TKO Group Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenue for Q3 2026 was $1.360 billion, a 21% increase year-over-year (up $240.2 million from $1.1199 billion in Q3 2025).
• Net income was $277.9 million, an increase of $171.1 million from $106.8 million in the prior year period.
• Adjusted EBITDA increased 54% to $555.7 million in Q3 2026, compared to $360.2 million in Q3 2025.
• Adjusted EBITDA margin expanded to 41% in Q3 2026 from 32% in the prior year period.
• Cash flows from operating activities were $472.1 million in Q3 2026, up $55.3 million from $416.8 million in Q3 2025.
• Free Cash Flow was $449.9 million in Q3 2026, an increase of $51.0 million from $398.9 million in Q3 2025.
• Cash and cash equivalents stood at $630.9 million as of September 30, 2026.
• Gross debt was $4.647 billion as of September 30, 2026.
• Year-to-date, the company returned over $1.6 billion to equity holders through share repurchases and dividends.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance was raised to $5.790 billion to $5.830 billion (previously $5.775 billion to $5.825 billion).
• Full-year 2026 Adjusted EBITDA guidance was raised to $2.295 billion to $2.315 billion (previously $2.275 billion to $2.305 billion).
• Guidance assumes all live events, including those in the Middle East region, are staged as currently planned.

Business Segments and Product Lines:

• UFC: Revenue increased 60% to $519.2 million (from $325.2 million), driven by a $132.3 million increase in media rights (new Skydance agreement and additional events), $36.0 million in live events (record UFC 329), $20.5 million in partnerships, and $5.2 million in consumer products. Adjusted EBITDA rose 72% to $285.3 million with a margin of 55%.
• WWE: Revenue decreased 1% to $399.3 million (from $402.1 million), driven by a $24.8 million drop in live events (fewer premium events and lower SummerSlam sales), offset by increases in partnerships ($11.1 million), media rights ($6.9 million), and consumer products ($4.0 million). Adjusted EBITDA increased 5% to $217.2 million with a margin of 54%.
• IMG: Revenue increased 16% to $391.3 million (from $336.7 million), driven by a $34.3 million increase in partnerships (tennis and soccer deals), $11.3 million in live events (FIFA World Cup 2026 hospitality), and $9.1 million in media rights. Adjusted EBITDA surged 89% to $115.9 million with a margin of 30%.
• Corporate and Other: Revenue decreased 3% to $61.3 million (from $63.3 million), primarily due to reduced boxing initiatives revenue (loss of one-time Zuffa Boxing benefit) offset by PBR growth. Adjusted EBITDA loss narrowed to $62.7 million from $74.6 million.

Market and Competitive Landscape:

• Management cites secular tailwinds in live events and experiences, noting that every facet of sports consumption is growing.
• The company highlights that the vast majority of existing revenues are locked in for the next five to seven years.
• Macro trends are described as firmly in the company's favor with substantial runway ahead.

Risks and Challenges:

• Forward-looking statements note risks including dependence on key distribution partners (TV, cable, streaming), ability to adapt to new platforms, and changes in consumer behavior.
• Risks include the highly competitive and fragmented nature of the markets, adverse publicity, and dependence on key management.
• Financial risks include substantial indebtedness and the ability to generate revenue from discretionary spending on events.
• Actual results may differ due to risks detailed in the company's Form 10-K, including antitrust lawsuits and stockholder litigation.

Management Commentary and Tone:

• Mark Shapiro, President and COO, stated the third quarter reflects "secular tailwinds" and that the decision to raise guidance for the second time this year expresses "conviction across the entire portfolio."
• Management described the business as "durable" with "solid fundamentals."
• The company is closing out its "year of execution."

Other Key Points:

• The company announced its intent to commence additional share repurchases of Class A common stock.
• Approximately $936.0 million remains available under the $3 billion authorized repurchase program.
• The company intends to fund the remaining authorization primarily through additional debt and cash on hand.
• During Q3 2026, the company repurchased 451,377 shares under the August 10b5-1 Plan for approximately $85.5 million.
• From October 1, 2026, through October 30, 2026, the company repurchased 417,795 shares for approximately $73.4 million.
• An accelerated share repurchase agreement (ASR) for $800 million (4,167,298 shares) was completed on July 1, 2026.
• A May 10b5-1 Plan repurchased 1,022,434 shares for approximately $200.0 million between May 14 and July 22, 2026.
• On September 30, 2026, the company paid a quarterly cash dividend of approximately $150 million ($0.79 per share) from TKO Operating Company, LLC.