How did TKO perform in full year 2024?

Revenue was $2.804 billion and net income was $6.4 million, compared with $175.7 million in 2023. Adjusted EBITDA was $1.251 billion, up from $809.1 million. The decline in net income reflected higher operating expenses, including $375.0 million in settlement charges related to the UFC antitrust lawsuit.

What is the outlook for 2025?

TKO targets 2025 revenue of $2.930 billion to $3.000 billion and Adjusted EBITDA of $1.350 billion to $1.390 billion for its existing UFC, WWE and Corporate business. These amounts exclude IMG, On Location and PBR. After the Endeavor Asset Acquisition closes, the company expects to update its targets on a combined basis.

What is the Endeavor Asset Acquisition?

TKO agreed to acquire IMG, On Location and Professional Bull Riders from Endeavor Group Holdings in an all-equity transaction valued at $3.25 billion. Endeavor will receive about 26.14 million common units of TKO Operating Company, LLC and an equal number of TKO Class B shares, subject to customary adjustments settled in equity and cash. Endeavor is expected to own about 61% of TKO after closing, and the deal is expected to close within the first quarter of 2025.

What are TKO's capital return plans?

The board authorized a share repurchase program of up to $2.0 billion of Class A common stock, expected to start in the second or third quarter of 2025 and be completed in about three to four years. TKO also authorized a quarterly cash dividend program, with an inaugural dividend of approximately $75 million payable on March 31, 2025.

How is the UFC antitrust lawsuit affecting TKO's results?

The company agreed to settle the Le UFC antitrust lawsuit for $375.0 million, payable in three equal installments of $125.0 million. The first was paid in October 2024, the second in February 2025, and the third is expected in the second quarter of 2025. On February 6, 2025, the court granted final approval of the settlement. Litigation costs totaled $401.1 million for the year ended December 31, 2024, and the first payment contributed to lower operating cash flow in the fourth quarter.

TKO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.

TKO Group Holdings, Inc. reported fourth quarter and full year 2024 results on February 26, 2025, furnishing a press release (Exhibit 99.1) and historical financial information for WWE and UFC covering fiscal 2022 through 2024 (Exhibit 99.2).

For full year 2024, revenue was $2.804 billion^a, net income was $6.4 million, and Adjusted EBITDA was $1.251 billion. Fourth quarter 2024 revenue was $642.2 million, net income was $47.5 million, and Adjusted EBITDA was $238.1 million. Results include $401.1 million of certain legal costs for the year, including a $375.0 million settlement of the Le UFC antitrust lawsuit, which affected net income and cash flow timing.

Operating cash flow for 2024 was $583.4 million^b and Free Cash Flow was $508.5 million. The company guided to full year 2025 revenue of $2.930 billion to $3.000 billion and Adjusted EBITDA of $1.350 billion to $1.390 billion, covering its existing UFC, WWE and Corporate business only. Guidance excludes IMG, On Location and Professional Bull Riders, which TKO expects to acquire from Endeavor in an all-equity transaction valued at $3.25 billion, expected to close in the first quarter of 2025.

The company also announced a share repurchase program of up to $2.0 billion^c of Class A common stock, expected to start in the second or third quarter of 2025, and an inaugural quarterly dividend of approximately $75 million payable March 31, 2025. At year end, cash and cash equivalents were $525.6 million and gross debt was $2.780 billion. The company refinanced its credit facility in November 2024 with a new seven-year $2.75 billion term loan and a new five-year $205 million revolver.

02—Key points

Key Highlights

FY2024 revenue of $2.804 billion, up from $1.675 billion in FY2023, reflecting the inclusion of twelve months of WWE activity
FY2024 net income of $6.4 million, versus $175.7 million in FY2023, with operating expenses including $375.0 million of UFC antitrust settlement charges
FY2024 Adjusted EBITDA of $1.251 billion; UFC $801.0 million and WWE $681.1 million segment Adjusted EBITDA, with Corporate at a loss of $230.9 million
FY2025 guidance: revenue of $2.930 billion to $3.000 billion and Adjusted EBITDA of $1.350 billion to $1.390 billion for the existing business, excluding IMG, On Location and PBR
Pending Endeavor Asset Acquisition of IMG, On Location and Professional Bull Riders for $3.25 billion in an all-equity transaction, expected to close in Q1 2025
Capital return: up to $2.0 billion share repurchase program (starting Q2 or Q3 2025) and inaugural quarterly dividend of approximately $75 million on March 31, 2025
FY2024 Free Cash Flow of $508.5 million; year-end cash of $525.6 million and gross debt of $2.780 billion

03—Questions

Frequently Asked Questions

How did TKO perform in full year 2024?
Revenue was $2.804 billion and net income was $6.4 million, compared with $175.7 million in 2023. Adjusted EBITDA was $1.251 billion, up from $809.1 million. The decline in net income reflected higher operating expenses, including $375.0 million in settlement charges related to the UFC antitrust lawsuit.
What is the outlook for 2025?
TKO targets 2025 revenue of $2.930 billion to $3.000 billion and Adjusted EBITDA of $1.350 billion to $1.390 billion for its existing UFC, WWE and Corporate business. These amounts exclude IMG, On Location and PBR. After the Endeavor Asset Acquisition closes, the company expects to update its targets on a combined basis.
What is the Endeavor Asset Acquisition?
TKO agreed to acquire IMG, On Location and Professional Bull Riders from Endeavor Group Holdings in an all-equity transaction valued at $3.25 billion. Endeavor will receive about 26.14 million common units of TKO Operating Company, LLC and an equal number of TKO Class B shares, subject to customary adjustments settled in equity and cash. Endeavor is expected to own about 61% of TKO after closing, and the deal is expected to close within the first quarter of 2025.
What are TKO's capital return plans?
The board authorized a share repurchase program of up to $2.0 billion of Class A common stock, expected to start in the second or third quarter of 2025 and be completed in about three to four years. TKO also authorized a quarterly cash dividend program, with an inaugural dividend of approximately $75 million payable on March 31, 2025.
How is the UFC antitrust lawsuit affecting TKO's results?
The company agreed to settle the Le UFC antitrust lawsuit for $375.0 million, payable in three equal installments of $125.0 million. The first was paid in October 2024, the second in February 2025, and the third is expected in the second quarter of 2025. On February 6, 2025, the court granted final approval of the settlement. Litigation costs totaled $401.1 million for the year ended December 31, 2024, and the first payment contributed to lower operating cash flow in the fourth quarter.

04—Continue

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