TKO Filings — Tko Group Holdings, Inc. - FilingSpy
TKO
Tko Group Holdings, Inc.
A sports entertainment company whose stable includes the UFC, WWE, PBR bull riding, sports marketing agency IMG, and hospitality arm On Location, reaching over a billion households in 210 countries. It was created in 2023 when Endeavor merged UFC and WWE into one company, then added PBR, IMG, and On Location from Endeavor in early 2025. The name TKO nods to a knockout — fitting for a house of fighters, wrestlers, and cowboys.
Q2 FY2026 revenue rose 18% to $1.55B as UFC media rights and IMG hospitality grew
Legal costs climbed in Corporate even as the core business grew. rose 18% to $1,547.1M and rose 14.5% to $1.34, driven by UFC's new Paramount deal and IMG's World Cup hospitality, while rose 27% on $61.4M of legal fees. The company is profitable and growing, but carries $4,583.7M of after a $900M upsizing.
Key takeaways
UFC rose 29% on new Paramount and sponsorship deals, and IMG rose 16% from FIFA World Cup 2026 hospitality sales, lifting consolidated revenue 18% to $1,547.1M.
WWE increased 12% to $620.9M on higher ESPN/Netflix media rights, partly offset by a $33.7M live event ticket decline from a second WrestleMania in Las Vegas.
rose 27% to $462.7M, driven by $61.4M in higher legal fees for stockholder litigation and other matters within Corporate and Other.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 18% to $1.55B driven by UFC media rights and IMG hospitality, while legal costs surged in Corporate.
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Consolidated grew 18% to $1.55B, led by UFC (+29%) from new Paramount and sponsorship deals, and IMG (+16%) from FIFA World Cup 2026 hospitality sales.
Direct operating costs rose 17% to $556.1M, mainly from UFC's $77.2M in production and athlete costs for the UFC Freedom 250 event at the White House.
The company upsized its by $900M and its $4.6B debt facility, returning capital via $967.6M in repurchases and a doubled of $0.79 per share.
for the six months nearly doubled to $1.07B, boosted by $604.8M from On Location for the FIFA World Cup 2026.
What changed
IMG rose 16% this quarter after Q3 FY2025 fell 27% on the absence of Paris Olympics hospitality and Q1 FY2026 rose 38% on Milano Cortina — the Olympics-driven swing flagged earlier has not faded but shifted peaks.
was $4,583.7M, up 68.4% and near the $4,594.0M at Q1 FY2026, after the $1B upsizing in FY2025 and a $900M upsizing this quarter — the debt trajectory flagged in the 2024 report continues.
The $2.0B program and quarterly continued; Q2 paid a doubled $0.79/share and $967.6M was repurchased in the quarter against the authorized program.
UFC and WWE media rights deals (Paramount, Netflix, ESPN) are phasing in as flagged; UFC rose 29% and WWE 12% this quarter on those new deals.
Quarterly interest exposure rose to about $46M per 1% rate increase on $4,583.7M debt, up from $37M on $3,724.1M at FY2025 year-end.
What to watch
IMG next quarter to see if FIFA World Cup 2026 hospitality demand holds after the Q2 16% rise.
Pace of remaining authorization and the next against $4,583.7M .
Quarterly run-rate excluding the $61.4M legal fees to confirm underlying margin holds.
UFC and WWE media rights as Paramount, Netflix, and ESPN deals fully phase in through 2026.
WWE increased 12% to $620.9M on higher media rights from ESPN/Netflix, partially offset by a $33.7M decline in live event ticket sales for a second consecutive WrestleMania in Las Vegas.
Direct operating costs rose 17% to $556.1M, mainly from UFC's $77.2M in production and athlete costs for the UFC Freedom 250 event at the White House.
Selling, general and administrative expenses jumped 27% to $462.7M, driven by $61.4M in higher legal fees for stockholder litigation and other matters within Corporate and Other.
Net nearly doubled to $1.07B for the six months, boosted by $604.8M in from On Location for the FIFA World Cup 2026.
The company upsized its term loan by $900M and repriced its $4.6B debt facility, while returning capital via $967.6M in share repurchases and a doubled quarterly of $0.79/share.
Quantitative and Qualitative Disclosures About Market Risk
TKO faces interest-rate and foreign-currency risks, with a 1% rate rise adding ~$46M in annual interest and a 10% USD appreciation cutting revenue by ~$51.5M.
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Interest-rate exposure stems from floating-rate debt under the Credit Facilities; a hypothetical 1% rate increase would raise annual by approximately $46 million.
Foreign-currency risk arises mainly from non-U.S. operations, principally in British Pounds; a 10% strengthening of the U.S. dollar would have reduced six-month by about $51.5 million and by about $7.6 million.
The company regularly reviews foreign-exchange exposures and may use forward contracts or other derivatives to hedge adverse currency moves, explicitly not for speculation.
Credit risk is concentrated in cash deposits held at major banks and high-quality financial institutions, where balances exceed insured limits and institutional failure could disrupt access to funds.
From time to time, we may be involved in claims and proceedings arising in the course of our business. The outcome of any such claims or proceedings, regardless of the merits, is inherently uncertain. For a description of our legal proceedings, refer to Note 14, Commitments and…
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From time to time, we may be involved in claims and proceedings arising in the course of our business. The outcome of any such claims or proceedings, regardless of the merits, is inherently uncertain. For a description of our legal proceedings, refer to Note 14, Commitments and Contingencies, to our unaudited consolidated financial statements included in this Quarterly Report, which is incorporated herein by reference.
Our business, financial condition and operating results can be affected by a number of factors, whether currently known or unknown, including but not limited to those described as risk factors, any one or more of which could, directly or indirectly, cause our actual operating re…
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Our business, financial condition and operating results can be affected by a number of factors, whether currently known or unknown, including but not limited to those described as risk factors, any one or more of which could, directly or indirectly, cause our actual operating results and financial condition to vary materially from past, or anticipated future, operating results and financial condition. For a discussion of these potential risks and uncertainties, see Part I, Item 1A. "Risk Factors" in our 2025 Annual Report on Form 10-K. Any of these factors, in whole or in part, could materially and adversely affect our business, financial condition, operating results and the price of our common stock. There have been no material changes in our risk factors to those included in our 2025 Annual Report on Form 10-K.