Is TKO open to larger M&A, such as a combination with Formula 1, as it approaches 2027, or is investor speculation incorrect?

Mark Shapiro firmly denied any M&A discussions, specifically with Formula 1 or anyone else, stating that TKO is 100% focused on execution. He characterized any speculation as 'flat out lying' or 'seeing ghosts.' “We are not hunting for M&A of any kind. There are absolutely no conversations with F1, anybody else for that matter. And there's absolutely nothing on the horizon that would take our eye off the ball from our execution story. Anyone spreading that is just flat out lying. And anyone speculating that is just flat out seeing ghosts.”

How does TKO plan to continue growing engagement, balancing international expansion with core market protection, and where might investments be made to achieve these goals?

Mark Shapiro emphasized focusing on both engagement and reach, highlighting TKO's clear catalysts like event ticket sales, global partnerships, FIPs, media deals, and Zuffa Boxing. He explained that investment decisions, such as SummerSlam's two-day format, prioritize fan experience and brand growth over immediate financial returns, especially for international expansion. “It's not always about the actual bottom line, right? We prioritize the fan experience and improving profitability. They are not mutually exclusive, and they're not always in that order.”

Could Andrew provide more detail on the specific drivers behind the increased full-year guidance, beyond the World Cup's performance?

Andrew Schleimer clarified that the guidance increase reflects the overall strength across TKO's businesses, particularly UFC, which is performing strongly, rather than being solely driven by the World Cup, though the World Cup did exceed expectations. “I think the increase is not necessarily a result of any one specific item... But it really reflects the overall strength in our business especially UFC, which is firing on all cylinders now and a number of moving pieces.”

TKO

TKO Group Holdings (TKO) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Communication Services· Aug 3, 2026

Source: earnings call transcript

Executive summary

TKO Group Holdings Q2 FY26 — Raised Full-Year Guidance Driven by Strong Performance Across Businesses

TKO delivered strong Q2 FY26 results, driven by the success of UFC Freedom 250, robust FIFA World Cup hospitality sales, and continued demand for live events. The company raised its full-year guidance, emphasizing the value of scarce, in-person experiences and its diversified portfolio of IP. Management remains focused on disciplined execution and capital returns, while strategically investing in international expansion and new ventures like Zuffa Boxing.

Highlights

Full-year guidance raised by $75 million for revenue and $25 million for adjusted EBITDA at the midpoint.
UFC Freedom 250 generated over $1 billion in earned media value and added 25 new marketing partners.
FIFA World Cup hospitality sales surpassed $2 billion from over 568,000 packages through Q2.
On Location's LA28 Olympics program already generated over $280 million from more than 20,000 bookings.
Year-to-date capital returns to equity holders exceeded $1.3 billion through dividends and share repurchases.

Concerns

UFC Freedom 250 resulted in an approximate $30 million loss, impacting UFC and consolidated margins.
WWE's Q2 adjusted EBITDA margin was flat year-over-year at 59%, impacted by higher-cost international events.
WWE live events and hospitality revenue decreased 18% due to lower ticket sales for WrestleMania 42 compared to the prior year.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$5.775 billion to $5.825 billion high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$2.275 billion to $2.305 billion high materiality	FY26	High
Full-year FIFA World Cup Adjusted EBITDA	exceed our estimate of approximately $75 million medium materiality	FY26	High
Financial Incentive Packages (FIPs) Target	$380 million to $420 million medium materiality	by 2030 · FY30	High
Global Partnerships Target	$1.2 billion medium materiality	by 2030 · FY30	High
Free Cash Flow Conversion Rate	in excess of 60% medium materiality	Full year	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Consolidated Adjusted EBITDA increased 23% to $650 million. Adjusted EBITDA margin increased approximately 180 basis points compared to the prior year. Removing the impact of UFC Freedom 250, total company margin expansion would have been significantly higher.	$1.547 billion	18%	—	42%
UFC Adjusted EBITDA margin was down from 59% in the prior year period, primarily due to the approximately $30 million loss from UFC Freedom 250. Removing the impact of UFC Freedom 250, UFC margins would have increased meaningfully year-over-year. Media rights driven by Paramount deal. Partnerships and marketing driven by new partners and higher renewals, largely related to UFC Freedom 250. Live events and hospitality decreased due to event mix and absence of ticket sales for UFC Freedom 250. Adjusted EBITDA: $280 million (+15%)Event mix: 12 total events (2 numbered, 9 fight nights, 1 Freedom 250) vs 11 total events (4 numbered, 7 fight nights) in prior yearMedia Rights production and content revenue: $325 million (+25%)Partnerships and marketing revenue: $145 million (+69%)Consumer Products Licensing revenue: $18 million (+61%)Live events and hospitality revenue: $48 million (-18%)	$536 million	29%	—	52%
WWE Adjusted EBITDA margin was on par with the prior year period. Increased international events were a strategic investment to broaden the global fan base and grow international partnerships revenue. Media rights driven by ESPN agreement. Live events and hospitality decreased almost exclusively due to lower ticket sales for WrestleMania 42 compared to the prior year period. Adjusted EBITDA: $368 million (+12%)Event mix: 22 international events vs 2 in prior yearMedia rights production and content revenue: $360 million (+29%)Consumer products licensing and other revenue: $46 million (+38%)Partnerships and marketing revenue: $63 million (+8%)Live events and hospitality revenue: $152 million (-18%)	$621 million	12%	—	59%
IMG Adjusted EBITDA margin was up from 9% in the prior year period. Increase in revenue primarily related to the favorable impact of World Cup hospitality sales at On Location. Revenue decreased slightly over prior year due to expiration of certain deals, partially offset by increased demand for Stars on Ice and growth in Sport 24. Adjusted EBITDA: $79 million (+171%)FIFA World Cup adjusted EBITDA contribution: ~$45 million	$355 million	16%	—	22%
Corporate and Other Adjusted EBITDA was essentially flat with the prior year period. Increase in revenue primarily driven by higher management fees related to boxing initiatives and higher live events and partnerships revenue at PBR.	$49 million	9%	—	negative $77 million

Product announcements

Product	Type	Timeline
EA Sports UFC 6	launch	June 19
Zuffa Boxing International Event	expansion	—
Zuffa Boxing New York City Debut	expansion	last week
Ryan Garcia versus Conor Benn Super Fight	launch	September 12

Deals & partnerships

Paramount+ UFC media rights deal

UFC's new media rights deal with Paramount+ began in January, leading to a step-up in media rights fees and significant viewership for UFC programming.

Netflix WWE international launch of premium live events

WWE recently launched premium live events with Netflix in Germany, Austria, and Switzerland, following the local launch in Italy. This partnership is expected to deepen and broaden WWE's global fan base and grow international partnerships revenue.

Arizona Sports & Events Alliance Multi-property financial incentive package deal 3-year

A landmark 3-year, 7-event agreement spanning UFC, WWE, PBR, and Zuffa Boxing, signed in May.

Sky Sports Zuffa Boxing media partnership

New media partnership activated with Zuffa Boxing's first international event in Bournemouth, U.K.

Fanatics Multi-property consumer products deal

A recent multi-property deal with Fanatics is contributing to improved royalties and growth in consumer products licensing.

Exodus, Anduril, Supersure, Starlink New marketing partners for UFC Freedom 250

Added as new marketing partners to TKO's roster, many signing multiyear or multi-event deals, leveraging the UFC Freedom 250 event.

Risks & headwinds

UFC Freedom 250 cost impact Q2 FY26

approximately $30 million loss

Mitigation:Partially offset with sold out global partnerships inventory; used to strengthen relationships with existing partners and create entry points for new categories and partners.

Higher cost of international WWE events Q2 FY26

higher cost profile

Mitigation:Viewed as a strategic investment for long-term growth, broadening global fan base, and strengthening pipeline of financial incentive packages outside the U.S.

Geopolitical developments in the Middle East Remainder of 2026

potential implications on our business

Mitigation:Closely monitoring developments; successfully staged all planned events year-to-date, including 2 events on June 27 and a UFC Fight Night on July 25; moving forward with remaining events in the region.

Athlete pay 2026 and beyond

incremental costs

Mitigation:Business catalysts (media rights, global partnerships, live events and FIPs, consumer products licensing) enable absorption of incremental costs while meaningfully enhancing margin profile.

What to watch in Q3 FY26

FIFA World Cup Adjusted EBITDA

Q3 FY26

Current expected to exceed $75 million (full year estimate)

Target Confirmation of exceeding $75 million, and Q3 contribution

Why it matters

Significant contributor to IMG segment and consolidated EBITDA, indicating success of On Location.

Given the scale and complexity of this event, we're still in the process of closing out our books to determine the final financial results, but we now expect to exceed our estimate of approximately $75 million in adjusted EBITDA for the full year.

Find out whether TKO delivers this. Inve re-checks your case every morning.

Q&A highlights

How does TKO view the combined PFL/Jake Paul/MVP venture and its relationship with Netflix as a competitive threat?

Mark Shapiro acknowledged the previous unsustainability of PFL and MVP individually, noting that competition generally makes TKO stronger and lifts all boats. He implied TKO is aware but not overly concerned.

“What we know is, the competition's always made us stronger and a rising tide lifts all boats.”

asked by Brandon Ross · answered by Mark Shapiro

2 min read 6 chapters

Detailed narrative

UFC Freedom 250 Success

The UFC Freedom 250 event at the White House was a major success, generating over $1 billion in earned media value and attracting 130,000 fans to the Fan Fest. The 7-bout card reached over 34 million total viewers, including 17 million in the U.S. and Latin America on Paramount+, demonstrating the strength of the Paramount partnership and the decision to remove the double paywall.

The event also secured 25 new marketing partners, many with multi-year deals.

FIFA World Cup & On Location Performance

On Location's FIFA World Cup hospitality program saw sales surpass $2 billion from over 568,000 packages through Q2, with strong demand continuing through the final. The LA28 Olympics program, still two years away, has already generated over $280 million from more than 20,000 bookings, highlighting the increasing consumer desire for personalized, customized live experiences.

WWE International Expansion & Viewership

WWE expanded its international presence with 22 events in Q2, including the Clash in Italy PLE, which set a record for the highest-grossing entertainment event at Turin's Inalpi Arena. WWE Raw was a global top 10 title every week on Netflix, and SmackDown remained a top 3 Friday cable show in the U.S. among adults 18-49 for 9 of 13 weeks, demonstrating strong engagement despite increased international investment.

Financial Incentive Packages (FIPs) Strategy

TKO's strategy for financial incentive packages is gaining traction, with a target of $380 million to $420 million by 2030. A landmark 3-year, 7-event agreement was signed with the Arizona Sports & Events Alliance, spanning UFC, WWE, PBR, and Zuffa Boxing. UFC FIPs almost doubled year-over-year, with significant packages secured for events in Miami, Macau, and Perth.

Zuffa Boxing Growth

Zuffa Boxing is ahead of schedule, staging its first international event in Bournemouth, U.K., and its New York City debut at Madison Square Garden. The venture is signing world-class talent like Shakur Stevenson and will feature a super fight between Ryan Garcia and Conor Benn in September, airing on Paramount+ and DAZN, indicating strong momentum for TKO's third combat sports asset.

Capital Allocation & Shareholder Returns

TKO remains committed to returning capital to shareholders, having returned over $1.3 billion year-to-date through dividends and share repurchases. The company completed an $800 million ASR and a $200 million 10b5-1 plan, with over $1 billion remaining under its authorization. Management views the current stock price as dislocated from intrinsic value, prompting additional buybacks.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.