Notes from TKO Group’s 2026 Fiscal 2nd Quarter Report

TKO Group held an investor’s meeting earlier today to discuss the results from their fiscal 2026 second quarter report.

In regards to revenues, TKO generated $1.547 billion in net revenues for the fiscal quarter with the split being $535.7 million from UFC and $620.9 million from WWE. It was stated that IMG generated the remainder of $354.7 million for net revenues. This was up 18% overall and up from the $556.2 million from WWE and $415.9 million from UFC compared to the same fiscal quarter last year.

TKO generated a net income of $303.9 million for the fiscal quarter, up from the $273.1 million compared to the same fiscal quarter last year.

In regards to other financial areas, TKO’s Adjusted EBITDA for the fiscal quarter was $649.9 million. WWE’s media rights and content revenue for the fiscal quarter was $278.9 million. WWE’s live events revenue was $359.7 million, sponsorship revenue was $63.2 million, and consumer products revenue was $46 million for the fiscal quarter.

Official press release:

TKO Reports Second Quarter 2026 Results

Raises Full Year 2026 Guidance

AnnouncesIntent to Commence Additional Share Repurchases

Second Quarter 2026 Financial Highlights
* Revenue of $1.547 billion
* Net income of $303.9 million
* Adjusted EBITDA¹ of $649.9 million

Year-to-date, the Company has returned in excess of $1.3 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 $5.775 billion to $5.825 billion

The Company increased its target for Adjusted EBITDA to $2.275 billion to $2.305 billion

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

“Despite a challenging global environment, TKO delivered solid results in Q2, with strong momentum heading into the back half of the year,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Premium live content and experiences are heating up in an increasingly AI-driven world, and our businesses are well positioned to fully capitalize on societal secular tailwinds.”

“From UFC Freedom 250 to the FIFA World Cup, TKO continues to deliver on the biggest stages and this quarter reinforced our 2026 execution story. Our decision to raise full-year guidance reflects both our performance to date and our confidence in TKO’s multi-year trajectory,” said Mark Shapiro, President and COO of TKO. “Our global fan base is expanding, and we are capitalizing on the commercial promise across ticketing, premium hospitality, marketing partnerships, and financial incentive packages. The demand in the experience economy is undeniable and positions us well for multi-year growth, margin expansion, and overall value creation.”

Consolidated Results²

Second Quarter 2026
* Revenue increased 18%, or $238.7 million, to $1.547 billion. The increase primarily reflected an increase of $119.8 million at UFC, to $535.7 million, an increase of $64.7 million at WWE, to $620.9 million, and an increase of $48.1 million at the IMG segment, to $354.7 million.
* Net Income was $303.9 million, an improvement of $30.8 million from $273.1 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 $79.7 million and an increase in selling, general and administrative expenses of $98.4 million. The increase in selling, general and administrative expenses primarily reflected legal fees and settlement costs associated with stockholder litigation related to WWE.
* Adjusted EBITDA¹ increased 23%, or $123.4 million, to $649.9 million, due primarily to an increase of $35.6 million at UFC, an increase of $38.5 million at WWE, and an increase of $49.6 million at the IMG segment.
* Adjusted EBITDA margin increased to 42% from 40%.
* Cash flows generated by operating activities were $374.0 million, a decrease of $22.2 million from $396.2 million, primarily due to the timing of working capital, partially offset by the improved operating performance. Working capital for the three months ended June 30, 2026 and June 30, 2025 included approximately $22.4 million and $164.8 million, respectively, of net pre-payments held in escrow related to FIFA World Cup 2026.
* Free Cash Flow³ was $349.6 million, a decrease of $25.3 million from $374.9 million, due to the decrease in cash flows generated by operating activities and an increase in capital expenditures.
*Cash and cash equivalents were $592.5 million as of June 30, 2026. Gross debt was $4.659 billion as of June 30, 2026.

UFC

Second Quarter 2026
* Revenue increased 29%, or $119.8 million, to $535.7 million driven by a $64.7 million increase in media rights, production and content revenue, a $59.0 million increase in partnerships and marketing revenue, and a $6.8 million increase in consumer products licensing and other revenue,partially offset by a $10.7 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 one fewer Numbered Event, 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, which were largely driven by the UFC Freedom 250 event held at the White House in June 2026, compared to the prior year period. The increase in consumer products licensing and other revenue was primarily due to higher royalties on UFC-branded products, including collectibles and event merchandise.The decrease in live events and hospitality revenue was due to a decrease in ticket sales revenue, which was largely driven by the absence of ticket sales for UFC Freedom 250 and one fewer Numbered Event, partially offset by higher financial incentive package revenue, compared to the prior year period.
* Adjusted EBITDA increased 15%, or $35.6 million, to $280.4 million, due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating costs reflected higher athlete, production and other event-related costs, which were largely driven by the UFC Freedom 250 event, partially offset by one fewer Numbered Event, compared to the prior year period. Selling, general and administrative expenses increased primarily due to higher personnel and travel costs compared to the prior year period.
* Adjusted EBITDA margin decreased to 52% from 59%. The decrease was entirely due to the financial profile of the UFC Freedom 250 event. Absent Freedom 250 margins would have increased year-over-year.

WWE

Second Quarter 2026
* Revenue increased 12%, or $64.7 million, to $620.9 million driven by a $80.8 million increase in media rights, production and content revenue, a $12.7 million increase in consumer products licensing and other revenue, and a $4.9 million increase in partnerships and marketing revenue, partially offset by a $33.7 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, notably the impact of the new distribution agreement with ESPN that began in September 2025, 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 trading cards and other 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. The decrease in live events and hospitality revenue was due to a decrease in ticket sales revenue, almost exclusively related to WrestleMania 42 in Las Vegas, compared to the prior year period.
* Adjusted EBITDA increased12%, or$38.5 million, to $368.3 million, due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating costs reflected higher talent, production and other event-related costs 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 was 59% for both periods.

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

• TKO CEO Ari Emmanuel read a prepared statement talking about how live events still command the lion’s share of consumers’ wallets.
• On the topic of the status of WWE’s upcoming scheduled events in the Middle East, TKO COO Mark Shapiro stated that all of their shows in the Middle East are still set as planned through the end of this year.
• On the topic of WWE viewership for their shows, Shapiro stated that they have added many new markets for Netflix and WrestleMania Night One was the highest viewed event on ESPN2 this year. Shapiro also stated that SmackDown was the top for Adults 18-49 in 9 out of 14 weeks.
• On the topic of the WWE’s live events revenues being down for the fiscal quarter due to WrestleMania 42’s weaker than expected ticket sales, TKO CFO Andrew Schleimer stated “We staged more events, more international events as well, 22 vs. 2 in the prior year quarter. This is an investment in WWE in broadening and growing the fanbase. This is deliberate, just like going back to Vegas for a second year for WrestleMania was deliberate. WrestleMania live event revenue for 2026, despite being lower than 2025, was still one of the largest box offices in the history of WWE, and we earned a meaningful financial incentive package to go back to the state of Nevada. Those economics were less than the prior year, but still beneficial to the company. We increasingly view our events, not just as live events, but as media events that drive viewership and fan engagement across social and help us monetize our most valuable assets. As long as we believe going to a certain location is going to check those boxes, we’re going to make those strategic investments in the long-term.”
• On the topic of the reason behind running two nights of SummerSlam in Minnesota this year, Shapiro stated “The two-day show was extraordinary, backed by a sold-out corresponding WWE Fanfest, and delivered strong engagement metrics. Across TKO, we prioritize both the fan experience and improving profitability. They are not mutually exclusive, and they are not always in that order.We could have done SummerSlam on one night and likely had a higher ticket per cap, but in looking at that event, we chose two days because we thought it would be an overall fan experience, a better viewing experience on ESPN, more marketing for our brand on ESPN. We thought it was important to go back to the Midwest. Outside of Elimination Chamber in Chicago, we haven’t been doing enough of our PLEs in the Midwest. We prioritize both the fan experience and improving profitability. They are not mutually exclusive, and they are not always in that order.”

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