Key Takeaways
- FuboTV implemented a 1-for-12 reverse stock split effective March 24, following announcement on March 23
- Shares dropped by up to 10.6% during trading before partially recovering to approximately 3.6% loss
- Disney maintains 70% ownership of the merged Fubo/Hulu + Live TV operation; existing FuboTV shareholders retain 30%
- Pro forma revenue for the unified entity reached $6.2 billion over the last twelve months
- Seaport Global initiated Buy rating with $3 target; Needham maintained Buy but reduced target to $3.00 from $4.25
On Monday, March 23, FuboTV (FUBO) announced a 1-for-12 reverse stock split, which became effective when markets opened Tuesday, March 24. The streaming company’s shares experienced significant pressure, declining as much as 10.6% during the session before moderating losses later in the day.
The consolidation move was initially disclosed during the company’s February earnings presentation. Management had received authorization from the board to execute a reverse split within a range of 1-for-8 to 1-for-12, ultimately selecting the maximum ratio available.
The company formalized the action by submitting a Certificate of Amendment to Delaware’s Secretary of State on Monday. Importantly, the move required written approval from Hulu, LLC, a significant stakeholder in the business, which was obtained.
Reverse stock splits often raise concerns among market participants. Companies typically employ this strategy to maintain compliance with exchange listing requirements and to appeal to institutional investors who avoid equities priced below specific thresholds.
FuboTV’s market capitalization has contracted to approximately $360 million after an extended period of share price weakness. This valuation appears modest given the streaming platform’s connection to a business producing $6.2 billion in pro forma revenue over the past twelve months, accompanied by $78 million in adjusted EBITDA.
Context: The Disney Hulu + Live TV Transaction
This reverse split arrives approximately five months following FuboTV’s combination with Disney’s Hulu + Live TV sports streaming platform. Under the transaction terms, Disney secured a 70% ownership position in the combined operation, with existing FuboTV shareholders retaining the balance of 30%.
The consolidated entity released its inaugural quarterly performance in February. Pro forma revenue increased 6%, exceeding Wall Street projections. Adjusted EBITDA margin expanded from 1.4% to 2.5%.
Subscriber metrics, conversely, showed deterioration. North American subscribers decreased from 6.3 million to 6.2 million. International subscribers declined from 362,000 to 335,000.
Wall Street Perspective
Following the first quarterly report post-merger, Seaport Global Securities elevated FUBO from Neutral to Buy, establishing a $3.00 price objective.
Needham maintained its Buy recommendation while reducing its price target from $4.25 to $3.00, pointing to the anticipated loss of NBC sports programming in 2026 as a challenge.
FuboTV’s Q1 2026 financial results exceeded expectations. The streaming company delivered EPS of $0.02 compared to the anticipated loss of $0.03 — representing a 166.67% positive variance. Revenue reached $1.68 billion versus consensus projections of $390.88 million.
The substantial revenue figure incorporated Hulu + Live TV results for the initial time in reported financials. The company’s financial profile has transformed dramatically compared to twelve months prior.
Based on current pricing, FUBO shares trade at approximately 0.2 times revenue and roughly 15 times EBITDA when considering its proportional 30% interest in the combined operation.
Shares were quoted at $13.20 Monday afternoon, within a 52-week trading range of $12.18 to $56.64 — the upper bound reflecting pre-reverse-split adjustment.
Class A common stock commenced split-adjusted trading on the New York Stock Exchange when markets opened Tuesday, March 24, continuing under the ticker symbol “FUBO” with an updated CUSIP identifier of 35953D401.
