TKO · TKO Group Holdings, Inc.

TKO Group Holdings reported a strong first quarter for 2026, with total revenue increasing 26% to $1.597 billion, driven by broad-based growth across all segments. The IMG segment saw the largest absolute increase, up $179.1 million to $655.4 million, primarily due to hospitality sales from the 2026 Milano Cortina Olympics. WWE revenue rose 22% to $475.7 million, fueled by higher live events and hospitality revenue, including a financial incentive package for Royal Rumble in Saudi Arabia, and increased media rights fees from Netflix and ESPN. UFC revenue grew 12% to $401.2 million, benefiting from a new distribution agreement with Paramount that began in January 2026, partially offset by two fewer Fight Night events. Net income improved 51% to $249.8 million, while Adjusted EBITDA increased 32% to $549.8 million, with margin expanding to 34% from 33%. Management commentary highlighted the strength of the company's premium IP and media rights portfolio. The company reaffirmed its full-year 2026 guidance, targeting revenue of $5.675 billion to $5.775 billion and Adjusted EBITDA of $2.240 billion to $2.290 billion. Additionally, the board authorized an incremental $1.0 billion share repurchase program, underscoring confidence in long-term value. Cash flow from operations surged to $694.5 million, partly due to $582.4 million in net prepayments held in escrow related to the FIFA World Cup 2026. The company ended the quarter with $788.9 million in cash and $4.671 billion in gross debt.