TKO has announced its fourth quarter and full year 2025 financial results for WWE and UFC.
WWE increased its revenue by $311.3 million to $1.709 billion. UFC increased its revenue by $96.0 million to $1.502 billion. TKO revenue was still down 3% from the prior year as IMG saw a decrease of $602.9 million.
Acquired Businesses
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.)
Fourth Quarter 2025 Financial Highlights
Revenue of $1.038 billion; Net income of $0.8 million; Adjusted EBITDA2 of $281.2 million
Full Year 2025 Financial Highlights
Revenue of $4.735 billion; Net income of $546.2 million; Adjusted EBITDA of $1.585 billion
Returned in excess of $1.3 billion of capital to equity holders through share repurchases and dividend payments and related distributions
Full Year 2026 Guidance
The Company is targeting revenue of $5.675 billion to $5.775 billion
The Company is targeting Adjusted EBITDA of $2.240 billion to $2.290 billion
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO” or the “Company”) (NYSE: TKO) today announced financial results for its fourth quarter and full year ended December 31, 2025.
“TKO’s 2025 results reflect meaningful momentum across both UFC and WWE,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Having concluded our second full year since forming TKO, we are extremely well positioned with long-term media rights agreements in place and operational strength across the business. We intend to initiate the next phase of our capital return program, underpinning our commitment to deliver long-term, sustainable value for shareholders.”
“2025 was a milestone year, underscoring the durability of our premium IP through record-setting live events and transformational global partnerships,” said Mark Shapiro, President and COO of TKO. “The successful launch of Zuffa Boxing last month sets the table for even further long term value creation. With growing revenue, expanding margins, and an increasingly global fan base, TKO is a high-quality execution story with multiple avenues for outperformance.”
Consolidated Results
Fourth Quarter 2025
Revenue increased 12%, or $110.2 million, to $1.038 billion. The increase primarily reflected an increase of $57.5 million at UFC, to $401.4 million, and an increase of $61.3 million at WWE, to $359.6 million, partially offset by a decrease of $24.1 million at the IMG segment, to $247.7 million.
Net Income was $0.8 million, an improvement of $61.7 million from a net loss of $60.9 million in the prior year period. The improvement reflected the increase in revenue partially offset by an increase in operating expenses. The increase in operating expenses primarily reflected an increase in selling, general and administrative expenses of $49.8 million and an increase in depreciation and amortization of $54.0 million, principally driven by the acceleration of expense for WWE intangible assets related to a media rights revenue arrangement.
Adjusted EBITDA increased 30%, or $65.2 million, to $281.2 million, due primarily to an increase of $34.8 million at UFC, and an increase of $50.7 million at WWE, partially offset by a decrease of $20.0 million at the IMG segment.
Cash flows generated by operating activities were $309.9 million, an increase of $253.8 million from $56.1 million, primarily due to the improved operating performance and the timing of working capital.
Free Cash Flow3 was $249.4 million, an increase of $220.9 million from $28.5 million, due to the increase in cash flows generated by operating activities, partially offset by an increase in capital expenditures.
Cash and cash equivalents were $831.1 million as of December 31, 2025. Gross debt was $3.783 billion as of December 31, 2025.
Full Year 2025
Revenue decreased 3%, or $149.0 million, to $4.735 billion. Results primarily reflected an increase of $96.0 million at UFC, to $1.502 billion, and an increase of $311.3 million at WWE, to $1.709 billion, more than offset by a decrease of $602.9 million at the IMG segment, to $1.367 billion. 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 $546.2 million, an increase of $792.0 million from a net loss of $245.8 million in the prior year period. The increase 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 $720.7 million, and a decrease in selling, general and administrative expenses of $259.5 million, partially offset by an increase in depreciation and amortization of $27.1 million. The decrease in operating expenses was primarily due to expenses recorded in the prior year period at the IMG segment for the 2024 Paris Olympics.
Adjusted EBITDA increased 47%, or $503.4 million, to $1.585 billion, due to an increase of $50.0 million at UFC, an increase of $215.4 million at WWE, an increase of $208.0 million at the IMG segment, and an increase of $30.0 million at Corporate and Other.
Cash flows generated by operating activities were $1.286 billion, an increase of $699.6 million from $586.1 million, primarily due to the increase in net income, partially offset by the timing of working capital.
Free Cash Flow was $1.159 billion, an increase of $691.4 million from $467.3 million, due to the increase in cash flows generated by operating activities, partially offset by an increase in capital expenditures.
UFC
Fourth Quarter 2025
Revenue increased 17%, or $57.5 million, to $401.4 million primarily driven by a $26.3 million increase in partnerships and marketing revenue, a $24.6 million increase in media rights, production and content revenue, and a $7.6 million increase in live events and hospitality revenue. The increase in partnership and marketing revenue was primarily related to new partners and an increase in fees from renewals compared to the prior year period. The increase in media rights, production and content revenue was primarily related to the contractual escalation of media rights fees compared to the prior year period. The increase in live events and hospitality revenue was primarily due to an increase in site fee revenues, related to the timing and mix of international events, compared to the prior year period.
Adjusted EBITDA increased 20%, or $34.8 million, to $213.2 million, as the increase in revenue (as described above) was partially offset by an increase in expenses. Direct operating costs primarily reflected higher marketing, production, and other event-related costs, partially offset by a decrease in athlete costs 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 increased to 53% from 52%.
Full Year 2025
Revenue increased 7%, or $96.0 million, to $1.502 billion primarily driven by a $62.9 million increase in partnerships and marketing revenue, a $28.3 million increase in media rights, production and content revenue, and a $12.5 million increase in live events and hospitality revenue.
Adjusted EBITDA increased 6%, or $50.0 million, to $851.0 million, as the increase in revenue (as described above) was partially offset by an increase in expenses. Direct operating costs increased $3.0 million, and selling, general and administrative expenses increased $43.0 million as compared to the prior year period.
Adjusted EBITDA margin was 57% for both periods.
WWE
Fourth Quarter 2025
Revenue increased 21%, or $61.3 million, to $359.6 million driven by a $64.9 million increase in media rights, production and content revenue, a $13.0 million increase in partnerships and marketing revenue, and a $8.2 million increase in consumer products licensing and other revenue, partially offset by a $24.8 million decrease in live events and hospitality revenue. The increase in media rights, production and content revenue was primarily related to the contractual escalation of media rights fees, notably the impact of WWE’s distribution agreements with Netflix and ESPN. The increase in partnerships and marketing revenue was primarily related to new partners and an increase in fees from renewals compared to the prior year period. The decrease in live events and hospitality revenue was primarily related to a decrease in site fees, most notably related to the timing of international premium live events, partially offset by higher ticket sales revenue compared to the prior year period.
Adjusted EBITDA increased 44%, or $50.7 million, to $165.0 million, primarily due to the increase in revenue (as described above) partially offset by an increase in expenses. Direct operating costs increased primarily due to higher talent costs partially offset by a decrease in production costs, most notably related to holding one less international premium live event, compared to the prior year period. Selling, general and administrative expenses increased primarily due to higher travel and personnel costs compared to the prior year period.
Adjusted EBITDA margin increased to 46% from 38%.
Full Year 2025
Revenue increased 22%, or $311.3 million, to $1.709 billion driven by a $135.1 million increase in media rights, production and content revenue, a $76.6 million increase in partnerships and marketing revenue, a $74.3 million increase in live events and hospitality revenue, and a $25.3 million increase in consumer products licensing and other revenue.
Adjusted EBITDA increased 32%, or $215.4 million, to $896.5 million, as the increase in revenue (as described above) was partially offset by an increase in expenses. Direct operating costs increased $68.8 million, and selling, general and administrative expenses increased $27.1 million as compared to the prior year period.
Adjusted EBITDA margin increased to 52% from 49%.
Fightful will have coverage of the financial call at 5 PM ET.
