TKO Group Holdings Inc (NYSE:TKO) Beats Q2 2025 Estimates and Raises Full-Year Guidance

TKO Group Holdings Inc (NYSE:TKO) reported second-quarter 2025 results that exceeded analyst expectations, with both revenue and earnings per share (EPS) coming in ahead of estimates. The company also raised its full-year guidance, signaling confidence in continued momentum across its portfolio of sports and entertainment properties.

Earnings and Revenue Performance vs. Estimates

• Revenue: TKO posted Q2 revenue of $1.308 billion, up 10% year-over-year and surpassing the consensus estimate of $1.236 billion.
• EPS: The company reported $1.17 per share, beating the expected $1.06.
• Adjusted EBITDA: Jumped 75% to $526.5 million, with margins expanding to 40% from 25% in the prior-year period.

The strong performance was driven by record results at both UFC and WWE, with WWE revenue climbing 22% year-over-year to $556.2 million, bolstered by higher ticket sales, media rights escalations, and new partnerships. UFC revenue grew 5% to $415.9 million, supported by increased sponsorship and media rights fees.

Market Reaction

Following the earnings release, TKO shares saw an after-hours gain of ~0.57%, suggesting a cautiously positive response from investors. However, the stock has declined 5.5% over the past month, possibly reflecting broader market conditions or profit-taking ahead of earnings.

Full-Year Guidance Raised

TKO increased its full-year 2025 outlook, now expecting:

• Revenue: $4.63 billion - $4.69 billion (up from prior guidance of $4.49 billion - $4.56 billion).
• Adjusted EBITDA: $1.54 billion - $1.56 billion (previously $1.49 billion - $1.53 billion).

This upward revision aligns with analyst expectations, which had projected full-year sales at $4.527 billion and revenue at $2.92 billion.

Key Highlights from the Press Release

• ESPN & WWE Deal: A new five-year agreement will stream WWE premium live events on ESPN’s direct-to-consumer platform.
• UFC Media Rights: Management highlighted ongoing negotiations for UFC’s next domestic media rights deal as a key focus.
• Capital Returns: The company continues its $2 billion share repurchase program and has paid $75 million quarterly dividends in March and June 2025.
• Legal Settlement: Finalized the $375 million UFC antitrust lawsuit settlement with the last payment made in June.

Looking Ahead

Analysts estimate Q3 2025 revenue at $1.117 billion and EPS at $0.64, which TKO will need to meet or exceed to sustain investor confidence. The company’s ability to integrate recent acquisitions (IMG, On Location, PBR) and capitalize on media rights expansions will be critical.

For more detailed earnings estimates and historical performance, visit TKO’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.