TKO Group (NYSE:TKO) Issues Quarterly Earnings Results

TKO Group (NYSE:TKO) issued its quarterly earnings data on Wednesday. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.20), Zacks reports. The company had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $1.02 billion. TKO Group had a net margin of 5.27% and a return on equity of 2.57%. The company’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter last year, the company earned $0.28 earnings per share.

Here are the key takeaways from TKO Group’s conference call:

• Signed historic long-term media rights deals — notably UFC $7.7B with Paramount and WWE $1.6B with ESPN — and now have more than $15B of secured rights across the portfolio, which management says will drive high‑margin, recurring revenue and broader audience reach.
• Reported FY2025 revenue of $4.735B and Adjusted EBITDA of $1.585B (33.5% margin), and guided 2026 to revenue of $5.675–$5.775B and Adjusted EBITDA of $2.24–$2.29B, implying significant margin expansion to ~39.6% at the midpoint.
• Returned substantial capital to shareholders — doubled the quarterly dividend, paid ~$452M in dividends in 2025, repurchased roughly $900M of Class A stock and announced intent to repurchase up to an additional $1B.
• Management expects accelerated live‑event economics from government/private support, forecasting over $300M of aggregate value from Financial Incentive Packages (FIPs) in 2026 (normalized ~$240M) and targets $380M–$420M by 2030 as a durable, high‑margin growth lever.
• Company plans a high‑profile UFC event at the White House costing upwards of $60M (management expects to monetize ~half via inventory), calling it a strategic marketing investment rather than a near‑term profit driver.

TKO Group Stock Up 6.1%

Shares of NYSE:TKO traded up $12.59 on Thursday, reaching $219.80. The company had a trading volume of 752,949 shares, compared to its average volume of 870,978. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $42.88 billion, a PE ratio of 84.36 and a beta of 0.65. TKO Group has a 52-week low of $133.07 and a 52-week high of $222.67. The firm’s 50 day simple moving average is $207.27 and its 200-day simple moving average is $197.28.

TKO Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Monday, December 15th were given a dividend of $0.78 per share. This is a boost from TKO Group’s previous quarterly dividend of $0.76. The ex-dividend date of this dividend was Monday, December 15th. This represents a $3.12 annualized dividend and a yield of 1.4%. TKO Group’s payout ratio is 119.54%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on TKO. Wolfe Research reissued an “outperform” rating and issued a $227.00 target price on shares of TKO Group in a research note on Monday, December 15th. Roth Mkm reiterated a “buy” rating and set a $240.00 price target on shares of TKO Group in a report on Thursday, February 12th. JPMorgan Chase & Co. raised their price objective on shares of TKO Group from $220.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 21st. Sanford C. Bernstein upped their target price on TKO Group from $230.00 to $250.00 and gave the company an “outperform” rating in a research note on Thursday, February 19th. Finally, Susquehanna reiterated a “positive” rating and issued a $251.00 price target on shares of TKO Group in a report on Monday, January 19th. Fourteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, TKO Group presently has an average rating of “Moderate Buy” and a consensus target price of $231.20.

Trending Headlines about TKO Group

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: Pivotal Research raised its price target on TKO to $250 and reaffirmed a Buy rating, signaling analyst confidence and providing upside to the consensus target. This upgrade likely supported buying interest. Read More.
• Neutral Sentiment: Revenue beat: TKO reported Q4 revenue of ~$1.04B, above Street estimates (~$1.02B) and up about 11.9% year-over-year — a positive operational datapoint that partially offsets the EPS miss. Read More.
• Neutral Sentiment: Full earnings materials/transcript are available for investors digging into details (guidance commentary, segment trends and management tone). Useful if you want to hear management’s color on growth drivers and margins. Read More.
• Negative Sentiment: EPS miss: TKO reported a Q4 loss of ($0.08) vs. consensus ~+$0.12 (and vs. prior-year EPS), an unexpected earnings shortfall that creates near-term earnings uncertainty. Read More.
• Negative Sentiment: Guidance came in light: TKO updated FY‑2026 revenue guidance to ~$5.7–5.8B versus a ~ $6.0B street consensus, which tempers near-term upside and likely explains part of investor caution. Read More.
• Negative Sentiment: Legal risk: Multiple reports indicate promoter Frank Warren/Queensberry are preparing a potential ~$1B lawsuit tied to the Zuffa boxing launch and exclusions — a material legal overhang if it proceeds. This raises event risk and potential litigation costs. Read More.
• Negative Sentiment: Insider selling: CFO Shane Kapral has been selling small blocks of shares (latest disclosed sale ~616 shares), which some investors may view as negative signal on near-term insider conviction (though sizes are modest). Read More.

Insider Buying and Selling

In other TKO Group news, insider Seth D. Krauss sold 14,016 shares of TKO Group stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $201.22, for a total value of $2,820,299.52. Following the transaction, the insider directly owned 2,271 shares of the company’s stock, valued at approximately $456,970.62. The trade was a 86.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Andrew M. Schleimer sold 11,978 shares of the company’s stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $201.98, for a total value of $2,419,316.44. Following the transaction, the chief financial officer directly owned 27,544 shares in the company, valued at approximately $5,563,337.12. The trade was a 30.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 169,202 shares of company stock worth $34,316,033 over the last ninety days. 61.30% of the stock is currently owned by company insiders.

Institutional Trading of TKO Group

A number of institutional investors have recently bought and sold shares of the stock. Amundi grew its holdings in shares of TKO Group by 338.7% during the first quarter. Amundi now owns 1,360 shares of the company’s stock valued at $205,000 after buying an additional 1,050 shares during the last quarter. AQR Capital Management LLC boosted its position in TKO Group by 10.7% in the first quarter. AQR Capital Management LLC now owns 7,222 shares of the company’s stock valued at $1,083,000 after buying an additional 696 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in TKO Group by 4,722.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,777 shares of the company’s stock valued at $1,341,000 after buying an additional 8,595 shares during the last quarter. United Services Automobile Association acquired a new position in TKO Group in the 1st quarter worth approximately $218,000. Finally, Geneos Wealth Management Inc. raised its position in TKO Group by 127.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 510 shares of the company’s stock worth $78,000 after buying an additional 286 shares during the last quarter. 89.79% of the stock is currently owned by institutional investors and hedge funds.

About TKO Group

TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.

TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.