01—Abstract
Summary
Summary of the 10-Q filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
TKO Group Holdings, Inc. reported revenue of $1,268.8 milliona for the three months ended March 31, 2025, up from $1,222.4 million a year earlier.
Operating income was $237.4 millionb versus an operating loss of $173.6 million in the prior-year quarter, which included a $335.0 million preliminary UFC antitrust settlement charge. Net income attributable to TKO Group Holdings, Inc. was $58.4 million, compared with a net loss of $103.8 million a year earlier. Total Adjusted EBITDA rose to $417.4 million from $338.9 million, with the UFC, WWE and IMG segments all contributing to the increase in segment profitability.
The quarter was shaped by the Endeavor Asset Acquisition, completed February 28, 2025, in which TKO acquired the IMG business, On Location and Professional Bull Riders for total consideration of approximately $3.25 billionc plus a $50 million purchase price adjustment. Because the transaction was accounted for as a common control acquisition, historical periods were recast to include the acquired businesses, and IMG became a third reportable segment. The company also paid its inaugural quarterly cash dividend of $0.38 per Class A share, totaling $75.2 million, on March 31, 2025, and repurchased 1,897,650 Class A shares for $300.9 million under an Endeavor trading plan before that plan terminated.
Balance sheet items include cash and cash equivalents of $470.9 milliond, long-term debt of $2.73 billion, and total stockholders' equity of $10.17 billion. Management states that liquidity sources are sufficient for at least the next 12 months. The filing notes that the remaining $125.0 million UFC antitrust settlement payment is expected in the second quarter of 2025, and that the Endeavor Take-Private transaction closed March 24, 2025, with Silver Lake and its affiliates beneficially owning approximately 61% of total voting securities.
02—Key points
Key Highlights
- Revenue of $1,268.8 million for Q1 2025, up from $1,222.4 million in Q1 2024, with WWE revenue up $74.8 million and UFC revenue up $46.7 million.
- Operating income of $237.4 million, compared with an operating loss of $173.6 million a year earlier that included the $335.0 million UFC antitrust preliminary settlement charge.
- Total Adjusted EBITDA of $417.4 million, up from $338.9 million; UFC Adjusted EBITDA was $227.4 million, WWE $193.9 million and IMG $73.5 million.
- Net income attributable to TKO Group Holdings, Inc. of $58.4 million, versus a net loss of $103.8 million in Q1 2024.
- Endeavor Asset Acquisition closed February 28, 2025 for approximately $3.25 billion plus a $50 million adjustment, adding IMG, On Location and PBR; IMG became a third reportable segment.
- Inaugural quarterly dividend of $0.38 per Class A share ($75.2 million total) was paid March 31, 2025; a $2.0 billion share repurchase program was authorized in October 2024.
- First Lien Term Loan of $2.74 billion due November 2031 bears interest at SOFR plus 2.25% (6.58% as of March 31, 2025); the revolver of $205.0 million was undrawn.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 8, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $1.27B$1.22B | +3.8% |
| SG&A Expenses | $363.29M$668.31M | −45.6% |
| Operating Expenses | $1.03B$1.40B | −26.1% |
| Operating Income | $237.36M-$173.58M | +236.7% |
| Interest Expense | $44.77M$61.18M | −26.8% |
| Net Income | $58.41M-$103.84M | +156.2% |
| EPS (Basic) | $0.72$-1.26 | +157.1% |
| EPS (Diluted) | $0.69$-1.26 | +154.8% |
| Shares Outstanding (Basic) | 81.57M82.35M | −0.9% |
| Shares Outstanding (Diluted) | 181.52M82.35M | +120.4% |
05—Questions
Frequently Asked Questions
How did TKO's revenue and profitability change in the first quarter of 2025?
Revenue rose to $1,268.8 million from $1,222.4 million, and operating income was $237.4 million compared with an operating loss of $173.6 million in the prior year. The prior-year period included a $335.0 million preliminary UFC antitrust settlement charge, which largely explains the swing. Adjusted EBITDA increased to $417.4 million from $338.9 million.
What was the Endeavor Asset Acquisition and how does it affect comparability?
TKO acquired the IMG business, On Location and Professional Bull Riders from Endeavor affiliates for approximately $3.25 billion plus a $50 million purchase price adjustment, closing February 28, 2025. Because it was a common control transaction, prior periods were retrospectively recast to include the acquired businesses, so historical figures reflect combined results. Earnings per share for periods before the close were not retrospectively adjusted.
What is the status of the UFC antitrust settlement and related payments?
The Company agreed to settle the Le case for $375.0 million, payable in installments. The filing states that $125.0 million was paid into escrow in late October 2024 and another $125.0 million in February 2025, and that an additional $125.0 million payment is expected in the second quarter of 2025. The settlement was finally approved by the court on February 6, 2025.
What capital return activity did TKO report?
TKO paid its inaugural quarterly cash dividend of $0.38 per Class A share on March 31, 2025, totaling $75.2 million. The board has authorized a share repurchase program of up to $2.0 billion of Class A common stock, with no expiration. During the quarter, Endeavor OpCo purchased 1,897,650 Class A shares for $300.9 million under a trading plan that was terminated on February 14, 2025.
How much debt does TKO carry and what are the key terms?
Total principal debt was $2,775.9 million at March 31, 2025. The main component is a First Lien Term Loan of $2,743.1 million due November 2031, bearing interest at SOFR plus 2.25% and 1% annual amortization. The New Revolving Credit Facility of $205.0 million had no outstanding borrowings, though $11.1 million of letters of credit were outstanding, and a financial covenant applies only if revolver borrowings exceed certain thresholds.
06—Continue