01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
TKO Group Holdings, Inc. reported revenue of $1,308.4 milliona for the three months ended June 30, 2025, up from $1,193.2 million a year earlier, and $2,577.2 million for the six months, up from $2,415.6 million.
Operating income for the quarter was $368.3 millionb versus $114.9 million in the prior-year quarter, and net income attributable to TKO Group Holdings, Inc. was $98.4 million versus $59.1 million. Total Adjusted EBITDA was $526.5 million for the quarter, compared with $300.8 million a year earlier. Results for 2025 reflect the Endeavor Asset Acquisition of the IMG business, On Location and PBR, completed February 28, 2025 and accounted for as a common control transaction with retrospectively recast historical periods.
The new IMG segment reported Adjusted EBITDA of $29.0 millionc for the quarter. Balance sheet and cash flow highlights include cash and cash equivalents of $535.1 million and restricted cash of $323.4 million at June 30, 2025, and total long-term debt of $2,722.3 million noncurrent, with a First Lien Term Loan of $2,736.3 million principal outstanding. Net cash provided by operating activities was $559.0 million for the six months, versus $352.0 million a year earlier.
Restricted cash rose to $323.4 milliond, which the filing ties partly to On Location's collections for the FIFA World Cup 2026. Other current liabilities include $250.0 million of advanced collections due to third parties. Capital returns and legal matters also shaped the period.
TKO paid its quarterly Class A dividend of $0.38 per share in June 2025, and TKO OpCo made distributions of $75.2 million on each of March 31 and June 30, 2025. Endeavor OpCo bought 1,579,080 Class A shares from Vincent K. McMahon for $250.0 million in June 2025.
The company paid the final $125.0 million installment of the $375.0 million UFC Le antitrust settlement in June 2025. Multiple UFC antitrust suits (Johnson, Cirkunovs, Davis) and WWE and IMG litigation remain pending.
02—Key points
Key Highlights
- Revenue rose 10% to $1,308.4 million for Q2 2025 (vs. $1,193.2 million), driven by WWE (+$99.4 million, or 22%) and UFC (+$21.5 million, or 5%), partly offset by IMG (-$13.0 million, or 4%).
- Operating income was $368.3 million for Q2 2025 versus $114.9 million in Q2 2024; net income attributable to TKO Group Holdings, Inc. was $98.4 million versus $59.1 million.
- Total Adjusted EBITDA was $526.5 million for Q2 2025 versus $300.8 million; Adjusted EBITDA margin was 40% versus 25%.
- The Endeavor Asset Acquisition (IMG, On Location, PBR) closed February 28, 2025 for total consideration of approximately $3.25 billion plus a $50 million purchase price adjustment, and is reflected through retrospectively recast combined results.
- Net cash from operating activities was $559.0 million for the first six months of 2025 versus $352.0 million, while the First Lien Term Loan was refinanced to $2,750.0 million due November 2031 at SOFR + 2.25%.
- TKO paid a $0.38 per share quarterly Class A dividend in June 2025, with TKO OpCo distributions of $75.2 million per quarter, under a $2.0 billion share repurchase authorization that showed no repurchases in Q2 2025.
- The UFC antitrust settlement payments were completed in June 2025 with the final $125.0 million installment on the $375.0 million settlement, while several related class actions (Johnson, Cirkunovs, Davis) remain pending.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 6, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.31B$1.19B | +9.7% |
| SG&A Expenses | $364.36M$368.19M | −1.0% |
| Operating Expenses | $940.14M$1.08B | −12.8% |
| Operating Income | $368.31M$114.86M | +220.7% |
| Interest Expense | $48.21M$62.98M | −23.5% |
| Net Income | $98.36M$59.11M | +66.4% |
| EPS (Basic) | $1.20$0.73 | +64.4% |
| EPS (Diluted) | $1.17$0.72 | +62.5% |
| Shares Outstanding (Basic) | 81.76M80.88M | +1.1% |
| Shares Outstanding (Diluted) | 199.28M81.85M | +143.5% |
05—Questions
Frequently Asked Questions
How did TKO's revenue and profitability change in the second quarter of 2025?
Revenue increased 10% to $1,308.4 million from $1,193.2 million. Operating income rose to $368.3 million from $114.9 million, and net income attributable to TKO Group Holdings, Inc. rose to $98.4 million from $59.1 million. The prior-year quarter included a $24.3 million impairment charge in WWE selling, general and administrative expenses and higher direct operating costs at IMG.
What was the effect of the Endeavor Asset Acquisition on the financial statements?
The acquisition of the IMG business, On Location and PBR, completed February 28, 2025, was treated as a common control transaction. The net assets were combined at historical carrying amounts and prior periods were retrospectively recast on a combined basis. The filing reports IMG as a third reportable segment, with segment revenue of $306.6 million and Adjusted EBITDA of $29.0 million for the quarter.
What are TKO's liquidity and debt positions as of June 30, 2025?
Cash and cash equivalents were $535.1 million and restricted cash was $323.4 million. Total debt principal was $2,769.0 million, and the New Revolving Credit Facility had no outstanding borrowings. The filing states that TKO believes its liquidity sources are sufficient to meet working capital and commitments, including debt service, for at least the next 12 months.
How are shareholder returns and ownership structured after these transactions?
TKO declared a $0.38 per share quarterly dividend on Class A common stock, paid June 30, 2025. TKO OpCo distributed $75.2 million on each of March 31 and June 30, 2025. As of June 30, 2025, TKO owned 41.3% of TKO OpCo, while Endeavor Group Holdings, Inc. and its subsidiaries controlled 61.7% of the voting interests in TKO. No shares were repurchased under the $2.0 billion authorization in the second quarter, and Endeavor OpCo separately bought 1,579,080 Class A shares from Vincent K. McMahon for $250.0 million.
What material legal matters are disclosed in the filing?
The company completed the $375.0 million settlement of the UFC Le antitrust case, paying the final $125.0 million in June 2025. Other UFC antitrust suits (Johnson, Cirkunovs and Davis) are pending. WWE faces several matters, including a sexual assault lawsuit in which WWE has moved to compel arbitration and a Maryland lawsuit where motions to dismiss were filed June 11, 2025. IMG faces Italian competition claims that the company says it intends to defend, and any judgment or settlement is to be indemnified by Endeavor Group Holdings, Inc.
06—Continue