Shares of Fubo (NYSE: FUBO) rose about 3% on Monday after the streaming company published guidance that set fiscal 2026 adjusted EBITDA between $80 million and $100 million. The company also released a longer-term operating plan that targets adjusted EBITDA of at least $300 million in fiscal 2028 and forecasts positive free cash flow starting in fiscal 2027.
Fubo reported pro forma adjusted EBITDA of $59 million in fiscal 2025. Using the midpoint of the fiscal 2026 guidance and the fiscal 2028 objective, management projects adjusted EBITDA to grow at a compounded annual growth rate of more than 80% over that period.
Balance sheet and cash flow expectations
The company said it expects to finish fiscal 2026 with no less than $200 million in cash and cash equivalents, down from $274 million as of September 30, 2025. Fubo disclosed approximately $50 million in payments during the fiscal year-to-date related to litigation and transaction expenses.
Fubo currently carries roughly $323 million in debt obligations, with none of those maturities scheduled before 2029. Under the company's present operating plan, it does not anticipate the need for additional external financing through fiscal 2028 and expects to achieve a net cash position in fiscal 2028.
Revenue support and content rights
Management attributed the fiscal 2028 adjusted EBITDA target in part to contractually obligated wholesale fees stemming from Fubo's commercial arrangement with Hulu. The wholesale fee is structured as a ratio to Hulu + Live TV's carriage costs and is scheduled to increase incrementally - from 95% in 2026 to 97.5% in 2027 and to 99% in 2028 and thereafter.
On the programming side, Fubo said it recently secured coverage for 17 professional baseball teams on its streaming service, including additions of SNY for New York and Spectrum SportsNet LA for Los Angeles Dodgers coverage.
Market reaction and positioning
The guidance and accompanying targets appear to have been received positively in the market, as reflected in the modest uptick in the company's share price. The company emphasized that the plan and the financing outlook are based on its current operating assumptions.
Investors and market participants will likely watch cash balances, payments related to litigation and transactions, and the evolving economics of the Hulu wholesale arrangement as key variables in assessing Fubo's path to the stated targets.