TKO Group (NYSE:TKO) Issues Quarterly Earnings Results, Beats Estimates By $0.01 EPS

TKO Group (NYSE:TKO) released its earnings results on Wednesday. The company reported $1.12 EPS for the quarter, beating the consensus estimate of $1.11 by $0.01, FiscalAI reports. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The business’s quarterly revenue was up 25.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.69 earnings per share.

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

• Q1 financials beat on growth — TKO reported $1.597B revenue and $550M adjusted EBITDA (34% margin) and reaffirmed full‑year guidance of $5.675–$5.775B revenue and $2.24–$2.29B adjusted EBITDA.
• Media rights momentum — Paramount+/CBS for UFC and ESPN/Netflix deals for WWE are widening reach and engagement (UFC on CBS was the most‑watched UFC event since 2016), boosting sampling and downstream monetization opportunities.
• Live events and FIP pipeline — Sellouts, record gates across UFC/WWE/PBR and a growing financial‑incentive‑package pipeline (multi‑market renewals including Baku, Philadelphia, Serbia) are driving revenue upside and expected margin expansion.
• Strong cash generation and shareholder returns — Q1 free cash flow of $675M (123% conversion), net leverage ~2.3x, ~$1B returned in the quarter, and an incremental $1B buyback authorization (plus an $800M ASR) support continued capital returns.
• Near‑term event costs and geopolitical risk — Management expects to lose ~$30M on UFC Freedom 250 and acknowledges higher production costs and ongoing Middle East geopolitical uncertainty that could pressure short‑term results despite partner commitments to proceed with scheduled events.

TKO Group Stock Down 0.3%

TKO traded down $0.64 on Friday, reaching $186.87. The company’s stock had a trading volume of 1,875,713 shares, compared to its average volume of 1,288,009. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 1.26. The business’s 50 day moving average is $197.23 and its 200 day moving average is $198.69. TKO Group has a 1 year low of $152.29 and a 1 year high of $226.94. The stock has a market cap of $36.28 billion, a price-to-earnings ratio of 69.73 and a beta of 0.57.

TKO Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were issued a $0.78 dividend. The ex-dividend date of this dividend was Monday, March 16th. This represents a $3.12 dividend on an annualized basis and a yield of 1.7%. TKO Group’s dividend payout ratio is currently 138.67%.

Insider Buying and Selling

In other TKO Group news, Director Nick Khan sold 9,518 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $185.99, for a total transaction of $1,770,252.82. Following the transaction, the director owned 91,100 shares of the company’s stock, valued at $16,943,689. This trade represents a 9.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Shane Kapral sold 616 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $221.91, for a total value of $136,696.56. Following the sale, the chief financial officer owned 353 shares in the company, valued at $78,334.23. The trade was a 63.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 31,272 shares of company stock worth $6,332,236. 61.30% of the stock is currently owned by company insiders.

Institutional Trading of TKO Group

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp raised its position in shares of TKO Group by 20.3% during the 3rd quarter. State Street Corp now owns 5,249,091 shares of the company’s stock worth $1,060,106,000 after purchasing an additional 887,401 shares during the period. XN LP raised its position in shares of TKO Group by 6.3% during the 4th quarter. XN LP now owns 2,866,943 shares of the company’s stock worth $599,191,000 after purchasing an additional 169,574 shares during the period. Price T Rowe Associates Inc. MD raised its position in shares of TKO Group by 20.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,373,243 shares of the company’s stock worth $496,008,000 after purchasing an additional 395,040 shares during the period. UBS Group AG raised its position in shares of TKO Group by 31.7% during the 3rd quarter. UBS Group AG now owns 1,274,142 shares of the company’s stock worth $257,326,000 after purchasing an additional 307,000 shares during the period. Finally, Soros Fund Management LLC raised its position in shares of TKO Group by 2.5% during the 4th quarter. Soros Fund Management LLC now owns 635,583 shares of the company’s stock worth $132,837,000 after purchasing an additional 15,576 shares during the period. 89.79% of the stock is currently owned by institutional investors and hedge funds.

More TKO Group News

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

• Positive Sentiment: TKO reported Q1 2026 revenue of about $1.60 billion and EPS of $1.12, both slightly ahead of expectations, with revenue up roughly 26% year over year as WWE, UFC and IMG all posted strong growth. TKO Reports First Quarter 2026 Results
• Positive Sentiment: Management increased the share-repurchase authorization by $1 billion, which signals confidence in the business and can support earnings per share over time. Share repurchase authorization increase
• Positive Sentiment: Investor commentary points to the Paramount UFC rights deal as an important boost to TKO’s media revenue outlook and a sign that the company’s combat-sports assets continue to gain value. Paramount UFC deal
• Positive Sentiment: Reports also indicate Saudi partners remain committed to TKO-related partnerships, reducing a potential near-term source of uncertainty around WWE and event funding. Saudi partnerships remain intact
• Neutral Sentiment: TKO’s 2026 revenue guidance of $5.675 billion to $5.775 billion was solid, though it appeared a bit below some Street expectations, which may limit additional upside unless growth accelerates further. 2026 revenue guidance
• Neutral Sentiment: Nick Khan’s sale of 9,518 shares was disclosed, but he still retains a sizable stake; investors may view it as routine insider activity rather than a major red flag. Nick Khan insider sale filing
• Negative Sentiment: Some media coverage around WWE creative criticism and Saudi-related controversy could create reputational noise, even if the direct financial impact appears limited. Saudi Arabia WWE partnership coverage

Wall Street Analysts Forecast Growth

Several research firms recently commented on TKO. Sanford C. Bernstein dropped their target price on TKO Group from $250.00 to $240.00 and set an “outperform” rating for the company in a research note on Monday, April 27th. TD Cowen upped their price target on TKO Group from $245.00 to $250.00 and gave the stock a “buy” rating in a research note on Wednesday, March 11th. Susquehanna restated a “positive” rating and set a $251.00 price target on shares of TKO Group in a research note on Monday, January 19th. Wolfe Research restated a “peer perform” rating on shares of TKO Group in a research note on Thursday, March 5th. Finally, Weiss Ratings upgraded TKO Group from a “hold (c-)” rating to a “hold (c+)” rating in a research note on Thursday. Twelve research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, TKO Group has an average rating of “Moderate Buy” and a consensus price target of $230.88.

TKO Group Company Profile

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.