TKO Raises Full-Year 2026 Targets a Second Time

The Tip Desk · November 4, 2026 · 4 min read

Third-quarter revenue was $1.360 billion and Adjusted EBITDA $555.7 million as UFC media rights and IMG partnerships lifted profit.

TKO Group Holdings (TKO) raised its full-year 2026 revenue and Adjusted EBITDA targets for a second time, citing performance through the first nine months and visibility into the rest of the year. The premium sports and entertainment company now expects 2026 revenue of $5.790 billion to $5.830 billion and Adjusted EBITDA of $2.295 billion to $2.315 billion, up from August’s $5.775 billion to $5.825 billion and $2.275 billion to $2.305 billion.

For the three months ended September 30, 2026, revenue increased 21%, or $240.2 million, to $1.360 billion. Net income was $277.9 million, up $171.1 million from $106.8 million a year earlier. Adjusted EBITDA rose 54%, or $195.5 million, to $555.7 million, and Adjusted EBITDA margin increased to 41% from 32%.

UFC was the largest contributor. Segment revenue increased 60%, or $194.0 million, to $519.2 million, with a $132.3 million rise in media rights, production and content, a $36.0 million rise in live events and hospitality, a $20.5 million rise in partnerships and marketing, and a $5.2 million rise in consumer products licensing and other. The company said the media-rights increase reflected higher fees under a new Skydance distribution agreement that began in January 2026, plus one additional Numbered Event and one additional Fight Night. Live events and hospitality rose on ticket sales from a record-setting UFC 329 and two additional events, as well as higher financial incentive package revenue. UFC Adjusted EBITDA increased 72%, or $119.7 million, to $285.3 million, and margin rose to 55% from 51%. Direct operating costs rose with athlete, production and event-related costs tied to the extra events and UFC 329’s higher cost profile.

WWE revenue decreased 1%, or $2.8 million, to $399.3 million. Live events and hospitality fell $24.8 million on lower ticket sales from three fewer Main Roster Premium Live Events and weaker SummerSlam sales. Partnerships and marketing rose $11.1 million, media rights, production and content rose $6.9 million, and consumer products licensing and other rose $4.0 million. Adjusted EBITDA increased 5%, or $9.4 million, to $217.2 million, as lower production, talent and event-related costs more than offset the revenue decline. Margin widened to 54% from 52%.

The IMG segment, which includes IMG and On Location, posted revenue of $391.3 million, up 16%, or $54.6 million. Partnerships and marketing rose $34.3 million on new tennis and soccer marketing deals. Live events and hospitality rose $11.3 million, which the company attributed primarily to FIFA World Cup 2026 hospitality at On Location, partly offset by the absence of the biennial Ryder Cup. Media rights, production and content rose $9.1 million on new FIFA World Cup, tennis and soccer distribution deals. Adjusted EBITDA increased 89%, or $54.5 million, to $115.9 million, with margin up to 30% from 18%. Direct operating costs declined with the Ryder Cup’s absence; selling, general and administrative expenses rose on FIFA World Cup costs.

Corporate and Other revenue decreased 3%, or $2.0 million, to $61.3 million, which the company tied mainly to a 2025 one-time boxing benefit from initial vesting of equity in Zuffa Boxing, partly offset by higher PBR revenue despite three fewer events. Adjusted EBITDA was a loss of $62.7 million, an improvement of $11.9 million from a $74.6 million loss. Expenses reflected lower PBR event-related costs after a strategic review to remove non-core events.

Cash flows generated by operating activities were $472.1 million, up $55.3 million from $416.8 million. Free cash flow was $449.9 million, up $51.0 million from $398.9 million. Cash and cash equivalents were $630.9 million as of September 30, 2026; gross debt was $4.647 billion.

The company said it intends to commence additional Class A share repurchases under an existing $3 billion authorization, with about $936.0 million remaining as of November 4, 2026, and that it expects to repurchase the balance, funded primarily from additional debt and cash on hand. In the third quarter it bought 451,377 shares for about $85.5 million under an August 10b5-1 plan, and from October 1 through October 30 it bought 417,795 shares for about $73.4 million. Year-to-date, it has returned in excess of $1.6 billion through repurchases and dividends. Full-year guidance assumes all live events, including those in the Middle East, are staged as currently planned.