Major U.S. media rights deals — TKO highlighted UFC’s $7.7 billion Paramount and WWE’s $1.6 billion ESPN agreements (part of >$15 billion of long-term rights) that management says will reshape the revenue mix and drive a step-change in 2026, with company guidance of $5.675–$5.775 billion revenue and $2.24–$2.29 billion Adjusted EBITDA.
Strong 2025 results and shareholder returns — full-year revenue was $4.735 billion and Adjusted EBITDA $1.585 billion (Adj. EBITDA up 47% year‑over‑year, margin 33.5%), TKO generated $1.159 billion free cash flow, doubled its dividend, repurchased nearly $1 billion of stock and authorized up to an additional $1 billion; net leverage ended at 1.9x.
Live-event economics and strategic investments — management expects >$300 million of aggregate value from site fees/financial incentive packages in 2026 (normalized ~ $240M), plans a ~ $60 million White House UFC card as a long‑term marketing investment, and launched Zuffa Boxing with Paramount+ rights as a new growth initiative for 2026 super‑fights.
TKO Group (NYSE:TKO) executives used the company’s fourth-quarter and full-year 2025 earnings call to highlight a year they described as “catalytic,” marked by major U.S. media rights renewals, stronger profitability, and an expanded capital return program. Management also provided initial 2026 guidance calling for a step-change in revenue and earnings, while emphasizing that 2026 will be focused on operational execution rather than large-scale M&A.
Executive Chair and CEO Ari Emanuel said 2025 featured “two historic U.S. media rights deals” for the company’s marquee assets. Management pointed to UFC’s $7.7 billion deal with Paramount and WWE’s $1.6 billion deal with ESPN for Premium Live Events (PLEs), including WrestleMania. President and COO Mark Shapiro said that, including 2025 signings, TKO has secured more than $15 billion of long-term media rights agreements across UFC, WWE, PBR, and Zuffa Boxing, describing the revenue as high-margin and supported by annual escalators.
Shapiro also discussed performance under WWE’s Netflix deal, saying that in the first year of the 10-year agreement, viewers streamed 525 million hours of WWE content, with Raw appearing as a “mainstay” in Netflix’s weekly top 10 in the U.S. and more than 30 other countries.
For UFC, Shapiro said the new Paramount arrangement is designed to expand reach by removing the “double paywall” that existed previously with ESPN+. He cited UFC 324’s debut on Paramount+ drawing nearly 5 million streaming views and becoming the largest exclusive live event in Paramount+ history. He added that UFC 326 is expected to have the first CBS simulcast on March 7.
Chief Financial Officer Andrew Schleimer reported full-year 2025 revenue of $4.735 billion and Adjusted EBITDA of $1.585 billion, both above the upper end of the revised guidance range previously provided. Adjusted EBITDA margin was 33.5%. Schleimer compared results to 2024 revenue of $4.884 billion and Adjusted EBITDA of $1.082 billion, noting that reported revenue decreased 3% year over year while Adjusted EBITDA increased 47% and margin expanded by more than 11 percentage points.
Schleimer said results reflected strength at UFC and WWE, and emphasized that WWE margins expanded to “over 50% for the first time in 2025.” He also reiterated prior commentary that the 2024 Paris Olympics impacted year-over-year comparisons, describing the event as loss-making and a driver of both lower revenue and higher profitability in the comparison period.
For the fourth quarter, TKO reported revenue of $1.038 billion and Adjusted EBITDA of $281 million, with a 27% Adjusted EBITDA margin. Schleimer said revenue rose 12% and Adjusted EBITDA increased 30% versus the prior year quarter.
UFC: Q4 revenue of $401 million (up 17%), Adjusted EBITDA margin of 53% (up from 52%). Partnerships and marketing revenue rose 39% to $93 million, while media rights, production, and content increased 12% to $223 million. Live events and hospitality increased 12% to $72 million, which Schleimer attributed to higher revenue from “financial incentive packages” tied to international event mix.
WWE: Q4 revenue of $360 million (up 21%), Adjusted EBITDA of $165 million (up 44%), with a 46% margin (up from 38%). Schleimer said the quarter benefited from the new Netflix domestic rights deal for Raw, providing about a $50 million favorable impact to both revenue and Adjusted EBITDA versus Q4 2024. Live events and hospitality revenue decreased 27% to $68 million due to lower financial incentive package revenue from the timing shift of a Saudi PLE into January 2026, partially offset by higher ticket revenue.
IMG: Q4 revenue of $248 million (down 9%), with an Adjusted EBITDA loss of $4 million. Schleimer said the decline primarily reflected the absence of the biennial Arabian Gulf Cup.
Corporate and other: Revenue of $37 million (up $14 million) and Adjusted EBITDA of negative $93 million, flat year over year. Schleimer attributed the revenue increase to new PBR distribution deals and fees tied to Zuffa Boxing services, while noting a $27 million reduction in costs related to the absence of Endeavor corporate expense allocations after the acquisition closed on February 28.
Shapiro said the company continues to see strong demand for live events and cited sellouts at UFC and record-setting WWE gates, including an arena record at John Cena’s final match in Washington, D.C. He also introduced updated terminology for site fees, saying TKO will now refer to these arrangements as financial incentive packages (FIPs), reflecting that deals can include cash, subsidies, and value-in-kind support.
Shapiro said that in 2025 about half of marquee UFC and WWE events were supported by meaningful FIPs. Looking ahead, he said TKO expects to realize over $300 million in aggregate value from these packages in 2026, though he noted that figure includes one-time items and normalizes to about $240 million. Over the longer term, he cited an expected range of $380 million to $420 million by 2030.
Management also discussed a planned UFC event at the White House on June 14 in celebration of America’s 250th anniversary. Shapiro said the event is expected to cost upwards of $60 million, and the company is working to secure inventory around the weekend that could offset about half the cost. In Q&A, he said the event is not expected to be profitable on a standalone basis and is being positioned as a long-term investment in awareness, fan sampling, and subscriber acquisition for Paramount+.
Emanuel highlighted that TKO launched a capital return program in 2025, including doubling its quarterly dividend and completing nearly $1 billion of share repurchases, while announcing an intent to repurchase up to an additional $1 billion in shares.
Schleimer reported 2025 free cash flow of $1.159 billion, with free cash flow conversion of 73% of Adjusted EBITDA. He said free cash flow included a favorable $297 million impact from net collections related to On Location for the 2026 FIFA World Cup, and an unfavorable roughly $300 million impact from UFC antitrust lawsuit settlement payments and professional fees tied to acquisitions. TKO ended 2025 with $3.783 billion of debt and $831 million in cash and cash equivalents, plus $355 million of restricted cash. Net leverage was 1.9x.
For 2026, management guided to revenue of $5.675 billion to $5.775 billion and Adjusted EBITDA of $2.24 billion to $2.29 billion. Schleimer said the midpoint implies 21% revenue growth, 43% Adjusted EBITDA growth, and about 600 basis points of margin expansion to 39.6%, driven primarily by media rights step-ups, partnership growth, and live event incentives. He also said the 2026 plan includes an estimated $75 million Adjusted EBITDA contribution from the FIFA World Cup for On Location, and approximately $170 million of revenue related to the Milan-Cortina Olympics, while noting pre-spend for LA28 is expected to weigh on Olympics-related Adjusted EBITDA.
Shapiro described Zuffa Boxing as a major strategic initiative, saying the venture secured a media rights deal with Paramount+ across the U.S., Canada, and Latin America, with other territories under negotiation. He said the venture launched roughly a month prior to the call, is signing fighters, and is planning a 2026 calendar that extends outside the U.S., though he noted there were no viewership numbers to share yet.
In response to a question about a reported Conor Benn deal, management said Benn was signed for a single super fight in 2026, and stated that Sela—Zuffa Boxing’s partner and financial backer—would cover the purse for that bout. Schleimer also noted that TKO accounts for its interest in Zuffa Boxing under the equity method, receives management fees for services, and expects to earn into additional equity tranches based on financial performance, with the first vesting milestone previously tied to signing a media rights deal.
On M&A, Shapiro said the company is “not hunting” and reiterated Emanuel’s message that 2026 is a year of execution, aimed at delivering on profitability and operational goals.
TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.
TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.
