TKO Group (TKO) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformative year with historic media rights deals for UFC ($7.7B with Paramount) and WWE ($1.6B with ESPN), expanding reach and driving growth for premium IP.

• Completed acquisition and integration of IMG, On Location, and PBR, with results presented as if owned for all periods.

• Launched Zuffa Boxing and announced plans for up to $1B in share repurchases in March 2026.

• Capital return program launched, doubling the quarterly dividend and nearly $1B in share repurchases, with intent to repurchase up to $1B more.

• Focus for 2026 is on execution, leveraging strong momentum and high visibility into revenue and EBITDA growth.

Financial highlights

• 2025 revenue was $4.735B and Adjusted EBITDA $1.585B, both exceeding guidance; Adjusted EBITDA margin reached 33.5%.

• Q4 2025 revenue was $1.038B (+12% YoY), Adjusted EBITDA $281M (+30% YoY), margin 27%.

• WWE margins surpassed 50% for the first time; UFC Q4 revenue grew 17% to $401M, margin 53%.

• Free cash flow for 2025 was $1.159B (73% conversion), including $297M net collections for the 2026 FIFA World Cup and $250M UFC antitrust settlement payments.

• Year-end 2025 net leverage was 1.9x, with $3.783B debt and $831M cash.

Outlook and guidance

• 2026 revenue targeted at $5.675B–$5.775B, Adjusted EBITDA $2.24B–$2.29B, margin expansion to 39.6%.

• Drivers include step-ups in media rights, global partnerships, live events, FIPs, World Cup/Olympics, and Zuffa Boxing.

• Expecting 21% revenue growth, 43% Adjusted EBITDA growth, and significant margin expansion YoY.

• Free cash flow conversion expected to remain above 60%, excluding World Cup and Paramount deal working capital impacts.

• Additional guidance details to be provided on the earnings call.