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Sep 30
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.
TKO
TKO
TKO Revenue by Segment
TKO Revenue by Geographic Location
Revenue by Segment
UFC Revenue
CapyFin.comWWE Revenue
CapyFin.comIMG Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.comRevenue by Geographic Location
Global Revenue
CapyFin.com 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.
- No specific EPS guidance provided for upcoming quarters.