TKO Group Holdings reported strong first quarter 2026 results, with revenue increasing sharply across its major business segments and the company authorizing up to an additional $1 billion in share repurchases.

The company announced revenue of $1.597 billion for the quarter ended March 31, 2026, up 26 percent from $1.269 billion in the prior-year period. Net income rose to $249.8 million, compared to $165.5 million for the same quarter in 2025. Adjusted EBITDA increased 32 percent to $549.8 million, while adjusted EBITDA margin improved to 34 percent from 33 percent.

TKO also returned approximately $1 billion of capital to equity holders through share repurchases, dividend payments, and related distributions during the quarter. Along with those results, the company reaffirmed its full-year 2026 guidance, continuing to target revenue between $5.675 billion and $5.775 billion and adjusted EBITDA between $2.240 billion and $2.290 billion.

“TKO is off to a formidable start in 2026, with strong results and continued momentum across each of our businesses,” said Ariel Emanuel, Executive Chair and CEO of TKO. “We are reaffirming our full-year guidance, and today’s incremental $1 billion share repurchase authorization underscores our conviction in TKO and its long-term value.”

Mark Shapiro, TKO President and COO, pointed to the company’s media rights portfolio, live event demand, and premium experiences as major drivers behind the quarter.

“TKO’s first quarter results reflect the strength and durability of our premium IP. Our media rights portfolio is firmly in place, our financial incentive packages continue to scale, and demand for our premium live events and experiences is healthy,” said Mark Shapiro, President and COO of TKO. “With UFC Freedom 250 at the White House and On Location’s FIFA World Cup partnership, TKO will take center stage this summer, crowning moments for audience growth, cultural relevance, and our business trajectory.”

TKO first quarter results show growth across WWE, UFC and IMG

The consolidated numbers showed growth in each of TKO’s reportable segments. UFC revenue rose 12 percent to $401.2 million, WWE revenue increased 22 percent to $475.7 million, and IMG revenue jumped 38 percent to $655.4 million. Corporate and Other revenue also increased to $73.9 million.

Across reportable segments, total revenue reached $1.532 billion before corporate and other revenue and eliminations. Total adjusted EBITDA from reportable segments was $607.9 million, up from $494.8 million in the prior-year quarter. Corporate and Other posted an adjusted EBITDA loss of $58.1 million, improving from a loss of $77.4 million in the same period last year.

WWE’s revenue increase was driven by growth in live events and hospitality, media rights, consumer products, and partnerships. WWE media rights, production and content revenue increased to $281.7 million from $251.6 million, with TKO citing higher media rights fees, notably the impact of distribution agreements with Netflix and ESPN.

WWE live events and hospitality revenue rose to $123.5 million from $76.3 million. TKO said the increase was primarily tied to financial incentive package revenue, most notably for Royal Rumble in Saudi Arabia. WWE adjusted EBITDA increased 32 percent to $256.1 million, while adjusted EBITDA margin improved to 54 percent from 50 percent.

UFC revenue increased to $401.2 million from $359.7 million. The biggest driver was media rights, production and content revenue, which increased to $275.3 million. TKO said the increase reflected higher media rights fees from the new Paramount distribution agreement that began in January 2026, partially offset by two fewer Fight Night events.

UFC adjusted EBITDA rose to $254.5 million from $227.4 million, while adjusted EBITDA margin remained 63 percent.

IMG was TKO’s largest segment by revenue in the quarter, increasing to $655.4 million from $476.3 million. The increase was primarily related to hospitality sales at On Location from the 2026 Milano Cortina Olympics. IMG adjusted EBITDA increased to $97.3 million from $73.5 million.

Cash flows generated by operating activities reached $694.5 million, up from $162.8 million. Free cash flow rose to $674.5 million from $135.5 million. TKO said the operating cash flow increase was helped by improved performance and working capital timing, including approximately $582.4 million in net pre-payments held in escrow related to FIFA World Cup 26.

As of March 31, 2026, TKO had $788.9 million in cash and cash equivalents. Gross debt stood at $4.671 billion.

The company’s new $1 billion share repurchase authorization is incremental to its previously announced $2 billion repurchase program. TKO said it will determine the timing and amount of any repurchases based on market conditions, share price, and other factors.

TKO also paid a quarterly cash dividend on March 31 based on an aggregate distribution of approximately $150 million, or $0.78 per share, from TKO Operating Company, LLC.

The company reaffirmed its full-year outlook and plans to provide further detail on its earnings call. The results show continued growth across the expanded TKO portfolio, with WWE, UFC, IMG, On Location, PBR, and boxing-related initiatives now all part of the broader business structure.

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