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    TKO
    Earnings call· Jun 2026(Q2 FY26)

    TKO Group Holdings Q2 FY26 earnings call TKO

    Aug 3, 2026 Source

    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

    5

    • 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

    3

    • 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

    6
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $5.775 billion to $5.825 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $2.275 billion to $2.305 billion
    high materiality
    High
    Full-year FIFA World Cup Adjusted EBITDA
    exceed our estimate of approximately $75 million
    medium materiality
    High
    Financial Incentive Packages (FIPs) Target
    $380 million to $420 million
    medium materiality
    High
    Global Partnerships Target
    $1.2 billion
    medium materiality
    High
    Free Cash Flow Conversion Rate
    in excess of 60%
    medium materiality
    Medium

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    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 billion18%—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 million29%—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 million12%—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 million16%—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 million9%—negative $77 million

    Operational metrics

    19
    Free cash flow conversion of adjusted EBITDA
    54%
    Q2 FY26

    Normalized target is in excess of 60%.

    Net debt
    $4.067 billion
    Q2 FY26

    As of the end of Q2 FY26.

    Net leverage
    2.2x
    Q2 FY26

    Based on LTM adjusted EBITDA of $1.841 billion.

    Cash and cash equivalents
    $593 million
    Q2 FY26

    As of the end of Q2 FY26.

    Restricted cash
    $960 million
    Q2 FY26

    As of the end of Q2 FY26.

    Total debt
    $4.659 billion
    Q2 FY26

    As of the end of Q2 FY26.

    UFC Freedom 250 financial impact
    $30 million loss
    Q2 FY26

    Impacted UFC and consolidated margins; partially offset by global partnerships inventory.

    UFC programming viewership on Paramount+
    20 million
    YTD

    Delivering viewership more than 23x the average UFC pay-per-view event over the past 2 years.

    UFC 329 gate
    highest grossing event
    Q2 FY26

    In UFC history, held in Las Vegas.

    WrestleMania 42 attendance
    106,000
    Q2 FY26

    Held in Las Vegas.

    WrestleMania 42 gate
    one of the highest all-time gates
    Q2 FY26

    In WWE history.

    WWE Raw on Netflix performance
    global top 10 title
    Q2 FY26

    Every single week of the second quarter.

    SmackDown on USA Network performance
    top 3
    Q2 FY26

    During the quarter.

    On Location LA28 Olympics bookings
    $280 million
    to date

    Generated from orders.

    PBR Space Cowboys event attendance
    31,000
    Q2 FY26

    Sold out at the U.S. Air Force Academy.

    UFC Financial Incentive Packages (FIPs) growth
    almost doubledyear-over-year
    Q2 FY26

    Successfully executing on strategy, with significant FIPs in Miami, Macau, and Perth.

    WWE international events staged
    22vs 2 in prior year period
    Q2 FY26

    Part of a strategy to deepen and broaden global fan base and grow international partnerships revenue.

    UFC event mix
    12vs 11 in prior period
    Q2 FY26

    Event mix had a notable impact on Q2 results.

    WWE Q3 event mix
    1vs 4 in prior period
    Q3 FY26

    Timing of live events will negatively impact Q3 results due to fewer PLEs.

    Industry KPIs

    2
    MetricValueDetails
    Share buyback capital returnedin excess of $1.3 billionUSD
    Content spend title performance34 milliontotal viewers

    Product announcements

    4
    ProductTypeDetails
    EA Sports UFC 6launch
    Zuffa Boxing International Eventexpansion
    Zuffa Boxing New York City Debutexpansion
    Ryan Garcia versus Conor Benn Super Fightlaunch

    Deals & partnerships

    6
    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.

    NetflixWWE 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 AllianceMulti-property financial incentive package deal3-year

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

    Sky SportsZuffa Boxing media partnership

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

    FanaticsMulti-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, StarlinkNew 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

    4
    UFC Freedom 250 cost impactQ2 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 eventsQ2 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 EastRemainder 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 pay2026 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

    5

    FIFA World Cup Adjusted EBITDA

    Q3 FY26
    Currentexpected to exceed $75 million (full year estimate)
    TargetConfirmation 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.