**TKO Group Holdings, Inc. Reports Third Quarter 2025 Results, Raises Full-Year Guidance**
**February 28, 2025 – Acquisition of Acquired Businesses**
On February 28, 2025, TKO Group Holdings, Inc. (“TKO”) completed its acquisition of businesses operating under the IMG brand (“IMG”), On Location, and Professional Bull Riders (“PBR”) (collectively, the “Acquired Businesses”). As a common control acquisition, TKO’s reported results in this earnings release reflect the Acquired Businesses as if they had been part of TKO during all historical periods presented. See the “Basis of Presentation” section for further details.
—
## Third Quarter 2025 Financial Highlights
– **Revenue:** $1.12 billion
– **Net Income:** $106.8 million
– **Adjusted EBITDA:** $360.2 million
—
## Full Year 2025 Guidance (Updated)
– **Revenue Target:** Increased to $4.69 billion–$4.72 billion
– **Adjusted EBITDA Target:** Increased to $1.57 billion–$1.58 billion
—
## Executive Commentary
> “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 Financial Results (Q3 2025)
– **Revenue:** Decreased by 27% ($420.8 million) to $1.12 billion.
– **UFC:** Decreased $29.7 million to $325.2 million (–8%)
– **WWE:** Increased $75.8 million to $402.1 million (+23%)
– **IMG:** Decreased $492.4 million to $336.7 million (–59%) due to prior-year period revenue from the 2024 Paris Olympics.
– **Net Income:** $106.8 million, up from $3.4 million in the prior year.
– Increase primarily due to decreased operating expenses, offset by lower revenue.
– Decrease in direct operating costs ($572.0 million), partially offset by increased depreciation and amortization.
– **Adjusted EBITDA:** Up 59%, or $134.0 million, to $360.2 million.
– Margin increased to 32% from 15%.
– **Cash Flows:**
– **Operating activities:** $416.8 million, up from $178.0 million.
– **Free Cash Flow:** $398.9 million, up from $151.0 million.
– **Year-end cash and equivalents:** $861.4 million.
– **Gross debt:** $3.759 billion.
—
## Segment Performance
### UFC
– **Q3 Revenue:** $325.2 million (–8%)
– **Media rights, production and content:** $200.5 million
– **Live events and hospitality:** $43.6 million
– **Partnerships and marketing:** $70.8 million
– **Consumer products licensing and other:** $10.3 million
– **Key Drivers:**
– Revenue decrease primarily due to one less numbered event compared to the prior year, affecting both media rights and ticket sales.
– Adjusted EBITDA declined 15% to $165.6 million due to revenue decrease.
– Adjusted EBITDA margin: 51% (down from 55%).
### WWE
– **Q3 Revenue:** $402.1 million (+23%)
– **Media rights, production and content:** $248.9 million
– **Live events and hospitality:** $82.5 million
– **Partnerships and marketing:** $39.9 million
– **Consumer products licensing and other:** $30.8 million
– **Key Drivers:**
– Increases driven by higher ticket sales, additional site fees, two-night SummerSlam and Wrestlepalooza events, and new or renewed partnership agreements.
– Adjusted EBITDA: $207.8 million (+19%)
– Adjusted EBITDA margin: 52% (down from 54%).
### IMG (Includes On Location)
– **Q3 Revenue:** $336.7 million (–59%)
– **Media rights, production and content:** $185.1 million
– **Live events and hospitality:** $138.3 million
– **Partnerships and marketing:** $10.3 million
– **Consumer products licensing and other:** $3.0 million
– **Key Drivers:**
– Revenue decline mainly due to lack of Olympics-related revenues in the current year.
– Adjusted EBITDA: $61.4 million, a significant improvement from prior year’s loss.
– Adjusted EBITDA margin: 18% (up from –7%).
### Corporate and Other (Includes PBR & Boxing Initiatives)
– **Q3 Revenue:** $63.3 million (+17%)
– Increase due to higher earnings from boxing promotional services.
– Adjusted EBITDA loss improved to ($74.6) million from ($90.5) million in the prior year.
—
## Shareholder Capital Returns
– **Share Repurchases:**
– Entered $800 million accelerated share repurchase agreement (ASR) in September 2025.
– Initiated up to $174 million repurchase under a 10b5-1 trading plan.
– Repurchased $26 million of shares in a private transaction.
– Total buyback program authorized at $2.0 billion.
– **Dividend Program:**
– Quarterly dividend increased 100% for Class A common stockholders — approx. $150 million, or $0.76 per share, paid September 30, 2025.
—
## Major Media Rights Agreements
– **Paramount & UFC:** Seven-year exclusive U.S. media rights agreement starting 2026, valued at $1.1 billion annually (back-end loaded).
– **ESPN & WWE:** Five-year U.S. media rights deal for WWE premium live events, beginning September 2025, at $325 million annually.
—
## Recent Acquisitions & Integration
– TKO closed the acquisition of IMG, On Location, and PBR from Endeavor in an equity transaction valued at $3.25 billion (including $50 million in purchase price adjustments).
– Endeavor received around 26.54 million common units of TKO OpCo and an equal number of TKO Class B shares.
– These businesses are fully integrated and reflected in all reported historical financials for comparability.
—
## Non-GAAP Financial Measures
TKO uses Non-GAAP measures such as Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow Conversion to evaluate its performance.
– **Adjusted EBITDA** is net income excluding taxes, interest, depreciation & amortization, equity-based compensation, M&A costs, legal/restructuring/impairment charges, and other designated items.
– **Free Cash Flow** is net cash provided by operating activities less cash used for capital expenditures.
Visit the TKO press release or investor.tkogrp.com for full definitions, reconciliations, and more detail on Non-GAAP measures.
—
## Basis of Presentation
– The third quarter and year-to-date results for 2025 and 2024 present the combined financials of TKO and the Acquired Businesses (IMG, On Location, and PBR) as if operating together during the periods shown.
– Corporate and segment expense allocations are detailed in the full release.
—
## Additional Information
TKO will host a conference call to discuss the Q3 2025 results:
– **Date & Time:** November 5, 2025, 5:00 p.m. ET
– **Webcast:** [investor.tkogrp.com](https://investor.tkogrp.com)
– **Phone:** 1-833-470-1428 (Conference ID: 257416)
—
## About TKO Group Holdings, Inc.
TKO Group Holdings, Inc. (NYSE: TKO) is a leading sports and entertainment company owning UFC, WWE, and PBR. These brands reach 1 billion households globally and deliver over 500 live events annually. Through IMG and On Location, TKO partners with major sports rights holders and delivers premium hospitality experiences.
—
## Cautionary Note on Forward-Looking Statements
This release contains forward-looking statements regarding TKO’s strategy, outlook, acquisitions, capital program, financial performance, and integration plans. Refer to TKO’s filings with the SEC and the “Risk Factors” section for more information. TKO undertakes no obligation to update these statements except as required by law.
—
For more investor disclosures and email alerts, visit [investor.tkogrp.com](https://investor.tkogrp.com).
—
*All financial figures are unaudited. Please refer to the original press release and investor presentations for complete footnotes and reconciliations.*
https://wrestlingnews.co/wwe-news/tko-reports-third-quarter-2025-results/