TKO Group Holdings, Inc. (TKO) Q2 2026: Revenue Growth and Increased Guidance — Positive Outlook

In its second quarter of 2026, TKO Group Holdings, Inc. reported a revenue increase of $238.7 million, or 18%, year-over-year, bringing total revenue to $1.547 billion. This growth reflects strong performances across its segments, particularly in UFC, WWE, and IMG. The net income for the quarter was $303.9 million, an increase of $30.8 million from $273.1 million in the prior year period.

This quarter's results are a positive development for shareholders, showcasing TKO's ability to navigate a challenging global environment while capitalizing on the growing demand for premium live content and experiences. The increase in revenue and net income, along with the raised full-year guidance, indicates a robust operational performance and a favorable outlook for the company.

Key Financial Metrics:

• Revenue: $1.547 billion, an increase of $238.7 million or +18% YoY
• Net Income: $303.9 million, up $30.8 million or +11.3% YoY
• Adjusted EBITDA: $649.9 million, an increase of $123.4 million or +23% YoY
• Adjusted EBITDA Margin: Increased to 42% from 40%
• Free Cash Flow: $349.6 million, a decrease of $25.3 million from $374.9 million
• Cash and Cash Equivalents: $592.5 million as of June 30, 2026
• Gross Debt: $4.659 billion as of June 30, 2026

Segment Performance:

• UFC: Revenue increased by $119.8 million, or +29%, to $535.7 million, driven by higher media rights fees and partnerships.
• WWE: Revenue rose by $64.7 million, or +12%, to $620.9 million, primarily due to increased media rights fees.
• IMG: Revenue grew by $48.1 million, or +16%, to $354.7 million, largely from hospitality sales related to FIFA World Cup 2026.

Capital Return Program:

TKO announced its intent to commence additional share repurchases under its existing program, with up to $3 billion authorized for repurchase. The company has already repurchased approximately $800 million worth of shares and plans to continue this initiative based on market conditions.

Dividend Announcement:

On June 30, 2026, TKO paid a quarterly cash dividend of approximately $150 million, or $0.79 per share, to holders of its Class A common stock.

Full Year 2026 Guidance:

The company raised its full-year revenue guidance to a range of $5.775 billion to $5.825 billion and adjusted EBITDA guidance to $2.275 billion to $2.305 billion, reflecting confidence in continued growth and operational execution.

Analyst View:

Overall, TKO's Q2 2026 results are encouraging for shareholders. The significant revenue growth, improved net income, and raised guidance indicate a strong operational trajectory. The company's focus on capitalizing on the experience economy and expanding its global fan base positions it well for future growth. Investors should keep an eye on the upcoming events and partnerships that could further enhance TKO's market presence and financial performance in the next quarter.

Forward Catalyst:

Investors should watch for developments related to TKO's ongoing share repurchase program and any announcements regarding new partnerships or events that could drive additional revenue growth in the coming quarters. The company's ability to maintain its momentum in the increasingly competitive landscape of sports and entertainment will be crucial for sustaining investor confidence.

TKO Group Holdings, Inc. Consolidated Statements of Income (In millions, except share and per share data) (Unaudited)

Note: All amounts are in millions.

	Three Months Ended June		Six Months Ended June
	2026	2025	2026	2025
Revenue	$ 1,547.0	$ 1,305.4	$ 3,148.0	$ 2,570.0
Operating expenses
Direct operating costs	556.1	476.0	1,245.0	1,040.0
Selling, general and administrative expenses	462.7	364.0	842.0	727.6
Depreciation and amortization	98.5	99.4	242.0	199.9
Total operating expenses	1,117.3	939.4	2,329.0	1,967.5
Operating income	429.8	366.0	768.0	602.5
Other expenses
Interest expense	(70.6)	(48.0)	(137.0)	(93.0)
Net other income	2.3	(7.8)	6.6	(16.2)
Income before income tax and equity in earnings of affiliates	361.5	310.2	637.6	493.3
Provision for income taxes	53.2	46.5	87.2	67.7
Income before equity in earnings of affiliates	308.3	263.7	550.4	425.6
Equity in earnings of affiliates (loss)	(4.4)	7.3	(2.8)	9.8
Net income	303.9	273.0	553.6	435.4
Less: Net income attributable to non-controlling interests	202.3	174.0	362.0	281.9
Net income attributable to TKO Group Holdings, Inc.	$ 101.6	$ 98.3	$ 191.6	$ 156.7
Basic net income per share	$ 1.36	$ 1.20	$ 2.51	$ 1.92
Diluted net income per share	$ 1.34	$ 1.17	$ 2.46	$ 1.87
Weighted-average shares used to compute net income per share - basic	74,700,000	81,700,000	76,000,000	81,600,000
Weighted-average shares used to compute net income per share - diluted	75,800,000	83,000,000	193,000,000	190,800,000

TKO Group Holdings, Inc. Consolidated Balance Sheets (In millions) (Unaudited)

Note: All amounts are in millions.

Assets	June 30, 2026	December 31, 2025
Current assets:
Cash and cash equivalents	$ 592.5	$ 831.1
Restricted cash	959.7	354.9
Accounts receivable, net	1,059.9	558.3
Deferred costs	133.0	234.8
Other current assets	465.3	350.0
Total current assets	3,210.4	2,329.1
Property, buildings and equipment, net	628.2	639.9
Intangible assets, net	3,147.3	3,327.9
Finance lease right-of-use assets, net	248.4	231.8
Operating lease right-of-use assets, net	55.2	54.8
Goodwill	8,445.0	8,444.9
Investments	128.0	131.5
Other assets	401.2	335.9
Total assets	$ 16,263.7	$ 15,495.8
Liabilities, non-controlling interests and Stockholders' equity
Current liabilities:
Accounts payable	$ 282.8	$ 194.8
Accrued liabilities	745.4	526.3
Current portion of long-term debt	45.5	38.1
Current portion of finance lease liabilities	25.5	22.7
Current portion of operating lease liabilities	18.3	17.6
Deferred revenue	483.7	663.0
Other current liabilities	911.4	384.6
Total current liabilities	2,512.6	1,847.1
Long-term debt	4,583.7	3,724.1
Long-term finance lease liabilities	238.3	219.5
Long-term operating lease liabilities	42.2	41.1
Deferred tax liabilities	301.1	301.7
Other long-term liabilities	220.4	112.2
Total liabilities	7,898.3	6,245.7
Commitments and contingencies
Redeemable non-controlling interests	34.4	34.4
Stockholders' equity:
Class A common stock	—	—
Class B common stock	—	—
Additional paid-in capital	4,825.3	4,552.2
Accumulated other comprehensive loss	(20.4)	(17.5)
Accumulated deficit	(1,408.9)	(797.3)
Total TKO Group Holdings, Inc. stockholders’ equity	3,396.0	3,737.4
Nonredeemable non-controlling interests	4,935.0	5,478.3
Total stockholders' equity	8,331.0	9,215.7
Total liabilities, redeemable non-controlling interests and stockholders' equity	$ 16,263.7	$ 15,495.8

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