How FUBO (FuboTV) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a streaming and sports-focused digital entertainment platform like FUBO makes money is essential for investors and anyone interested in the business of online media and live TV streaming. In this post, we break down FUBO's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick FUBO Overview

FUBO operates a subscription-based streaming service specializing in live sports, news, and entertainment channels. Revenue comes primarily from monthly and annual subscriptions, with a smaller share from advertising shown to viewers. The company also earns minor income from other products and services, but its core business is delivering premium live TV experiences to cord-cutters and sports fans.

Revenue Breakdown

• Total Revenue (Q2 2025): $380.0M (-2.8% YoY)
  • Subscription Revenue: $352.7M (92.8% of total, -2.8% YoY)
  • Advertising Revenue: $25.9M (6.8% of total, -1.7% YoY)
  • Other Product Revenue: $1.44M (0.4% of total, -17.2% YoY)
• Growth is powered by subscriber retention and premium sports content, though overall revenue declined slightly year-over-year due to market saturation and competitive pressures.

Gross Profit and Margins

• Gross Profit: $67.6M (17.8% gross margin)
  • Cost of Revenue: $312.4M (-8.6% YoY)
  • FUBO maintains moderate margins due to the high cost of acquiring and licensing live sports content, offset by operational efficiencies and a scalable digital platform.
• Most costs come from content licensing, streaming infrastructure, and customer support.

Operating Income and Expenses

• Operating Income: Not disclosed for Q2 2025 (likely negative, given gross profit and expense structure)
• Operating Expenses: $73.6M (-13.4% YoY)
  • R&D: $19.3M (-0.5% YoY, 5.1% of revenue) — Focused on platform improvements, personalization algorithms, and streaming technology.
  • SG&A: $54.3M (-3.2% YoY, 14.3% of revenue) — Includes sales, marketing, general admin, and customer acquisition costs.
  • FUBO continues to prioritize innovation and invest in growth while tightening cost controls to improve profitability.

Net Income

• Pre-Tax Income: Not disclosed for Q2 2025
• Income Tax: Not disclosed for Q2 2025
• Net Income: $8.03M (-68.2% YoY, 2.1% net margin)
• FUBO converts a moderate portion of sales into profit due to its scalable platform, but faces margin pressure from high content costs and competitive pricing.

What Drives FUBO's Money Machine?

• Subscription Revenue: Over 92% of revenue comes from monthly and annual subscriptions, making this the dominant driver of FUBO's financial performance.
• Key Metric – Subscriber Base: FUBO's ability to attract and retain paying subscribers directly impacts revenue and profitability. Churn rates and average revenue per user (ARPU) are closely watched metrics.
• Investment Area – Technology and Content: Strategic investments in platform features, streaming quality, and exclusive sports rights aim to differentiate FUBO and support future growth.
• Future Growth Areas: Expansion into interactive sports betting and international markets, though these segments are not yet profitable and remain in early development.

Visualizing FUBO's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and R&D) taking the largest chunk.
• Even after significant content and technology investments, only 2.1% of revenue drops to the bottom line.

Key Takeaways

• FUBO's money comes overwhelmingly from subscription revenue
• Moderate gross and net margins illustrate the challenges of the streaming business model, especially with premium content costs
• Heavy investment in technology and content, balanced by efficiency in operating costs
• Ongoing growth is driven by subscriber retention, platform innovation, and premium sports offerings

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FAQ About FUBO's Income Statement

1. What is the main source of FUBO's revenue in 2025?

FUBO generates over 92% of its revenue from subscription fees paid by users for access to live sports and entertainment channels. Advertising and other product revenues make up the remainder.

2. How profitable is FUBO in Q2 2025?

FUBO reported net income of $8.03M in Q2 2025, with a net margin of approximately 2.1%, reflecting moderate profitability driven by a scalable platform but offset by high content and operating costs.

3. What are the largest expense categories for FUBO?

The biggest expenses on FUBO's income statement are cost of revenue (content licensing and streaming infrastructure), followed by operating expenses, particularly Research & Development (R&D) at $19.3M and Sales, General & Administrative (SG&A) at $54.3M in Q2 2025. R&D investment focuses on platform innovation and streaming technology.

4. Why does the advertising segment operate at a loss?

Advertising, despite generating $25.9M in revenue, posted an operating loss due to aggressive investment in ad technology and market expansion, as FUBO believes these will drive long-term growth—even if the division is unprofitable today.

5. How does FUBO's effective tax rate compare to previous years?

FUBO's effective tax rate for Q2 2025 was not disclosed, but historically, the rate has been moderate due to tax benefits from share-based compensation and international structuring. Investors should monitor future filings for updated figures.