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TKO Group Holdings 8-K Report, Financial Results (May 8, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 8, 2025
Period End
May 8, 2025
Security
TKO
In the record · 2023–202610-K310-Q98-K42

TKO filed 3 annual reports (10-K), 9 quarterly reports (10-Q) and 42 current reports (8-K) between 2023 and 2026.

  1. Leadership change8-K · Jan ’24Jan ’24
  2. Material agreement8-K · Nov ’24Nov ’24
  3. Material agreement8-K · Mar ’26Mar ’26

01—Abstract

Summary

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

TKO Group Holdings, Inc. reported first quarter 2025 results for the period ended March 31, 2025, with revenue of $1,268.8 milliona, net income of $165.5 million, and Adjusted EBITDA of $417.4 million.

Results are presented on a recast basis that combines the Professional Bull Riders, On Location, and certain IMG-branded businesses acquired from Endeavor Group Holdings, Inc. on February 28, 2025, as a merger of entities under common control. Revenue rose 4%, or $46.4 millionb, led by WWE (up $74.8 million to $391.5 million) and UFC (up $46.7 million to $359.7 million), partially offset by a $73.4 million decline at IMG to $476.3 million. Net income compares favorably with a net loss of $234.5 million in the prior-year period, which included a $335.0 million preliminary UFC antitrust settlement charge.

Operating cash flow was $162.8 millionc and free cash flow was $135.5 million, both benefiting from approximately $100.3 million of FIFA World Cup pre-payments held in escrow. Management raised its full-year 2025 guidance excluding the Acquired Businesses to revenue of $3.005 billion to $3.075 billion and Adjusted EBITDA of $1.390 billion to $1.430 billion. Including the Acquired Businesses, the company is targeting revenue of $4.490 billion to $4.560 billion and Adjusted EBITDA of $1.490 billion to $1.530 billion.

The acquisition was valued at $3.25 billiond, and Endeavor received approximately 26.54 million common units of TKO along with an equal number of TKO Class B shares. Capital return items noted in the filing include a $2.0 billion Class A share repurchase program expected to commence in the second or third quarter of 2025, an inaugural quarterly dividend of approximately $75 million paid on March 31, 2025, and a remaining $125.0 million payment due in the second quarter of 2025 under the $375.0 million UFC antitrust settlement. Gross debt was $2.776 billion and cash and cash equivalents were $470.9 million as of March 31, 2025.

02—Key points

Key Highlights

  1. Q1 2025 revenue of $1,268.8 million, up 4% (about $46.4 million) year over year, driven by WWE and UFC.
  2. Net income of $165.5 million versus a net loss of $234.5 million in Q1 2024, which had included a $335.0 million preliminary UFC antitrust settlement charge.
  3. Adjusted EBITDA of $417.4 million, up 23% (about $78.5 million); UFC at $227.4 million and WWE at $193.9 million, while IMG declined to $73.5 million.
  4. Full-year 2025 guidance raised excluding the Acquired Businesses to revenue of $3.005-$3.075 billion and Adjusted EBITDA of $1.390-$1.430 billion.
  5. Including the Acquired Businesses (IMG Business, On Location, PBR), 2025 guidance is revenue of $4.490-$4.560 billion and Adjusted EBITDA of $1.490-$1.530 billion.
  6. Operating cash flow of $162.8 million and free cash flow of $135.5 million, aided by approximately $100.3 million of FIFA World Cup pre-payments held in escrow.
  7. Capital return: $2.0 billion share repurchase program expected to start in Q2 or Q3 2025, and an inaugural quarterly dividend of about $75 million paid March 31, 2025.

03—Questions

Frequently Asked Questions

  1. What drove the change in TKO's reported results this quarter?

    The February 28, 2025 acquisition of the IMG Business, On Location, and PBR from Endeavor was accounted for as a common-control merger, so historical periods are recast to include these businesses. The filing says the company now reports three segments (UFC, WWE, IMG) plus Corporate and Other.

  2. How did the segments perform in the first quarter?

    WWE revenue rose $74.8 million to $391.5 million and Adjusted EBITDA rose to $193.9 million. UFC revenue rose $46.7 million to $359.7 million with Adjusted EBITDA of $227.4 million. IMG revenue fell $73.4 million to $476.3 million and Adjusted EBITDA fell to $73.5 million, mainly due to weaker On Location results versus the prior-year Super Bowl and Bowl Games and the absence of the 2024 Paris Olympics.

  3. What is the status of the UFC antitrust settlement payments?

    The settlement totals $375.0 million, payable in three equal installments. The company paid $125.0 million in October 2024 and another $125.0 million in February 2025, and expects to pay the remaining $125.0 million in the second quarter of 2025. A $125.0 million payment related to the lawsuit reduced Q1 operating cash flow.

  4. What did TKO pay for the Acquired Businesses?

    The acquisition was an equity transaction valued at $3.25 billion, including $50 million of purchase price adjustments settled in equity at closing. Endeavor received approximately 26.54 million common units of TKO and subscribed for an equal number of TKO Class B common shares.

04—Continue

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