Key Takeaways
- On March 23, FuboTV implemented a 1-for-12 reverse stock split, becoming effective at market open March 24
- Shares dropped up to 10.6% during trading before stabilizing to approximately 3.6% lower
- The merged Fubo/Hulu + Live TV company is 70% Disney-owned, with FuboTV shareholders retaining 30%
- Pro forma revenue for the merged entity reached $6.2 billion over the last twelve months
- Analysts remain split: Seaport Global raised rating to Buy at $3 target; Needham kept Buy but reduced target from $4.25 to $3.00
On Monday, March 23, FuboTV (FUBO) completed a 1-for-12 reverse stock split, with the new pricing structure becoming active when markets opened Tuesday, March 24. Shares experienced a decline of up to 10.6% during the session before recovering somewhat.
The company initially announced this reverse split during its February earnings presentation. Management had received board authorization to implement a ratio ranging from 1-for-8 through 1-for-12, ultimately selecting the maximum ratio.
The company formalized the action by submitting a Certificate of Amendment to Delaware’s Secretary of State on Monday. Significantly, the transaction requiredâand obtainedâwritten approval from Hulu, LLC, which maintains substantial ownership in FuboTV.
Investors typically view reverse splits negatively. Companies usually employ this mechanism to elevate share prices above exchange listing requirements and appeal to institutional investors who avoid stocks below specific price points.
FuboTV’s market capitalization has contracted to approximately $360 million after extended downward pressure. This valuation appears modest for an organization connected to a streaming platform producing $6.2 billion in pro forma revenue across the past twelve months, along with $78 million in adjusted EBITDA.
Context: The Hulu + Live TV Integration
This reverse split arrives approximately five months following FuboTV’s consolidation of its sports streaming operations with Disney’s Hulu + Live TV service. The transaction resulted in Disney acquiring a 70% ownership position in the combined business, with existing FuboTV shareholders maintaining the remaining 30%.
The unified company delivered its inaugural quarterly earnings in February. Pro forma revenue increased 6%, exceeding analyst projections. Adjusted EBITDA margin expanded from 1.4% to 2.5%.
Subscriber metrics, conversely, showed weakness. North American subscribers declined from 6.3 million to 6.2 million. International subscribers decreased from 362,000 to 335,000.
Wall Street Perspectives
Seaport Global Securities elevated FUBO from Neutral to Buy after reviewing the initial post-integration quarter, establishing a $3.00 price objective.
Needham maintained its Buy recommendation but lowered its price objective from $4.25 to $3.00, pointing to the scheduled loss of NBC sports programming in 2026 as a negative factor.
FuboTV’s Q1 2026 financial results exceeded expectations. The company delivered EPS of $0.02 compared to the anticipated loss of $0.03ârepresenting a 166.67% positive variance. Revenue totaled $1.68 billion versus the $390.88 million consensus forecast.
This revenue figure incorporated Hulu + Live TV results for the first time in published financials. The company’s financial profile has transformed dramatically compared to twelve months prior.
At present valuations, FUBO trades at approximately 0.2 times sales and roughly 15 times EBITDA based on its proportional 30% ownership stake in the combined operation.
Shares were changing hands at $13.20 as of Monday afternoon, within a 52-week trading range of $12.18 to $56.64âthe upper bound reflects pre-reverse-split adjustment.
Class A common shares commenced split-adjusted trading on the New York Stock Exchange when markets opened Tuesday, March 24, continuing under the “FUBO” ticker symbol with an updated CUSIP number of 35953D401.
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