Download PDF

1. Company Snapshot

1.a. Company Description

TKO Group Holdings, Inc.operates as a sports and entertainment company.It operates through four segments: Media and Content, Live Events, Sponsorships, and Consumer Products Licensing.


The company produces live events, television programs, and long-form and short-form video content across various platforms, including broadcast, pay television, and streaming, as well as digital and social media across approximately 170 countries.It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets.The company engages in the corporate sponsorships and advertising business, which offers sale of in-venue and in-broadcast advertising assets, content product integration, and digital impressions.


TKO Group Holdings, Inc.is based in New York, New York.TKO Group Holdings, Inc.


is a subsidiary of Endeavor Group Holdings, Inc.

Show Full description

1.b. Last Insights on TKO

TKO Group Holdings, Inc.'s recent performance was driven by solid Q3 2025 financial results, with sustained momentum from UFC and WWE. The company raised its full-year guidance, citing conviction in its growing sports media empire. A 100% increase to its quarterly cash dividend program and a $800 million accelerated share repurchase program also boosted investor confidence. Additionally, 12 out of 20 brokerages covering the company have assigned a buy or strong buy rating, with a consensus price target of $222.23.

1.c. Company Highlights

2. TKO's Q3 2025 Earnings: Strong Performance and Increased Guidance

TKO reported a robust financial performance in Q3 2025, with revenue reaching $1.12 billion, adjusted EBITDA of $360 million, and an adjusted EBITDA margin of 32%. The company's EPS came in at $0.5, slightly below estimates of $0.586. The UFC segment generated revenue of $325 million, with an adjusted EBITDA margin of 51%, while the WWE segment produced revenue of $402 million, with an adjusted EBITDA margin of 52%. The strong performance was driven by the company's cornerstone media rights agreements with UFC and WWE, which have provided visibility into a multiyear, high-margin contractual revenue stream.

Publication Date: Nov -07

📋 Highlights
  • Landmark Media Rights Deals:: UFC secured a $7.7 billion, 7-year deal with Paramount, while WWE partnered with ESPN for a 5-year premium live events agreement, ensuring high-margin revenue with annual escalators.
  • Strong Q3 Financial Performance:: Revenue reached $1.12 billion, adjusted EBITDA hit $360 million (32% margin), with UFC and WWE contributing $325M and $402M in revenue, respectively, at 51% and 52% margins.
  • Shareholder Returns Boosted:: Dividends doubled, and a $1 billion stock buyback was announced, supported by $399 million in free cash flow and 111% free cash flow conversion from adjusted EBITDA.
  • Full-Year Guidance Raised:: Revenue targets now $4.69–$4.72 billion, adjusted EBITDA $1.57–$1.58 billion, reflecting confidence in media rights deals and operational momentum.
  • Zuffa Boxing League Launch:: Aiming for 12–16 fights and 2–4 super fights in 2026, with potential revenue from site fees, commissions, and media deals, expanding TKO’s premium sports portfolio.

Segment Performance

The UFC segment saw revenue of $325 million, with adjusted EBITDA of $166 million, driven by the successful execution of events and the impact of the new media rights deal. The WWE segment generated revenue of $402 million, with adjusted EBITDA of $208 million, driven by strong live event attendance and content ratings. As Ari Emanuel noted, "WWE's live events set 35 individual market records, and the first-ever 2-night SummerSlam sold over 100,000 tickets at MetLife Stadium."

Guidance and Outlook

TKO increased its full-year 2025 guidance for revenue and adjusted EBITDA, targeting revenue of $4.69 billion to $4.72 billion and adjusted EBITDA of $1.57 billion to $1.58 billion. The company expects strong financial performance in Q4 2025, driven by continued momentum in the business. For 2026, analysts estimate revenue growth of 28.8%, driven by the new media rights deals and other growth initiatives.

Valuation

TKO's current valuation metrics indicate a premium valuation, with a P/E Ratio of 64.5, P/B Ratio of 3.86, and P/S Ratio of 3.43. The EV/EBITDA ratio is 14.19, indicating a relatively high valuation compared to EBITDA. However, the company's strong growth prospects and increasing profitability may justify this premium. The Dividend Yield is 0.84%, and the Free Cash Flow Yield is 6.81%, indicating a reasonable return for shareholders.

3. NewsRoom

Card image cap

Taseko Mines Limited (TKO:CA) Presents at Bank of America Leveraged Finance Conference Transcript

Dec -02

Source: seekingalpha.com

Card image cap

Boston Partners Decreases Position in TKO Group Holdings, Inc. $TKO

Nov -29

Source: defenseworld.net

Card image cap

Creative Planning Increases Stock Holdings in TKO Group Holdings, Inc. $TKO

Nov -26

Source: defenseworld.net

Card image cap

TKO Group Holdings, Inc. (NYSE:TKO) Receives $222.23 Consensus Price Target from Brokerages

Nov -26

Source: defenseworld.net

Card image cap

Barings LLC Sells 1,868 Shares of TKO Group Holdings, Inc. $TKO

Nov -23

Source: defenseworld.net

Card image cap

TKO and DoorDash Announce Official Partnership Across WWE® and UFC®

Nov -20

Source: businesswire.com

Card image cap

TKO Group Holdings: Rapidly Expanding The Experience Economy Into 2026

Nov -20

Source: seekingalpha.com

Card image cap

TKO Announces Completion of $800 Million Accelerated Share Repurchase and Commencement of $174 Million 10b5-1 Trading Plan

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.77%)

6. Segments

Ultimate Fighting Championship

Expected Growth: 12%

UFC's 12% growth driven by increasing popularity of MMA, strategic partnerships, and expansion into new markets. Growing demand for live events, subscription-based services, and merchandise sales also contribute to growth. Additionally, the rise of social media and online streaming platforms has increased UFC's global reach and accessibility, attracting new fans and driving revenue growth.

World Wrestling Entertainment, LLC

Expected Growth: 11%

WWE's 11% growth is driven by increasing demand for live events, original content, and subscription-based services like WWE Network. Strategic partnerships, such as the USA Network deal, and expansion into international markets also contribute to growth. Additionally, the company's focus on digital transformation, including e-commerce and social media engagement, helps to attract new fans and increase revenue.

7. Detailed Products

TKO Fit

A fitness and wellness platform that provides personalized workout plans, nutrition guidance, and mental wellness resources.

TKO Fuel

A line of sports nutrition products, including protein powders, creatine, and branched-chain amino acids (BCAAs).

TKO Mindset

A mental performance coaching platform that offers personalized mindset training, meditation, and visualization exercises.

TKO Gear

A line of fitness apparel and accessories, including workout gear, bags, and accessories.

TKO Events

A series of fitness and wellness events, including fitness competitions, seminars, and workshops.

8. TKO Group Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TKO Group Holdings, Inc. is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of buyers in the market, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers in the market, reducing their negotiating power.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry in the market, making it possible for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the high competition in the market, with many companies competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.08%
Debt Cost 3.95%
Equity Weight 59.92%
Equity Cost 3.95%
WACC 3.95%
Leverage 66.89%

11. Quality Control: TKO Group Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
News Corp

A-Score: 5.9/10

Value: 5.5

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Madison Square Garden Sports

A-Score: 5.6/10

Value: 6.4

Growth: 4.9

Quality: 6.4

Yield: 1.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
TKO Group Holdings

A-Score: 5.5/10

Value: 2.6

Growth: 6.6

Quality: 6.3

Yield: 2.0

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Live Nation Entertainment

A-Score: 5.3/10

Value: 2.0

Growth: 8.3

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Warner Music

A-Score: 5.2/10

Value: 1.3

Growth: 6.4

Quality: 4.8

Yield: 4.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Endeavor Group Holdings

A-Score: 3.6/10

Value: 4.3

Growth: 3.8

Quality: 2.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

207.45$

Current Price

207.45$

Potential

-0.00%

Expected Cash-Flows