FuboTV Down 60% in 2026: Will FUBO Stock Rise in 2027? Is it a Buy Now?

The Disney (DIS) deal is significant for three reasons. First, the ESPN distribution and marketing will allow FuboTV to augment its live sports-based brand, which is the cornerstone of its business. Second, Disney’s ad server should also enable the company to generate greater yield for ad inventory provided by FuboTV through its own Demand-Side Platform with premium demand and big data. Third, the Hulu + Live TV combination brings scale, which FuboTV expects will ultimately translate into better wholesale economics and lower content costs per subscriber.

Disney now owns 70% of FuboTV through the addition of the Hulu + Live TV business, which has $4.6 billion in TTM revenues while FuboTV and a business with $1.6 billion for a combined $6.2 billion TTM through December 31, 2025. Scale is key in streaming, because content fees are fixed or rising, but pricing power is limited. If FuboTV is able to make this partnership work to drive higher ad monetization, lower content cost as a percent of revenue and hold churn, the margin implications could be significant – even if subscriber growth is modest near-term.

The 1-for-12 reverse stock split which took place on March 23 hurt momentum. Market observers have also noted that reverse splits are often a sign of trouble for a stock and may attract more selling in the short term regardless of what the company's fundamentals are. FuboTV’s stock fell from around $25 before the announcement to just below $10 at the lows, and that’s just mechanics and perception blurring the message.

After the split, FuboTV has 108 million shares outstanding, consisting of 29.4 million Class A shares and 79 million Class B shares tied to Disney. Although the split itself doesn’t change the enterprise value, it could impact retail liquidity in the near term and raise eyebrows for future capital needs.

Beginning to offset those worries is a more profitable and cash flow positive management outlook, turning the story into one about unit economics rather than top-line subscriber counts.

Management has indicated it is prioritizing margins and cash flow over subscriber growth in the near term. CEO David Gandler said in a letter to shareholders that the company may be flat in subs or declining slightly while focusing on efficiency for extended periods.

Those financial targets give some structure to that strategy: an adjusted EBITDA of $80 million to $100 million in FY2026, at least $300 million in FY2028, running toward slightly positive net cash by FY2028. The company had said earlier that it could turn positive Free Cash Flow by FY2027, if not sooner.

Should FuboTV be able to meet or exceed these milestones, the stock's multiple could increase from depressed levels. Based on 2028 projections, management is indicating that the Enterprise Value to Adjusted EBITDA multiple will be approximately 4x, which is low for a subscription and advertising business with increasing cash flow. That said, the model still yields relatively low to mid-single-digit EBITDA margins and therefore would have limited downside protection if ad demand were to decline, sports rights were to become more expensive than anticipated, or subscriber churn were to increase rapidly.

In summation, the ultimate conclusion for a re-rating in 2027 will depend upon continued execution over multiple quarters — managing churn, increasing ARPU, driving ad yield from the Disney inventory and maintaining content costs as a percent of revenue.

That’s offset somewhat by the Disney deal (some scale/ad-tech synergies); the margin-first mentality is baked into the FY2026 EBITDA guidance, and positive FCF by FY2027 would be a major departure from FuboTV’s cash-burning ways.

If these targets are met, they may justify a higher valuation than currently indicated, allowing the stock to recover some of its post-split losses as 2027 progresses. Live TV streaming, by contrast, is a fierce, low-margin competition.

Management guidance indicates profitability will be more a function of better monetization and cost discipline rather than blazing subscriber growth, which limits the upside if operating leverage takes longer to materialize. The reverse split left its mark on the sentiment as well — and some investors might wait for a few quarters of cash discipline before jumping back in.

There is also a potentially asymmetric setup in FuboTV for higher risk tolerance investors who are comfortable watching execution metrics closely into 2027. For the more conservative shareholders, waiting for Free Cash Flow inflection and positive Earnings Before Interest, Taxes, Depreciation, and Amortization trajectory in sight might be the wiser course of action.