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    TKO
    Earnings call· Sep 2025(Q3 FY25)

    TKO Group Holdings, Inc. TKO

    Nov 5, 2025 Source

    Executive summary

    TKO Group Holdings Q3 FY25 — Landmark Media Rights Deals and Raised Guidance Drive Strong Quarter

    TKO Group Holdings delivered a strong third quarter, marked by securing significant media rights agreements for UFC and WWE, which are expected to drive future high-margin revenue streams. The company also demonstrated a commitment to shareholder returns through a doubled dividend and a substantial share repurchase program. Management is focused on operational execution, integrating recent acquisitions, and capitalizing on new growth opportunities, including the expansion into boxing.

    Highlights

    5

    • Secured a 7-year, $7.7 billion media rights agreement for UFC with Paramount, doubling the AAV of the previous deal.

    • Launched a 5-year premium live events partnership for WWE with ESPN, delivering a greater than 1.8x step-up in value.

    • Doubled the quarterly cash dividend and launched a $1 billion stock buyback program.

    • Raised full-year 2025 guidance for revenue to $4.69 billion-$4.72 billion and adjusted EBITDA to $1.57 billion-$1.58 billion.

    • The Canelo vs. Crawford fight generated a gate of over $47 million and drew more than 41 million viewers worldwide.

    Concerns

    4

    • Consolidated revenue decreased 27% year-over-year, primarily due to the 2024 Paris Olympics being a loss-making event for On Location.

    • UFC segment revenue decreased 8% and adjusted EBITDA decreased 15%, largely attributable to holding one less numbered event in the quarter.

    • WWE adjusted EBITDA margin decreased from 54% to 52%, primarily due to strategic investments in talent associated with new properties like Wrestlepalooza.

    • IMG segment revenue decreased 59%, mainly due to the absence of revenue from the 2024 Paris Olympics at On Location.

    Guidance & targets

    10
    CategoryTargetConfidence
    Full-year 2025 Revenue
    $4.69 billion to $4.72 billion
    high materiality
    High
    Full-year 2025 Adjusted EBITDA
    $1.57 billion to $1.58 billion
    high materiality
    High
    Full-year 2025 Free Cash Flow Conversion Rate
    in excess of 60%
    medium materiality
    Medium
    UFC and WWE Partnership Revenue
    $450 million
    medium materiality
    High
    Total Company Partnership Revenue
    $1 billion
    high materiality
    Medium
    Zuffa Boxing Super Fights
    2 to 4 fights per year
    medium materiality
    Medium
    Zuffa Boxing JV Launch
    January 2026
    medium materiality
    High
    UFC Rights Deal with Paramount Commencement
    January 2026
    high materiality
    High
    WWE PLE Deal with ESPN Contribution
    Full year of media rights fees
    high materiality
    High
    WWE Saudi Arabia PLEs
    3 PLEs
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Consolidated
    Consolidated results were impacted by the 2024 Paris Olympics, which was a key driver of the decrease in revenue and increase in adjusted EBITDA and adjusted EBITDA margin as the event was loss-making.
    Adjusted EBITDA: $360 million (increased 59% YoY)
    		$1.12 billiondecreased 27%—32% Adjusted EBITDA Margin
    UFC Segment
    Decrease driven by one less numbered event, partially offset by contractual escalation of media rights fees. Strong underlying trends in pricing and attendance for live events were more than offset by fewer numbered events and the impact of UFC 306. Tailwinds from new and renewed partnerships were offset by the mix of events.
    Adjusted EBITDA: $166 million (decreased 15%)Adjusted EBITDA Margin: down from 55% in prior year periodTotal events: 10 (Q3 FY25) vs 10 (Q3 FY24)Numbered events: 2 (Q3 FY25) vs 3 (Q3 FY24)Media rights production and content revenue: $201 million (decreased 7%)Live events and hospitality revenue: $44 million (decreased 15%)Partnerships and Marketing revenue: $71 million (decreased 4%)
    		$325 milliondecreased 8%—51% Adjusted EBITDA Margin
    WWE Segment
    Increase driven by additional PLE programming (SummerSlam expansion, Wrestlepalooza launch) and contractual escalation of media rights fees. Offset by one less episode of Raw and SmackDown shift to 2-hour format. Margin decrease due to strategic investments in talent. Partnership revenue growth driven by new partnerships and renewals, with SummerSlam being a notable contributor.
    Adjusted EBITDA: $208 million (increased 19%)Adjusted EBITDA Margin: down from 54% in prior year periodMain roster premium live event programming nights: 5 (Q3 FY25) vs 3 (Q3 FY24)Live events and hospitality revenue: $83 million (increased 61%)Media rights production and content revenue: $249 million (increased 9%)Partnerships and marketing revenue: $40 million (increased 84%)
    		$402 millionincreased 23%—52% Adjusted EBITDA Margin
    IMG Segment
    Decline in revenue primarily related to the absence of revenue at On Location from the 2024 Paris Olympics. Partially offset by an increase in revenue at the IMG business from new business in Studios Group (Ryder Cup, Esports World Cup). Adjusted EBITDA reflected the decrease in revenue, partially offset by a decrease in expenses due to absence of Olympics costs and cost reduction initiatives.
    Adjusted EBITDA: $61 million (increased $116 million)Adjusted EBITDA Margin: up from negative 7% in prior year period
    		$337 milliondecreased 59%—18% Adjusted EBITDA Margin
    Corporate and Other
    Revenue increase primarily driven by promotional and management fees from boxing initiatives (Zuffa Boxing, Canelo vs Crawford Super Fight). Improvement in adjusted EBITDA due to revenue increase and a $33 million decrease in costs related to corporate allocations of Endeavor expenses.
    Adjusted EBITDA: improved from negative $90 million in prior year period
    		$63 millionincreased 17%—negative $75 million Adjusted EBITDA

    Operational metrics

    27
    Cash and cash equivalents
    $861 million
    End of Q3 FY25

    Balance at the end of the quarter.

    Restricted cash
    $312 million
    End of Q3 FY25

    Balance at the end of the quarter.

    Debt
    $3.759 billion
    End of Q3 FY25

    Total debt at the end of the quarter.

    Quarterly cash dividend increase
    100%
    Q3 FY25

    The quarterly cash dividend program was doubled, with the first payment under the upsized program made on September 30.

    Share repurchase program authorization
    $1 billion
    Ongoing

    Total authorization for the stock buyback program.

    ASR agreement shares repurchased
    3.2 million
    Q3 FY25

    Initial delivery of shares under the $800 million ASR agreement.

    Shares repurchased via privately negotiated transaction
    $26 million
    Q3 FY25

    Amount of shares repurchased under a privately negotiated transaction.

    10b5-1 trading plan for share repurchase
    $174 million
    Ongoing

    Repurchase plan for Class A common stock.

    UFC total events
    10comparable with prior year period
    Q3 FY25

    Number of total events held in the third quarter.

    UFC numbered events
    2vs 3 in prior period
    Q3 FY25

    Number of numbered events held in the third quarter.

    UFC 306 event status
    —
    Q3 FY25

    UFC 306 remains the highest grossing event in UFC history.

    UFC 319 event status
    —
    Q3 FY25

    UFC 319 became the highest grossing event at Chicago's United Center.

    WWE live event records
    35
    Q3 FY25

    Number of individual market records set by WWE live events throughout the quarter.

    SummerSlam tickets sold
    100,000+
    Q3 FY25

    Tickets sold for the first-ever 2-night SummerSlam at MetLife Stadium.

    SmackDown primetime cable ratings
    9
    Q3 FY25

    SmackDown led primetime cable ratings on 9 Fridays in the quarter.

    Raw Netflix global top 10
    —every single week
    Q3 FY25

    Raw maintained its position on Netflix's global top 10 every single week through the quarter, extending a streak that began with the launch in January.

    PBR Sunday broadcast viewers
    2.7 millionlargest audience since 2012
    October

    A single Sunday broadcast of PBR drew an average of 2.7 million viewers on CBS, outperforming MLB playoffs and college football ratings that day.

    Canelo vs Crawford fight gate
    $47 million+third largest in boxing history
    September

    The fight generated a gate of over $47 million, the third largest in boxing history.

    Canelo vs Crawford fight viewers
    41 million+
    September

    The fight drew more than 41 million viewers worldwide on Netflix.

    UFC Q4 FY25 total events
    11compared to 10 in the prior year period
    Q4 FY25

    Expected number of total events for UFC in the fourth quarter.

    UFC Q4 FY25 numbered events
    4comparable to the prior year
    Q4 FY25

    Expected number of numbered events for UFC in the fourth quarter.

    UFC Q4 FY25 events with live audiences
    9compared to 7 in the fourth quarter of 2024
    Q4 FY25

    Expected number of UFC events with live audiences in the fourth quarter.

    WWE Q4 FY25 PLE programming nights
    2compared to 3 nights in the prior year
    Q4 FY25

    Expected number of main roster PLE programming nights for WWE in the fourth quarter.

    Zuffa Boxing Super Fights services fee
    $10 million
    Per fight

    Expected services fee TKO receives on each super fight promoted.

    UFC fan base geography
    —
    Ongoing

    A majority of UFC's fan base is international.

    Paramount+ global subscribers
    75 million+
    Current

    Global subscriber base for Paramount+, relevant for UFC distribution.

    ESPN+ subscriber base growth with UFC
    20 million+grew from 2-3 million
    Historical

    UFC assisted in growing ESPN+ subscriber base from 2-3 million to over 20 million.

    Industry KPIs

    4
    MetricValueDetails
    Paid members subscribers75 million+subscribers
    Live sports events rights roiDoubles AAV
    Share buyback capital returned$1 billionUSD
    Content spend title performanceHighest grossing event

    Deals & partnerships

    13
    Paramount7-year media rights agreement for UFC in the U.S.$7.7 billion7 years

    Agreement to bring UFC to Paramount+ and CBS in the U.S., starting in 2026. Places UFC in the sports mainstream and expands reach.

    ESPN5-year premium live events partnership for WWE in the U.S.5 years

    Launched ahead of schedule in Q3 with Wrestlepalooza, streamed exclusively on ESPN's new direct-to-consumer service. Brings WWE's marquee events into ESPN's promotional ecosystem.

    ParamountSignificant media rights agreement for Zuffa Boxing in the U.S., Canada, and Latin America.

    Paramount will become the exclusive home of Zuffa Boxing throughout the specified regions, supporting the JV launch in 2026.

    Galaxy Macau4-year UFC partnership.4 years

    Expansion of UFC's relationship with Galaxy Macau.

    General Entertainment AuthorityAgreement to bring WrestleMania 43 to Riyadh.

    WrestleMania 43 will be held in Riyadh in 2027.

    Paramount+5-year deal to bring PBR's Unleash the Beast Series to Paramount+.5 years

    PBR's Unleash the Beast Series will move to Paramount+ starting in 2026, building on its long-standing partnership with CBS.

    JPMorgan ChasePresenting sponsor for SummerSlam.

    JPMorgan Chase partnered with WWE for the first time as a presenting sponsor for SummerSlam.

    WingstopNew partnership across both UFC and WWE.

    Wingstop is now advertising across both UFC and WWE.

    Prime VideoRecently announced deal with UFC.

    One of the recently announced deals for UFC.

    Sony PicturesRecently announced deal with UFC.

    One of the recently announced deals for UFC.

    MaybellineFirst-ever official cosmetics partner for WWE.

    Maybelline became WWE's first-ever official cosmetics partner.

    SelaPartner for hosting 2 to 4 super fights per year.

    TKO expects to work with Sela to host 2 to 4 super fights annually, separate from the Zuffa Boxing JV.

    Zuffa BoxingJoint venture for boxing initiatives.

    The Zuffa Boxing joint venture will officially launch in 2026, anchored by a media rights agreement with Paramount.

    Risks & headwinds

    5
    Impact of 2024 Paris Olympics on On LocationQ3 FY25

    Consolidated revenue decreased 27% YoY; IMG segment revenue decreased 59% YoY; IMG Adjusted EBITDA increased $116 million (from negative 7% to 18% margin) due to absence of loss-making event costs.

    Fewer UFC numbered eventsQ3 FY25

    UFC revenue decreased 8%; Adjusted EBITDA decreased 15%; Adjusted EBITDA margin down from 55% to 51%.

    Strategic investments in WWE talentQ3 FY25

    WWE Adjusted EBITDA margin down from 54% to 52%.

    WWE Q4 calendar timing offsetting new rights deal benefitsQ4 FY25

    WWE planning 2 nights of main roster PLE programming in Q4 FY25 vs 3 nights in prior year; one Saudi Arabia PLE shifting from Q4 FY25 to Q1 FY26.

    IMG Q4 revenue and Adjusted EBITDA declineQ4 FY25

    Expected to be down modestly year-over-year in absolute dollars.

    Mitigation: Absence of Gulf Cup (biannual event) and increased costs at On Location related to preparations for upcoming Olympic Games.

    What to watch in Q4 FY25

    5

    UFC Q4 live audience events

    Q4 FY25
    Current7 events in Q4 FY24
    Target9 events with live audiences in Q4 FY25

    Why it matters

    Increased live events indicate growing fan engagement and potential for higher revenue from ticket sales and related activities.

    Within these 11, we expect 4 numbered events, which is comparable to the prior year. However, we intend to stage 9 events with live audiences compared to 7 in the fourth quarter of 2024.

    Q&A highlights

    8

    Discuss the rationale behind choosing Paramount for LatAm and Australian UFC rights and the broader international strategy for monetization and partnerships.

    Mark Shapiro explained that TKO is focused on execution, operational expansion, and capital return. For international media rights, the goal is to increase monetization, especially since a majority of the fan base is international. Paramount was chosen for LatAm and Australia due to offering the best combination of brand fit, marketing plan, and rights fee among multiple bidders. He emphasized that the company is not taking a victory lap and has a lot of work to do to continue beating and raising expectations.

    “And at the end of the day, as it turned out with the domestic deal, Paramount and CBS for that matter. But overall, that company, PSKY, ended up having the best equation, which is best for our brand, best marketing plan, a holistic effort given what they're doing on the domestic side with that investment and, of course, the best rights fee.”

    asked by Stephen Laszczyk · answered by Mark Shapiro

    2 min read5 chapters

    Detailed Narrative

    01

    Landmark Media Rights Deals

    TKO secured significant media rights agreements, including UFC's 7-year, $7.7 billion deal with Paramount for U.S. rights, which doubles the average annual value and expands its reach on Paramount+ and CBS starting in 2026. WWE launched a 5-year premium live events partnership with ESPN, delivering a >1.8x step-up in value and bringing marquee events like WrestleMania to ESPN's direct-to-consumer service. These agreements are expected to provide high-margin contractual revenue streams with annual escalators, offering long-term visibility and stability.

    02

    Strong Live Event Performance

    The company's sports properties generated strong momentum in live events. UFC 319 became the highest-grossing event at Chicago's United Center, and a UFC event in Mainland China sold out in less than a minute. WWE's live events set 35 individual market records, with the first-ever two-night SummerSlam selling over 100,000 tickets. TKO also expanded venue relationships and secured a 4-year UFC partnership with Galaxy Macau and a WWE agreement to bring WrestleMania 43 to Riyadh in 2027, highlighting growing global demand for its events.

    03

    Growth in Partnerships and Brand Engagement

    Global brand partnerships achieved robust double-digit growth for WWE, driven by SummerSlam and new blue-chip brands such as Maybelline. PBR's October broadcast on CBS drew 2.7 million viewers, its largest audience since 2012, and secured a 5-year deal to bring its Unleash the Beast Series to Paramount+. Management emphasized that the new media rights deals, including commercial inventory, will further bolster this area, with a target of $450 million in UFC and WWE partnership revenue for 2025 and $1 billion for the total company by 2030.

    04

    Strategic Expansion into Boxing

    TKO is expanding into boxing with the Zuffa Boxing joint venture set to launch in January 2026, supported by a significant media rights agreement with Paramount for the U.S., Canada, and Latin America. The company successfully promoted the Canelo vs. Crawford fight, which generated a gate of over $47 million and attracted more than 41 million viewers on Netflix. This initiative is expected to drive value through management fees, commissions on media and partnership deals, and the ability to populate undercards with Zuffa fighters to build new talent.

    05

    Shareholder Returns and Capital Structure

    TKO demonstrated a strong commitment to shareholder returns by doubling its quarterly cash dividend and initiating a $1 billion stock buyback program. This includes an $800 million ASR agreement, a $26 million privately negotiated transaction, and a $174 million 10b5-1 plan, funded by a $1 billion term loan add-on. The company ended the quarter with $861 million in cash and $3.759 billion in debt, maintaining a focus on maximizing shareholder value through strategic capital allocation.

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