Notes from TKO Group’s 2026 Fiscal 1st Quarter Report

TKO Group held an investor’s meeting on Thursday to discuss the results from their fiscal 2026 first quarter report.

In regards to revenues, TKO generated $1.597 billion in net revenues for the fiscal quarter with the split being $401.2 million from UFC, $475.7 million from WWE, and $655.4 million from IMG. This was up 26% overall compared to the same fiscal quarter last year.

TKO generated a net income of $249.8 million for the fiscal quarter. This was up compared to the $165.5 million compared to the same fiscal quarter last year.

In regards to other financial areas, TKO’s Adjusted EBITDA for the fiscal quarter was $549.8 million. WWE’s media rights and content revenue for the fiscal quarter was $281.7 million. WWE’s live events revenue was $123.5 million, sponsorship revenue was $26.2 million, and consumer products revenue was $44.3 million for the fiscal quarter.

Official press release:

TKO Reports First Quarter 2026 Results

Announces Board Authorization Of Up To An Additional $1 Billion Of Share Repurchases

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 distributions

Full 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 billion

NEW 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 Results²

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.

Other notable highlights from TKO’s investor’s meeting:

• TKO Group CEO Ari Emanuel stated that the fiscal report results show the company is poised to deal with the world as AI transforms how fans consume media.
• On the topic of the status of TKO’s scheduled upcomng events in the Middle East and current deal with Saudi Arabia, TKO COO Mark Shapiro stated “I want to address activity in the Middle East and neighboring markets. First and foremost, we are firmly moving ahead with our scheduled events. UFC returns to Azerbaijan with Fight Night Baku on June 27. That same night, WWE hosts Night of Champions from Riyhad, Saudi Arabia. This historic double header reflects a commitment by our respective partners and us to bring world-class events to fans across the region, even and despite a challenging environment. I would add that PIF withdrawing its funding of LIV Golf, our partners in Saudi Arabia have confirmed that will not be the case with TKO. Their commitment to our properties in 2026 and beyond is unwavering. After these two events, we expect the remainder of our 2026 events in the Middle East, comprised of six events, to take place as planned. The demand is real, our partners are committed, and we are leaning in.“
• Shapiro also stated that WWE’s partnership with ESPN is “gaining traction” and viewership of Elimination Chamber 2026 was up compared to last year’s event. Shapiro also stated that Wrestlemania 42 had strong ratings on both ESPN and ESPN 2 and Wrestlemania 42 Night One was the strongest ESPN 2 audience of 2026.
• Shapiro also stated that this past February’s Elimination Chamber 2026 event was the second-highest ever arena show gate in WWE history. Shapiro claimed that there is a “resilliant and durable” demand for their live events.
• On the topic of WrestleMania 42’s ticket sales being down compared to last year’s WrestleMania 41 event in the same city of Las Vegas and online criticisms about the creative plans, Shapiro stated “We fielded some investor questions about WWE demand and the state of creative, driven by online commentary and the year-over-year WrestleMania ticket sale performance. We are not concerned about the ticket performance whatsoever. It was unrealistic to expect year two growth in Las Vegas. Even with that, WrestleMania 42 was still one of the highest gates in WWE history and easily outperformed anywhere else we could have staged it. As it relates to the creative, there will always be periodic fan dissatisfaction around creative execution, commercial load, and celebrity usage. We listen to all the feedback. We do it turn a deaf ear, but these are not new criticisms.“
• CFO Andrew Schleimer stated that they have added more NXT live events to help accelerate the growth of NXT developmental talents so that they can make it to WWE’s main roster.
• On the topic of fan criticism of ticket prices and sponsorships and how TKO balances this and whether it’s reflective of the overall fan base, Shapiro stated that they can’t guess what percentage of the fan base the online criticism represents and they take all feedback from the core fan base as priority. Shapiro also stated that the criticism is old as time for all entertainment genres, from movie theaters to sports and change takes getting used to. Shapiro also stated that WWE changes will be more glaring for some as they integrate and there is no magic formula and there will be trial and errors and they have pushed boundaries. Shapiro stated that their product comes first and marketers around the world recognize its strong. Shapiro also stated that their audience is young and super passionate and they are working on giving them access while balancing. Shapiro claimed that these things allow them to be more creative with their product and stars. Shapiro also stated that their audience is resilient and they don’t take that for granted.

Source: PWInsider.com, Fightful.com 1 & 2