01—Abstract
Summary
Summary of the 10-Q filed August 3, 2026. Cited figures are marked; the original filing is the authoritative source.
TKO Group Holdings, Inc. reported revenue of $1,547.1 milliona for the three months ended June 30, 2026, up from $1,308.4 million a year earlier, and $3,144.0 million for the six months, up from $2,577.2 million.
Operating income rose to $429.8 millionb for the quarter from $368.3 million, and net income attributable to TKO Group Holdings, Inc. was $101.6 million versus $98.4 million. Total Adjusted EBITDA was $649.9 million for the quarter, compared with $526.5 million, and the company described Adjusted EBITDA as its primary measure for evaluating consolidated operating performance. Growth was led by the UFC and WWE segments, with IMG benefiting from hospitality revenue tied to the 2026 Milano Cortina Olympics and the FIFA World Cup 2026.
Balance sheet and capital allocation changed materially during the period. Long-term debt rose to $4,583.7 millionc from $3,724.1 million at December 31, 2025, following a $900.0 million incremental first lien term loan in March 2026 and a May 2026 refinancing that reduced the New Term Loans' interest margin by 25 basis points. During the six months, the company repurchased $967.6 million of Class A common stock, including an $800.0 million accelerated share repurchase, and paid $117.3 million in dividends.
Net cash provided by operating activities was $1,068.5 milliond, compared with $559.0 million a year earlier, though the filing notes an increase in restricted cash of $604.8 million related to On Location for the FIFA World Cup 2026. Legal matters were significant this quarter. The company recorded a $105.0 million WWE settlement share, with $75.0 million expected to be funded by insurance recoveries, resulting in an expected loss of $30.0 million within selling, general and administrative expenses.
The IMG Italian media rights litigation was settled, with payment made by an Endeavor subsidiary under its indemnification obligations. The UFC Costantino antitrust class action was filed in February 2026 and Zuffa moved to dismiss it and compel arbitration on July 21, 2026.
02—Key points
Key Highlights
- Revenue rose to $1,547.1 million in Q2 2026 from $1,308.4 million, and to $3,144.0 million for the six months from $2,577.2 million.
- Total Adjusted EBITDA was $649.9 million for the quarter versus $526.5 million, with Adjusted EBITDA margin of 42% versus 40%.
- Long-term debt increased to $4,583.7 million from $3,724.1 million, driven by a $900.0 million incremental first lien term loan and the May 28, 2026 refinancing.
- The company repurchased $967.6 million of Class A common stock in the six months, including an $800.0 million accelerated share repurchase, and an additional $1.0 billion authorization was announced May 6, 2026.
- Quarterly Class A dividend was $0.79 per share for Q2 2026 versus $0.38 per share a year earlier.
- Corporate and Other SG&A increased $79.9 million for the quarter, largely from $61.4 million of higher legal fees, including an estimated $30.0 million net loss on WWE stockholder litigation.
- Net cash provided by operating activities was $1,068.5 million for the six months versus $559.0 million, though it includes a $604.8 million increase in restricted cash tied to On Location's FIFA World Cup 2026 activity.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 3, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.55B$1.31B | +18.2% |
| SG&A Expenses | $462.65M$364.36M | +27.0% |
| Operating Expenses | $1.12B$940.14M | +18.8% |
| Operating Income | $429.81M$368.31M | +16.7% |
| Interest Expense | $70.62M$48.21M | +46.5% |
| Net Income | $101.58M$98.36M | +3.3% |
| EPS (Basic) | $1.36$1.20 | +13.3% |
| EPS (Diluted) | $1.34$1.17 | +14.5% |
| Shares Outstanding (Basic) | 74.80M81.76M | −8.5% |
| Shares Outstanding (Diluted) | 75.87M199.28M | −61.9% |
05—Questions
Frequently Asked Questions
How did TKO's revenue and profitability change in the second quarter of 2026?
Revenue increased $238.7 million, or 18%, to $1,547.1 million. Operating income rose to $429.8 million from $368.3 million, and net income attributable to TKO Group Holdings, Inc. was $101.6 million compared with $98.4 million. Growth was driven by UFC, WWE and IMG, with the largest increases in UFC media rights and partnerships revenue.
What drove the increase in TKO's debt?
Long-term debt rose to $4,583.7 million from $3,724.1 million. The increase reflects a $900.0 million incremental first lien term loan borrowed in March 2026, and the May 28, 2026 Seventh Refinancing Amendment, which kept the New Term Loans' aggregate principal at $4.6 billion while reducing their interest margin by 25 basis points. The New Term Loans' interest rate was 5.41% as of June 30, 2026.
How much capital did TKO return to shareholders in 2026?
In the six months ended June 30, 2026, TKO repurchased Class A common stock totaling $967.6 million, which included an $800.0 million accelerated share repurchase settled in July 2026, and paid $117.3 million in dividends to Class A holders. The May 10b5-1 plan was completed on July 22, 2026, with a further $70.7 million of repurchases in July 2026.
What legal costs affected TKO's results this quarter?
WWE's portion of the Delaware stockholder merger litigation settlement is $105.0 million, with $75.0 million expected to be funded by insurance recoveries, leaving an expected loss of $30.0 million recorded in SG&A. Certain legal costs were $71.1 million for the quarter, including $25.6 million of stockholder litigation professional fees. The Costantino antitrust class action against UFC-related entities is at an early stage, with a motion to dismiss and to compel arbitration filed July 21, 2026.
What is the outlook for TKO's cash position?
The company stated that its sources of liquidity, including unrestricted cash, operating cash flows and available borrowings under the Credit Facilities, are expected to be sufficient to fund working capital, commitments and long-term debt service for at least the next 12 months. At June 30, 2026, cash and cash equivalents were $592.5 million and restricted cash was $959.7 million.
06—Continue