TKO 2Q26: A high-quality raise underscores the durability of live sports

Research evidence excerpt

TKO 2Q26: A high-quality raise underscores the durability of live sports

E revenue increased 12% Y/Y to $620.9M. Growth was driven primarily by an $80.8M increase in media rights,

production and content revenue, reflecting the ESPN domestic rights agreement that commenced in September 2025.

Consumer products licensing and other revenue also increased, supported by sales of WWE-branded products and

collectibles, while partnerships and marketing posted modest growth from new sponsors and higher renewal pricing.

These gains were partially offset by a $33.7M decline in live events and hospitality revenue, largely due to lower ticket sales

associated with WrestleMania 42 and event timing differences versus the prior year.

• IMG revenue rose 16% Y/Y to $354.7M. Management indicated that growth was driven primarily by a $66.4M increase in

live events and hospitality revenue, largely reflecting FIFA World Cup 2026 hospitality sales at On Location. This was partially

offset by a $16.2M decline in media rights, production and content revenue related to the loss of an Italian professional

cycling contract.

EBITDA

• Adjusted EBITDA increased 23% Y/Y to $649.9M, with margin expanding to 42% from 40%. Growth was broad-based

across all operating segments, although profitability was influenced by event-specific cost structures and timing effects.

• UFC Adjusted EBITDA increased 15% Y/Y to $280.4M. Despite strong revenue growth, margin declined to 52% from

59%, which management attributed entirely to the financial profile of the UFC Freedom 250 event. Excluding that event,

management indicated UFC margins would have expanded year over year. Higher athlete compensation, production costs,

and event-related expenses partially offset the benefit from greater media-rights revenue.