TKO

#417
TKO Group Holdings, Inc. Class A Common Stock
184.3 3 USD
-0.02%
Market Price
Sector: Communication Services
Base: USD
Profit Currency: USD
Daily Range
184.31
185.32
Year Range
176.10
226.34
Daily Change
-1.87%
Monthly Change
-1.31%
6 month change
-17.67%
Year Change
-2.87%
Previous Close
187.8 5
Open
184.6 3
Low
184.3 1
High
185.3 2
Volume
373
Open full chart

Financials

Overview Statement Statistics Dividends Documents

2026

Current report, Q3 FY2026
TKO Group Holdings, Inc. current report, Q3 FY2026
8-K
Quarterly report, Q2 FY2026
TKO Group Holdings, Inc. quarterly report, Q2 FY2026
10-Q
Current report, Q2 FY2026
TKO Group Holdings, Inc. current report, Q2 FY2026
8-K
Current report, Q2 FY2026
TKO Group Holdings, Inc. current report, Q2 FY2026
8-K
Current report, Q2 FY2026
TKO Group Holdings, Inc. current report, Q2 FY2026
8-K
Quarterly report, Q1 FY2026
TKO Group Holdings, Inc. quarterly report, Q1 FY2026
10-Q
Current report, Q1 FY2026
TKO Group Holdings, Inc. current report, Q1 FY2026
8-K
Current report, Q1 FY2026
TKO Group Holdings, Inc. current report, Q1 FY2026
8-K

2025

Annual report, FY2025
TKO Group Holdings, Inc. annual report, FY2025
10-K
Current report, Q4 FY2025
TKO Group Holdings, Inc. current report, Q4 FY2025
8-K

TKO Group Holdings, Inc. quarterly report, Q2 FY2026

Full document

TKO Group Holdings, Inc. - Q2 2026 Filing Summary

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended June 30, 2026. TKO Group Holdings, Inc. operates as a premium sports and entertainment company comprising three reportable segments: UFC (Ultimate Fighting Championship), WWE (World Wrestling Entertainment), and IMG (including On Location and Professional Bull Riders). The company is controlled by Silver Lake Group following the 2025 Endeavor Take-Private Transaction, with Silver Lake owning approximately 61% of voting interests.

Key Financial Metrics (Six Months Ended June 30, 2026)

Metric Amount (in millions)
Total Revenue $3,144.0
Operating Income $768.3
Net Income (GAAP) $553.7
Net Income Attributable to TKO $191.0
Adjusted EBITDA $1,199.7
Operating Cash Flow $1,068.5
Total Debt (Principal) $4,659.0
Cash and Restricted Cash $1,552.2

Material Changes vs. Prior Period

  • Revenue Growth: Revenue increased 22% year-over-year (YoY) to $3.14 billion, driven by new media rights agreements (Paramount for UFC, Netflix/ESPN for WWE) and significant hospitality sales from the FIFA World Cup 2026 and Milano Cortina Olympics via the IMG segment.
  • Profitability: Operating income rose 27% YoY to $768.3 million. Adjusted EBITDA increased 27% to $1.20 billion.
  • Segment Performance:
    • UFC: Revenue up 21% ($936.9M); Adjusted EBITDA up 13% ($534.9M). Growth driven by media rights and partnerships (e.g., UFC Freedom 250), partially offset by fewer numbered events.
    • WWE: Revenue up 16% ($1.10B); Adjusted EBITDA up 19% ($624.4M). Driven by media rights and consumer products, despite lower ticket sales for WrestleMania in Las Vegas.
    • IMG: Revenue up 29% ($1.01B); Adjusted EBITDA up 72% ($175.9M). Significant boost from live events/hospitality related to major global sporting events.
  • Debt Refinancing: In March 2026, the company added a $900 million incremental term loan. In May 2026, it refinanced its First Lien Term Loan, reducing interest margins by 25 basis points. Total debt principal stands at $4.66 billion.

Guidance, Outlook, and Risks

  • Capital Return Program: The Board authorized an additional $1.0 billion in share repurchases on May 6, 2026, incremental to the existing $2.0 billion program. During the six months ended June 30, 2026, the company repurchased approximately $967.6 million of Class A common stock (including an $800 million Accelerated Share Repurchase). Quarterly dividends were declared at $0.79 per share for Q2 2026.
  • Liquidity: The company maintains strong liquidity with $1.55 billion in cash and restricted cash. Management believes current sources of liquidity are sufficient for the next 12 months.
  • Legal Contingencies:
    • UFC Antitrust: The "Le" case settlement ($375M) was paid in June 2025. New antitrust class actions ("Johnson," "Cirkunovs," "Davis," "Costantino") remain pending.
    • WWE Litigation: A settlement in principle was reached in June 2026 regarding stockholder litigation related to the TKO Transactions. WWE's portion is estimated at $105 million, with $75 million expected to be covered by insurance, resulting in a net estimated loss of $30 million.
    • IMG Litigation: Claims related to Italian football media rights were settled in April 2026, with obligations paid directly by Endeavor Group Holdings under indemnification agreements.
  • Risks: Key risks include dependence on key personnel, substantial indebtedness, antitrust litigation outcomes, and the ability to adapt to changing content distribution platforms.

Investor Verification Checklist

  • Debt Covenants: Verify compliance with the First Lien Leverage Ratio (8.25-to-1) and Debt Service Coverage Ratio (1.15-to-1) given the increased debt load from the $900M incremental loan.
  • Legal Settlements: Confirm the final court approval and payment terms for the WWE stockholder litigation settlement ($30M net loss) and monitor the status of pending UFC antitrust cases.
  • Share Repurchase Execution: Track the remaining capacity under the $3.0 billion repurchase program and the impact of the $800M ASR settlement on diluted share count.
  • Media Rights Renewals: Assess the long-term sustainability of revenue growth driven by the new Paramount (UFC) and Netflix/ESPN (WWE) contracts.
  • Non-Controlling Interests: Review the allocation of net income between TKO shareholders and non-controlling interests (Endeavor/Silver Lake), which significantly impacts GAAP net income attributable to TKO.

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