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

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Understanding how a digital streaming platform like FUBO Income Statement Overview makes money is essential for investors and anyone interested in the business of online media and entertainment. In this post, we break down FUBO's quarterly income statement (Q3 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 digital live TV streaming platform focused on sports, news, and entertainment content. Revenue comes primarily from subscription fees paid by users for access to its streaming service, supplemented by advertising sales and minor contributions from other product offerings. The business is structured around two main segments: subscription revenue and advertising revenue, with a negligible share from other products.

Revenue Breakdown

• Total Revenue (Q3 2025): $377.2M (−2.3% YoY)
  • Subscription Revenue: $350.3M (92.9% of total)
  • Advertising Revenue: $25.4M (6.7% of total)
  • Other Product Revenue: $1.5M (0.4% of total)
  • Growth is powered by core subscriber retention and platform engagement, though overall revenue declined slightly YoY due to competitive pressures and softer ad markets.

Gross Profit and Margins

• Gross Profit: $68.1M (18.0% gross margin)
  • Cost of Revenue: $309.1M (−6.9% YoY)
  • FUBO maintains moderate margins due to high content licensing costs and platform infrastructure, partially offset by operational efficiencies and cost controls.
• Most costs come from content acquisition/licensing, streaming infrastructure, and customer support.

Operating Income and Expenses

• Operating Income: Not reported (operating loss implied, as operating expenses exceed gross profit)
• Operating Expenses: $88.2M (−21.8% YoY)
  • R&D: $19.5M (−8.1% YoY, 5.2% of revenue) — Focused on platform innovation, personalization, and streaming technology enhancements.
  • SG&A: $52.1M (−36.2% YoY, 13.8% of revenue) — Covers sales, marketing, administrative, and customer acquisition costs.
  • FUBO continues to prioritize innovation and cost discipline while streamlining operations to approach profitability.

Net Income

• Pre-Tax Income: Not reported (likely negative, as operating loss is implied)
• Income Tax: Not reported
• Net Income: $18.9M (−64.0% YoY, 5.0% net margin)
• FUBO converts a moderate portion of sales into profit due to ongoing cost controls, but profitability remains challenged by high fixed costs and content spend.

What Drives FUBO's Money Machine?

• Subscription Revenue: 92.9% of revenue — FUBO’s core business is monthly/annual subscription fees from streaming customers.
• Advertising Impressions: Ad revenue, though only 6.7% of total, is a key metric for future margin expansion as the user base grows.
• Platform R&D: Strategic investments in streaming technology and personalized content recommendations to enhance user experience and retention.
• Future growth areas: Expansion into interactive sports betting and international streaming, though these segments are not yet profitable.

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 content/licensing costs and SG&A taking the largest chunk of expenses.
• Even after significant investments in R&D and platform operations, only 5% of revenue drops to the bottom line.

Key Takeaways

• FUBO's money comes overwhelmingly from subscription fees for its streaming platform.
• Moderate gross and net margins illustrate the challenges of the content-driven streaming business model.
• Heavy investment in platform R&D and content acquisition, balanced by aggressive cost controls in SG&A.
• Ongoing growth is driven by subscriber engagement, advertising monetization, and new market expansion.

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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 streaming customers. Advertising sales and other product revenues make up the remainder.

2. How profitable is FUBO in Q3 2025?

FUBO reported net income of $18.9M in Q3 2025, with a net margin of approximately 5.0%, reflecting moderate profitability driven by cost controls but offset by high content and operating expenses.

3. What are the largest expense categories for FUBO?

The biggest expenses on FUBO's income statement are cost of revenue (mainly content licensing and streaming infrastructure), followed by operating expenses, particularly Research & Development (R&D) at $19.5M and Sales, General & Administrative (SG&A) at $52.1M in Q3 2025, as FUBO prioritizes platform innovation and customer acquisition.

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

Advertising, despite generating $25.4M in revenue, is not yet sufficient to cover its share of platform and content costs in Q3 2025. FUBO continues to invest in ad technology and inventory, believing 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 Q3 2025 was not reported, but historically, the company has benefited from a low to moderate tax rate due to net operating losses and international structuring.