White Brook Capital, LLC on FuboTV Inc.
Thesis
White Brook expects the combination of Fubo and Disney's Hulu + Live TV to improve operating leverage by spreading fixed costs across a larger subscriber base. Access to Disney's advertising technology is improving use of available ad inventory and achieved prices, creating a path to higher profits even without rapid subscriber growth. Fubo's niche-sports identity, continued carriage of local sports networks and Disney's bundling strength differentiate its offering. Management forecasts $90-100 million of adjusted EBITDA in fiscal 2026, at least $300 million by fiscal 2028 and positive free cash flow starting in fiscal 2027, after which the manager expects investors to rerate the shares.
“When that happens we think the street will notice and the stock should rerate.”
Key risks
- Live television remains a thin-margin business on a per-subscriber basis.
- Large streaming rivals continue to compete aggressively for major sports rights and customer attention.
- The Disney integration may not deliver expected advertising prices or cost efficiencies.
- Improved EBITDA may fail to convert into durable free cash flow.