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Sep 30, 2025
TKO Q3 2025 Earnings Report
TKO reported a profitable third quarter with strong contributions from WWE and improved margins across business units.
Key Takeaways
TKO posted $1.12 billion in revenue and $106.8 million in net income for Q3 2025. WWE showed strong growth, IMG recovered from Olympics-related comps, and UFC experienced a revenue dip. Cash generation was robust, supporting share repurchases and dividend payments.
Revenue totaled $1.12 billion, down from $1.54 billion due to a tough Olympic comparison for IMG.
Net income reached $106.8 million, significantly up from $3.4 million a year ago.
Free cash flow increased to $398.9 million, supported by operating cash flow of $416.8 million.
Adjusted EBITDA rose 59% to $360.2 million, with strong contributions from WWE and IMG.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
TKO raised its full-year 2025 guidance, now expecting revenue between $4.69B and $4.72B and Adjusted EBITDA between $1.57B and $1.58B.
Positive Outlook
- Raised full-year revenue and Adjusted EBITDA guidance again.
- Strong WWE performance with record-breaking events.
- Positive margin recovery at IMG after Olympic comps.
- Successful integration of Acquired Businesses (IMG, PBR, On Location).
- Strong free cash flow supports share repurchases and dividends.
Challenges Ahead
- UFC revenue declined due to fewer events and tough comps from UFC 306.
- IMG revenue dropped significantly YOY due to Olympic year comparison.
- Adjusted EBITDA margin for UFC and WWE declined despite revenue growth.
- Higher SG&A and talent costs impacted margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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