TKO issued the following:
TKO Reports First Quarter 2026 Results
First Quarter 2026 Financial Highlights
* Revenue of $1.597 billion
* Net income of $249.8 million
* Adjusted EBITDA1 of $549.8 million
* Returned approximately $1.0 billion of capital to equity holders through share repurchases and dividend payments and related distributionsFull Year 2026 Guidance
* The Company reaffirmed its target for revenue of $5.675 billion to $5.775 billion
* The Company reaffirmed its target for Adjusted EBITDA of $2.240 billion to $2.290 billionNEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its first quarter ended March 31, 2026.
“TKO is off to a formidable start in 2026, with strong results and continued momentum across each of our businesses,” said Ariel Emanuel, Executive Chair and CEO of TKO. “We are reaffirming our full-year guidance, and today’s incremental $1 billion share repurchase authorization underscores our conviction in TKO and its long-term value.”
“TKO’s first quarter results reflect the strength and durability of our premium IP. Our media rights portfolio is firmly in place, our financial incentive packages continue to scale, and demand for our premium live events and experiences is healthy,” said Mark Shapiro, President and COO of TKO. “With UFC Freedom 250 at the White House and On Location’s FIFA World Cup partnership, TKO will take center stage this summer, crowning moments for audience growth, cultural relevance, and our business trajectory.”
Consolidated Results
First Quarter 2026
Revenue increased 26%, or $328.1 million, to $1.597 billion. The increase primarily reflected an increase of $41.5 million at UFC, to $401.2 million, an increase of $84.2 million at WWE, to $475.7 million, and an increase of $179.1 million at the IMG segment, to $655.4 million.
Net Income was $249.8 million, an improvement of $84.3 million from $165.5 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 $166.8 million, an increase in selling, general and administrative expenses of $16.9 million, and an increase in depreciation and amortization of $43.3 million. The increases in direct operating costs and selling, general and administrative expenses were principally due to expenses recorded at the IMG segment related to the 2026 Milano Cortina Olympics.
Adjusted EBITDA1 increased 32%, or $132.4 million, to $549.8 million, due primarily to an increase of $27.1 million at UFC, an increase of $62.2 million at WWE, and an increase of $23.8 million at the IMG segment.
Adjusted EBITDA margin increased to 34% from 33%.
Cash flows generated by operating activities were $694.5 million, an increase of $531.7 million from $162.8 million, primarily due to the improved operating performance and the timing of working capital, including approximately $582.4 million of net pre-payments held in escrow related to FIFA World Cup 26.
Free Cash Flow3 was $674.5 million, an increase of $539.0 million from $135.5 million, due to the increase in cash flows generated by operating activities and a decrease in capital expenditures.
Cash and cash equivalents were $788.9 million as of March 31, 2026. Gross debt was $4.671 billion as of March 31, 2026.UFC
First Quarter 2026
Revenue increased 12%, or $41.5 million, to $401.2 million primarily driven by a $51.2 million increase in media rights, production and content revenue, and a $2.8 million increase in partnerships and marketing revenue, partially offset by a $10.1 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 two fewer Fight Night events, 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 partially offset by the impact of two fewer Fight Night events compared to the prior year period. The decrease in live events and hospitality revenue was due to a decrease in financial incentive package revenues, as the prior year period included a Fight Night event held in Saudi Arabia, partially offset by higher ticket sales revenue, compared to the prior year period.
Adjusted EBITDA increased 12%, or $27.1 million, to $254.5 million, as the increase in revenue (as described above) was partially offset by an increase in expenses. Direct operating costs reflected higher athlete, production, and other event-related costs compared to the prior year period, primarily related to UFC 324, which was the inaugural event under the Paramount distribution agreement. Selling, general and administrative expenses increased primarily due to higher personnel and travel costs compared to the prior year period.
Adjusted EBITDA margin was 63% for both periods.WWE
First Quarter 2026
Revenue increased 22%, or $84.2 million, to $475.7 million driven by a $47.2 million increase in live events and hospitality revenue, a $30.1 million increase in media rights, production and content revenue, a $6.3 million increase in consumer products licensing and other revenue, and a $0.6 million increase in partnerships and marketing revenue. The increase in live events and hospitality revenue was primarily related to an increase in financial incentive package revenues, most notably for Royal Rumble in Saudi Arabia, compared to the prior year period. The increase in media rights, production and content revenue was primarily related to higher media rights fees, notably the impact of distribution agreements with Netflix and ESPN. The increase in consumer products licensing and other revenue was primarily related to the sale of WWE-branded products, including mobile games and 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.
Adjusted EBITDA increased 32%, or $62.2 million, to $256.1 million, primarily due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating costs increased primarily due to higher talent and production costs, most notably related to Royal Rumble, 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 increased to 54% from 50%.
