TKO Group (NYSE:TKO) Issues Earnings Results

Key Points

• TKO Group beat Q1 expectations by reporting $1.12 in EPS on $1.60 billion in revenue, with revenue up 25.9% year over year. The company also posted $550 million in adjusted EBITDA and reaffirmed full-year guidance.
• Media rights deals are expanding TKO’s reach, with UFC and WWE content landing on major platforms like Paramount+/CBS, ESPN, and Netflix. Management highlighted stronger audience engagement and new monetization opportunities from these agreements.
• Shareholder returns remain a priority as TKO generated $675 million in free cash flow and added $1 billion to its buyback authorization. The company also returned about $1 billion to shareholders during the quarter.

TKO Group (NYSE:TKO - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $1.12 EPS for the quarter, topping analysts' consensus estimates of $1.11 by $0.01, FiscalAI reports. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. TKO Group had a return on equity of 2.41% and a net margin of 4.47%.The company's revenue for the quarter was up 25.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.69 EPS.

Here are the key takeaways from TKO Group's conference call:

• Q1 financials beat on growth — TKO reported $1.597B revenue and $550M adjusted EBITDA (34% margin) and reaffirmed full‑year guidance of $5.675–$5.775B revenue and $2.24–$2.29B adjusted EBITDA.
• Media rights momentum — Paramount+/CBS for UFC and ESPN/Netflix deals for WWE are widening reach and engagement (UFC on CBS was the most‑watched UFC event since 2016), boosting sampling and downstream monetization opportunities.
• Live events and FIP pipeline — Sellouts, record gates across UFC/WWE/PBR and a growing financial‑incentive‑package pipeline (multi‑market renewals including Baku, Philadelphia, Serbia) are driving revenue upside and expected margin expansion.
• Strong cash generation and shareholder returns — Q1 free cash flow of $675M (123% conversion), net leverage ~2.3x, ~$1B returned in the quarter, and an incremental $1B buyback authorization (plus an $800M ASR) support continued capital returns.
• Near‑term event costs and geopolitical risk — Management expects to lose ~$30M on UFC Freedom 250 and acknowledges higher production costs and ongoing Middle East geopolitical uncertainty that could pressure short‑term results despite partner commitments to proceed with scheduled events.

TKO Group Stock Performance

Shares of TKO stock traded down $0.64 during trading hours on Friday, hitting $186.87. 1,875,713 shares of the company were exchanged, compared to its average volume of 1,200,941. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $36.28 billion, a price-to-earnings ratio of 69.73 and a beta of 0.57. The firm has a fifty day simple moving average of $197.23 and a 200 day simple moving average of $198.69. TKO Group has a 52-week low of $152.29 and a 52-week high of $226.94.

TKO Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were paid a dividend of $0.78 per share. The ex-dividend date was Monday, March 16th. This represents a $3.12 annualized dividend and a dividend yield of 1.7%. TKO Group's dividend payout ratio (DPR) is presently 138.67%.

TKO Group News Roundup

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO reported Q1 2026 revenue of about $1.60 billion and EPS of $1.12, both slightly ahead of expectations, with revenue up roughly 26% year over year as WWE, UFC and IMG all posted strong growth. TKO Reports First Quarter 2026 Results
• Positive Sentiment: Management increased the share-repurchase authorization by $1 billion, which signals confidence in the business and can support earnings per share over time. Share repurchase authorization increase
• Positive Sentiment: Investor commentary points to the Paramount UFC rights deal as an important boost to TKO’s media revenue outlook and a sign that the company’s combat-sports assets continue to gain value. Paramount UFC deal
• Positive Sentiment: Reports also indicate Saudi partners remain committed to TKO-related partnerships, reducing a potential near-term source of uncertainty around WWE and event funding. Saudi partnerships remain intact
• Neutral Sentiment: TKO’s 2026 revenue guidance of $5.675 billion to $5.775 billion was solid, though it appeared a bit below some Street expectations, which may limit additional upside unless growth accelerates further. 2026 revenue guidance
• Neutral Sentiment: Nick Khan’s sale of 9,518 shares was disclosed, but he still retains a sizable stake; investors may view it as routine insider activity rather than a major red flag. Nick Khan insider sale filing
• Negative Sentiment: Some media coverage around WWE creative criticism and Saudi-related controversy could create reputational noise, even if the direct financial impact appears limited. Saudi Arabia WWE partnership coverage

Insider Activity at TKO Group

In other TKO Group news, CFO Shane Kapral sold 616 shares of the business's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $221.91, for a total value of $136,696.56. Following the sale, the chief financial officer directly owned 353 shares in the company, valued at $78,334.23. The trade was a 63.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Nick Khan sold 9,518 shares of the business's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $185.99, for a total value of $1,770,252.82. Following the completion of the sale, the director owned 91,100 shares in the company, valued at $16,943,689. This represents a 9.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 31,272 shares of company stock worth $6,332,236. 61.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On TKO Group

A number of large investors have recently made changes to their positions in TKO. IFC & Insurance Marketing Inc. purchased a new stake in TKO Group during the 4th quarter worth about $38,000. CYBER HORNET ETFs LLC purchased a new stake in shares of TKO Group in the second quarter worth about $34,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of TKO Group by 48.8% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 192 shares of the company's stock valued at $39,000 after acquiring an additional 63 shares during the period. Greenline Wealth Management LLC purchased a new stake in TKO Group in the 4th quarter worth approximately $41,000. Finally, MUFG Securities EMEA plc purchased a new stake in TKO Group in the 2nd quarter worth approximately $36,000. 89.79% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on TKO shares. Pivotal Research increased their price target on TKO Group from $235.00 to $250.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. Roth Mkm set a $228.00 price objective on shares of TKO Group in a research note on Monday. BTIG Research reaffirmed a "buy" rating and issued a $237.00 target price on shares of TKO Group in a report on Thursday. Citigroup cut TKO Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Finally, Sanford C. Bernstein reduced their price objective on TKO Group from $250.00 to $240.00 and set an "outperform" rating for the company in a research note on Monday, April 27th. Twelve equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, TKO Group presently has a consensus rating of "Moderate Buy" and an average price target of $230.88.

TKO Group Company Profile

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.

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