TKO Group (NYSE:TKO) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

TKO Group (NYSE:TKO) announced its earnings results on Wednesday. The company reported $1.12 earnings per share for the quarter, topping analysts’ consensus estimates of $1.11 by $0.01, FiscalAI reports. TKO Group had a return on equity of 2.41% and a net margin of 4.47%.The business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same period in the prior year, the company earned $0.69 EPS. The company’s quarterly revenue was up 25.9% compared to the same quarter last year.

Here are the key takeaways from TKO Group’s conference call:

• Q1 financials beat on growth — TKO reported $1.597B revenue and $550M adjusted EBITDA (34% margin) and reaffirmed full?year guidance of $5.675–$5.775B revenue and $2.24–$2.29B adjusted EBITDA.
• Media rights momentum — Paramount+/CBS for UFC and ESPN/Netflix deals for WWE are widening reach and engagement (UFC on CBS was the most?watched UFC event since 2016), boosting sampling and downstream monetization opportunities.
• Live events and FIP pipeline — Sellouts, record gates across UFC/WWE/PBR and a growing financial?incentive?package pipeline (multi?market renewals including Baku, Philadelphia, Serbia) are driving revenue upside and expected margin expansion.
• Strong cash generation and shareholder returns — Q1 free cash flow of $675M (123% conversion), net leverage ~2.3x, ~$1B returned in the quarter, and an incremental $1B buyback authorization (plus an $800M ASR) support continued capital returns.
• Near?term event costs and geopolitical risk — Management expects to lose ~$30M on UFC Freedom 250 and acknowledges higher production costs and ongoing Middle East geopolitical uncertainty that could pressure short?term results despite partner commitments to proceed with scheduled events.

TKO Group Trading Down 0.3%

Shares of NYSE:TKO traded down $0.64 on Friday, reaching $186.87. 1,875,713 shares of the company traded hands, compared to its average volume of 1,200,941. The business’s 50-day simple moving average is $197.23 and its 200 day simple moving average is $198.69. TKO Group has a 52 week low of $152.29 and a 52 week high of $226.94. The stock has a market capitalization of $36.28 billion, a P/E ratio of 69.73 and a beta of 0.57. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.43.

TKO Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were given a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a yield of 1.7%. The ex-dividend date was Monday, March 16th. TKO Group’s dividend payout ratio is presently 138.67%.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. UBS Group boosted their price objective on TKO Group from $235.00 to $238.00 and gave the stock a “buy” rating in a report on Thursday, February 26th. Pivotal Research lifted their target price on shares of TKO Group from $235.00 to $250.00 and gave the company a “buy” rating in a research report on Thursday, February 26th. Roth Mkm set a $228.00 price target on shares of TKO Group in a research note on Monday. Susquehanna reissued a “positive” rating and issued a $251.00 price target on shares of TKO Group in a report on Monday, January 19th. Finally, JPMorgan Chase & Co. raised their price objective on shares of TKO Group from $220.00 to $225.00 and gave the company an “overweight” rating in a research report on Wednesday, January 21st. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $230.88.

Insider Transactions at TKO Group

In other TKO Group news, CFO Shane Kapral sold 254 shares of TKO Group stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $199.15, for a total value of $50,584.10. Following the transaction, the chief financial officer directly owned 99 shares of the company’s stock, valued at $19,715.85. The trade was a 71.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nick Khan sold 9,518 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $185.99, for a total value of $1,770,252.82. Following the completion of the sale, the director owned 91,100 shares of the company’s stock, valued at $16,943,689. The trade was a 9.46% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 31,272 shares of company stock valued at $6,332,236. 61.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. State Street Corp raised its holdings in TKO Group by 20.3% during the 3rd quarter. State Street Corp now owns 5,249,091 shares of the company’s stock valued at $1,060,106,000 after buying an additional 887,401 shares during the last quarter. Alliancebernstein L.P. increased its position in shares of TKO Group by 551.8% in the second quarter. Alliancebernstein L.P. now owns 494,964 shares of the company’s stock valued at $90,059,000 after acquiring an additional 419,021 shares during the period. Price T Rowe Associates Inc. MD raised its stake in shares of TKO Group by 20.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,373,243 shares of the company’s stock valued at $496,008,000 after acquiring an additional 395,040 shares during the last quarter. UBS Group AG raised its stake in shares of TKO Group by 31.7% during the third quarter. UBS Group AG now owns 1,274,142 shares of the company’s stock valued at $257,326,000 after acquiring an additional 307,000 shares during the last quarter. Finally, Two Sigma Investments LP boosted its holdings in shares of TKO Group by 153.1% during the third quarter. Two Sigma Investments LP now owns 295,293 shares of the company’s stock worth $59,637,000 after purchasing an additional 178,600 shares during the period. 89.79% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting TKO Group

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO reported Q1 2026 revenue of about $1.60 billion and EPS of $1.12, both slightly ahead of expectations, with revenue up roughly 26% year over year as WWE, UFC and IMG all posted strong growth. TKO Reports First Quarter 2026 Results
• Positive Sentiment: Management increased the share-repurchase authorization by $1 billion, which signals confidence in the business and can support earnings per share over time. Share repurchase authorization increase
• Positive Sentiment: Investor commentary points to the Paramount UFC rights deal as an important boost to TKO’s media revenue outlook and a sign that the company’s combat-sports assets continue to gain value. Paramount UFC deal
• Positive Sentiment: Reports also indicate Saudi partners remain committed to TKO-related partnerships, reducing a potential near-term source of uncertainty around WWE and event funding. Saudi partnerships remain intact
• Neutral Sentiment: TKO’s 2026 revenue guidance of $5.675 billion to $5.775 billion was solid, though it appeared a bit below some Street expectations, which may limit additional upside unless growth accelerates further. 2026 revenue guidance
• Neutral Sentiment: Nick Khan’s sale of 9,518 shares was disclosed, but he still retains a sizable stake; investors may view it as routine insider activity rather than a major red flag. Nick Khan insider sale filing
• Negative Sentiment: Some media coverage around WWE creative criticism and Saudi-related controversy could create reputational noise, even if the direct financial impact appears limited. Saudi Arabia WWE partnership coverage

About TKO Group

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.