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Mar 31, 2025
TKO Q1 2025 Earnings Report
TKO posted strong Q1 2025 results driven by revenue growth at UFC and WWE, while integrating newly acquired businesses.
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%.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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