Key Highlights

  • Third quarter Revenue was USD 1,360.1 million against an estimate of USD 1.38 billion and USD 1,119.9 million last year.
  • Diluted EPS was USD 1.33 against an estimate of USD 1.20, compared with USD 0.47 in the prior-year quarter.
  • UFC revenue was USD 519.2 million against USD 325.2 million, WWE was USD 399.3 million.
  • Total adjusted EBITDA was USD 555.7 million against USD 360.2 million, and nine-month Operating Cash Flow was USD 1,540.6 million.

TKO Group Holdings (NYSE:TKO) reported third quarter revenue of USD 1,360.1 million, against USD 1,119.9 million in the same quarter of 2025 and an estimate of USD 1.38 billion. Diluted EPS was USD 1.33 against an estimate of USD 1.20. The Business spans the UFC, WWE and IMG segments, plus a corporate group that includes PBR and boxing.

Revenue by Segment

The company stated that revenue increased 21% in the quarter. UFC revenue rose USD 194.0 million, or 60%, to USD 519.2 million, including USD 132.3 million of higher media rights, production and content revenue tied to the new Skydance content distribution agreement effective in January 2026. Live event revenue included UFC 329, which the company said generated the highest gross gate for a Numbered Event in UFC history.

WWE revenue was USD 399.3 million against USD 402.1 million. The company linked a USD 24.8 million decline in live events revenue to three fewer Main Roster Premium Live Events, while media rights revenue was USD 6.9 million higher, helped by a content distribution agreement that began in September 2025. IMG revenue increased 16% to USD 391.3 million, driven by new commission deals for tennis and soccer and FIFA World Cup 2026 hospitality sales at On Location.

Profit and Margins

Operating income was USD 377.5 million against USD 171.9 million, and Net Income was USD 277.9 million against USD 106.8 million. Net income attributable to TKO Group Holdings was USD 98.7 million against USD 41.0 million, after USD 179.2 million attributed to non-controlling interests. Selling, general and administrative expenses were USD 400.6 million against USD 379.2 million.

Depreciation and amortization was USD 93.0 million against USD 129.1 million, and the company noted that the prior-year quarter included accelerated amortization of WWE customer relationship assets. Interest expense, net was USD 69.9 million against USD 50.8 million, which management tied to incremental first Lien term loans of USD 1.0 billion and USD 900.0 million. Segment adjusted EBITDA was USD 285.3 million for UFC, USD 217.2 million for WWE and USD 115.9 million for IMG.

Cash and Balance Sheet

Cash and cash equivalents were USD 630.9 million at September 30, against USD 831.1 million at December 31. Net cash provided by Operating Activities for nine months was USD 1,540.6 million against USD 975.8 million, including a USD 604.0 million increase in restricted cash tied to On Location. The first lien term Loan stood at USD 4.6 billion, maturing November 21, 2031, at an Interest Rate of 5.51%, and the USD 350.0 million revolving Credit Facility had no borrowings.

Capital returns in the nine months included share repurchases of USD 1,123.8 million and dividends paid to Class A holders of USD 175.0 million. The company repurchased 451,377 shares for USD 85.5 million under its August trading plan through September 30, and a quarterly Dividend of USD 0.79 per share was declared, against USD 0.76 a year earlier. About USD 936.0 million remained under the repurchase authorization as of November 4.

Metrics to Track

Revenue of USD 1,360.1 million sits alongside total adjusted EBITDA of USD 555.7 million, a quarterly dividend of USD 0.79 per share and USD 936.0 million of remaining repurchase authorization.

The August trading plan was completed on October 30 with a further 417,795 shares repurchased for USD 73.4 million. The company said it intends to commence additional repurchases under its existing program, funded primarily from additional Debt and cash on hand, with timing and amounts at its discretion.