01—Abstract
Summary
Summary of the 8-K filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
TKO Group Holdings, Inc. reported first quarter 2026 results for the period ended March 31, 2026, with revenue of $1.597 billiona (up 26%, or $328.1 million, from the prior year period) and net income of $249.8 million, compared with $165.5 million a year earlier.
Adjusted EBITDA rose 32%, or $132.4 million, to $549.8 millionb, and the Adjusted EBITDA margin increased to 34% from 33%. Growth was driven by the IMG segment (largely On Location hospitality for the 2026 Milano Cortina Olympics), WWE (Royal Rumble in Saudi Arabia and higher media rights fees) and UFC (higher media rights fees under the new Paramount distribution agreement, partly offset by two fewer Fight Night events). Operating cash flow was $694.5 million and Free Cash Flow was $674.5 million, which the company attributes in part to approximately $582.4 million of net pre-payments held in escrow related to FIFA World Cup 26.
TKO reaffirmed its full-year 2026 guidance of revenue of $5.675 billion to $5.775 billionc and Adjusted EBITDA of $2.240 billion to $2.290 billion. The board authorized up to an additional $1.0 billion of Class A share repurchases, incremental to a previously announced $2.0 billion program. The company returned approximately $1.0 billion of capital to equity holders in the quarter through repurchases and dividends.
Cash and cash equivalents were $788.9 milliond and gross debt was $4.671 billion at March 31, 2026, and the company's balance sheet shows long-term debt rising to $4.594 billion from $3.724 billion at December 31, 2025. The filing also furnishes supplemental financial information recasting fiscal 2023, 2024 and 2025 results to reflect the February 28, 2025 acquisition of Professional Bull Riders, On Location and certain IMG-branded businesses as a common-control merger.
Total revenue on that recast basis was $4,884.2 million for 2024 and $4,735.2 million for 2025, and Adjusted EBITDA was $1,081.9 million for 2024 and $1,585.3 million for 2025. The filing reports net leverage of 2.3x based on trailing twelve-month Adjusted EBITDA of $1,717.7 million.
02—Key points
Key Highlights
- Q1 2026 revenue of $1.597 billion, up 26% (or $328.1 million) from $1.269 billion in Q1 2025.
- Net income of $249.8 million versus $165.5 million a year earlier; net income attributable to TKO Group Holdings, Inc. was $89.4 million versus $58.4 million; diluted EPS was $1.12 versus $0.69.
- Adjusted EBITDA of $549.8 million, up 32%, with margin rising to 34% from 33%.
- Operating cash flow of $694.5 million and Free Cash Flow of $674.5 million, including approximately $582.4 million of net pre-payments held in escrow related to FIFA World Cup 26.
- FY 2026 guidance reaffirmed: revenue of $5.675 billion to $5.775 billion and Adjusted EBITDA of $2.240 billion to $2.290 billion.
- Board authorized up to an additional $1.0 billion of share repurchases, on top of the previously announced $2.0 billion program; an $800 million accelerated share repurchase is expected to complete in Q2 2026, followed by a $200 million 10b5-1 plan.
- Total debt rose to $4.671 billion at March 31, 2026, with net leverage of 2.3x on trailing twelve-month Adjusted EBITDA of $1,717.7 million.
03—Questions
Frequently Asked Questions
What drove the revenue and profit growth in the first quarter of 2026?
IMG revenue rose $179.1 million to $655.4 million, mainly from On Location hospitality sales tied to the 2026 Milano Cortina Olympics. WWE revenue rose $84.2 million to $475.7 million, driven by live events (notably Royal Rumble in Saudi Arabia) and higher media rights fees from Netflix and ESPN agreements. UFC revenue rose $41.5 million to $401.2 million, mainly from higher media rights fees under the new Paramount distribution agreement, partly offset by two fewer Fight Night events.
How much capital is TKO returning to shareholders, and what buyback capacity remains?
The company returned approximately $1.0 billion to equity holders in the quarter through share repurchases and dividend payments and related distributions. The board has authorized up to an additional $1.0 billion of Class A share repurchases, incremental to the previously announced $2.0 billion program. Repurchases are at management's discretion and the program has no expiration.
Did TKO change its full-year 2026 outlook?
No. The company reaffirmed its 2026 targets of revenue of $5.675 billion to $5.775 billion and Adjusted EBITDA of $2.240 billion to $2.290 billion. It stated it would provide additional detail on the earnings call.
Why did operating cash flow increase so sharply?
Operating cash flow was $694.5 million versus $162.8 million a year earlier, due to improved operating performance and the timing of working capital, including approximately $582.4 million of net pre-payments held in escrow related to FIFA World Cup 26.
What is the purpose of the supplemental financial information?
It recasts fiscal 2023, 2024 and 2025 results as if the February 28, 2025 acquisition of Professional Bull Riders, On Location and certain IMG-branded businesses had been part of TKO during those periods, treating the transaction as a merger of entities under common control. The filing notes these figures are illustrative and not indicative of future results.
04—Continue