TKO Announces Revenue Of $1.308 Billion For Second Quarter 2025, WWE Revenue At $556.2 Million
TKO (WWE and UFC) have announced its 2025 second quarter results.
The company announced a revenue of $1.308 billion. WWE revenue was $556.2 million while UFC revenue was $415.9 million.
Net income for TKO was $273.1 million.
Full press release:
TKO Reports Second Quarter 2025 Results
Raises Full Year 2025 Guidance
ESPN and WWE Today Announced a Multiyear Domestic Rights Agreement
for WWE Premium Live Events
Acquired Businesses
On February 28, 2025, TKO Group Holdings, Inc. (“TKO”) completed the acquisition of certain
businesses operating under the IMG brand (“IMG”), On Location, and Professional Bull Riders (“PBR”) (collectively referred to as the “Acquired Businesses”). As a common control acquisition, reported results presented in this earnings release reflect the Acquired Businesses as if they had been part of TKO during the historical periods presented. (See “Basis of Presentation” for further details.)
Second Quarter 2025 Financial Highlights
• Revenue of $1.308 billion
• Net income of $273.1 million
• Adjusted EBITDA2 of $526.5 million
Full Year 2025 Guidance
• The Company increased its targets for revenue to $4.630 billion to $4.690 billion
• The Company increased its targets for Adjusted EBITDA to $1.540 billion to $1.560 billion
New York, NY, August 6, 2025 – TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO)
today announced financial results for its second quarter ended June 30, 2025.
“TKO generated strong financial results in the quarter, led by record performance at both UFC and WWE,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Our live content and experiences are proving a key differentiator for organizations and brands looking to capture audience, and our strategy is tailor made for today’s experience economy and the white-hot sports event marketplace. Given the continued momentum across our portfolio and our overall business outlook, we are raising our guidance for the full year.”
ESPN and WWE Agreement
Earlier today, ESPN and WWE announced a five-year agreement to bring WWE’s premium live events (“PLEs”) in the U.S. to ESPN’s new direct-to-consumer offering. The ESPN DTC service will stream all WWE PLEs annually, in their entirety, with select simulcasting on ESPN linear platforms. “For much of the past 45 years, ESPN has been the institution of record in the world of sports,” said Mark Shapiro, President and COO, TKO. “We are proud WWE will now take a prominent seat at its table during such a transformational juncture. As we look to the second half of 2025, we remain focused on delivering the next UFC domestic media rights deal, integrating industry leaders IMG, On Location, and PBR fully into TKO, and executing on our capital return initiatives.”
Consolidated Results
Second Quarter 2025
- Revenue increased 10%, or $115.2 million, to $1.308 billion. The increase primarily reflected an increase
of $21.5 million at UFC, to $415.9 million, and an increase of $99.4 million at WWE, to $556.2 million, partially offset by a decrease of $13.0 million at IMG, to $306.6 million. - Net Income was $273.1 million, an increase of $226.9 million from $46.2 million in the prior year period. The increase primarily reflected the increase in revenue and a decrease in operating expenses. The decrease in operating expenses reflected a decrease in direct operating costs of $114.8 million, a decrease in selling, general and administrative expenses of $3.9 million, and a decrease in depreciation and amortization of $19.5 million. The decrease in direct operating costs was primarily due to the write down of unsold tickets that was recorded in the prior year period in the IMG segment for the 2024 Paris Olympics.
- Adjusted EBITDA2 increased 75%, or $225.7 million, to $526.5 million, primarily due to an increase of $12.9 million at UFC, to $244.8 million, an increase of $78.5 million at WWE, to $329.8 million, an increase of $120.2 million at IMG, to $29.0 million, and an increase of $14.1 million at Corporate and Other, to ($77.1) million.
- Adjusted EBITDA margin increased to 40% from 25%.
- Cash flows generated by operating activities were $396.2 million, an increase of $89.1 million from $307.1 million, primarily due to higher net income partially offset by the timing of working capital. Working capital included the favorable impact of approximately $164.8 million of pre-payments held in escrow related to the 2026 FIFA World Cup as well as the adverse impact of a $125.0 million payment related to the UFC antitrust lawsuit. (See “Other Matters” for further details.)
- Free Cash Flow4 was $374.9 million, an increase of $94.6 million from $280.3 million, due to the increase in cash flows generated by operating activities and a decrease in capital expenditures.
- Cash and cash equivalents were $535.1 million as of June 30, 2025. Gross debt was $2.769 billion as of June 30, 2025.
UFC
Second Quarter 2025
- Revenue increased 5%, or $21.5 million, to $415.9 million primarily driven by a $24.1 million increase
in partnerships and marketing revenue, and a $9.9 million increase in media rights, production and content revenue, partially offset by a $10.6 million decrease in live events and hospitality revenue. 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 increase in media rights, production and content revenue was primarily related to the contractual escalation of media rights fees compared to the prior year period. The decrease in live events and hospitality revenue was primarily due to a decrease in site fee revenues, related to the timing and mix of international events, compared to the prior year period. - Adjusted EBITDA increased 6%, or $12.9 million, to $244.8 million, as the increase in revenue (as described above) was partially offset by an increase in expenses. Direct expenses decreased due to lower production, marketing, athlete and other event-related costs primarily due to the mix of event cards, venues and territories, 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 was 59% for both periods.
WWE
Second Quarter 2025
- Revenue increased 22%, or $99.4 million, to $556.2 million primarily related to a $41.6 million increase in live events and hospitality revenue, a $33.6 million increase in partnerships and marketing revenue, an $18.2 million increase in media rights, production and content revenue, and a $6.0 million increase in consumer products licensing and other revenue. The increase in live events and hospitality revenue was due to higher ticket sales revenue as well as an increase in site fees, primarily due to revenue recorded related to both domestic and international premium live events. The increase in partnerships and marketing revenue was primarily due to new partners and an increase in fees from renewals compared to the prior year period, most notably related to WrestleMania 41. The increase in media rights, production and content revenue was primarily related to the timing of the previously disclosed format expansion of SmackDown as well as the contractual escalation of media rights fees, notably the impact of WWE’s global content distribution agreement with Netflix, compared to the prior year period. The increase in consumer products licensing and other revenue was primarily related to higher video gaming revenue and merchandise sales compared to the prior year period.
- Adjusted EBITDA increased 31%, or $78.5 million, to $329.8 million, primarily due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct expenses increased primarily due to higher production and talent-related costs 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 increased to 59% from 55%.
Fans can read the entire press release here.
Learn more about the WWE and ESPN deal here.
