Without evidence of genuine fixed-cost absorption, the path to breakeven operating income at the current margin structure remains uncertain.

This quarter marks a before-and-after dividing line in FUBO's income statement history. Pre-inflection (2024Q1–2025Q3), the business was a smaller, higher-margin streaming operation with volatile but improving gross margins. Post-inflection, it operates at roughly 4x the revenue scale but at roughly one-third the gross margin percentage, suggesting the acquired assets carry fundamentally different unit economics — potentially reflecting wholesale content cost pass-through arrangements. The lasting impact appears to be that absolute gross profit dollars have improved modestly (from $68.1M in 2025Q3 to $117.0M in 2026Q2, a ~72% increase) but the margin structure offers far less cushion against content cost inflation or subscriber churn. Management's ability to optimize this mixed portfolio will likely determine whether the inflection proves value-accretive or dilutive over a full cycle.