TKO Group Holdings, Inc.

TKO reported Q2 2026 revenue of $1.547 billion and adjusted EBITDA of $650 million; both were up year over year by 18% and 23%, respectively, and adjusted EBITDA margin was 42% versus the prior year, an increase of about 180 basis points. UFC revenue was $536 million, up 29%, with adjusted EBITDA of $280 million, up 15%, and margin of 52% versus 59% last year. WWE revenue was $621 million, up 12%, with adjusted EBITDA of $368 million, up 12%, and margin flat at 59%. IMG revenue was $355 million, up 16%, with adjusted EBITDA of $79 million, up 171%, and margin of 22% versus 9% last year. Free cash flow was $350 million and free cash flow conversion was 54%. For full-year 2026, TKO raised guidance to revenue of $5.775 billion to $5.825 billion and adjusted EBITDA of $2.275 billion to $2.305 billion; midpoint guidance was raised by $75 million for revenue and $25 million for adjusted EBITDA versus prior guidance. Management also said it expects free cash flow conversion to remain in excess of 60% on a normalized basis.

Ari Emanuel framed the quarter as proof that TKO’s live-event model has unique scarcity value in an AI-driven world, emphasizing that fans are choosing in-person experiences and that TKO’s IP cannot be manufactured or automated. He highlighted UFC Freedom 250 and the FIFA World Cup hospitality program as examples of TKO’s ability to drive attention, fan expansion and premium experiences. His tone was highly confident, and he said the company is raising full-year guidance “with conviction” because the business is stronger than ever.

Andrew Schleimer said Q2 included two notable items: UFC Freedom 250, which produced an approximately $30 million loss and materially pressured UFC and consolidated margins, and the FIFA World Cup, where IMG recorded about $45 million of adjusted EBITDA in the quarter with more expected in Q3. He walked through the segment results, including UFC’s 29% revenue growth, WWE’s 12% revenue growth, IMG’s 171% adjusted EBITDA growth, and $350 million of free cash flow. He also said TKO ended Q2 with $4.659 billion of debt, $593 million of cash and cash equivalents, $960 million of restricted cash, and net leverage of 2.2x, while noting more than $1 billion remains available under the repurchase program and additional buybacks should begin soon.

Analysts focused on competition, M&A, international WWE growth, rights negotiations and the return on tentpole events. Management said the new PFL/Jake Paul/MVP combination may be worth watching, but insisted standalone competitors were not sustainable and that TKO is focused on its own execution. On M&A, Mark Shapiro denied any talks with Formula 1 or anyone else and said TKO is not hunting for deals. On WWE international, Andrew Schleimer said the company is willing to invest for the long term even if near-term margins are less attractive, and expects deeper collaboration with Netflix to create more partnership and inventory opportunities later in 2026 into 2027. On Zuffa Boxing, management said the business is ahead of schedule, with the JV structured to give TKO future equity upside without funding obligations.