TKO Group (NYSE:TKO) raised its 2026 financial outlook for the second consecutive quarter after growth at UFC and a stronger-than-expected World Cup hospitality program helped drive a 54% increase in third-quarter adjusted EBITDA.
The sports and entertainment company reported revenue of $1.36 billion, up 21% from a year earlier, and adjusted EBITDA of $556 million. Its adjusted EBITDA margin rose to 41% from approximately 32%.
Management also said it plans to use cash and new debt to complete repurchases under its existing $3 billion authorization, while continuing to monitor the potential impact of the Middle East conflict on scheduled events.
UFC Growth Offsets Lighter WWE Event Schedule
UFC revenue rose 60% to $519 million, while adjusted EBITDA increased 72% to $285 million. Chief Financial Officer Andrew Schleimer said the results benefited from higher media rights fees under the Skydance agreement and a favorable event schedule: UFC held 12 events in the quarter, compared with 10 a year earlier.
UFC live events revenue increased 83%, supported by demand, additional events and financial incentive packages from event partners. President and Chief Operating Officer Mark Shapiro said UFC 329 in Las Vegas generated a record $26 million gate and drew nearly 16 million viewers to Paramount+.
WWE revenue slipped 1% to $399 million as the business held one main-roster Premium Live Event, compared with four in the prior-year quarter. Live events revenue fell 30%, reflecting the lighter schedule and lower ticket sales for SummerSlam. Adjusted EBITDA nevertheless rose 5% to $217 million as event-related expenses declined.
WWE partnerships revenue grew 28% despite the fewer major events. Management expects WWE partnership revenue to increase more than 20% for the full year, implying approximately 50% growth in the fourth quarter, when the schedule includes four Premium Live Events versus two a year earlier.
Asked whether lower SummerSlam and WrestleMania ticket sales indicated a ceiling for WWE live events, Shapiro said the declines were expected and reflected differences in markets and venues. He also pointed to record gates at several WWE events in October.
World Cup Hospitality Exceeds Expectations
Revenue in TKO’s IMG segment rose 16% to $391 million, while adjusted EBITDA increased 89% to $116 million. Results included a contribution from On Location’s FIFA World Cup hospitality business.
Shapiro said the program generated $2.4 billion in total hospitality sales, with more than 640,000 packages sold. Schleimer said TKO recorded approximately $90 million in full-year adjusted EBITDA from the World Cup, exceeding its estimate of about $75 million. That included approximately $45 million in the third quarter.
On Location is tracking ahead of plan for the LA28 Olympic Games, Shapiro said. The company is also evaluating potential hospitality partnerships for future Olympics, but will proceed only if the expected returns meet its internal thresholds.
Outlook and Share Buybacks
TKO now expects full-year revenue of $5.79 billion to $5.83 billion and adjusted EBITDA of $2.295 billion to $2.315 billion. The midpoints represent increases of $10 million and $15 million, respectively, from its August forecast.
The outlook assumes that a WWE event and two UFC Fight Nights scheduled in the Middle East proceed as planned. Schleimer said the forecast would be affected if the events cannot be staged.
Shapiro described the risk to the remaining events as “extremely minimal.” He also said TKO had received half of its fee in advance for WrestleMania in Saudi Arabia in 2027 and expected to receive the remainder even if the event had to move. The company has identified potential alternative host cities, he said, although a last-minute move would not secure the same financial incentive packages from a new host.
TKO generated $450 million in free cash flow during the third quarter and ended the period with $4.647 billion in debt and $631 million in cash and cash equivalents. Schleimer said the company has completed buybacks under its original $2 billion authorization and plans to use cash on hand and new debt for the remaining authorization. TKO has returned more than $1.6 billion to equity holders through dividends and repurchases year to date, he said.
Plans for 2027
Management declined to issue 2027 guidance, which Schleimer said is planned for the fourth-quarter earnings call in February. He noted that next year’s planning must account for the absence of the quadrennial events at On Location and increased spending ahead of LA28.
TKO plans to discuss its longer-term growth strategy at an investor day in the first quarter, likely in March. Topics are expected to include partnerships, live events, UFC international media rights, Zuffa Boxing and capital allocation.
On boxing, Schleimer said the company’s initiatives are ahead of schedule and that building the fighter roster and developing recognizable talent remain priorities. Shapiro said Zuffa Boxing has more than 100 fighters under contract, while noting that building stars and rivalries takes time.
About TKO Group (NYSE:TKO)
TKO Group Holdings, Inc is a global sports and entertainment company whose principal properties are UFC, the mixed martial arts organization, and WWE, the professional wrestling and sports entertainment company. TKO was formed in 2023 when Endeavor combined UFC and WWE under a single publicly traded company.
The company generates business through live events and ticket sales, media and streaming rights, sponsorships, licensing, and consumer products. UFC and WWE produce programming and events for audiences worldwide, alongside related digital content and merchandise.
TKO serves markets around the world through its events, broadcast and streaming partnerships, and commercial activities.
