TKO Reports Second Quarter 2025 Results
Raises Full Year 2025 Guidance
ESPN and WWE Today Announced a Multiyear Domestic Rights Agreement for WWE Premium Live Events
Acquired Businesses
On February 28, 2025, TKO Group Holdings, Inc. (“TKO”) completed the acquisition of certain businesses operating under the IMG brand (“IMG”), On Location, and Professional Bull Riders (“PBR”) (collectively referred to as the “Acquired Businesses”). As a common control acquisition, reported results presented in this earnings release reflect the Acquired Businesses as if they had been part of TKO during the historical periods presented. (See “Basis of Presentation” for further details.)
Second Quarter 2025 Financial Highlights1
-
Revenue of
$1.30 8 billion -
Net income of
$273.1 million -
Adjusted EBITDA2 of
$526.5 million
Full Year 2025 Guidance3
-
The Company increased its targets for revenue to
$4.63 0 billion$4.69 0 billion -
The Company increased its targets for Adjusted EBITDA to
$1.54 0 billion$1.56 0
“TKO generated strong financial results in the quarter, led by record performance at both UFC and WWE,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Our live content and experiences are proving a key differentiator for organizations and brands looking to capture audience, and our strategy is tailor made for today’s experience economy and the white-hot sports event marketplace. Given the continued momentum across our portfolio and our overall business outlook, we are raising our guidance for the full year.”
ESPN and WWE Agreement
Earlier today, ESPN and WWE announced a five-year agreement to bring WWE’s premium live events (“PLEs”) in the
“For much of the past 45 years, ESPN has been the institution of record in the world of sports,” said Mark Shapiro, President and COO, TKO. “We are proud WWE will now take a prominent seat at its table during such a transformational juncture. As we look to the second half of 2025, we remain focused on delivering the next UFC domestic media rights deal, integrating industry leaders IMG, On Location, and PBR fully into TKO, and executing on our capital return initiatives.”
Consolidated Results
Second Quarter 2025
Revenue increased
Net Income was
Adjusted EBITDA2 increased
Adjusted EBITDA margin increased to
Cash flows generated by operating activities were
Free Cash Flow4 was
Cash and cash equivalents were
Results by Operating Segment5
The schedule below reflects TKO’s performance by operating segment:
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||||||||
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Three Months Ended |
|
Six Months Ended |
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(in millions) |
|
June 30, |
|
June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
UFC |
|
$ |
415.9 |
|
|
$ |
394.4 |
|
|
$ |
775.6 |
|
|
$ |
707.4 |
|
WWE |
|
|
556.2 |
|
|
|
456.8 |
|
|
|
947.7 |
|
|
|
773.5 |
|
IMG |
|
|
306.6 |
|
|
|
319.6 |
|
|
|
782.9 |
|
|
|
869.3 |
|
Total revenue from reportable segments |
|
|
1,278.7 |
|
|
|
1,170.8 |
|
|
|
2,506.2 |
|
|
|
2,350.2 |
|
Corporate and Other |
|
|
44.6 |
|
|
|
40.9 |
|
|
|
99.0 |
|
|
|
93.1 |
|
Eliminations |
|
|
(14.9 |
) |
|
|
(18.5 |
) |
|
|
(28.0 |
) |
|
|
(27.7 |
) |
Total Revenue |
|
$ |
1,308.4 |
|
|
$ |
1,193.2 |
|
|
$ |
2,577.2 |
|
|
$ |
2,415.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
||||||||
UFC |
|
$ |
244.8 |
|
|
$ |
231.9 |
|
|
$ |
472.2 |
|
|
$ |
427.0 |
|
WWE |
|
|
329.8 |
|
|
|
251.3 |
|
|
|
523.7 |
|
|
|
391.5 |
|
IMG |
|
|
29.0 |
|
|
|
(91.2 |
) |
|
|
102.5 |
|
|
|
(9.9 |
) |
Total Adjusted EBITDA from reportable segments |
|
|
603.6 |
|
|
|
392.0 |
|
|
|
1,098.4 |
|
|
|
808.6 |
|
Corporate and Other |
|
|
(77.1 |
) |
|
|
(91.2 |
) |
|
|
(154.5 |
) |
|
|
(168.9 |
) |
Total Adjusted EBITDA |
|
$ |
526.5 |
|
|
$ |
300.8 |
|
|
$ |
943.9 |
|
|
$ |
639.7 |
|
UFC
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
(in millions) |
|
June 30, |
|
June 30, |
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
UFC Revenue: |
|
|
|
|
|
|
|
|
||||
Media rights, production and content |
|
$ |
260.5 |
|
$ |
250.6 |
|
$ |
484.6 |
|
$ |
465.1 |
Live events and hospitality |
|
|
58.5 |
|
|
69.1 |
|
|
117.1 |
|
|
104.4 |
Partnerships and marketing |
|
|
85.8 |
|
|
61.7 |
|
|
150.1 |
|
|
110.3 |
Consumer products licensing and other |
|
|
11.1 |
|
|
13.0 |
|
|
23.8 |
|
|
27.6 |
Total Revenue |
|
$ |
415.9 |
|
$ |
394.4 |
|
$ |
775.6 |
|
$ |
707.4 |
Second Quarter 2025
Revenue increased
Adjusted EBITDA increased
Adjusted EBITDA margin was
WWE
|
|
|
|
|
|
|
|
|
||||
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|
Three Months Ended |
|
Six Months Ended |
||||||||
(in millions) |
|
June 30, |
|
June 30, |
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
WWE Revenue: |
|
|
|
|
|
|
|
|
||||
Media rights, production and content |
|
$ |
278.9 |
|
$ |
260.7 |
|
$ |
530.5 |
|
$ |
481.8 |
Live events and hospitality |
|
|
185.7 |
|
|
144.1 |
|
|
262.0 |
|
|
194.3 |
Partnerships and marketing |
|
|
58.3 |
|
|
24.7 |
|
|
83.9 |
|
|
38.5 |
Consumer products licensing and other |
|
|
33.3 |
|
|
27.3 |
|
|
71.3 |
|
|
58.9 |
Total Revenue |
|
$ |
556.2 |
|
$ |
456.8 |
|
$ |
947.7 |
|
$ |
773.5 |
Second Quarter 2025
Revenue increased
Adjusted EBITDA increased
Adjusted EBITDA margin increased to
IMG
The IMG segment reflects the operations of IMG and On Location.
|
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|
|
|
|
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|
||||
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|
Three Months Ended |
|
Six Months Ended |
||||||||
(in millions) |
|
June 30, |
|
June 30, |
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
IMG Revenue: |
|
|
|
|
|
|
|
|
||||
Media rights, production and content |
|
$ |
163.4 |
|
$ |
172.5 |
|
$ |
324.7 |
|
$ |
350.0 |
Live events and hospitality |
|
|
132.1 |
|
|
128.2 |
|
|
420.6 |
|
|
481.3 |
Partnerships and marketing |
|
|
7.9 |
|
|
14.5 |
|
|
30.2 |
|
|
27.5 |
Consumer products licensing and other |
|
|
3.2 |
|
|
4.4 |
|
|
7.4 |
|
|
10.5 |
Total Revenue |
|
$ |
306.6 |
|
$ |
319.6 |
|
$ |
782.9 |
|
$ |
869.3 |
Second Quarter 2025
Revenue decreased
Adjusted EBITDA increased
Adjusted EBITDA margin increased to
Corporate and Other
Corporate and Other reflects operations not allocated to the UFC, WWE, or IMG segments and primarily consists of general and administrative expenses, the operations of PBR, as well as management fees for services provided to certain equity method investments, primarily boxing.
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||||
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|
Three Months Ended |
|
Six Months Ended |
||||||||
(in millions) |
|
June 30, |
|
June 30, |
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Corporate and Other Revenue: |
|
|
|
|
|
|
|
|
||||
Media rights, production and content |
|
$ |
4.7 |
|
$ |
6.3 |
|
$ |
8.0 |
|
$ |
12.5 |
Live events and hospitality |
|
|
18.4 |
|
|
18.9 |
|
|
51.8 |
|
|
48.9 |
Partnerships and marketing |
|
|
11.7 |
|
|
9.9 |
|
|
23.8 |
|
|
20.8 |
Consumer products licensing and other |
|
|
9.8 |
|
|
5.8 |
|
|
15.4 |
|
|
10.9 |
Total Revenue |
|
$ |
44.6 |
|
$ |
40.9 |
|
$ |
99.0 |
|
$ |
93.1 |
Second Quarter 2025
Revenue increased
Adjusted EBITDA was a loss of
Full Year 2025 Guidance
In May, the Company issued revenue and Adjusted EBITDA guidance of
As previously disclosed, the Acquired Businesses will be accounted for as a merger between entities under common control due to Endeavor’s control of TKO as well as IMG, On Location, and PBR. Therefore, these targets include activity from the Acquired Businesses for the twelve month period from January 1 through December 31, 2025. (See “Acquired Businesses” and “Basis of Presentation” for further details.)
The Company intends to provide additional detail related to its 2025 guidance on today’s earnings call.
Other Matters
Acquired Businesses
As previously disclosed, on February 28, 2025, the Company closed on its agreement with Endeavor Group Holdings, Inc. (“Endeavor”) to acquire certain businesses operating under the IMG brand (“IMG”), On Location, and Professional Bull Riders (“PBR”) (collectively referred to as the “Acquired Businesses”) in an equity transaction valued at
Return of Capital Program
As previously disclosed, on October 24, 2024, the Company announced that its board of directors authorized a share repurchase program of up to
Legal Matters
As previously disclosed, on September 26, 2024, the Company announced that it had reached an agreement to settle all claims asserted in the Le UFC antitrust lawsuit for an aggregate amount of
| Notes | |||
(1) |
As the acquisition of the Acquired Businesses was accounted for as a merger between entities under common control, reported results presented in this earnings release reflect the results of the Acquired Businesses as if they had been part of TKO during the historical periods presented herein. See the “Basis of Presentation” discussion on page 10 for further details. |
||
(2) |
The definition of Adjusted EBITDA can be found in the Non-GAAP Financial Measures section of the release on page 9. A reconciliation of Net Income (Loss) to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 can be found in the Supplemental Information in this release on page 17. |
||
(3) |
Full Year 2025 Guidance amounts reflect the expected performance for the Company’s UFC and WWE businesses, as well as the Acquired Businesses (consisting of IMG, On Location, and PBR). See the “Full Year 2025 Guidance” discussion on page 6 as well as the “Basis of Presentation” discussion on page 10 for further details. |
||
(4) |
The definition of Free Cash Flow and Free Cash Flow Conversion can be found in the Non-GAAP Financial Measures section of the release on page 9. A reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow for the three and six months ended June 30, 2025 and 2024 can be found in the Supplemental Information in this release on page 18. |
||
(5) |
An explanation of the basis of presentation can be found in this release on page 10. |
||
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under
The Company defines Adjusted EBITDA as net income excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.
TKO management believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to investors as these measures eliminate the significant level of non-cash depreciation and amortization expense that results from its capital investments and intangible assets, and improve comparability by eliminating the significant level of interest expense associated with TKO’s debt facilities, as well as income taxes which may not be comparable with other companies based on TKO’s tax and corporate structure. Adjusted EBITDA and Adjusted EBITDA margin are used as the primary bases to evaluate TKO’s consolidated operating performance.
Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of TKO’s results as reported under GAAP. Some of these limitations are:
- they do not reflect every cash expenditure, future requirements for capital expenditures, or contractual commitments;
- Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on TKO’s debt;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect any cash requirement for such replacements or improvements; and
- they are not adjusted for all non-cash income or expense items that are reflected in TKO’s statements of cash flows.
TKO management compensates for these limitations by using Adjusted EBITDA and Adjusted EBITDA margin along with other comparative tools, together with GAAP measurements, to assist in the evaluation of TKO’s operating performance.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered substitutes for the reported results prepared in accordance with GAAP and should not be considered in isolation or as alternatives to net income as indicators of TKO’s financial performance, as measures of discretionary cash available to it to invest in the growth of its business or as measures of cash that will be available to TKO to meet its obligations. Although TKO uses Adjusted EBITDA and Adjusted EBITDA margin as financial measures to assess the performance of its business, such use is limited because it does not include certain material costs necessary to operate TKO’s business. TKO’s presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as indications that its future results will be unaffected by unusual or nonrecurring items. These non-GAAP financial measures, as determined and presented by TKO, may not be comparable to related or similarly titled measures reported by other companies. Set forth below are reconciliations of TKO’s most directly comparable financial measures calculated in accordance with GAAP to these non-GAAP financial measures on a consolidated basis.
The Company defines Free Cash Flow as net cash provided by operating activities less cash used for capital expenditures. TKO views net cash provided by operating activities as the most directly comparable GAAP measure. Free Cash Flow Conversion is defined as Free Cash Flow divided by Adjusted EBITDA. Although they are not recognized measures of liquidity under
Reconciliations of the Company’s Non-GAAP financial measure guidance to the most directly comparable GAAP financial measures cannot be provided without unreasonable efforts and are not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations and certain other items reflected in our reconciliation of historical Non-GAAP financial measures, the amounts of which could be material.
Basis of Presentation
As a result of the February 28, 2025 closing of the Company’s agreement with Endeavor to acquire IMG, On Location, and PBR (the “Acquired Businesses”) in a common control transaction, TKO’s consolidated financial information presented herein reflect the combined results of TKO and the Acquired Businesses as if they had been part of TKO during the historical periods presented under common control.
TKO’s financial information presented herein for the periods that it did not own the Acquired Businesses were prepared by Endeavor Group Holdings, Inc. and include allocations for corporate expenses to the businesses based on Endeavor Group Holdings, Inc.’s corporate expense profile. These expenses consisted of certain support functions that were provided on a centralized basis, such as expenses related to finance, human resources, information technology, facilities, and legal, among others and were allocated to the Acquired Businesses. Endeavor Group Holdings, Inc. allocated these corporate expenses on a pro rata basis of headcount, gross profit, and other allocation methodologies. Corporate allocations were
Effective February 28, 2025, the Company operates its business under three reportable segments, UFC, WWE, and IMG. The UFC and WWE segments consist entirely of the operations of these businesses, while the IMG segment consists entirely of the operations of IMG and On Location. In addition, the Company reports results for the “Corporate and Other” group, which includes the operations of PBR, management fees for services provided to certain equity method investments as well as general and administrative expenses that are not allocated to the business segments. These expenses largely relate to corporate activities, including information technology, facilities, legal, human resources, finance, accounting, treasury, investor relations, corporate communications, community relations and compensation to TKO’s management and board of directors, which support both reportable segments. All prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. The profitability measure employed by the Company in assessing operating performance, including that of its segments, is Adjusted EBITDA. The Company defines Adjusted EBITDA as net income, excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA includes amortization expenses directly related to supporting the operations of the Company’s segments, including content production asset amortization.
Additional Information
As previously announced, TKO will host a conference call at 5:00 p.m. ET on August 6, 2025, to discuss its second quarter 2025 results. All interested parties are welcome to listen to a live webcast that will be hosted through the Company’s website at investor.tkogrp.com. Participants can access the conference call by dialing 1-833-470-1428 (conference ID: 381252). Please reserve a line 5-10 minutes prior to the start time of the conference call.
Any accompanying materials referenced during the call will be made available on August 6, 2025, at investor.tkogrp.com. A replay of the call will be available approximately two hours after the conference call concludes and can be accessed on the Company’s website.
About TKO
TKO Group Holdings, Inc. (NYSE: TKO) is a premium sports and entertainment company. TKO owns iconic properties including UFC, the world’s premier mixed martial arts organization; WWE, the global leader in sports entertainment; and PBR, the world’s premier bull riding organization. Together, these properties reach 1 billion households across 210 countries and territories and organize more than 500 live events year-round, attracting more than three million fans. TKO also services and partners with major sports rights holders through IMG, an industry-leading global sports marketing agency; and On Location, a global leader in premium experiential hospitality.
Website Disclosure
Investors and others should note that TKO announces material financial and operational information to its investors using press releases, SEC filings and public conference calls and webcasts, as well as its Investor Relations site at investor.tkogrp.com. TKO may also use its website as a distribution channel of material information about the Company. In addition, you may automatically receive email alerts and other information about TKO when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investor.tkogrp.com.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding TKO’s business strategy and plans, financial outlook, integration of IMG, On Location and Professional Bull Riders, capital return program and TKO’s financial condition, and anticipated financial and operational performance. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to: TKO’s ability to generate revenue from discretionary and corporate spending on events; TKO’s dependence on key relationships with television and cable networks, satellite providers, digital streaming partners and other distribution partners; TKO’s ability to adapt to or manage new content distribution platforms or changes in consumer behavior; the realization of benefits of the Acquired Businesses; TKO’s success in its strategic acquisitions, investments and commercial agreements; adverse publicity concerning the Company or its key personnel; the highly competitive, rapidly changing and increasingly fragmented nature of the markets in which TKO operates; TKO’s dependence on the continued services of executive management and other key employees; changes in public and consumer tastes and preferences and industry trends; financial risks with owning and managing events for which TKO sells media and partnership and marketing rights, ticketing and hospitality; the Company’s substantial indebtedness; and other important factors discussed in the section entitled “Risk Factors” in TKO’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed by TKO, as any such factors may be updated from time to time in TKO’s other filings with the SEC, accessible on the SEC’s website at www.sec.gov and TKO’s investor relations site at investor.tkogrp.com. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, TKO undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
TKO Group Holdings, Inc. Consolidated Income Statements (In millions, except share and per share data) (Unaudited) |
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|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenue |
|
$ |
1,308.4 |
|
|
$ |
1,193.2 |
|
|
$ |
2,577.2 |
|
|
$ |
2,415.6 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Direct operating costs |
|
|
476.4 |
|
|
|
591.2 |
|
|
|
1,044.0 |
|
|
|
1,196.8 |
|
Selling, general and administrative expenses |
|
|
364.3 |
|
|
|
368.2 |
|
|
|
727.6 |
|
|
|
1,036.5 |
|
Depreciation and amortization |
|
|
99.4 |
|
|
|
118.9 |
|
|
|
199.9 |
|
|
|
241.0 |
|
Total operating expenses |
|
|
940.1 |
|
|
|
1,078.3 |
|
|
|
1,971.5 |
|
|
|
2,474.3 |
|
Operating income (loss) |
|
|
368.3 |
|
|
|
114.9 |
|
|
|
605.7 |
|
|
|
(58.7 |
) |
Other expenses: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
(48.2 |
) |
|
|
(63.0 |
) |
|
|
(93.0 |
) |
|
|
(124.2 |
) |
Other expense, net |
|
|
(7.8 |
) |
|
|
(0.2 |
) |
|
|
(16.2 |
) |
|
|
(8.4 |
) |
Income (loss) before income taxes and equity earnings of affiliates |
|
|
312.3 |
|
|
|
51.7 |
|
|
|
496.5 |
|
|
|
(191.3 |
) |
Provision for income taxes |
|
|
46.5 |
|
|
|
6.6 |
|
|
|
67.7 |
|
|
|
0.9 |
|
Income (loss) before equity earnings of affiliates |
|
|
265.8 |
|
|
|
45.1 |
|
|
|
428.8 |
|
|
|
(192.2 |
) |
Equity earnings of affiliates, net of tax |
|
|
(7.3 |
) |
|
|
(1.1 |
) |
|
|
(9.8 |
) |
|
|
(3.9 |
) |
Net income (loss) |
|
|
273.1 |
|
|
|
46.2 |
|
|
|
438.6 |
|
|
|
(188.3 |
) |
Less: Net income (loss) attributable to non-controlling interests |
|
|
174.8 |
|
|
|
(12.9 |
) |
|
|
281.9 |
|
|
|
(143.5 |
) |
Net income (loss) attributable to TKO Group Holdings, Inc. |
|
$ |
98.3 |
|
|
$ |
59.1 |
|
|
$ |
156.7 |
|
|
$ |
(44.8 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic net earnings (loss) per share of Class A common stock |
|
$ |
1.20 |
|
|
$ |
0.73 |
|
|
$ |
1.92 |
|
|
$ |
(0.55 |
) |
Diluted net earnings (loss) per share of Class A common stock |
|
$ |
1.17 |
|
|
$ |
0.72 |
|
|
$ |
1.87 |
|
|
$ |
(0.55 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of common shares used in computing basic net earnings (loss) per share |
|
|
81,757,675 |
|
|
|
80,884,513 |
|
|
|
81,664,928 |
|
|
|
81,618,084 |
|
Weighted average number of common shares used in computing diluted net earnings (loss) per share |
|
|
199,279,343 |
|
|
|
81,851,388 |
|
|
|
190,448,612 |
|
|
|
81,618,084 |
|
TKO Group Holdings, Inc. Consolidated Balance Sheets (In millions) (Unaudited) |
||||||
|
|
|
|
|
||
|
|
As of |
||||
|
|
June 30, |
|
December 31, |
||
|
|
2025 |
|
2024 |
||
Assets |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
535.1 |
|
$ |
619.8 |
Restricted cash |
|
|
323.4 |
|
|
58.3 |
Accounts receivable, net |
|
|
633.5 |
|
|
423.0 |
Deferred costs |
|
|
140.8 |
|
|
179.3 |
Other current assets |
|
|
280.1 |
|
|
248.1 |
Total current assets |
|
|
1,912.9 |
|
|
1,528.5 |
Property, buildings and equipment, net |
|
|
606.5 |
|
|
629.9 |
Intangible assets, net |
|
|
3,527.6 |
|
|
3,649.9 |
Finance lease right-of-use assets, net |
|
|
237.1 |
|
|
248.6 |
Operating lease right-of-use assets, net |
|
|
62.2 |
|
|
64.6 |
Goodwill |
|
|
8,442.5 |
|
|
8,442.0 |
Investments |
|
|
123.0 |
|
|
101.2 |
Other assets |
|
|
429.9 |
|
|
447.1 |
Total assets |
|
$ |
15,341.7 |
|
$ |
15,111.8 |
Liabilities, Non-controlling Interests and Stockholders' Equity |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
283.9 |
|
$ |
246.4 |
Accrued liabilities |
|
|
393.9 |
|
|
670.2 |
Current portion of long-term debt |
|
|
27.0 |
|
|
27.0 |
Current portion of finance lease liabilities |
|
|
20.2 |
|
|
15.6 |
Current portion of operating lease liabilities |
|
|
18.0 |
|
|
17.0 |
Deferred revenue |
|
|
439.5 |
|
|
416.7 |
Other current liabilities |
|
|
294.0 |
|
|
20.9 |
Total current liabilities |
|
|
1,476.5 |
|
|
1,413.8 |
Long-term debt |
|
|
2,722.3 |
|
|
2,735.3 |
Long-term finance lease liabilities |
|
|
223.9 |
|
|
236.0 |
Long-term operating lease liabilities |
|
|
48.4 |
|
|
52.5 |
Deferred tax liabilities |
|
|
337.2 |
|
|
360.5 |
Other long-term liabilities |
|
|
170.7 |
|
|
170.8 |
Total liabilities |
|
|
4,979.0 |
|
|
4,968.9 |
Commitments and contingencies |
|
|
|
|
||
Redeemable non-controlling interests |
|
|
21.9 |
|
|
21.9 |
Stockholders' equity: |
|
|
|
|
||
Class A common stock |
|
|
— |
|
|
— |
Class B common stock |
|
|
— |
|
|
— |
Additional paid-in capital |
|
|
4,410.9 |
|
|
4,385.3 |
Accumulated other comprehensive loss |
|
|
(15.6) |
|
|
(2.6) |
Accumulated deficit |
|
|
(130.0) |
|
|
(291.7) |
Total TKO Group Holdings, Inc. stockholders’ equity |
|
|
4,265.3 |
|
|
4,091.0 |
Nonredeemable non-controlling interests |
|
|
6,075.5 |
|
|
6,030.0 |
Total stockholders' equity |
|
|
10,340.8 |
|
|
10,121.0 |
Total liabilities, nonredeemable non-controlling interests and stockholders' equity |
|
$ |
15,341.7 |
$ |
15,111.8 |
|
TKO Group Holdings, Inc. Consolidated Statements of Cash Flows (In millions) (Unaudited) |
||||||||
|
|
|
||||||
|
|
Six Months Ended |
||||||
|
|
June 30, |
||||||
|
|
2025 |
|
2024 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
||||
Net income (loss) |
|
$ |
438.6 |
|
|
$ |
(188.3 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
199.9 |
|
|
|
241.0 |
|
Amortization and impairments of content costs |
|
|
13.6 |
|
|
|
15.7 |
|
Amortization of original issue discount and deferred financing cost |
|
|
1.3 |
|
|
|
5.4 |
|
Impairment charges |
|
|
— |
|
|
|
24.3 |
|
Loss on sale of investments |
|
|
1.1 |
|
|
|
— |
|
Equity-based compensation |
|
|
63.3 |
|
|
|
59.0 |
|
Income taxes |
|
|
41.0 |
|
|
|
(28.0 |
) |
Equity earnings of affiliates, net of dividends received |
|
|
(4.7 |
) |
|
|
(1.1 |
) |
Loss on disposal of assets |
|
|
— |
|
|
|
83.0 |
|
Net (gain) loss on foreign currency transactions |
|
|
(6.2 |
) |
|
|
2.4 |
|
Other, net |
|
|
1.6 |
|
|
|
(7.2 |
) |
Changes in operating assets and liabilities, net of acquisition: |
|
|
|
|
||||
Accounts receivable |
|
|
(208.2 |
) |
|
|
(190.5 |
) |
Other current assets |
|
|
(74.6 |
) |
|
|
(93.2 |
) |
Other noncurrent assets |
|
|
31.4 |
|
|
|
(84.8 |
) |
Accounts payable and accrued liabilities |
|
|
21.2 |
|
|
|
423.9 |
|
Deferred revenue |
|
|
37.7 |
|
|
|
58.9 |
|
Other liabilities |
|
|
2.0 |
|
|
|
31.5 |
|
Net cash provided by operating activities |
|
|
559.0 |
|
|
|
352.0 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Purchases of property, buildings and equipment and other assets |
|
|
(48.6 |
) |
|
|
(64.2 |
) |
Investment in affiliates, net |
|
|
(13.8 |
) |
|
|
(16.4 |
) |
Due from parent |
|
|
— |
|
|
|
(2.7 |
) |
Proceeds from the sale of assets |
|
|
5.8 |
|
|
|
0.1 |
|
Proceeds from infrastructure improvement incentives |
|
|
5.4 |
|
|
|
— |
|
Proceeds from sales of investments and other |
|
|
1.5 |
|
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(49.7 |
) |
|
|
(83.2 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Repayment of long-term debt |
|
|
(20.8 |
) |
|
|
(172.1 |
) |
Proceedings from borrowings |
|
|
— |
|
|
|
150.0 |
|
Repurchase of Class A common stock |
|
|
— |
|
|
|
(165.0 |
) |
Payments of contingent consideration related to acquisitions |
|
|
— |
|
|
|
(0.6 |
) |
Net transfers to parent |
|
|
(122.5 |
) |
|
|
(70.2 |
) |
Contributions from parent |
|
|
26.5 |
|
|
|
— |
|
Distributions to members |
|
|
(166.7 |
) |
|
|
— |
|
Dividends paid |
|
|
(62.1 |
) |
|
|
— |
|
Distributions of non-controlling interests |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
Net cash used in financing activities |
|
|
(346.0 |
) |
|
|
(258.3 |
) |
|
|
|
|
|
||||
Effects of exchange rate movements on cash |
|
|
17.1 |
|
|
|
(1.9 |
) |
|
|
|
|
|
||||
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
180.4 |
|
|
|
8.6 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
|
678.1 |
|
|
|
371.8 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
$ |
858.5 |
|
|
$ |
380.4 |
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
||||
Cash paid for interest |
|
|
103.2 |
|
|
|
130.1 |
|
Cash payments for income taxes |
|
|
31.3 |
|
|
|
16.6 |
|
NON-CASH INVESTING AND FINANCING TRANSACTIONS: |
|
|
|
|
||||
Capital expenditures included in current liabilities |
|
|
2.7 |
|
|
|
21.5 |
|
Capital contribution from parent |
|
|
49.9 |
|
|
|
4.6 |
|
Accretion of redeemable non-controlling interests |
|
|
(4.9 |
) |
|
|
— |
|
Principal stockholder contributions |
|
|
— |
|
|
|
1.5 |
|
Excise taxes on repurchases of common stock |
|
|
— |
|
|
|
1.5 |
|
TKO Group Holdings, Inc. Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin (In millions, except percentages) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|
||||||
Net income (loss) |
|
$ |
273.1 |
|
|
$ |
46.2 |
|
|
$ |
438.6 |
|
|
$ |
(188.3) |
|
Provision for income taxes |
|
|
46.5 |
|
|
|
6.6 |
|
|
|
67.7 |
|
|
|
0.9 |
|
Interest expense, net |
|
|
48.2 |
|
|
|
63.0 |
|
|
|
93.0 |
|
|
|
124.2 |
|
Depreciation and amortization |
|
|
99.4 |
|
|
|
118.9 |
|
|
|
199.9 |
|
|
|
241.0 |
|
Equity-based compensation expense (1) |
|
|
33.0 |
|
|
|
26.8 |
|
|
|
63.3 |
|
|
|
59.0 |
|
Merger and acquisition costs (2) |
|
|
4.2 |
|
|
|
2.4 |
|
|
|
44.0 |
|
|
|
2.9 |
|
Certain legal costs (3) |
|
|
9.7 |
|
|
|
6.0 |
|
|
|
16.2 |
|
|
|
351.2 |
|
Restructuring, severance and impairment (4) |
|
|
4.3 |
|
|
|
30.4 |
|
|
|
5.8 |
|
|
|
39.9 |
|
Other adjustments (5) |
|
|
8.1 |
|
|
|
0.5 |
|
|
|
15.4 |
|
|
|
8.9 |
|
Total Adjusted EBITDA |
|
$ |
526.5 |
|
|
$ |
300.8 |
|
|
$ |
943.9 |
|
|
$ |
639.7 |
|
Net income (loss) margin |
|
|
21 |
% |
|
|
4 |
% |
|
|
17 |
% |
|
|
(8) |
% |
Adjusted EBITDA margin |
|
|
40 |
% |
|
|
25 |
% |
|
|
37 |
% |
|
|
26 |
% |
(1) |
Equity-based compensation represents non-cash compensation expense for various awards issued under the TKO 2023 Incentive Award Plan, awards assumed in connection with the acquisition of WWE in September 2023, and awards issued under Endeavor Group Holding, Inc.’s 2021 Plan. For the three and six months ended June 30, 2025 and June 30, 2024, equity-based compensation includes |
|
(2) |
Includes certain costs of professional advisors related to strategic transactions, primarily the Acquired Businesses. |
|
(3) |
Includes costs related to certain litigation matters including antitrust lawsuits for UFC and WWE and matters where Mr. McMahon has agreed to make future payments to certain counterparties personally. For the six months ended June 30, 2024, these costs include the preliminary legal settlement of the UFC antitrust lawsuit for |
|
(4) |
Includes costs resulting from the Company’s cost reduction program. For the three and six months ended June 30, 2024, the Company recorded an impairment charge of |
|
(5) |
For the three months ended June 30, 2025, other adjustments primarily reflect losses on foreign exchange transactions, partially offset by a net gain of |
TKO Group Holdings, Inc. Reconciliation of Free Cash Flow (In millions) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Net cash provided by operating activities (1) |
|
$ |
396.2 |
|
|
$ |
307.1 |
|
|
$ |
559.0 |
|
|
$ |
352.0 |
|
Less cash used for capital expenditures: |
|
|
|
|
|
|
|
|
||||||||
Purchases of property, buildings and equipment and other assets (2) |
|
|
(21.3 |
) |
|
|
(26.8 |
) |
|
|
(48.6 |
) |
|
|
(64.2 |
) |
Free Cash Flow |
|
$ |
374.9 |
|
|
$ |
280.3 |
|
|
$ |
510.4 |
|
|
$ |
287.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
$ |
526.5 |
|
|
$ |
300.8 |
|
|
$ |
943.9 |
|
|
$ |
639.7 |
|
Free Cash Flow Conversion |
|
|
71 |
% |
|
|
93 |
% |
|
|
54 |
% |
|
|
45 |
% |
(1) |
Net cash provided by operating activities for the three and six months ended June 30, 2025 includes approximately |
|
(2) |
Purchases of property, buildings and equipment and other assets for the three and six months ended June 30, 2024 includes approximately |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806936906/en/
Investors: Seth Zaslow szaslow@tkogrp.com
Media: press@tkogrp.com
Source: TKO Group Holdings, Inc.
