01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
TKO Group Holdings, Inc. reported first-quarter 2026 revenue of $1,596.9 milliona, up from $1,268.8 million a year earlier, with operating income of $338.5 million versus $237.4 million and net income attributable to TKO Group Holdings, Inc. of $89.4 million versus $58.4 million.
Growth was led by IMG, where On Location hospitality revenue tied to the 2026 Milano Cortina Olympics drove a $179.1 millionb increase, and by WWE, with a $84.2 million increase that reflected live events including Royal Rumble in Riyadh and higher media rights fees. UFC revenue rose $41.5 million, helped by the new Paramount content distribution agreement effective January 2026. Adjusted EBITDA increased to $549.8 million from $417.4 million.
Cash flow from operations was $694.5 millionc, compared with $162.8 million a year earlier, though the filing attributes the improvement in part to a $582.4 million increase in restricted cash related to On Location's FIFA World Cup 2026 activities. Total debt rose to $4.64 billion from $3.76 billion after the company borrowed an incremental $900.0 million first lien term loan on March 10, 2026, and the revolving credit facility was upsized to $350.0 million. Capital returns were substantial: the company paid $800.0 million under an accelerated share repurchase agreement, repurchased $38.3 million of shares earlier in the quarter, and paid dividends of $0.78 per Class A share.
On May 6, 2026, the board authorized up to an additional $1.0 billiond of repurchases. Legal developments include a settlement at the end of April 2026 of the Italian football media rights litigation against IMG, to be paid by an Endeavor subsidiary under its indemnification obligations, and a March 31, 2026 district court denial of Zuffa's motion to dismiss the Davis case. Silver Lake and affiliates controlled TKO following the 2025 Endeavor take-private, and EGH and its subsidiaries collectively controlled 63.9% of voting interests as of March 31, 2026.
02—Key points
Key Highlights
- Revenue rose 26% to $1,596.9 million, with IMG up $179.1 million (38%) on On Location's Milano Cortina Olympics hospitality, WWE up $84.2 million (22%), and UFC up $41.5 million (12%).
- Operating income increased to $338.5 million from $237.4 million, and Adjusted EBITDA grew to $549.8 million from $417.4 million.
- Net income attributable to TKO Group Holdings, Inc. was $89.4 million, up from $58.4 million, and diluted EPS of Class A common stock was $1.12 versus $0.69.
- Operating cash flow was $694.5 million, versus $162.8 million, aided by a $582.4 million increase in restricted cash tied to On Location's FIFA World Cup 2026 activities.
- Total debt increased to $4.64 billion after a $900.0 million incremental first lien term loan in March 2026; the revolver was upsized to $350.0 million with no borrowings outstanding.
- Share repurchases totaled $838.3 million in the quarter, including an $800.0 million ASR; on May 6, 2026 the board authorized up to an additional $1.0 billion in repurchases.
- The IMG-related Italian football media rights litigation was settled at the end of April 2026, with payment to be made by an Endeavor subsidiary under its indemnification obligations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.60B$1.27B | +25.9% |
| SG&A Expenses | $380.24M$363.29M | +4.7% |
| Operating Expenses | $1.26B$1.03B | +22.0% |
| Operating Income | $338.48M$237.36M | +42.6% |
| Interest Expense | $60.56M$44.77M | +35.3% |
| Net Income | $89.35M$58.41M | +53.0% |
| EPS (Basic) | $1.16$0.72 | +61.1% |
| EPS (Diluted) | $1.12$0.69 | +62.3% |
| Shares Outstanding (Basic) | 77.33M81.57M | −5.2% |
| Shares Outstanding (Diluted) | 194.63M181.52M | +7.2% |
05—Questions
Frequently Asked Questions
What drove the revenue increase in the first quarter of 2026?
Revenue rose $328.1 million, or 26%, to $1,596.9 million. The largest contributor was IMG, where On Location revenue of $177.5 million was driven mainly by hospitality for the 2026 Milano Cortina Olympics. WWE grew on $47.2 million of higher live event revenue, including Royal Rumble in Riyadh, and $30.1 million of higher media rights fees. UFC grew on higher media rights fees under the new Paramount agreement effective January 2026.
How much debt did TKO take on, and how is it structured?
On March 10, 2026, TKO Worldwide Holdings borrowed the full $900.0 million Incremental Term Loan, a fungible increase to the first lien term loans, maturing November 21, 2031. It bears interest at Term SOFR plus 2.00% with a 0.00% floor. The revolving credit facility was upsized from $205.0 million to $350.0 million, matures September 15, 2030, and had no outstanding balance at March 31, 2026. Total debt was $4.64 billion at quarter end, compared with $3.76 billion at December 31, 2025.
How is TKO returning capital to shareholders?
In the quarter, TKO paid $800.0 million under an accelerated share repurchase agreement with Morgan Stanley, receiving an initial delivery of 3,136,179 shares, with the ASR expected to finish by June 2026. It also repurchased 187,819 shares for $38.3 million before February 26, 2026. The board declared a quarterly dividend of $0.78 per Class A share, compared with $0.38 a year earlier, and on May 6, 2026 authorized up to an additional $1.0 billion of repurchases on top of the previously announced $2.0 billion program.
What are the main pending legal matters?
The UFC antitrust litigation continues, including the Johnson, Cirkunovs and Davis cases, and a new Costantino putative class action was filed February 26, 2026 against Zuffa, TKO and EGH. On March 31, 2026, the court denied Zuffa's motion to dismiss Davis. In the WWE merger litigation, trial is scheduled for June 2026. The IMG Italian football media rights litigation was settled at the end of April 2026, with payment to be made by an Endeavor subsidiary under its indemnification obligations. A derivative complaint, Jordan, was filed March 27, 2026 over the Endeavor Asset Acquisition.
Who controls TKO and how is ownership structured?
As of March 31, 2026, Endeavor Group Holdings and its subsidiaries collectively controlled 63.9% of TKO's voting interests through Class A and Class B common stock. TKO owned 39.2% of TKO OpCo, while EGH and its subsidiaries owned 60.8%. Silver Lake, through its ownership of EGH following the March 2025 take-private, controls TKO.
06—Continue