TKO Group Q2 Earnings Call Highlights

TKO Group raised its 2026 guidance after second-quarter revenue rose 18% to $1.547 billion and adjusted EBITDA increased 23% to $650 million. New guidance calls for $5.775 billion-$5.825 billion in revenue and $2.275 billion-$2.305 billion in adjusted EBITDA. UFC revenue climbed 29%, supported by higher media-rights revenue and partnership activity tied to UFC Freedom 250, while WWE revenue rose 12% as media-rights and international events expanded. Freedom 250 generated significant audience and marketing exposure but resulted in an approximately $30 million loss due to event costs and the lack of ticket revenue. World Cup hospitality boosted IMG , with sales surpassing $2 billion and segment adjusted EBITDA jumping 171% to $79 million. TKO also returned more than $1.3 billion to shareholders year to date and has over $1 billion remaining under its share-repurchase authorization. TKO Group NYSE: TKO raised its full-year 2026 revenue and adjusted EBITDA outlook after reporting higher second-quarter revenue and earnings, supported by media-rights increases, global live events, partnerships and FIFA World Cup hospitality sales. The company reported second-quarter revenue of $1.547 billion, up 18% from the prior-year period, while adjusted EBITDA increased 23% to $650 million. Adjusted EBITDA margin rose about 180 basis points to 42%. Chief Financial Officer Andrew Schleimer said results included two notable factors: costs related to UFC Freedom 250 and the timing of FIFA World Cup revenue recognition. TKO recorded about $45 million of adjusted EBITDA at IMG from the World Cup during the quarter and now expects the event to exceed its prior estimate of approximately $75 million in full-year adjusted EBITDA. UFC Freedom 250, held in Washington, D.C., generated approximately a $30 million loss, as the company incurred elevated production and event costs without ticket revenue. Schleimer said TKO partly offset those costs through sold-out global partnership inventory. President and Chief Operating Officer Mark Shapiro said UFC Freedom 250 reached more than 34 million total viewers in reported markets, including 17 million viewers across the U.S. and Latin America on Paramount+. The associated Ellipse Fan Fest drew more than 130,000 attendees over two days, according to the company. Shapiro said the event generated more than $1 billion in earned media value and added 25 marketing partners, including several that signed multiyear or multi-event agreements. Schleimer said partnerships and marketing revenue at UFC rose 69% to $145 million, driven by new partners and renewals tied largely to the event. UFC revenue increased 29% to $536 million, while adjusted EBITDA rose 15% to $280 million. The segment’s adjusted EBITDA margin declined to 52% from 59% a year earlier, primarily because of Freedom 250. Excluding the event, Schleimer said UFC margins would have increased meaningfully year over year. UFC media rights, production and content revenue increased 25% to $325 million, reflecting the new Paramount agreement that began in January. Consumer products licensing revenue rose 61% to $18 million. Live events and hospitality revenue declined 18% to $48 million, reflecting the absence of ticket sales at Freedom 250 and one fewer numbered event during the quarter. The company also said financial incentive packages for UFC nearly doubled from a year ago. Shapiro reiterated TKO’s target of generating $380 million to $420 million from such packages by 2030, saying the strategy is gai...