TKO Group (NYSE:TKO) raised its full-year 2026 revenue and adjusted EBITDA outlook after reporting higher second-quarter revenue and earnings, supported by media-rights increases, global live events, partnerships and FIFA World Cup hospitality sales.
The company reported second-quarter revenue of $1.547 billion, up 18% from the prior-year period, while adjusted EBITDA increased 23% to $650 million. Adjusted EBITDA margin rose about 180 basis points to 42%.
UFC Freedom 250, held in Washington, D.C., generated approximately a $30 million loss, as the company incurred elevated production and event costs without ticket revenue. Schleimer said TKO partly offset those costs through sold-out global partnership inventory.
UFC event drives audience and partnership activity
President and Chief Operating Officer Mark Shapiro said UFC Freedom 250 reached more than 34 million total viewers in reported markets, including 17 million viewers across the U.S. and Latin America on Paramount+. The associated Ellipse Fan Fest drew more than 130,000 attendees over two days, according to the company.
Shapiro said the event generated more than $1 billion in earned media value and added 25 marketing partners, including several that signed multiyear or multi-event agreements. Schleimer said partnerships and marketing revenue at UFC rose 69% to $145 million, driven by new partners and renewals tied largely to the event.
UFC revenue increased 29% to $536 million, while adjusted EBITDA rose 15% to $280 million. The segment’s adjusted EBITDA margin declined to 52% from 59% a year earlier, primarily because of Freedom 250. Excluding the event, Schleimer said UFC margins would have increased meaningfully year over year.
UFC media rights, production and content revenue increased 25% to $325 million, reflecting the new Paramount agreement that began in January. Consumer products licensing revenue rose 61% to $18 million. Live events and hospitality revenue declined 18% to $48 million, reflecting the absence of ticket sales at Freedom 250 and one fewer numbered event during the quarter.
The company also said financial incentive packages for UFC nearly doubled from a year ago. Shapiro reiterated TKO’s target of generating $380 million to $420 million from such packages by 2030, saying the strategy is gaining traction with cities, tourism organizations and other partners.
WWE expands international event slate
WWE generated second-quarter revenue of $621 million, up 12%, and adjusted EBITDA of $368 million, also up 12%. Its adjusted EBITDA margin was unchanged at 59%.
Media rights, production and content revenue at WWE increased 29% to $360 million, primarily due to higher fees under the ESPN agreement that began last September. Consumer products licensing and other revenue increased 38% to $46 million, while partnerships and marketing revenue rose 8% to $63 million.
Live events and hospitality revenue declined 18% to $152 million, almost entirely because WrestleMania 42 ticket sales were lower than those from WrestleMania 41, Schleimer said. Still, he said WrestleMania 42 produced one of WWE’s largest box offices and included a meaningful financial incentive package from Nevada.
TKO held 22 international WWE events during the quarter, compared with two in the prior-year period. Schleimer described the additional events as a strategic investment to broaden WWE’s global fan base, build international partnerships and develop a pipeline of financial incentive packages outside the U.S.
Shapiro said WWE Raw ranked among Netflix’s global top 10 titles every week of the second quarter. He also pointed to WWE’s expansion of premium live events on Netflix into Germany, Austria and Switzerland, as well as strong domestic viewership for WrestleMania, Backlash, Clash in Italy and SmackDown.
World Cup hospitality and other businesses contribute
IMG revenue rose 16% to $355 million, while adjusted EBITDA increased 171% to $79 million. The segment’s margin expanded to 22% from 9% a year earlier, driven primarily by FIFA World Cup hospitality activity at On Location.
Shapiro said World Cup hospitality sales surpassed $2 billion through the second quarter, based on more than 568,000 packages sold. He also said the LA 2028 Olympics had generated more than $280 million in orders across over 20,000 bookings despite being two years away.
Corporate and other revenue increased 9% to $49 million, helped by boxing management fees and PBR live-event and partnership revenue. The segment posted adjusted EBITDA of negative $77 million, roughly unchanged from the prior year.
Shapiro said Zuffa Boxing is progressing ahead of schedule, citing events in Bournemouth, England, and New York City, as well as the signing of boxer Shakur Stevenson. TKO’s next boxing event will feature Ryan Garcia against Conor Benn on Sept. 12 in Las Vegas.
Guidance raised and capital returns continue
TKO raised its 2026 outlook to revenue of $5.775 billion to $5.825 billion and adjusted EBITDA of $2.275 billion to $2.305 billion. At the midpoint, the new guidance is $75 million higher for revenue and $25 million higher for adjusted EBITDA than the company’s previous forecast.
Schleimer said the increase reflects broad operating strength, particularly at UFC, rather than any single factor. The company expects third-quarter UFC results to benefit from the Paramount media-rights step-up and a schedule of 12 events, including three numbered events.
TKO generated $350 million in free cash flow during the quarter and returned more than $1.3 billion to equity holders year to date through dividends and repurchases. It ended the quarter with $4.659 billion of debt, $593 million of cash and cash equivalents, and net leverage of 2.2 times.
The company said it completed an $800 million accelerated share repurchase program on June 30 and subsequently bought an additional 1 million Class A shares under a trading plan. TKO has just over $1 billion remaining under its authorized repurchase program and intends to begin additional buybacks in the near term.
During the question-and-answer session, Shapiro said TKO is “100% focused on execution” and is not pursuing major mergers and acquisitions. He specifically said there are no discussions involving Formula 1 or other potential transactions.
About TKO Group (NYSE:TKO)
TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.
TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.
