- Total Revenue & EBITDA Growth: Revenue hit $1.308B (+10% YoY), adjusted EBITDA surged to $526M (+75%), with a 40% EBITDA margin.
- WWE Dominance: Revenue rose 22% to $556M, EBITDA up 31% to $330M, driven by WrestleMania 41 (2x prior record) and a $1.625B ESPN deal.
- UFC Partnership Surge: UFC revenue grew 5% to $416M, with partnership revenue up 39% from deals like Monster Energy and Meta.
- IMG Turnaround: Revenue dipped 4% to $307M but EBITDA margin improved from -29% to +9%, offsetting FA Cup loss with new production deals.
- Free Cash Flow Strength: Free cash flow reached $375M with 71% conversion rate, funding a $2B share buyback program starting Q3 2025.
UFC's Continued Dominance
UFC generated $416 million in revenue, a 5% increase, with $245 million in adjusted EBITDA, a 6% increase. The highlight was UFC 306, which became the highest-grossing UFC event ever. This event, coupled with strong partnership revenue growth (39%), fueled by new deals with Monster Energy and Meta, demonstrates the UFC's sustained appeal and market dominance.
WWE's Revenue Surge Driven by WrestleMania and ESPN Deal
WWE delivered a stellar performance with $556 million in revenue, a 22% increase, and $330 million in adjusted EBITDA, a 31% increase. Record-breaking WrestleMania 41, exceeding double the previous record in revenue, played a significant role in this success. The expansion of SummerSlam to two nights is expected to further boost revenue streams in the coming quarters. Furthermore, the recently announced five-year deal with ESPN for WWE content, valued at $1.625 billion, provides a significant revenue boost and reinforces WWE's position in the mainstream media landscape. As CEO Ari Emanuel stated on the earnings call, "This is a transformational deal for WWE that will expand our global reach and unlock new growth opportunities."
IMG on Track for Recovery
IMG recorded $307 million in revenue, a 4% decrease, but achieved a 9% adjusted EBITDA margin, a significant improvement from negative 29% in the prior year. This turnaround was driven by new production agreements that offset the loss of FA Cup rights. IMG is poised for further growth in the coming quarters, with key events such as Wimbledon, the U.S. Open, the British Open, and the Ryder Cup on the horizon, along with services provided for the Canelo vs. Crawford fight.
Financial Strength and Future Outlook
TKO's strong financial performance is reflected in its free cash flow of $375 million and a free cash flow conversion rate of 71%. The company is committed to returning value to shareholders through a $2 billion share repurchase program expected to commence in Q3 2025. TKO raised its full-year revenue guidance to $4.63 billion to $4.69 billion and adjusted EBITDA guidance to $1.54 billion to $1.56 billion. The company continues to focus on integrating IMG, On Location, and PBR, aiming to achieve $40 million annual run rate savings by year-end 2026.