TKO Group (TKO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 4% year-over-year to $1.269 billion, driven by strong UFC and WWE performance, partially offset by a decline in IMG segment revenue.

• Net income reached $165.5 million, reversing a prior year net loss, with Adjusted EBITDA up 23% to $417.4 million and margin improving to 33%.

• The Endeavor Asset Acquisition closed in February 2025, adding IMG, On Location, and PBR, and increasing Endeavor's voting interest to 61%.

• Integration of acquired businesses is underway, with early synergies and $40 million+ in identified run-rate cost savings.

• Record-setting live events, global partnerships, and expanded international reach, including WWE's Netflix partnership and new boxing JV with Saudi partners, drove growth.

Financial highlights

• Q1 2025 consolidated revenue was $1.269 billion; Adjusted EBITDA reached $417.4 million (margin 33%).

• UFC revenue grew 15% to $359.7 million; Adjusted EBITDA up 17% to $227.4 million, margin 63%.

• WWE revenue rose 24% to $391.5 million; Adjusted EBITDA up 38% to $193.9 million, margin 50%.

• IMG segment revenue was $476.3 million, down 13%; Adjusted EBITDA $73.5 million, down 10%, margin 15%.

• Free cash flow for Q1 was $135.5 million, with a 32% conversion rate of Adjusted EBITDA.

Outlook and guidance

• Full-year 2025 revenue guidance (excluding acquired businesses) raised to $3.005–$3.075 billion; Adjusted EBITDA to $1.39–$1.43 billion.

• Including acquired businesses, full-year 2025 revenue guidance is $4.49–$4.56 billion; Adjusted EBITDA $1.49–$1.53 billion.

• Free cash flow conversion rate targeted at over 60% for 2025, excluding $300 million in non-recurring items.

• Share repurchase program ($2 billion) to commence in Q2 or Q3, expected to complete in 3–4 years.

• Guidance reflects strong UFC and WWE momentum and integration of new acquisitions.