Notes from TKO Group’s 2026 Fiscal 3rd Quarter Report

TKO Group held an investor’s meeting on Wednesday discussing the results from their fiscal 2026 third quarter report.

In regards to revenues, TKO generated $1.360 billion in net revenues for the fiscal quarter with the split being $519.2 million from UFC, $399.3 million from WWE, and $391.3 million from IMG. This was up 21% overall and up from the $325.2 million from UFC but down from the $402.1 million from WWE compared to the same fiscal quarter last year.

TKO generated $227.9 million in net income for the fiscal quarter. It was stated that this was up $171.1 million compared to last year’s fiscal quarter and the increase being primarily due to the income increase offsetting the increase in operational expenses.

In regards to other financial areas, TKO’s Adjusted EBITDA for the fiscal quarter was $555.7 million. WWE’s media rights and content revenue for the fiscal quarter was $255.8 million. WWE’s live events revenue was $57.7 million, sponsorship revenue was $51.0 million, and consumer products revenue was $34.8 million for the fiscal quarter.

In regards to WWE generating a revenue decrease for the fiscal quarter, it was stated that this was due to WWE holding fewer main roster Premium Live Events and the lower than expected ticket sales for this past August’s SummerSlam 2026 event in Minneapolis, Minnesota.

Revenue decreased 1%, or $2.8 million, to $399.3 million driven by a $24.8 million decrease in live events and hospitality revenue, partially offset by a $11.1 million increase in partnerships and marketing revenue, a $6.9 million increase in media rights, production and content revenue, and a $4.0 million increase in consumer products licensing and other revenue. The decrease in live events and hospitality revenue was primarily due to a decrease in ticket sales revenue related to the mix and timing of events including three fewer Main Roster Premium Live Events and lower sales for SummerSlam, 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 despite three fewer Main Roster Premium Live Events, 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 the new distribution agreement with ESPN that began in September 2025, partially offset by the three fewer Main Roster Premium Live Events, compared to the prior year period.The increase in consumer products licensing and other revenue was primarily related to the sale of WWE-branded products, including video games and trading cards, compared to the prior year period.

Official press release:

TKO Reports Third Quarter 2026 Results

Raises Full Year 2026 Guidance

Announces Intent to Commence Additional Share Repurchases

Third Quarter 2026 Financial Highlights
* Revenue of $1.360 billion
* Net income of $277.9 million
* Adjusted EBITDA¹ of $555.7 million
* Year-to-date, the Company has returned in excess of $1.6 billion of capital to equity holders through share repurchases and dividend payments and related distributions

Full Year 2026 Guidance
* The Company increased its target for revenue to $5.790 billion to $5.830 billion
* The Company increased its target for Adjusted EBITDA to $2.295 billion to $2.315 billion

NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its third quarter ended September 30, 2026.

“Our third quarter performance reflects the secular tailwinds powering live events and experiences around the world, and TKO’s assets sit front and center of that premium ecosystem,” said Mark Shapiro, President and COO of TKO. “As we close out what we’ve called our year of execution, our decision to raise full-year guidance for the second time this year is the clearest expression of our conviction across the entire portfolio. Our business is durable and our fundamentals are solid, with the vast majority of our existing revenues locked in for the next five to seven years. Macro trends are firmly in our favor, every facet of sports consumption is pointing north, and we see substantial runway ahead.

Consolidated Results²

Third Quarter 2026

Revenue increased 21%, or $240.2 million, to $1.360 billion. The increase primarily reflected an increase of $194.0 million at UFC, to $519.2 million, a decrease of $2.8 million at WWE, to $399.3 million, and an increase of $54.6 million at the IMG segment, to $391.3 million.

Net Income was $277.9 million, an increase of $171.1 million from $106.8 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 $49.3 million and an increase in selling, general and administrative expenses of $21.4 million, partially offset by a decrease in depreciation and amortization of $36.1 million.

Adjusted EBITDA¹ increased 54%, or $195.5 million, to $555.7 million, due primarily to an increase of $119.7 million at UFC, to $285.3 million, an increase of $9.4 million at WWE, to $217.2 million, and an increase of $54.5 million at the IMG segment, to $115.9 million.

Adjusted EBITDA margin increased to 41% from 32%.

Cash flows generated by operating activities were $472.1 million, an increase of $55.3 million from $416.8 million, primarily due to the improved operating performance and the timing of working capital.

Free Cash Flow³ was $449.9 million, an increase of $51.0 million from $398.9 million, due to the increase in cash flows generated by operating activities, partially offset by an increase in capital expenditures.

Cash and cash equivalents were $630.9 million as of September 30, 2026.

Gross debt was $4.647 billion as of September 30, 2026.