Shares within the sports activities streaming service FuboTV Inc. (NYSE: FUBO) are at the moment plunging in Tuesday buying and selling. The inventory worth drop comes after the streamer reported its Q1 2026 outcomes—and introduced a comparatively uncommon reverse inventory cut up. Right here’s what you should know.
What’s occurred?
Right now, FuboTV Inc. announced its first-quarter outcomes for fiscal 2026, which ended on December 31. For the quarter, Fubo reported income of $1.543 billion, up 40% from the year-earlier quarter.
Nevertheless, regardless of the corporate’s income development, the streamer reported a internet lack of roughly $19.1 million for the quarter. Its earnings per share for the interval had been destructive 2 cents.
A few yr in the past, the corporate made headlines after coming into into an settlement with The Walt Disney Firm, which introduced it will purchase a 70% stake within the streamer and mix it with the corporate’s current Hulu + Reside TV service. As a part of that deal, Fubo would stay a public firm.
But regardless of this, Fubo’s inventory has struggled, and right this moment, FUBO shares have fallen off a cliff-edge. They’re at the moment buying and selling down 25% to round $1.71 per share as of the time of this writing.
Fubo pronounces reverse inventory cut up
Traders clearly weren’t pleased with Fubo’s quarterly outcomes. Nobody likes to see a internet loss.
However Fubo’s loss wasn’t the one factor the corporate introduced. It additionally revealed that it plans to provoke a reverse inventory cut up—a comparatively uncommon occasion that’s the reverse of the extra frequent inventory cut up some firms select to partake in.
In an everyday inventory cut up, an organization decides to divide its present variety of shares by a specific amount. Inventory splits can happen in any increment. For instance, a 2-for-1 inventory cut up would divide every share into two, which means there can be twice as many shares after the cut up as earlier than. These new shares would even be value half the value of the pre-split shares. This decrease per-share worth typically makes shares seem extra accessible for retail buyers, which might spur shopping for.
However in a reverse cut up, an organization decides to mix its current shares. For instance, an organization might resolve to merge two shares into one. The brand new single share would then be well worth the worth 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 inventory cut up. The corporate mentioned its board accredited the reverse cut up and that it “is meant to make the inventory extra accessible to a broader base of buyers” whereas additionally guaranteeing that the lowered variety of shares is best “aligned with the Firm’s dimension and scope.”
The factor is, reverse inventory splits aren’t typically achieved by firms which are on a agency monetary footing. Final yr, electric vehicle maker Lucid Group (Nasdaq: LCID) initiated a 1-for-10 reverse inventory cut up with the intention to enhance its share worth and maintain it from being delisted from the Nasdaq, which can delist firms whose inventory worth falls beneath a specific amount—$1 within the Nasdaq’s case—for a sure time frame.
In July, EV charging company ChargePoint Holdings (NYSE: CHPT) issued a 1 for 20 reverse cut up in an effort to spice up its share worth and never get booted from the New York Inventory Trade, which additionally requires that an organization can’t have its inventory worth go beneath the $1 mark for greater than $30 consecutive days. If it does, delisting procedures can start.
Different firms together with Nikola (Nasdq: NKLA) and Virgin Galactic Holdings (NYSE: SPCE) have additionally reverse-split their shares to keep away from delisting.
Whereas Fubo’s inventory worth hasn’t fallen beneath $1, over the previous yr it has dropped as little as $1.57. If the inventory had been to lose about 40% of its present worth, it will fall beneath the $1 mark, which would depart it weak to delisting.
Quick Firm has reached out to Fubo for remark.
How a lot are Fubo shares reverse-splitting by?
Fubo didn’t announce which ratio its shares would reverse cut up by, however the firm mentioned it will be between between 1-for-8 and 1-for-12. The precise reverse cut up ratio shall be decided by its board of administrators.
On the firm’s present inventory worth of round $1.71 per share, a 1-for-8 to 1-for-12 reverse cut up would give FUBO a share worth of between $13.68 and $20.52—properly above the $1 threshold the inventory wants to take care of to proceed to be listed on the NYSE.
When will Fubo’s shares start buying and selling at their reverse cut up worth?
Fubo mentioned its shares will start buying and selling at their new reverse cut up worth “later this quarter.” Fubo’s present Q2 ends on the finish of March.
