Yahoo Finance When Will fuboTV Inc. (NYSE:FUBO) Breakeven?
We feel now is a pretty good time to analyse fuboTV Inc.'s (NYSE:FUBO) business as it appears the company may be on the cusp of a considerable accomplishment. fuboTV Inc. operates a live TV streaming platform for live sports, news, and entertainment content in the United States and internationally. The US$434m market-cap company announced a latest loss of US$293m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which fuboTV will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for fuboTV
According to the 8 industry analysts covering fuboTV, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$2.8m in 2026. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 60%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for fuboTV given that this is a high-level summary, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with fuboTV is its debt-to-equity ratio of 141%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of fuboTV to cover in one brief article, but the key fundamentals for the company can all be found in one place – fuboTV's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:
Valuation: What is fuboTV worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether fuboTV is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on fuboTV’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
