TKO Group Holdings posted Q4 2025 revenue of $1.04 billion (+12% YoY), beating the $1.02B consensus estimate, but GAAP EPS of -$0.08 missed the $0.14 estimate by a wide margin (-157.97% earnings surprise). Full-year 2025 revenue reached $4.74B with Adjusted EBITDA of $1.59B (+47% YoY). Shares declined roughly 1% in after-hours trading following the earnings miss, despite management issuing robust 2026 guidance of $5.68B–$5.78B in revenue.
About TKO Group Holdings
TKO Group Holdings, Inc. (NYSE: TKO) is a premium sports and entertainment company headquartered in New York, NY. The company was formed in September 2023 through the merger of UFC (the world’s premier mixed martial arts organization) and WWE (the global leader in sports entertainment) under the Endeavor Group umbrella.
In February 2025, TKO completed the acquisition of IMG (a global sports marketing agency), On Location (a premium experiential hospitality business), and Professional Bull Riders (PBR) for $3.25 billion in equity, along with a joint venture called Zuffa Boxing. Together, TKO’s properties reach more than 1 billion households across 210 countries and territories and organize more than 500 live events year-round, attracting over three million fans.
| Key Data Point | Value |
| Ticker | NYSE: TKO |
| Market Cap | ~$17.0 billion |
| Current Price | ~$207.21 (Feb 26, 2026) |
| P/E Ratio | 79.39x (trailing) |
| Dividend Yield | ~0.01% (TTM) |
| Employees | ~890 (corporate level) |
| CEO | Ariel Zev Emanuel (Executive Chair & CEO) |
| President & COO | Mark Shapiro |
| CFO | Andrew Schleimer |
| IPO Date | September 12, 2023 |
Top Financial Highlights
Q4 2025 (Three Months Ended December 31, 2025)
- Total Revenue: $1.038 billion, up 11.9% YoY from $927.9 million in Q4 2024.
- Net Income: -$0.3 million (essentially breakeven), improved from a net loss of $60.9 million in Q4 2024.
- Diluted EPS: -$0.08, compared to $0.28 diluted EPS in Q4 2024.
- Gross Profit: $618.5 million, with a gross margin of 59.6%, up from 55.2% in Q4 2024.
- Adjusted EBITDA: $281.2 million, up 30% YoY from $216.0 million.
- Adjusted EBITDA Margin: 27%, up from 23% in Q4 2024.
- Operating Cash Flow: $309.9 million, up from $56.1 million in Q4 2024.
- Free Cash Flow: $249.4 million, up from $28.5 million in Q4 2024.
- UFC Segment Revenue: $401.4 million (+17% YoY), Adjusted EBITDA of $213.2 million (53% margin).
- WWE Segment Revenue: $359.6 million (+21% YoY), Adjusted EBITDA of $165.0 million (46% margin).
- IMG Segment Revenue: $247.7 million (-9% YoY), Adjusted EBITDA loss of $3.9 million.
- Cash on Hand: $831.1 million as of December 31, 2025; gross debt of $3.783 billion.
Full Year 2025
- Total Revenue: $4.735 billion, down 3% from $4.884B in FY 2024 (primarily due to absence of 2024 Paris Olympics revenues at IMG).
- Net Income: $546.2 million, swinging from a net loss of $245.8 million in FY 2024.
- Adjusted EBITDA: $1.585 billion, up 47% YoY from $1.082 billion.
- Free Cash Flow: $1.159 billion, up from $467.3 million.
- Capital Returns: Over $1.3 billion returned to shareholders via share repurchases and dividends.
- 2026 Guidance: Revenue of $5.675B–$5.775B (+20–22% YoY); Adjusted EBITDA of $2.240B–$2.290B (+41–44% YoY).
Beat or Miss?
TKO beat revenue estimates but significantly missed EPS expectations in Q4 2025. The revenue outperformance was driven by strong growth at UFC and WWE, while the EPS miss was primarily attributable to higher depreciation and amortization expenses (including the acceleration of WWE intangible asset expense related to a media rights arrangement) and elevated SG&A costs.
| Metric | Reported | Estimated | Difference |
| Q4 Revenue | $1.038B | $1.024B | +$14.5M (+1.4% beat) |
| Q4 GAAP EPS (Diluted) | ($0.08) | $0.14 (Zacks) / $0.26 (Investing.com) | Miss by $0.22–$0.34 |
| Q4 Adjusted EPS | ($0.08) | $0.14 | -157.97% earnings surprise |
| FY Revenue | $4.735B | ~$4.72B (high end of guidance) | Slight beat vs. guidance |
| FY Adjusted EBITDA | $1.585B | $1.581B (consensus) | Beat by ~$4M |
The full-year revenue and EBITDA results both reached or exceeded the high end of management’s own guidance range, which was raised twice during the year. Analysts note the EPS miss was largely a GAAP-driven phenomenon from non-cash D&A charges, while the underlying operating performance (Adjusted EBITDA) was solid.
What Leadership Is Saying?
“TKO’s 2025 results reflect meaningful momentum across both UFC and WWE. Having concluded our second full year since forming TKO, we are extremely well positioned with long-term media rights agreements in place and operational strength across the business. We intend to initiate the next phase of our capital return program, underpinning our commitment to deliver long-term, sustainable value for shareholders.” – — Ariel Emanuel, Executive Chair & CEO
“2025 was a milestone year, underscoring the durability of our premium IP through record-setting live events and transformational global partnerships. The successful launch of Zuffa Boxing last month sets the table for even further long term value creation. With growing revenue, expanding margins, and an increasingly global fan base, TKO is a high-quality execution story with multiple avenues for outperformance.” — Mark Shapiro, President & COO
CFO Andrew Schleimer highlighted during the earnings call that TKO projects 2026 revenue growth of 21% and Adjusted EBITDA growth of 43%, with margins expected to expand to approximately 39.6% at the midpoint. He emphasized the role of new UFC and WWE media rights agreements (including Netflix and ESPN deals) and expanding global partnerships as crucial growth drivers
Historical Performance
TKO Q4 2025 vs. Q4 2024 — Year-over-Year Comparison
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | $1.038B | $927.9M | +11.9% |
| Gross Profit | $618.5M | $512.5M | 20.70% |
| Gross Margin | 59.6% | 55.2% | +4.4 pp |
| Operating Income | $57.4M | $55.0M | 4.30% |
| Net Income | -$0.3M | -$120.8M | +$120.6M improvement |
| Diluted EPS | ($0.08) | $0.28 | N/M |
| Direct Operating Costs | $419.5M | $415.4M | 1.00% |
| Adjusted EBITDA | $281.2M | $216.0M | +30.2% |
| Operating Cash Flow | $309.9M | $56.1M | +452.4% |
Full Year 2025 vs. Full Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Total Revenue | $4.735B | $4.884B | -3.10% |
| Net Income | $546.2M | -$245.8M | +$792.0M swing |
| Operating Income | $835.0M | $30.9M | +2,602% |
| Adjusted EBITDA | $1.585B | $1.082B | +46.5% |
| Free Cash Flow | $1.159B | $467.3M | +148.0% |
The 3% revenue decline in FY 2025 was entirely due to IMG’s On Location business, which recorded $545.5 million less in live events and hospitality revenue following the absence of the 2024 Paris Olympics in the comparable period. Excluding IMG, UFC and WWE combined revenue grew approximately 15% year-over-year.
Competitor Historical Performance
Sports & Entertainment Industry — Q4 2025 vs. Q4 2024
The table below compares TKO with key sports and entertainment peers for the quarter ended December 31, 2025.
| Category | TKO Group (TKO) Q4 2025 | TKO Q4 2024 | YoY Change |
| Revenue | $1.038B | $927.9M | +11.9% |
| Net Income | -$0.3M | -$120.8M | Improved |
| SG&A Expenses | $405.2M | $355.4M | +14.0% |
| Category | Live Nation (LYV) Q4 2025 | LYV Q4 2024 | YoY Change |
| Revenue | $6.314B | $5.682B | +11.1% |
| Net Income | -$136.3M | $281.9M | -148.3% |
| SG&A Expenses | $1.301B | $1.131B | +15.1% |
| Category | MSG Entertainment (MSGE) Q2 FY26 (Dec 2025) | MSGE Q2 FY25 (Dec 2024) | YoY Change |
| Revenue | $459.9M | $407.4M | +12.9% |
| Net Income | $92.7M | $75.9M | 22.10% |
| SG&A Expenses | $68.4M | $57.2M | 19.50% |
All three companies posted double-digit revenue growth in their most recent comparable quarters. TKO and Live Nation both experienced net income pressure — TKO from elevated D&A and SG&A tied to its acquisitions, and Live Nation from acquisition expenses and operating losses in its seasonally weak Q4. MSG Entertainment stood out with strong profitability improvement driven by robust arena event economics.
How the Market Reacted?
TKO shares declined approximately 2.5% in after-hours trading on February 24, 2026 (when the results were initially released), falling to around $206 from a prior close near $209. The stock continued to trade in the $207 range on February 25, down roughly 1.0% on the day, as the broader market digested the significant EPS miss alongside the strong 2026 guidance.
The market reaction reflected a classic “sell the news” dynamic: while revenue exceeded estimates and the full-year 2025 results topped the high end of guidance, the -$0.08 GAAP EPS significantly undershot expectations of $0.14 (Zacks consensus). Insider selling of over $34 million in the preceding six months added to near-term bearish sentiment.
However, analyst sentiment remained cautiously optimistic, with Bernstein setting a price target of $250, BTIG at $237, and JP Morgan at $225 — all implying meaningful upside from the current ~$207 level. The key catalyst going forward will be TKO’s execution against its ambitious 2026 guidance and the planned $1 billion share repurchase program launching in March 2026.
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