Fox’s free streaming bet Tubi just hit its biggest financial milestone yet
The "Free" revolution pays off. Tubi has officially reached profitability for the first time, driving a 27% revenue surge for Fox. Here is how the ad-supported streamer is beating paid rivals like Peacock.
The "Free" revolution just officially paid off. In a major validation for the ad-supported streaming model, Tubi has reached profitability for the first time ever, driving a massive 27% surge in quarterly revenue for its parent company, Fox Corporation. While competitors like Disney+ and Peacock are still wrestling with churn and price hikes, Tubi has quietly proven that you don't need a subscription fee to make money in 2025.
The milestone was confirmed during Fox’s Q1 Fiscal 2026 earnings call on October 30, 2025, where the company reported total revenues of $3.74 billion. Tubi wasn't just a side project; it was the primary engine of digital growth, offsetting declines in political advertising.
The "Zero-Cost" Victory
Tubi’s success defies the current industry logic, which relies on "bundling" and expensive original series. Instead, Tubi focused on "cordless" users and vast libraries of licensed content. This strategy allowed it to capture 1.8% of total TV viewing in November 2025, outpacing paid giants like Peacock (1.7%) and Max (1.6%), according to Nielsen's latest Gauge report.
Fox CEO Lachlan Murdoch highlighted this momentum, noting that the platform is now a financial pillar for the corporation rather than a speculative bet. Tubi CEO Anjali Sud reinforced this efficiency in a recent statement to analysts:
"We're scaling profitably while others burn cash."
The Strategic Shift
While rivals burn billions on exclusive "Prestige TV," Tubi’s algorithm-first approach keeps users watching for nearly two hours a day, engagement levels that rival Amazon Prime Video. This "Moneyball" approach to content has allowed Fox to monetize the 60 million+ monthly active users who simply refuse to pay for another subscription.
Tubi’s profitability signals the end of the "Subscriber at All Costs" era. As subscription fatigue sets in, we predict that 2026 will see a massive pivot toward FAST (Free Ad-Supported TV) channels from major studios. Fox moved first, and now, they are the only legacy studio making a profit on "free."
