TKO Group Holdings, Inc.

What they do

TKO monetizes its combat sports and sports entertainment brands through four principal activities: media rights, production and content; live events and hospitality; partnerships and marketing; and consumer products licensing. The company operates UFC, a leading combat sports brand, and WWE, a sports entertainment business, alongside the IMG segment which includes IMG, On Location, and Professional Bull Riders (PBR). It completed the Endeavor Asset Acquisition on February 28, 2025, adding these businesses.

Revenue drivers

• UFC — Generates revenue from media rights, live events, pay-per-view, and sponsorships. Q2 2026 revenue was $535.7 million, up $119.8 million year-over-year.
• WWE — Monetizes its sports entertainment content through media rights deals, live events, and consumer products. Q2 2026 revenue was $620.9 million, up $64.7 million year-over-year.
• IMG segment — Comprises IMG, On Location, and PBR, focusing on event hospitality, media production, and live event operations. Q2 2026 revenue was $354.7 million, up $48.1 million year-over-year.

Recent performance

For Q2 2026, revenue increased 18% to $1.547 billion, with net income of $303.9 million, up from $273.1 million in the prior year period. Adjusted EBITDA rose 23% to $649.9 million, with margin expanding to 42% from 40%. Operating cash flow was $374.0 million and free cash flow was $349.6 million. As of June 30, 2026, cash and cash equivalents were $592.5 million and gross debt was $4.659 billion.

Strategy

TKO is focused on expanding its global fan base and monetizing premium live content and experiences, including ticketing, hospitality, and marketing partnerships. Management raised full-year 2026 guidance, citing strong momentum and confidence in multi-year growth. The company announced intentions to commence additional share repurchases and has returned over $1.3 billion to equity holders year-to-date through repurchases and dividends.

Risks

• Dependence on discretionary spending — Revenue from corporate sponsorships, advertising, and consumer spending on events and merchandise can decline during economic downturns or recessions.
• Key distribution relationships — The business relies on television, cable, satellite, and digital streaming partners; changes in these relationships could impact revenue.
• Macroeconomic and geopolitical conditions — Slowing economies, inflation, and geopolitical events could reduce demand for live events and premium hospitality.
• Substantial indebtedness — With long-term debt of $4.58 billion as of June 30, 2026, the company faces risks related to its ability to service debt and future financing needs.

Outlook

Management increased full-year 2026 revenue guidance to $5.775-$5.825 billion and Adjusted EBITDA to $2.275-$2.305 billion. They cited strong momentum heading into the back half of the year and the company's position to capitalize on demand in the experience economy. Capital allocation remains a priority, with additional share repurchases planned.