Investment Thesis
FuboTV exhibits severe financial distress with $413M annual free cash flow burn, near-zero gross profit ($33K on $3.1B revenue indicating fundamental business dysfunction), and a current ratio of 0.99x signaling imminent liquidity crisis. At current burn rates, cash reserves of $238M provide less than one year of runway, making financial viability highly questionable.
Strengths
- Substantial asset base of $4.0B provides collateral and restructuring optionality
- Moderate debt/equity ratio of 0.47x limits immediate refinancing pressure
- Revenue generation of $3.1B demonstrates established market presence in streaming video services
Risks
- Unsustainable free cash flow burn of $413M annually will deplete cash reserves within 12 months, creating critical liquidity crisis
- Gross profit margin near zero ($33K on $3.1B revenue) indicates fundamental business model breakdown or catastrophic customer acquisition cost structure
- Current ratio of 0.99x combined with negative operating cash flow signals inability to meet short-term obligations and high default risk
Key Metrics to Watch
- Monthly cash burn trajectory and projected cash runway (critical for solvency timeframe)
- Gross margin improvement and unit economics by customer segment (to assess path to positive contribution margin)
- Operating cash flow changes and working capital management (to determine if burn is stabilizing or accelerating)
Financial Metrics
Revenue
3.1B
Net Income
-8.1M
EPS (Diluted)
$-0.27
Free Cash Flow
-413.0M
Total Assets
4.0B
Cash
237.8M
Profitability Ratios
Gross Margin
0.0%
Operating Margin
-0.9%
Net Margin
-0.3%
ROE
-1.0%
ROA
-0.2%
FCF Margin
-13.2%
Balance Sheet & Liquidity
Current Ratio
0.99x
Quick Ratio
0.99x
Debt/Equity
0.47x
Debt/Assets
33.3%
Interest Coverage
-5.60x
Long-term Debt
379.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T10:19:47.695907 |
Data as of: 2026-03-31 |
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