10-Q · May 6, 2026
TKO Group Holdings delivered strong Q1 2026 results with revenue of $1.597 billion, exceeding consensus estimates of $1.596 billion and a 26% increase from $1.269 billion in Q1 2025. Diluted EPS improved to $1.12,…
Earnings analysis · 10-Q
TKO earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
TKO delivered Q2 revenue of $1.5471 billion, up 18% year over year and modestly above consensus, while diluted EPS of $1.34 rose from $1.17 but missed the $1.45 estimate. Growth was broad across UFC, WWE and IMG,…
Read full summary
TKO delivered Q2 revenue of $1.5471 billion, up 18% year over year and modestly above consensus, while diluted EPS of $1.34 rose from $1.17 but missed the $1.45 estimate. Growth was broad across UFC, WWE and IMG, supported by new or higher media-rights contracts and FIFA World Cup hospitality, and gross margin increased to approximately 64.1%. Offsetting these positives were substantial litigation costs, a 46% rise in net interest expense, and first-lien debt of $4.6 billion; the filing itself did not provide numeric guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.34
What stood out
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Revenue grew 18% year over year
Q2 revenue rose $238.7 million, or 18%, year over year to $1.5471 billion. This was 3.3% below Q1 2026 revenue of $1.6 billion, reflecting event and hospitality timing, but exceeded the supplied $1.5382 billion consensus estimate by 0.6%.
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Gross margin expanded; operating margin rebounded
Gross margin was approximately 64.1%, calculated from $1.5471 billion of revenue less $556.1 million of direct operating costs. That is roughly 0.5 percentage points above Q2 2025's 63.6% and 10.1 points above Q1 2026's 54.0%; operating margin was 27.8%, versus 28.2% a year ago and 21.2% in Q1.
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EPS rose year over year but missed consensus
Diluted EPS was $1.34, up from $1.17 in Q2 2025 and $1.12 in Q1 2026, but below the supplied $1.45 consensus estimate. Net income attributable to TKO increased $3.3 million to $101.6 million despite $22.4 million higher net interest expense.
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UFC and WWE media-rights momentum
UFC revenue rose 29% to $535.7 million, driven by a $64.7 million increase in media rights and a $59.0 million increase in partnerships. WWE revenue increased 12% to $620.9 million, led by $80.8 million of higher media-rights, production and content revenue.
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IMG profit inflected on hospitality demand
IMG revenue increased 16% to $354.7 million and adjusted EBITDA rose $49.6 million to $78.6 million. On Location's FIFA World Cup 2026 hospitality sales drove a $66.4 million rise in IMG live-events and hospitality revenue.
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Strong cash conversion and low capex intensity
Six-month operating cash flow was $1.0685 billion, up from $559.0 million, while property, buildings and equipment spending was $44.4 million. This implies six-month free cash flow of approximately $1.0241 billion and capex equal to about 4.2% of operating cash flow.
What to watch
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Litigation costs materially pressured expenses
Corporate and Other SG&A rose $79.9 million, or 67%, to $462.7 million, primarily including $61.4 million of higher legal fees. The quarter included a $30.0 million estimated loss net of probable insurance recoveries and $25.6 million of WWE stockholder-litigation professional fees.
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Higher leverage and floating-rate exposure
First-lien term-loan debt increased to $4.6 billion at June 30, 2026 from $3.7 billion at December 31, 2025. Net interest expense rose $22.4 million, or 46%, to $70.6 million; a 1% increase in effective rates would raise annual interest expense by about $46 million.
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Event revenue remains sensitive to calendar and venue
Live-event revenue declined in both core franchises despite total growth: UFC live-event revenue fell $10.7 million and WWE live-event revenue fell $33.7 million. Management attributed these declines to one fewer UFC Numbered Event, absence of UFC Freedom 250 ticket sales, and lower WrestleMania ticket revenue from returning to Las Vegas for a second year.
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No formal risk-factor updates; IMG contract loss
The company reported no material changes to the risk factors disclosed in its 2025 Annual Report on Form 10-K. However, IMG media-rights, production and content revenue fell $16.2 million, principally following the loss of a professional-cycling contract.
Management's outlook
The 10-Q MD&A provides no quantitative revenue or EPS outlook. Management states that it expects existing liquidity sources to fund working-capital requirements and commitments, including debt service, for at least the next 12 months; quantitative FY2026 guidance was provided separately in the earnings release/call.
Earlier filings 4
10-K · February 25, 2026
TKO positions itself as a consolidated premium sports & entertainment platform combining UFC, WWE and the Acquired Businesses (IMG, On Location, PBR) to monetize media rights, live events, hospitality and partnerships.…
10-Q · November 5, 2025
TKO Group Holdings reported Q3 results that surpassed revenue estimates while missing on EPS. Revenue reached $1.12 billion, a 27.7% decline year-over-year, with EPS at $0.47, lower than the expected $0.54. The…
10-Q · August 6, 2025
TKO reported a strong quarter: revenue of $1,308,442,000 (three months ended June 30, 2025) increased ~9.6% year-over-year and ~3.1% sequentially, with gross margin expanding to 63.6% and operating income rising to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.