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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 record revenue and strategic media deals. The company's Q4 2025 revenue reached $1.038 billion, with full-year revenue at $4.735 billion. Adjusted EBITDA for 2025 was $1.585 billion, with a margin of 33.5%. Long-term media rights agreements and operational strength across UFC and WWE have positioned TKO for growth. Institutional investors, including American Century Companies Inc., have increased their stakes, with a 35.9% boost in the third quarter. Analysts rate TKO as a "Moderate Buy" (Marketbeat Ratings).

1.c. Company Highlights

2. TKO's Strong 2025 Earnings: A Year of Execution and Growth

TKO's 2025 financial performance was impressive, with revenue reaching $4.735 billion and adjusted EBITDA of $1.585 billion, exceeding the upper end of the revised guidance range. The company's earnings per share (EPS) was not explicitly stated, but it is worth noting that the actual EPS came out at '-0.08' relative to estimates at '0.2374'. The revenue growth was driven by the UFC and WWE segments, which saw a 17% and 21% increase in revenue, respectively. The company's adjusted EBITDA margin was 33.5%, indicating a strong profitability. With a P/S Ratio of 3.88 and an EV/EBITDA of 16.66, the market seems to be pricing in a certain level of growth.

Publication Date: Mar -01

📋 Highlights
  • Media Rights Deals: Secured $15 billion in long-term U.S. media rights across UFC ($7.7 billion with Paramount) and WWE ($1.6 billion with ESPN).
  • Capital Returns: Repurchased $1 billion in shares and doubled quarterly dividends, returning over $2.3 billion to shareholders in the past year.
  • Revenue Growth: 2025 revenue reached $4.735 billion (+12% YoY in Q4), with adjusted EBITDA of $1.585 billion (30% Q4 growth).
  • Global Partnerships: Exceeded 2025 revenue targets by $450 million, raising 2030 goals to $1.2 billion (up from $1 billion).
  • UFC Performance: UFC segment revenue grew 17% to $401 million, with EBITDA up 20% to $213 million, including a record arena gross for John Cena’s event.

Segment Performance

The UFC segment generated $401 million in revenue, an increase of 17%, with adjusted EBITDA of $213 million, an increase of 20%. The WWE segment also performed well, with revenue of $360 million, an increase of 21%, and adjusted EBITDA of $165 million, an increase of 44%. The IMG segment, however, saw a decline in revenue, with $248 million, a decrease of 9%. Mark Shapiro, President and COO, highlighted the company's focus on execution and revenue generation, particularly in global partnerships and live events.

Global Partnerships and Live Events

TKO exceeded its global partnerships revenue target by over $450 million in 2025 and raised its 2030 partnerships revenue target to $1.2 billion. The company's live events also saw a strong performance, with sold-out events in Q4 2025, including UFC's highest-grossing arena record at John Cena's final match. The company is planning to secure sellable inventory around its White House event in June, which will cost upwards of $60 million.

Outlook and Valuation

TKO is optimistic about its position in the content marketplace, with a focus on execution, revenue generation, and capital return to shareholders. The company expects to realize over $300 million in aggregate value from financial incentive packages in 2026, with a forecasted range of $380 million to $420 million by 2030. Analysts estimate next year's revenue growth at 0.3%. With a ROE of 4.89% and a ROIC of 6.17%, the company's return on equity and invested capital is relatively modest. The Net Debt / EBITDA ratio is 2.49, indicating a manageable level of debt.

Capital Allocation

The company has a strong capital allocation plan, with a focus on returning cash to shareholders through share repurchases and dividends. They have authorized an additional $1 billion in share repurchases, bringing the total to $2 billion, and have returned over $2.3 billion to shareholders in the last 12 months. The Dividend Yield is 1.03%, indicating a relatively modest payout.

3. NewsRoom

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UFC 'Will Not Profit' From White House Fight On Trump's Birthday: Will Shareholders Approve Of $30 Million Loss?

Mar -03

Source: feeds.benzinga.com

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TKO Group Holdings, Inc. (TKO) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -02

Source: seekingalpha.com

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American Century Companies Inc. Boosts Stock Position in TKO Group Holdings, Inc. $TKO

Mar -02

Source: defenseworld.net

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TKO Group Holdings Inc (TKO) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Media Deals Propel Growth

Feb -26

Source: gurufocus.com

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TKO Group Holdings, Inc. (TKO) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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TKO Group Holdings (TKO) Reports Q4 Loss, Beats Revenue Estimates

Feb -26

Source: zacks.com

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TKO Group (TKO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -26

Source: zacks.com

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TKO President Mark Shapiro Supports Both Paramount And Netflix In WBD Merger Battle

Feb -25

Source: deadline.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

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A-Score: 5.6/10

Value: 5.8

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

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TKO Group Holdings

A-Score: 5.6/10

Value: 2.4

Growth: 6.6

Quality: 5.8

Yield: 2.0

Momentum: 9.5

Volatility: 7.0

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Growth: 2.8

Quality: 6.9

Yield: 5.0

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Madison Square Garden Sports

A-Score: 4.8/10

Value: 4.4

Growth: 4.9

Quality: 4.2

Yield: 1.0

Momentum: 5.0

Volatility: 9.0

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Live Nation Entertainment

A-Score: 4.7/10

Value: 2.6

Growth: 8.3

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 7.3

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Endeavor Group Holdings

A-Score: 3.8/10

Value: 4.9

Growth: 3.8

Quality: 2.7

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

202.03$

Current Price

202.03$

Potential

-0.00%

Expected Cash-Flows