TKO Group (TKO) investor relations material

Executive summary

• Q2 2026 revenue rose 18% year-over-year to $1.55 billion, with net income up 11% to $303.9 million and Adjusted EBITDA up 23% to $649.9 million, driven by major live events such as UFC Freedom 250 and record FIFA World Cup hospitality sales.

• Raised full-year 2026 guidance for both revenue and adjusted EBITDA, reflecting robust performance across all business segments.

• Over $1.3 billion was returned to shareholders year-to-date via dividends and share repurchases, including an $800 million ASR and $200 million 10b5-1 repurchase.

• Continued focus on execution, global expansion, and capital returns, with no current M&A activity planned.

• Growth was driven by higher media rights fees, new content distribution agreements, and strong segment performance.

Financial highlights

• Q2 revenue reached $1.547 billion, up 18% year-over-year; adjusted EBITDA was $649.9 million, up 23%; net income for Q2 was $303.9 million.

• Adjusted EBITDA margin expanded to 42%, an increase of 180 basis points year-over-year.

• UFC revenue grew 29% to $535.7 million; WWE revenue rose 12% to $620.9 million; IMG revenue increased 16% to $354.7 million.

• Free cash flow for the quarter was $349.6 million, with a 54% conversion rate of adjusted EBITDA.

• Cash and cash equivalents at June 30, 2026: $592.5 million; gross debt: $4.659 billion.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $5.775–$5.825 billion; adjusted EBITDA guidance raised to $2.275–$2.305 billion.

• Expect continued margin enhancement in 2026 and beyond, driven by high-growth, high-margin verticals.

• Guidance reflects strong first-half performance and confidence in multi-year growth trajectory.

• Targeting free cash flow conversion in excess of 60% on a normalized basis.

• Management expects continued revenue growth from media rights, live events, and partnerships, supported by long-term contracts and a robust event calendar.