TKO (WWE and UFC) announced its third quarter 2025 financial results.
The company announced a revenue of $1.120 billion, which down 27% from the second quarter. UFC revenue was down 8% to $325.2 million, but WWE revenue was up 23% to $402.1 million.
On February 28, 2025, TKO Group Holdings, Inc. (“TKO”) completed the acquisition of certain businesses operating under the IMG brand (“IMG”), On Location, and Professional Bull Riders (“PBR”) (collectively referred to as the “Acquired Businesses”). As a common control acquisition, reported results presented in this earnings release reflect the Acquired Businesses as if they had been part of TKO during the historical periods presented. (See “Basis of Presentation” for further details.)
Third Quarter 2025 Financial Highlights1
- Revenue of $1.120 billion
- Net income of $106.8 million
- Adjusted EBITDA2 of $360.2 million
- Full Year 2025 Guidance3
The Company increased its target for revenue to $4.690 billion to $4.720 billion
The Company increased its target for Adjusted EBITDA to $1.570 billion to $1.580 billion
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its third quarter ended September 30, 2025.
“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 Results
Third Quarter 2025
- Revenue decreased 27%, or $420.8 million, to $1.120 billion. The decrease primarily reflected a decrease of $29.7 million at UFC, to $325.2 million, an increase of $75.8 million at WWE, to $402.1 million, and a decrease of $492.4 million at IMG, to $336.7 million. The decrease at the IMG segment was primarily attributable to revenue recorded in the prior year period for the 2024 Paris Olympics.
- Net Income was $106.8 million, an increase of $103.4 million from $3.4 million in the prior year period. The increase primarily reflected a decrease in operating expenses partially offset by the decrease in revenue. The decrease in operating expenses reflected a decrease in direct operating costs of $572.0 million, partially offset by an increase in depreciation and amortization of $14.2 million. Selling, general and administrative expenses were essentially flat. The decrease in direct operating costs was primarily due to expenses recorded in the prior year period at the IMG segment for the 2024 Paris Olympics.
- Adjusted EBITDA2 increased 59%, or $134.0 million, to $360.2 million, due to an increase of $32.5 million at WWE, to $207.8 million, an increase of $115.6 million at IMG, to $61.4 million, and an increase of $15.9 million at Corporate and Other, to ($74.6) million partially offset by a decrease of $30.0 million at UFC, to $165.6 million.
- Adjusted EBITDA margin increased to 32% from 15%.
- Cash flows generated by operating activities were $416.8 million, an increase of $238.8 million from $178.0 million, primarily due to higher net income and the timing of working capital.
- Free Cash Flow4 was $398.9 million, an increase of $247.9 million from $151.0 million, due to the increase in cash flows generated by operating activities and a decrease in capital expenditures.
- Cash and cash equivalents were $861.4 million as of September 30, 2025. Gross debt was $3.759 billion as of September 30, 2025.
UFC -Third Quarter 2025
- Revenue decreased 8%, or $29.7 million, to $325.2 million primarily driven by a $15.8 million decrease in media rights, production and content revenue, a $7.8 million decrease in live events and hospitality revenue, and a $3.2 million decrease in partnerships and marketing revenue. The decrease in media rights, production and content revenue was primarily due to holding one less numbered event in the current year period as compared to the prior year period. The decrease in live events and hospitality revenue was the result of lower ticket sales revenue primarily due to holding one less numbered event as well as the impact of UFC 306, which was held at Sphere in Las Vegas and was the highest-grossing event in UFC history, in the prior year period. The decrease in partnership and marketing revenue primarily reflected new partners and an increase in fees from renewals more than offset by the impact of UFC 306, which included the first ever title partner sale, in the prior year period.
- Adjusted EBITDA decreased 15%, or $30.0 million, to $165.6 million, primarily attributable to the decrease in revenue (as described above). Expenses were essentially flat. Direct operating expenses decreased due to lower production, marketing and other event-related costs primarily related to the mix of event venues, cards and territories, 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 51% from 55%.
WWE – Third Quarter 2025
- Revenue increased 23%, or $75.8 million, to $402.1 million primarily related to a $31.4 million increase in live events and hospitality revenue, a $21.5 million increase in media rights, production and content revenue, and a $18.2 million increase in partnerships and marketing revenue. The increase in live events and hospitality revenue was primarily due to higher ticket sales revenue as well as an increase in site fees, most notably related to the first ever two-night SummerSlam and Wrestlepalooza, the launch event for the Company’s new distribution agreement with ESPN. The increase in media rights, production and content revenue was primarily related to higher rights fees for WWE’s premium live events due to two additional nights of programing as compared to the prior year period. The increase in partnerships and marketing revenue was primarily due to new partners and an increase in fees from renewals compared to the prior year period.
- Adjusted EBITDA increased 19%, or $32.5 million, to $207.8 million, primarily due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating expenses increased primarily due to higher talent, production, marketing and other event-related costs compared to the prior year period. Selling, general and administrative expenses increased primarily due to higher travel costs compared to the prior year period.
- Adjusted EBITDA margin decreased to 52% from 54%.
Fightful will have coverage of the 2025 third-quarter financials call beginning at 5 p.m. ET.
