What drove the improvement in fourth quarter 2025 results?

Revenue increased 12% to $1.038 billion, with WWE media rights, production and content revenue rising on contractual escalation of distribution fees, including the impact of its Netflix and ESPN agreements. Net income improved to $0.8 million from a net loss of $60.9 million, though depreciation and amortization rose $54.0 million, largely from accelerated expense on WWE intangible assets tied to a media rights arrangement.

Why did full year 2025 revenue decline while Adjusted EBITDA grew?

Full year revenue fell 3% to $4.735 billion, primarily because IMG revenue dropped $602.9 million, mainly due to 2024 Paris Olympics revenue recorded in the prior year. Operating expenses fell more sharply, with direct operating costs down $720.7 million, so Adjusted EBITDA increased 47% to $1.585 billion.

How much capital is TKO returning to shareholders?

The company states it returned in excess of $1.3 billion to equity holders in 2025 through share repurchases and dividend payments and related distributions. It intends to enter into agreements to repurchase up to $1.0 billion of Class A common stock, with launch expected in March 2026, subject to market conditions and customary closing conditions.

What is TKO's balance sheet position at year-end 2025?

As of December 31, 2025, cash and cash equivalents were $831.1 million and gross debt was $3.783 billion. Net debt was $2.952 billion, and net leverage, calculated as net debt divided by trailing Adjusted EBITDA, was 1.9x.

Why are the historical figures different from previously reported results?

The February 28, 2025 acquisition of IMG, On Location and Professional Bull Riders from Endeavor was accounted for as a common-control merger, so results reflect those businesses as if they had been part of TKO for all historical periods presented. Corporate expense allocations from Endeavor applied to the acquired businesses before the closing date, and Supplemental Financial Information in Exhibit 99.2 recasts 2023 through 2025 on this basis.

TKO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.

TKO Group Holdings, Inc. (NYSE: TKO) reported fourth quarter 2025 revenue of $1.038 billion^a, up 12% ($110.2 million), with net income of $0.8 million versus a net loss of $60.9 million a year earlier, and Adjusted EBITDA of $281.2 million, up 30%.

For full year 2025, revenue was $4.735 billion^b, down 3%, reflecting a decline at the IMG segment tied to the prior-year 2024 Paris Olympics; net income was $546.2 million and Adjusted EBITDA was $1.585 billion, up 47%. Cash flow from operations was $1.286 billion and Free Cash Flow was $1.159 billion for the year. Cash and cash equivalents were $831.1 million and gross debt was $3.783 billion as of December 31, 2025.

The company provided 2026 guidance targeting revenue of $5.675 billion to $5.775 billion^c and Adjusted EBITDA of $2.240 billion to $2.290 billion. It also intends to enter into agreements to repurchase up to $1.0 billion of Class A common stock, with transactions expected to launch in March 2026, funded primarily from incremental debt and cash on hand. As of February 24, 2026, approximately $1.096 billion remained available under the $2.0 billion repurchase authorization.

The results are presented on a recast basis reflecting the February 28, 2025 acquisition of IMG, On Location and Professional Bull Riders from Endeavor as a common-control transaction. Supplemental financial information for fiscal 2023 through 2025 and the quarterly periods of 2024 and 2025 is furnished as Exhibit 99.2. The filing states that the information is furnished and not deemed filed under Section 18 of the Exchange Act.

02—Key points

Key Highlights

Q4 2025 revenue rose 12% to $1.038 billion, led by WWE (up $61.3 million to $359.6 million) and UFC (up $57.5 million to $401.4 million), partly offset by IMG (down $24.1 million to $247.7 million).
Q4 2025 net income was $0.8 million, an improvement of $61.7 million from a net loss of $60.9 million in the prior-year period; Adjusted EBITDA rose 30% to $281.2 million.
Full year 2025 Adjusted EBITDA rose 47% to $1.585 billion, while full year revenue declined 3% to $4.735 billion, mainly due to the prior-year 2024 Paris Olympics revenue at IMG.
Full year 2025 operating cash flow was $1.286 billion and Free Cash Flow was $1.159 billion, compared with $586.1 million and $467.3 million in 2024.
2026 guidance targets revenue of $5.675 to $5.775 billion and Adjusted EBITDA of $2.240 to $2.290 billion.
TKO intends to launch up to $1.0 billion in share repurchases in March 2026, funded primarily from incremental debt and cash on hand; about $1.096 billion remained under the existing authorization as of February 24, 2026.
Net debt of $2.952 billion against trailing Adjusted EBITDA of $1.585 billion yields net leverage of 1.9x as of December 31, 2025.

03—Questions

Frequently Asked Questions

What drove the improvement in fourth quarter 2025 results?
Revenue increased 12% to $1.038 billion, with WWE media rights, production and content revenue rising on contractual escalation of distribution fees, including the impact of its Netflix and ESPN agreements. Net income improved to $0.8 million from a net loss of $60.9 million, though depreciation and amortization rose $54.0 million, largely from accelerated expense on WWE intangible assets tied to a media rights arrangement.
Why did full year 2025 revenue decline while Adjusted EBITDA grew?
Full year revenue fell 3% to $4.735 billion, primarily because IMG revenue dropped $602.9 million, mainly due to 2024 Paris Olympics revenue recorded in the prior year. Operating expenses fell more sharply, with direct operating costs down $720.7 million, so Adjusted EBITDA increased 47% to $1.585 billion.
How much capital is TKO returning to shareholders?
The company states it returned in excess of $1.3 billion to equity holders in 2025 through share repurchases and dividend payments and related distributions. It intends to enter into agreements to repurchase up to $1.0 billion of Class A common stock, with launch expected in March 2026, subject to market conditions and customary closing conditions.
What is TKO's balance sheet position at year-end 2025?
As of December 31, 2025, cash and cash equivalents were $831.1 million and gross debt was $3.783 billion. Net debt was $2.952 billion, and net leverage, calculated as net debt divided by trailing Adjusted EBITDA, was 1.9x.
Why are the historical figures different from previously reported results?
The February 28, 2025 acquisition of IMG, On Location and Professional Bull Riders from Endeavor was accounted for as a common-control merger, so results reflect those businesses as if they had been part of TKO for all historical periods presented. Corporate expense allocations from Endeavor applied to the acquired businesses before the closing date, and Supplemental Financial Information in Exhibit 99.2 recasts 2023 through 2025 on this basis.

04—Continue

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