Third Quarter 2026
Filed Nov 4, 2026TKO Reports Third Quarter 2026 Results Raises Full Year 2026 Guidance Announces Intent to Commence Additional Share Repurchases
Third quarter revenue increased 21% to $1.360 billion, net income increased to $277.9 million from $106.8 million, and Adjusted EBITDA increased 54% to $555.7 million. The Company raised both its full-year revenue and Adjusted EBITDA targets and announced its intent to commence additional repurchases under its existing authorization.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30GAAP | $1.36B | – | 21% |
| Revenue, nine months ended September 30GAAP | $4.50B | – | – |
| Direct operating costs, three months ended September 30GAAP | $489M | – | – |
| Direct operating costs, nine months ended September 30GAAP | $1.78B | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | $400.6M | – | – |
| Selling, general and administrative expenses, nine months ended September 30GAAP | $1.24B | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $93M | – | – |
| Depreciation and amortization, nine months ended September 30GAAP | $335.3M | – | – |
| Total operating expenses, three months ended September 30GAAP | $982.6M | – | – |
| Total operating expenses, nine months ended September 30GAAP | $3.36B | – | – |
| Operating income, three months ended September 30GAAP | $377.5M | – | – |
| Operating income, nine months ended September 30GAAP | $1.15B | – | – |
| Interest expense, net, three months ended September 30GAAP | $69.9M | – | – |
| Interest expense, net, nine months ended September 30GAAP | $201.1M | – | – |
| Provision for income taxes, three months ended September 30GAAP | $36.6M | – | – |
| Provision for income taxes, nine months ended September 30GAAP | $123.8M | – | – |
| Net income, three months ended September 30GAAP | $277.9M | – | $171.1 million |
| Net income, nine months ended September 30GAAP | $831.6M | – | – |
| Net income attributable to TKO Group Holdings, Inc., three months ended September 30GAAP | $98.7M | – | – |
| Net income attributable to TKO Group Holdings, Inc., nine months ended September 30GAAP | $289.7M | – | – |
| Basic net earnings per share of Class A common stock, three months ended September 30GAAP | $ 1.35 | – | – |
| Diluted net earnings per share of Class A common stock, three months ended September 30GAAP | $ 1.33 | – | – |
| Basic net earnings per share of Class A common stock, nine months ended September 30GAAP | $ 3.86 | – | – |
| Diluted net earnings per share of Class A common stock, nine months ended September 30GAAP | $ 3.80 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $555.7M | – | 54% |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $1.76B | – | – |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 41% | – | – |
| Adjusted EBITDA margin, nine months ended September 30non-GAAP | 39% | – | – |
| Net income margin, three months ended September 30GAAP | 20% | – | – |
| Net income margin, nine months ended September 30GAAP | 18% | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $472.1M | – | $55.3 million |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.54B | – | – |
| Free Cash Flow, three months ended September 30non-GAAP | $449.9M | – | $51.0 million |
| Free Cash Flow, nine months ended September 30non-GAAP | $1.47B | – | – |
| Free Cash Flow Conversion, three months ended September 30non-GAAP | 81% | – | – |
| Free Cash Flow Conversion, nine months ended September 30non-GAAP | 84% | – | – |
| Cash and cash equivalents, as of September 30GAAP | $630.9M | – | – |
| Restricted cash, as of September 30GAAP | $958.8M | – | – |
| Gross debt, as of September 30GAAP | $4.65B | – | – |
| Long-term debt, as of September 30GAAP | $4.57B | – | – |
| Current portion of long-term debt, as of September 30GAAP | $ 45.4 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| UFCHigher media rights fees reflecting the new Skydance distribution agreement that began in January 2026, one additional Numbered Event, one additional Fight Night, record-setting UFC 329 ticket sales, two additional events, new partners and higher royalties on UFC-branded products. | $519.2M | – | 60% |
| WWEA decrease in live events and hospitality revenue due to three fewer Main Roster Premium Live Events and lower SummerSlam sales was partly offset by higher partnerships and marketing revenue, higher media rights fees from the ESPN distribution agreement, and consumer products revenue. | $399.3M | – | -1% |
| IMGNew marketing deals for tennis and soccer, FIFA World Cup 2026 hospitality sales at On Location, and new distribution deals for FIFA World Cup, tennis and soccer. The live-events increase was partly offset by the absence of the biennial Ryder Cup event. | $391.3M | – | 16% |
| Corporate and OtherA decrease in boxing-initiative revenue following a one-time benefit recognized in 2025 from the initial vesting of the Company's equity in Zuffa Boxing was partly offset by increased PBR revenue despite three fewer total events. | $61.3M | – | -3% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenue$5.790 billion to $5.830 billion
- NoteAdjusted EBITDA of $2.295 billion to $2.315 billion
- NoteThe anticipated performance assumes that the Company stages all live events, including those in the Middle East region, as currently planned.
Capital returns
- 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.
- The board of directors has authorized the repurchase of up to $3 billion of outstanding Class A common stock.
- As of November 4, 2026, the Company has approximately $936.0 million available under its existing authorization.
- The Company expects to repurchase the balance of the existing authorization, which it intends to fund primarily from additional debt and cash on hand.
- During the third quarter, the Company repurchased 451,377 shares under the August 10b5-1 Plan for approximately $85.5 million.
- From October 1, 2026 through October 30, 2026, the Company repurchased 417,795 shares for approximately $73.4 million.
- On July 1, 2026, the Company completed its accelerated share repurchase agreement to repurchase $800 million, or 4,167,298 shares, of its outstanding Class A common stock.
- From May 14, 2026 through July 22, 2026, the Company repurchased 1,022,434 shares for approximately $200.0 million.
- On September 30, 2026, the Company paid a quarterly cash dividend based on holders' pro rata share of an aggregate distribution of approximately $150 million, or $0.79 per share, from TKO Operating Company, LLC.
- Repurchase of Class A common stock for the nine months ended September 30, 2026 was $ 1,123.8, compared with $ 826.1 for the prior-year period.
- Dividends paid for the nine months ended September 30, 2026 were $ 175.0, compared with $ 124.5 for the prior-year period.
What drove it
- UFC revenue increased $194.0 million, led by a $132.3 million increase in media rights, production and content revenue.
- UFC Adjusted EBITDA increased $119.7 million to $285.3 million, and Adjusted EBITDA margin increased to 55% from 51%.
- WWE Adjusted EBITDA increased $9.4 million to $217.2 million despite the decline in revenue, as expenses decreased; Adjusted EBITDA margin increased to 54% from 52%.
- IMG revenue increased $54.6 million and Adjusted EBITDA increased $54.5 million to $115.9 million as expenses were essentially flat.
- Corporate and Other Adjusted EBITDA was a loss of $62.7 million, compared with a loss of $74.6 million in the prior-year period, reflecting lower expenses.
- Consolidated operating expense changes included a $49.3 million increase in direct operating costs and a $21.4 million increase in selling, general and administrative expenses, partially offset by a $36.1 million decrease in depreciation and amortization.
Concerns
- WWE live events and hospitality revenue decreased $24.8 million, principally due to three fewer Main Roster Premium Live Events and lower sales for SummerSlam.
- UFC direct operating costs increased with higher athlete, production and other event-related costs associated with two additional events and the higher cost profile of UFC 329.
- IMG live events and hospitality growth was partially offset by the absence of the biennial Ryder Cup event.
- The Company's full-year outlook assumes that all live events, including those in the Middle East region, are staged as currently planned.
- The Company expects to fund repurchases primarily from additional debt and cash on hand.
- Interest expense, net was $ 69.9 in the third quarter, compared with $ 50.8 in the prior-year period.
What to watch
- Execution against full-year 2026 revenue guidance of $5.790 billion to $5.830 billion and Adjusted EBITDA guidance of $2.295 billion to $2.315 billion.
- The timing and amount of additional Class A common stock repurchases under the approximately $936.0 million remaining authorization.
- FIFA World Cup 2026 hospitality sales at On Location and the net pre-payments held in escrow related to FIFA World Cup 2026.
- UFC media rights contribution from the Skydance distribution agreement and WWE media rights contribution from the ESPN distribution agreement.
- WWE live-event mix, including the number of Main Roster Premium Live Events and ticket sales performance.
Balance sheet and cash flow
- Cash and cash equivalents were $630.9 million as of September 30, 2026.
- Restricted cash was $ 958.8 as of September 30, 2026, compared with $ 354.9 as of December 31, 2025.
- Gross debt was $4.647 billion as of September 30, 2026.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was $ 1,540.6, compared with $ 975.8 for the prior-year period.
- Purchases of property, buildings and equipment and other assets for the nine months ended September 30, 2026 were $ 66.6, compared with $ 66.5 for the prior-year period.
- Net cash used in financing activities for the nine months ended September 30, 2026 was $ 1,066.0, compared with $ 409.9 for the prior-year period.
- For the nine months ended September 30, 2026, net cash provided by operating activities included approximately $604.0 million of net pre-payments held in escrow related to FIFA World Cup 2026.
Analysis
TKO reported a strong third quarter. Revenue increased 21%, or $240.2 million, to $1.360 billion, while net income increased by $171.1 million to $277.9 million. Adjusted EBITDA increased 54%, or $195.5 million, to $555.7 million, and Adjusted EBITDA margin increased to 41% from 32%. Operating income was $377.5 million, compared with $171.9 million in the prior-year period.
UFC was the principal growth contributor. Revenue increased 60%, or $194.0 million, to $519.2 million, driven most notably by higher media rights fees under the Skydance distribution agreement, additional events and UFC 329. UFC Adjusted EBITDA increased 72% to $285.3 million and its Adjusted EBITDA margin increased to 55% from 51%. IMG added $54.6 million of revenue growth and $54.5 million of Adjusted EBITDA growth, with new marketing and distribution deals and FIFA World Cup 2026 hospitality sales supporting results.
WWE revenue declined 1% to $399.3 million because live events and hospitality revenue declined $24.8 million. The decline reflected three fewer Main Roster Premium Live Events and lower SummerSlam sales. Higher partnership fees, higher media rights fees and consumer-products revenue partly offset that pressure. WWE nevertheless increased Adjusted EBITDA 5% to $217.2 million as lower production, talent, event-related and personnel costs more than offset the revenue decline.
Cash generation remained substantial. Third-quarter cash flows generated by operating activities were $472.1 million and Free Cash Flow was $449.9 million. For the nine months ended September 30, net cash provided by operating activities was $1,540.6 million and Free Cash Flow was $1,474.0 million. The nine-month operating cash flow included approximately $604.0 million of net pre-payments held in escrow related to FIFA World Cup 2026, which is important context for liquidity and cash conversion. Cash and cash equivalents were $630.9 million, restricted cash was $958.8 million, and gross debt was $4.647 billion as of September 30, 2026.
Management raised full-year 2026 revenue guidance to $5.790 billion to $5.830 billion and Adjusted EBITDA guidance to $2.295 billion to $2.315 billion. The Company also intends to commence additional repurchases and expects to repurchase the balance of its existing authorization, with approximately $936.0 million available as of November 4, 2026. That program is expected to be funded primarily from additional debt and cash on hand. The outlook assumes all planned live events, including events in the Middle East region, are staged as currently planned.
Management, verbatim
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.
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.
Mark Shapiro, President and COO of TKO
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- GAAP tax rate was not reported.
- Non-GAAP EPS was not reported.
- Prior-quarter comparisons were not reported for the presented quarterly metrics.
- A separate previous-release outlook section was not provided, so no actual-versus-prior-guidance comparison is included.
- Forward guidance for gross margin, operating expenses, tax rate, EPS, operating cash flow and Free Cash Flow was not reported.
- Segment revenue subcategory metrics and segment Adjusted EBITDA for the nine months ended September 30, 2026 are reported in the filing but are not separately enumerated in the segments schema, which permits one revenue field per segment.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.