TKO Q1 2025 Earnings Report
Key Takeaways
TKO reported Q1 2025 revenue of $1.269 billion, driven by double-digit growth at UFC and WWE. Net income surged to $165.5 million, reversing a loss in the prior year, and free cash flow climbed significantly. The company raised full-year guidance and included the impact of new acquisitions, reflecting positive momentum across its diversified sports and entertainment portfolio.
Revenue reached $1.269 billion, up 4% YoY, driven by growth at UFC and WWE.
Net income turned positive at $165.5 million, reversing a $234.5 million loss last year.
Free cash flow increased sharply to $135.5 million, compared to $7.5 million in Q1 2024.
Adjusted EBITDA rose 23% to $417.4 million, with margin expanding to 33%.
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TKO Revenue by Segment
TKO Revenue by Geographic Location
Forward Guidance
TKO raised full-year 2025 guidance to reflect strong UFC and WWE performance and the integration of newly acquired IMG, On Location, and PBR businesses.
Positive Outlook
- Full-year revenue guidance raised to $4.49–$4.56 billion including acquired businesses.
- Adjusted EBITDA guidance raised to $1.49–$1.53 billion.
- Strong Q1 performance from WWE and UFC bolstered financial outlook.
- Integration of IMG, On Location, and PBR proceeding on plan.
- Improved free cash flow supports dividend and share repurchase programs.
Challenges Ahead
- IMG segment saw a 13% revenue decline YoY due to event mix and rights loss.
- Media rights revenue in Corporate and Other declined following early termination.
- Cash paid for antitrust settlement ($125M) impacted operating cash flow.
- Capital expenditures and asset write-downs slightly affected margins.
- Elevated integration costs and legal expenses linked to acquisitions remain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income