FUBO reverse stock split: FuboTV makes a rare move, streamer’s share price plunges 25%

Shares in the sports streaming service FuboTV Inc. (NYSE: FUBO) are currently plunging in Tuesday trading. The stock price drop comes after the streamer reported its Q1 2026 results—and announced a relatively rare reverse stock split. Here’s what you need to know.

What’s happened?

Today, FuboTV Inc. announced its first-quarter results for fiscal 2026, which ended on December 31. For the quarter, Fubo reported revenue of $1.543 billion, up 40% from the year-earlier quarter. 

However, despite the company’s revenue growth, the streamer reported a net loss of approximately $19.1 million for the quarter. Its earnings per share for the period were negative 2 cents.

About a year ago, the company made headlines after entering into an agreement with The Walt Disney Company, which announced it would acquire a 70% stake in the streamer and combine it with the company’s existing Hulu + Live TV service. As part of that deal, Fubo would remain a public company.

Yet despite this, Fubo’s stock has struggled, and today, FUBO shares have fallen off a cliff-edge. They are currently trading down 25% to around $1.71 per share as of the time of this writing.

Fubo announces reverse stock split

Investors clearly weren’t happy with Fubo’s quarterly results. No one likes to see a net loss. 

But Fubo’s loss wasn’t the only thing the company announced. It also revealed that it plans to initiate a reverse stock split—a relatively rare event that is the opposite of the more common stock split some companies choose to partake in.

In a regular stock split, a company decides to divide its current number of shares by a certain amount. Stock splits can occur in any increment. For example, a 2-for-1 stock split would divide each share into two, meaning there would be twice as many shares after the split as before. These new shares would also be worth half the price of the pre-split shares. This lower per-share price often makes shares appear more accessible for retail investors, which can spur buying.

But in a reverse split, a company decides to combine its existing shares. For example, a company may decide to merge two shares into one. The new single share would then be worth the value of two former ones.

Why is Fubo reverse-splitting its shares?

Fubo didn’t get into too many specifics about why it was initiating a reserve stock split. The company said its board approved the reverse split and that it “is intended to make the stock more accessible to a broader base of investors” while also ensuring that the reduced number of shares is better “aligned with the Company’s size and scope.”

The thing is, reverse stock splits aren’t generally done by companies that are on a firm financial footing. Last year, electric vehicle maker Lucid Group (Nasdaq: LCID) initiated a 1-for-10 reverse stock split in order to boost its share price and keep it from being delisted from the Nasdaq, which will delist companies whose stock price falls below a certain amount—$1 in the Nasdaq’s case—for a certain period of time.

In July, EV charging company ChargePoint Holdings (NYSE: CHPT) issued a 1 for 20 reverse split in an effort to boost its share price and not get booted from the New York Stock Exchange, which also requires that a company cannot have its stock price go below the $1 mark for more than $30 consecutive days. If it does, delisting procedures can begin.

Other companies including Nikola (Nasdq: NKLA) and Virgin Galactic Holdings (NYSE: SPCE) have also reverse-split their shares to avoid delisting.

While Fubo’s stock price hasn’t fallen below $1, over the past year it has dropped as low as $1.57. If the stock were to lose about 40% of its current value, it would fall under the $1 mark, which would leave it vulnerable to delisting.

Fast Company has reached out to Fubo for comment.

How much are Fubo shares reverse-splitting by?

Fubo did not announce which ratio its shares would reverse split by, but the company said it would be between between 1-for-8 and 1-for-12. The exact reverse split ratio will be determined by its board of directors.

At the company’s current stock price of around $1.71 per share, a 1-for-8 to 1-for-12 reverse split would give FUBO a share price of between $13.68 and $20.52—well above the $1 threshold the stock needs to maintain to continue to be listed on the NYSE.

When will Fubo’s shares begin trading at their reverse split price?

Fubo said its shares will begin trading at their new reverse split price “later this quarter.” Fubo’s current Q2 ends at the end of March.