FUBO TV Rockets 20% Higher as Boss Gandler Hails “Strongest Financial Position” in its History

Shares in TV streaming group fuboTV (FUBO) rocketed 20% higher today as chief executive David Gandler told shareholders that its business was undervalued despite reaching the “strongest financial position in our history.”

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EBITDA Set to Triple

Gandler, who is also co-founder of the business, which delivers premium sports, news and entertainment programming, said in a letter to shareholders that he expects FUBO to deliver between $80 and $100 million in EBITDA in the 2026 fiscal year and that it was targeting at least $300 million by 2028.

He also said the company could be Free Cash Flow positive starting in the 2027 fiscal year, if not sooner, and is projecting to end this fiscal year with at least $200 million in cash and cash equivalents.

“Based on our current operating plan, we have enough cash to fund our business – including debt obligations – and invest in our growth,” Gandler wrote. “Our financial stability, which we do not believe is reflected in our stock price, has continued to improve. I am confident in the future of our business. Our financial position provides us with the flexibility to invest, to compete and to serve our customers at a higher level than at any point in our history. We believe that our share price has not yet reflected the operational progress we have made nor the intrinsic value of the combined business. I hope today’s updates help to close that gap.”

Some Subscriber Softness

Gandler said the business would be focusing on growing subscriber numbers in an efficient and profitable way. He cautioned that in the near term this means prioritizing margin expansion and sustainable cash flow, which may result in periods of flat or modestly declining subscriber levels.

Its guidance, however, also includes eventual advertising synergies following the migration of the Fubo service’s advertising inventory to the Disney (DIS) Ad Server. “We are on pace to achieve those synergies,” he said.

It is also looking to boost content including securing coverage of 17 pro baseball teams as the season begins. This includes showing World Series Champions Los Angeles Dodgers for the first time.

Reverse Stock Split

The FUBO share price has dropped 61% in the year to date, with some analysts blaming its recent 1-for-12 reverse stock split.

That raised concerns over the financial health of the business. However, Gandler said that it was a proactive, strategic decision to best position the company over the long-term. “Our focus is on creating value, not diluting it,” he said.

Is FUBO a Good Stock to Buy Now?

On TipRanks, FUBO has a Moderate Buy consensus based on 5 Buy and 2 Hold ratings. Its highest price target is $18. FUBO stock’s consensus price target is $10.50, implying a 10.26% downside.

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