Key Takeaways
- A 1-for-12 reverse stock split became effective for FuboTV on March 24, following approval on March 23
- Shares dropped as much as 10.6% before partially recovering to close down approximately 3.6%
- The combined Fubo/Hulu + Live TV operation is 70% owned by Disney, with FuboTV shareholders retaining 30%
- Pro forma revenue for the merged entity reached $6.2 billion over the last twelve months
- Analyst ratings remain positive: Seaport Global upgraded to Buy at $3, while Needham kept Buy but lowered target to $3.00 from $4.25
On Monday, March 23, FuboTV (FUBO) announced the implementation of a 1-for-12 reverse stock split, which became effective when markets opened on Tuesday, March 24. The shares experienced a decline of up to 10.6% during trading before partially recovering from the session’s lows.
The company had previously disclosed plans for the reverse split during its February earnings presentation. Management received board authorization to implement a ratio ranging from 1-for-8 to 1-for-12, ultimately selecting the maximum consolidation ratio.
On Monday, FuboTV submitted a Certificate of Amendment to Delaware’s Secretary of State to formalize the action. The filing required written approval from Hulu, LLC, which maintains a significant ownership position in the streaming company.
Investors typically view reverse splits negatively. Companies usually employ this strategy to elevate share prices above exchange listing requirements and appeal to institutional investors who avoid securities trading beneath specific price levels.
Following months of downward pressure, FuboTV’s market capitalization has contracted to approximately $360 million. This valuation appears modest for an enterprise connected to a streaming operation generating $6.2 billion in pro forma revenue during the trailing twelve-month period, along with $78 million in adjusted EBITDA.
Context: The Hulu + Live TV Integration
The share consolidation arrives about five months following FuboTV’s combination of its sports streaming operations with Disney’s Hulu + Live TV platform. The transaction structure gave Disney control of 70% of the unified business, while existing FuboTV shareholders retained the remaining 30% interest.
The newly combined operation disclosed its inaugural quarterly performance in February. Pro forma revenue increased 6%, surpassing Wall Street projections. The adjusted EBITDA margin expanded from 1.4% to 2.5%.
Subscription metrics, conversely, showed weakness. North American subscribers decreased from 6.3 million to 6.2 million. The international subscriber base contracted from 362,000 to 335,000.
Wall Street Perspectives
Seaport Global Securities elevated FUBO from Neutral to Buy after reviewing the first quarterly report post-merger, establishing a $3.00 price objective.
Needham maintained its Buy recommendation but reduced its price target from $4.25 to $3.00, pointing to the upcoming loss of NBC sports programming in 2026 as a potential obstacle.
FuboTV delivered better-than-expected Q1 2026 financial results. The streaming company reported earnings per share of $0.02 compared to the anticipated loss of $0.03 — representing a 166.67% positive variance. Revenue totaled $1.68 billion versus consensus expectations of $390.88 million.
The revenue figure incorporated Hulu + Live TV results for the first time in consolidated reporting. The financial profile of the company has transformed dramatically compared to twelve months earlier.
Based on current trading levels, FUBO shares are valued at approximately 0.2 times sales and roughly 15 times EBITDA when calculated on the company’s proportional 30% ownership stake in the combined operation.
As of Monday afternoon, the stock was changing hands at $13.20, within a 52-week trading range of $12.18 to $56.64 — with the upper bound reflecting pre-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.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
