TKO Group Holdings reported fourth‑quarter and full‑year 2025 results that included a revenue increase of 12% to $1.038 billion, driven by strong performance in its UFC and WWE segments, while the IMG segment saw a modest decline. The company’s adjusted EBITDA rose 30% to $281.2 million, reflecting higher margins in the core sports‑media businesses and a lower cost base in the newly acquired IMG portfolio.
Net income improved to $0.8 million, a turnaround from a $60.9 million loss a year earlier. However, earnings per share fell to –$0.08, missing analyst estimates of $0.14 to $0.30. The loss per share is attributed to the company’s high operating leverage and the impact of one‑time charges related to the integration of IMG and other acquisitions.
Full‑year 2025 revenue totaled $4.735 billion, down 3% from $4.884 billion a year earlier, but still beating consensus estimates of $4.721 billion. Adjusted EBITDA for the year reached $1.585 billion, a 47% increase from $1.081 billion a year earlier and above the consensus of $1.581 billion. The margin expansion to 33.5% from 22% in 2024 is largely driven by higher mix in UFC and WWE and improved operational efficiency.
Management raised its 2026 outlook, projecting full‑year revenue of $5.675 billion to $5.775 billion and adjusted EBITDA of $2.240 billion to $2.290 billion. The guidance reflects confidence in the momentum of its UFC and WWE media‑rights deals and the expected ramp‑up of its IMG and Zuffa Boxing initiatives. The revised EBITDA guidance is significantly higher than the $1.57‑$1.60 billion range reported in the original article, aligning with the company’s stated expectations.
"TKO's 2025 results reflect meaningful momentum across both UFC and WWE. 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," said Ariel Emanuel, Executive Chair and CEO.
"2025 was a milestone year, underscoring the durability of our premium IP through record‑setting live events and transformational global partnerships. 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," added Mark Shapiro, President and COO.
Investors reacted cautiously to the earnings miss on EPS and the lower‑than‑expected revenue guidance, despite the company’s strong revenue beats and margin expansion. The EPS miss highlights the impact of integration costs and one‑time charges, while the guidance signals management’s confidence in the long‑term growth trajectory of its core sports‑media assets.
The results underscore TKO’s continued focus on scaling its UFC and WWE brands, leveraging long‑term media‑rights agreements, and executing on its capital return program, while also navigating the integration of newly acquired assets and the launch of new ventures such as Zuffa Boxing.
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