TKO Group (NYSE:TKO) Issues Quarterly Earnings Results

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

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%

NYSE:TKO traded down $0.64 during trading hours 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 market cap of $36.28 billion, a price-to-earnings ratio of 69.73 and a beta of 0.57. TKO Group has a one year low of $152.29 and a one year high of $226.94. The business’s 50-day moving average is $197.23 and its 200-day moving average is $198.69. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 1.26.

TKO Group Dividend Announcement

The firm also recently disclosed 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 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%.

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

Insiders Place Their Bets

In other TKO Group news, CFO Shane Kapral sold 254 shares of the company’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $199.15, for a total transaction of $50,584.10. Following the completion of the sale, the chief financial officer directly owned 99 shares in the company, valued at $19,715.85. This represents a 71.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nick Khan sold 9,518 shares of the company’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $185.99, for a total transaction of $1,770,252.82. Following the sale, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 31,272 shares of company stock valued at $6,332,236 over the last quarter. 61.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On TKO Group

Hedge funds have recently bought and sold shares of the company. IFC & Insurance Marketing Inc. bought a new stake in TKO Group during the fourth quarter valued at about $38,000. CYBER HORNET ETFs LLC bought a new stake in TKO Group during the second quarter valued at about $34,000. Northwestern Mutual Wealth Management Co. boosted its holdings in TKO Group by 48.8% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 192 shares of the company’s stock valued at $39,000 after acquiring an additional 63 shares during the period. Greenline Wealth Management LLC bought a new stake in TKO Group during the fourth quarter valued at about $41,000. Finally, MUFG Securities EMEA plc acquired a new position in shares of TKO Group during the second quarter valued at about $36,000. 89.79% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

TKO has been the topic of several research analyst reports. Roth Mkm set a $228.00 price objective on shares of TKO Group in a research report on Monday. UBS Group boosted their price target on shares of TKO Group from $235.00 to $238.00 and gave the company a “buy” rating in a report on Thursday, February 26th. Sanford C. Bernstein lowered their price target on shares of TKO Group from $250.00 to $240.00 and set an “outperform” rating on the stock in a report on Monday, April 27th. Weiss Ratings upgraded shares of TKO Group from a “hold (c-)” rating to a “hold (c+)” rating in a report on Thursday. Finally, Wall Street Zen cut shares of TKO Group from a “hold” rating to a “sell” rating in a report on Saturday, March 7th. Twelve investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $230.88.

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.