Notes from TKO Group’s 2025 Fiscal 3rd Quarter Report

TKO Group held an investor’s meeting on Wednesday discussing the results from their fiscal 2025 third quarter report.

In regards to revenues, TKO generated $1.102 billion in net revenues for the fiscal quarter with the split being $325.2 million from UFC, $402.1 million from WWE, and $336.7 million from IMG.

TKO generated $106.8 million in net income for the fiscal quarter. It was stated that this was up $103.4 million compared to last year’s fiscal quarter and the increase being primarily due to decrease operational expenses.

In regards to other financial areas, TKO’s Adjusted EBITDA for the fiscal quarter was $360.2 million. WWE’s media rights and content revenue for the fiscal quarter was $248.9 million. WWE’s live events revenue was $82.5 million, sponsorship revenue was $39.9 million, and consumer products revenue was $30.8 million for the fiscal quarter.

Official press release:

TKO Reports Third Quarter 2025 Results

Raises Full Year 2025 Guidance

Acquired Businesses

On February 28, 2025, TKO Group Holdings, Inc. (“TKO”) completed the acquisition of certain businesses operating under the IMG brand (“IMG”), On Location, and Professional Bull Riders (“PBR”) (collectively referred to as the “Acquired Businesses”). As a common control acquisition, reported results presented in this earnings release reflect the Acquired Businesses as if they had been part of TKO during the historical periods presented. (See “Basis of Presentation” for further details.)

Third Quarter 2025 Financial Highlights¹
Revenue of $1.120 billion
Net income of $106.8 million
Adjusted EBITDA² of $360.2 million

Full Year 2025 Guidance³
The Company increased its target for revenue to $4.690 billion to $4.720 billion
The Company increased its target for Adjusted EBITDA to $1.570 billion to $1.580 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, 2025.

“TKO delivered solid third quarter financial results, and with UFC and WWE’s sustained momentum, we are once again raising our full-year guidance,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Having secured landmark multiyear media rights deals for UFC, WWE, and Zuffa Boxing, our conviction in TKO has never been stronger. We remain focused on operational execution, including preparing for UFC’s launch with Paramount, further integrating and unlocking synergies with IMG, On Location, and PBR, and maximizing shareholder value.”

Consolidated Results

Third Quarter 2025

Revenue decreased 27%, or $420.8 million, to $1.120 billion. The decrease primarily reflected a decrease of $29.7 million at UFC, to $325.2 million, an increase of $75.8 million at WWE, to $402.1 million, and a decrease of $492.4 million at IMG, to $336.7 million. The decrease at the IMG segment was primarily attributable to revenue recorded in the prior year period for the 2024 Paris Olympics.

Net Income was $106.8 million, an increase of $103.4 million from $3.4 million in the prior year period. The increase primarily reflected a decrease in operating expenses partially offset by the decrease in revenue. The decrease in operating expenses reflected a decrease in direct operating costs of $572.0 million, partially offset by an increase in depreciation and amortization of $14.2 million. Selling, general and administrative expenses were essentially flat. The decrease in direct operating costs was primarily due to expenses recorded in the prior year period at the IMG segment for the 2024 Paris Olympics.

Adjusted EBITDA² increased 59%, or $134.0 million, to $360.2 million, due to an increase of $32.5 million at WWE, to $207.8 million, an increase of $115.6 million at IMG, to $61.4 million, and an increase of $15.9 million at Corporate and Other, to ($74.6) million partially offset by a decrease of $30.0 million at UFC, to $165.6 million.

Adjusted EBITDA margin increased to 32% from 15%.

Cash flows generated by operating activities were $416.8 million, an increase of $238.8 million from $178.0 million, primarily due to higher net income and the timing of working capital.

Free Cash Flow⁴ was $398.9 million, an increase of $247.9 million from $151.0 million, due to the increase in cash flows generated by operating activities and a decrease in capital expenditures.

Cash and cash equivalents were $861.4 million as of September 30, 2025.

Gross debt was $3.759 billion as of September 30, 2025.

Other notable highlights from TKO’s investor meeting:

• TKO Group CEO Ari Emanuel stated that this past fiscal quarter was a milestone quarter for TKO. Emanuel stated that they doubled their cash dividend and started their stock buyback. Emanuel touted UFC’s Paramount deal and the removal of the PPV purchasing. Emanuel also touted WWE’s WrestlePalooza event as being the debut of WWE’s deal with ESPN, Zuffa Boxing deals and launch, Wrestlemania heading to Saudi Arabia, WWE Raw and WWE SmackDown success on Netflix and cable, and PBR going to Paramount+.
• On the topic of WWE’s live events revenue and rising ticket prices, WWE President Nick Khan stated “It’s both. Capacity continues to be very high. We’ve increased prices appropriately with the marketplace. That’s for the PLEs, Raw, SmackDown, Saturday Night’s Main Event, and every other ticketed program that WWE has. We remain bullish on it. A couple of years ago when TKO was put up, one of the first things we collectively did was reduce the non-televised live events, which created more scarcity in the marketplace for our televised events and our continued international expansion only furthered that. In January, you’ll see us on a European tour for Raw and SmackDown, leading into Royal Rumble in Saudi Arabia. Tickets already on fire for that event and it creates more scarcity in the United States, which is a good thing in terms of our overall gauge.“
• On the topic of Zuffa Boxing, TKO COO Mark Shapiro stated that they expect to do 2-4 Zuffa Boxing events per year and WWE President Nick Khan and UFC President Dana White having other responsibilities are part of the reason why they won’t be more events right away.
• On the topic of potential future acquisition deals, they stated that they would explore additional purchases if they see an upside to it for TKO.
• On the topic of WWE’s current working relationship with ESPN, they stated that they were happy with the relationship so far especially the promotion for WrestlePalooza and praised ESPN’s marketing for the show. They also stated that it will take ESPN time to grow their new streaming platform the way they want to grow it but they will do their thing and be patient. They also stated that they want to sustain what they had with WrestlePalooza and its important for ESPN that subscribers can authenticate for free.
• On the topic of sponsorship deals, they stated that their goal is $1 billion company-wide and they have their eyes on growth in 2026.  They also stated that they are now taking calls when it was them calling others when they started with UFC. They also stated that there are people calling wanting an events package with UFC, PBR and WWE.

Source: PWInsider.com, Fightful.com