TKO Reports Second Quarter 2026 Results, Reports Revenue Of $1.547 Billion
The TKO second-quarter report.
TKO Group Holdings issued its 2026 second-quarter earnings report. They reported a revenue of $1.547 billion.
TKO Reports Second Quarter 2026 Results
08/03/2026
Raises Full Year 2026 Guidance
Announces Intent to Commence Additional Share Repurchases
Second Quarter 2026 Financial Highlights
- Revenue of $1.547 billion
- Net income of $303.9 million
- Adjusted EBITDA1 of $649.9 million
- Year-to-date, the Company has returned in excess of $1.3 billion of capital to equity holders through share repurchases and dividend payments and related distributions
Full Year 2026 Guidance
- The Company increased its target for revenue to $5.775 billion to $5.825 billion
- The Company increased its target for Adjusted EBITDA to $2.275 billion to $2.305 billion
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its second quarter ended June 30, 2026.
“Despite a challenging global environment, TKO delivered solid results in Q2, with strong momentum heading into the back half of the year,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Premium live content and experiences are heating up in an increasingly AI-driven world, and our businesses are well positioned to fully capitalize on societal secular tailwinds.”
“From UFC Freedom 250 to the FIFA World Cup, TKO continues to deliver on the biggest stages and this quarter reinforced our 2026 execution story. Our decision to raise full-year guidance reflects both our performance to date and our confidence in TKO’s multi-year trajectory,” said Mark Shapiro, President and COO of TKO. “Our global fan base is expanding, and we are capitalizing on the commercial promise across ticketing, premium hospitality, marketing partnerships, and financial incentive packages. The demand in the experience economy is undeniable and positions us well for multi-year growth, margin expansion, and overall value creation.”
Consolidated Results2
Second Quarter 2026
Revenue increased 18%, or $238.7 million, to $1.547 billion. The increase primarily reflected an increase of $119.8 million at UFC, to $535.7 million, an increase of $64.7 million at WWE, to $620.9 million, and an increase of $48.1 million at the IMG segment, to $354.7 million.
Net Income was $303.9 million, an improvement of $30.8 million from $273.1 million in the prior year period. The improvement reflected the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in direct operating costs of $79.7 million and an increase in selling, general and administrative expenses of $98.4 million. The increase in selling, general and administrative expenses primarily reflected legal fees and settlement costs associated with stockholder litigation related to WWE.
Adjusted EBITDA1 increased 23%, or $123.4 million, to $649.9 million, due primarily to an increase of $35.6 million at UFC, an increase of $38.5 million at WWE, and an increase of $49.6 million at the IMG segment.
Adjusted EBITDA margin increased to 42% from 40%.
Cash flows generated by operating activities were $374.0 million, a decrease of $22.2 million from $396.2 million, primarily due to the timing of working capital, partially offset by the improved operating performance. Working capital for the three months ended June 30, 2026 and June 30, 2025 included approximately $22.4 million and $164.8 million, respectively, of net pre-payments held in escrow related to FIFA World Cup 2026.
Free Cash Flow3 was $349.6 million, a decrease of $25.3 million from $374.9 million, due to the decrease in cash flows generated by operating activities and an increase in capital expenditures.
Cash and cash equivalents were $592.5 million as of June 30, 2026. Gross debt was $4.659 billion as of June 30, 2026.
Results by Operating Segment4
The table below reflects TKO’s performance by operating segment:
|
Three Months Ended |
Six Months Ended | |||||||||||||||
| (in millions) | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| UFC | $ | 535.7 | $ | 415.9 | $ | 936.9 | $ | 775.6 | ||||||||
| WWE | 620.9 | 556.2 | 1,096.6 | 947.7 | ||||||||||||
| IMG | 354.7 | 306.6 | 1,010.1 | 782.9 | ||||||||||||
| Total revenue from reportable segments | 1,511.3 | 1,278.7 | 3,043.6 | 2,506.2 | ||||||||||||
| Corporate and Other | 48.5 | 44.6 | 122.4 | 99.0 | ||||||||||||
| Eliminations | (12.7 | ) | (14.9 | ) | (22.0 | ) | (28.0 | ) | ||||||||
| Total Revenue | $ | 1,547.1 | $ | 1,308.4 | $ | 3,144.0 | $ | 2,577.2 | ||||||||
| Adjusted EBITDA: | ||||||||||||||||
| UFC | $ | 280.4 | $ | 244.8 | $ | 534.9 | $ | 472.2 | ||||||||
| WWE | 368.3 | 329.8 | 624.4 | 523.7 | ||||||||||||
| IMG | 78.6 | 29.0 | 175.9 | 102.5 | ||||||||||||
| Total Adjusted EBITDA from reportable segments | 727.3 | 603.6 | 1,335.2 | 1,098.4 | ||||||||||||
| Corporate and Other | (77.4 | ) | (77.1 | ) | (135.5 | ) | (154.5 | ) | ||||||||
| Total Adjusted EBITDA | $ | 649.9 | $ | 526.5 | $ | 1,199.7 | $ | 943.9 | ||||||||
UFC
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in millions) | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| UFC Revenue: | ||||||||||||||||
| Media rights, production and content | $ | 325.2 | $ | 260.5 | $ | 600.5 | $ | 484.6 | ||||||||
| Live events and hospitality | 47.8 | 58.5 | 96.3 | 117.1 | ||||||||||||
| Partnerships and marketing | 144.8 | 85.8 | 211.9 | 150.1 | ||||||||||||
| Consumer products licensing and other | 17.9 | 11.1 | 28.2 | 23.8 | ||||||||||||
| Total Revenue | $ | 535.7 | $ | 415.9 | $ | 936.9 | $ | 775.6 | ||||||||
Second Quarter 2026
Revenue increased 29%, or $119.8 million, to $535.7 million driven by a $64.7 million increase in media rights, production and content revenue, a $59.0 million increase in partnerships and marketing revenue, and a $6.8 million increase in consumer products licensing and other revenue, partially offset by a $10.7 million decrease in live events and hospitality revenue. The increase in media rights, production and content revenue was primarily related to higher media rights fees, which reflected the impact of the new distribution agreement with Paramount that began in January 2026 partially offset by one fewer Numbered Event, compared to the prior year period. The increase in partnerships and marketing revenue was primarily related to new partners and an increase in fees from renewals, which were largely driven by the UFC Freedom 250 event held at the White House in June 2026, compared to the prior year period. The increase in consumer products licensing and other revenue was primarily due to higher royalties on UFC-branded products, including collectibles and event merchandise. The decrease in live events and hospitality revenue was due to a decrease in ticket sales revenue, which was largely driven by the absence of ticket sales for UFC Freedom 250 and one fewer Numbered Event, partially offset by higher financial incentive package revenue, compared to the prior year period.
Adjusted EBITDA increased 15%, or $35.6 million, to $280.4 million, due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating costs reflected higher athlete, production and other event-related costs, which were largely driven by the UFC Freedom 250 event, partially offset by one fewer Numbered Event, compared to the prior year period. Selling, general and administrative expenses increased primarily due to higher personnel and travel costs compared to the prior year period.
Adjusted EBITDA margin decreased to 52% from 59%. The decrease was entirely due to the financial profile of the UFC Freedom 250 event. Absent Freedom 250 margins would have increased year-over-year.
WWE
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in millions) | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| WWE Revenue: | ||||||||||||||||
| Media rights, production and content | $ | 359.7 | $ | 278.9 | $ | 641.4 | $ | 530.5 | ||||||||
| Live events and hospitality | 152.0 | 185.7 | 275.5 | 262.0 | ||||||||||||
| Partnerships and marketing | 63.2 | 58.3 | 89.4 | 83.9 | ||||||||||||
| Consumer products licensing and other | 46.0 | 33.3 | 90.3 | 71.3 | ||||||||||||
| Total Revenue | $ | 620.9 | $ | 556.2 | $ | 1,096.6 | $ | 947.7 | ||||||||
Second Quarter 2026
Revenue increased 12%, or $64.7 million, to $620.9 million driven by a $80.8 million increase in media rights, production and content revenue, a $12.7 million increase in consumer products licensing and other revenue, and a $4.9 million increase in partnerships and marketing revenue, partially offset by a $33.7 million decrease in live events and hospitality revenue. The increase in media rights, production and content revenue was primarily related to higher media rights fees, notably the impact of the new distribution agreement with ESPN that began in September 2025, compared to the prior year period. The increase in consumer products licensing and other revenue was primarily related to the sale of WWE-branded products, including trading cards and other collectibles, compared to the prior year period. The increase in partnerships and marketing revenue was primarily related to new partners and an increase in fees from renewals compared to the prior year period. The decrease in live events and hospitality revenue was due to a decrease in ticket sales revenue, almost exclusively related to WrestleMania 42 in Las Vegas, compared to the prior year period.
Adjusted EBITDA increased 12%, or $38.5 million, to $368.3 million, due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating costs reflected higher talent, production and other event-related costs compared to the prior year period. Selling, general and administrative expenses increased primarily due to higher travel costs, related to an increase in the number of international events, compared to the prior year period.
Adjusted EBITDA margin was 59% for both periods.
IMG
The IMG segment reflects the operations of the IMG business and On Location.
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in millions) | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| IMG Revenue: | ||||||||||||||||
| Media rights, production and content | $ | 147.2 | $ | 163.4 | $ | 307.4 | $ | 324.7 | ||||||||
| Live events and hospitality | 198.5 | 132.1 | 666.2 | 420.6 | ||||||||||||
| Partnerships and marketing | 3.5 | 7.9 | 25.0 | 30.2 | ||||||||||||
| Consumer products licensing and other | 5.5 | 3.2 | 11.5 | 7.4 | ||||||||||||
| Total Revenue | $ | 354.7 | $ | 306.6 | $ | 1,010.1 | $ | 782.9 | ||||||||
Second Quarter 2026
Revenue increased 16%, or $48.1 million, to $354.7 million primarily driven by a $66.4 million increase in live events and hospitality revenue, partially offset by a $16.2 million decrease in media rights, production and content revenue. The increase in live events and hospitality revenue was primarily related to FIFA World Cup 2026 hospitality sales at On Location. The decrease in media rights, production and content revenue related to the IMG business and primarily reflected the loss of a contract for Italy’s premier professional cycling event, partially offset by increased demand for Stars on Ice, the touring figure skating show, and growth in Sport 24, the live sports channel for airlines and cruise ships, compared to the prior year period.
Adjusted EBITDA increased 171%, or $49.6 million, to $78.6 million, primarily due to the increase in revenue (as described above) and a decrease in expenses. Direct operating costs decreased primarily due to the end of an Italian professional cycling contract at the IMG business compared to the prior year period. Selling, general and administrative expenses increased primarily due to costs related to FIFA World Cup 2026 compared to the prior year period.
Adjusted EBITDA margin increased to 22% from 9%.
Corporate and Other
Corporate and Other reflects operations not allocated to the UFC, WWE, or IMG segments and primarily consists of general and administrative expenses, the operations of PBR, as well as management and promotional fees for services primarily related to boxing.
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in millions) | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Corporate and Other Revenue: | ||||||||||||||||
| Media rights, production and content | $ | 3.7 | $ | 4.7 | $ | 12.6 | $ | 8.0 | ||||||||
| Live events and hospitality | 19.8 | 18.4 | 52.8 | 51.8 | ||||||||||||
| Partnerships and marketing | 12.3 | 11.7 | 28.6 | 23.8 | ||||||||||||
| Consumer products licensing and other | 12.7 | 9.8 | 28.4 | 15.4 | ||||||||||||
| Total Revenue | $ | 48.5 | $ | 44.6 | $ | 122.4 | $ | 99.0 | ||||||||
Second Quarter 2026
Revenue increased 9%, or $3.9 million, to $48.5 million. The increase was primarily related to an increase in management fees for services related to the Company’s boxing initiatives. Revenue at PBR increased by $1.0 million principally related to higher live events and hospitality revenue, which was driven by the Space Cowboys event at the U.S. Air Force Academy.
Adjusted EBITDA was a loss of $77.4 million, essentially comparable to a loss of $77.1 million in the prior year period. Results primarily reflected the increase in revenue (as described above) offset by an increase in expenses. Expenses reflected higher personnel and other operating costs partially offset by lower event-related costs at PBR from holding ten fewer events due to a strategic review to remove non-core events compared to the prior year period.
Full Year 2026 Guidance
In February, the Company issued revenue and Adjusted EBITDA guidance of $5.675 billion to $5.775 billion and $2.240 billion to $2.290 billion, respectively, for the full year 2026. Based on performance through the first six months of the year and our visibility into and anticipated performance for the remainder of the year, the Company is raising its guidance and now expects full year 2026 revenue of $5.775 billion to $5.825 billion and Adjusted EBITDA of $2.275 billion to $2.305 billion.
The Company intends to provide additional detail related to its 2026 guidance on today’s earnings call.
Other Matters
Return of Capital Program
The Company announced that it intends to commence additional repurchases of its outstanding Class A common stock under its existing share repurchase program. The Company will determine at its discretion the timing and the amount of any repurchases based on its evaluation of market conditions, share price, and other factors.
As previously disclosed, the Company’s board of directors has authorized the repurchase of up to $3 billion of outstanding Class A common stock. The share repurchase program has no expiration and may be modified, suspended, or discontinued at any time.
As previously disclosed, on June 30, 2026, the Company announced the completion of its accelerated share repurchase agreement (the “ASR Agreement”) to repurchase $800 million, or 4,167,298 shares, of its outstanding Class A common stock.
As previously disclosed, on May 11, 2026, the Company entered into a Rule 10b5-1 trading plan for the repurchase of up to $200 million of its outstanding Class A Common Stock (the “10b5-1 Plan”). During the second quarter, the Company repurchased 648,919 shares for approximately $129.3 million. From July 1, 2026 through July 21, 2026, the Company repurchased 373,515 shares for approximately $70.7 million thus completing the 10b5-1 Plan.
As of August 3, 2026, the Company has slightly in excess of $1 billion available under its existing authorization.
On June 30, 2026, the Company paid a quarterly cash dividend to the holders of the Company’s Class A common stock based on their pro rata share of an aggregate distribution of approximately $150 million, or $0.79 per share, from TKO Operating Company, LLC.
Notes
| (1) | The definition of Adjusted EBITDA can be found in the Non-GAAP Financial Measures section of the release on page 8. A reconciliation of Net Income (Loss) to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025 can be found in the Supplemental Information in this release on page 15. | ||
| (2) | As the acquisition of the Acquired Businesses was accounted for as a merger between entities under common control, reported results presented in this earnings release reflect the results of the Acquired Businesses as if they had been part of TKO during the historical periods presented herein. See the “Basis of Presentation” discussion on page 9 for further details. | ||
| (3) | The definition of Free Cash Flow and Free Cash Flow Conversion can be found in the Non-GAAP Financial Measures section of the release on page 8. A reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow for the three and six months ended June 30, 2026 and 2025 can be found in the Supplemental Information in this release on page 16. | ||
| (4) | An explanation of the basis of presentation can be found in this release on page 9. |
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”). This press release includes financial measures that are not calculated in accordance with GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow and Free Cash Flow Conversion. Please see the definitions below and the reconciliation tables included in this release for additional information and a reconciliation of the Non-GAAP financial measures to the most comparable GAAP financial measures.
The Company defines Adjusted EBITDA as net income excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger, acquisition and earnout costs, certain legal costs, restructuring, severance and impairment charges, foreign exchange (gains) losses, and certain other items when applicable. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.
TKO management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to investors as these measures eliminate the significant level of non-cash depreciation and amortization expense that results from its capital investments and intangible assets, and improve comparability by eliminating the significant level of interest expense associated with TKO’s debt facilities, as well as income taxes which may not be comparable with other companies based on TKO’s tax and corporate structure. Adjusted EBITDA and Adjusted EBITDA margin are used as the primary bases to evaluate TKO’s consolidated operating performance.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of TKO’s results as reported under GAAP. Some of these limitations are:
- they do not reflect every cash expenditure, future requirements for capital expenditures, or contractual commitments;
- Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on TKO’s debt;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect any cash requirement for such replacements or improvements; and
- they are not adjusted for all non-cash income or expense items that are reflected in TKO’s statements of cash flows.
TKO management compensates for these limitations by using Adjusted EBITDA and Adjusted EBITDA margin along with other comparative tools, together with GAAP measurements, to assist in the evaluation of TKO’s operating performance.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to net income as indicators of TKO’s financial performance, as measures of discretionary cash available to it to invest in the growth of its business or as measures of cash that will be available to TKO to meet its obligations. Although TKO uses Adjusted EBITDA and Adjusted EBITDA margin as financial measures to assess the performance of its business, such use is limited because it does not include certain material costs necessary to operate TKO’s business. TKO’s presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as indications that its future results will be unaffected by unusual or nonrecurring items. These non-GAAP financial measures, as determined and presented by TKO, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of TKO’s most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.
The Company defines Free Cash Flow as net cash provided by operating activities less cash used for capital expenditures. TKO views net cash provided by operating activities as the most directly comparable GAAP measure. Free Cash Flow Conversion is defined as Free Cash Flow divided by Adjusted EBITDA. Although they are not recognized measures of liquidity under U.S. GAAP, Free Cash Flow and Free Cash Flow Conversion provide useful information regarding the amount of cash TKO’s continuing business generates after capital expenditures and is available for reinvesting in the business, debt service, share repurchases and payment of dividends. Free Cash Flow and Free Cash Flow Conversion have certain limitations in that they do not represent the total increase or decrease in the cash balance for the period, nor do they represent the residual cash flow for discretionary expenditures.
Reconciliations of the Company’s Non-GAAP financial measure guidance to the most directly comparable GAAP financial measures cannot be provided without unreasonable efforts and are not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations and certain other items reflected in our reconciliation of historical Non-GAAP financial measures, the amounts of which could be material.
Basis of Presentation
As a result of the February 28, 2025 closing of the Company’s agreement with Endeavor to acquire IMG, On Location, and PBR (the “Acquired Businesses”) in a common control transaction, TKO’s consolidated financial information presented herein reflect the combined results of TKO and the Acquired Businesses as if they had been part of TKO during the historical periods presented under common control.
TKO’s financial information presented herein for the periods that it did not own the Acquired Businesses were prepared by Endeavor Group Holdings, Inc. and include allocations for corporate expenses to the businesses based on Endeavor Group Holdings, Inc.’s corporate expense profile. These expenses consisted of certain support functions that were provided on a centralized basis, such as expenses related to finance, human resources, information technology, facilities, and legal, among others and were allocated to the Acquired Businesses. Endeavor Group Holdings, Inc. allocated these corporate expenses on a pro rata basis of headcount, gross profit, and other allocation methodologies. Corporate allocations were $21.7 million for the six months ended June 30, 2025 representing allocations from January 1 through February 28, 2025. Under TKO ownership effective February 28, 2025, such corporate allocations no longer occur.
Effective February 28, 2025, the Company operates its business under three reportable segments, UFC, WWE, and IMG. The UFC and WWE segments consist entirely of the operations of these businesses, while the IMG segment consists entirely of the operations of IMG and On Location. In addition, the Company reports results for the “Corporate and Other” group, which includes the operations of PBR, management and promotional fees for services primarily related to boxing as well as general and administrative expenses that are not allocated to the business segments. These expenses largely relate to corporate activities, including information technology, facilities, legal, human resources, finance, accounting, treasury, investor relations, corporate communications, community relations and compensation to TKO’s management and board of directors, which support the reportable segments. All prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. The profitability measure employed by the Company in assessing operating performance, including that of its segments, is Adjusted EBITDA. The Company defines Adjusted EBITDA as net income, excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger, acquisition and earnout costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA includes amortization expenses directly related to supporting the operations of the Company’s segments, including content production asset amortization.
Fightful will have coverage of the conference call.
