Fox's $440M Tubi Bet Pays Off as Streamer Hits Profitability

Fox’s ad-supported streaming service, Tubi, has officially reached profitability for the first time since its $440 million acquisition in 2020. The milestone, driven by a significant revenue and viewership jump, was part of the company's Q1 FY2026 earnings, as first reported by TheWrap.

• By the numbers: Tubi's profitability was fueled by a 27% year-over-year revenue surge and an 18% climb in total viewing time. The streamer's performance helped boost Fox's overall top line 5% to more than $3.7 billion, with company-wide advertising income seeing a 6% lift.

• The long game: CEO Lachlan Murdoch said he expects Tubi to become a “meaningful contributor” to the company’s bottom line, with projections putting future operating margins in the 20-25% range. The faster-than-expected turnaround will likely lead to a "partial moderation in overall investment" in its other digital operations, according to a report from The Desk.

• And then there's one: Fox's newer subscription service, Fox One, is also finding its footing. The service, which launched in August with partners like Verizon and ESPN, is already outperforming the company's initial forecasts.

Tubi's success serves as a major validation of the free, ad-supported video (AVOD) model in a streaming landscape increasingly crowded by subscription services. To underscore its confidence, Fox also unveiled a $1.5 billion share buyback plan. The streamer's profitability also places it in a strong competitive position, with recent Nielsen data showing it capturing more U.S. household TV time than rivals like Peacock and HBO Max.