TKO Lifts 2026 Outlook A Second Time As UFC Revenue Jumps 60% And Buybacks Resume
Third-quarter net income hit $277.9 million, and TKO plans to use the remaining $936.0 million of its $3 billion repurchase authorization.
TKO Group Holdings, the owner of UFC and WWE, raised its 2026 revenue and profit targets for the second time this year after third-quarter revenue rose 21% to $1.360 billion, the company said Wednesday. It also said it intends to commence additional share buybacks.
UFC carries the quarter
Net income was $277.9 million, up from $106.8 million a year earlier. Adjusted EBITDA, the company's preferred profit measure, rose 54% to $555.7 million, and its margin widened to 41% from 32%, according to the company's earnings release.
UFC revenue climbed 60%, or $194.0 million, to $519.2 million. The company pointed to higher media rights fees from its new distribution agreement with Skydance, which began in January 2026, plus ticket sales from the record-setting UFC 329 and two additional events.
WWE revenue slipped 1%, or $2.8 million, to $399.3 million, as live events and hospitality revenue fell $24.8 million. The company cited three fewer Main Roster Premium Live Events and lower SummerSlam sales. WWE Adjusted EBITDA still rose 5% to $217.2 million.
The IMG segment, which houses the sports marketing agency and the hospitality business On Location, grew revenue 16% to $391.3 million, helped by FIFA World Cup 2026 hospitality sales. Its Adjusted EBITDA rose 89% to $115.9 million.
Guidance up again, with a Middle East caveat
TKO now expects 2026 revenue of $5.790 billion to $5.830 billion and Adjusted EBITDA of $2.295 billion to $2.315 billion. In August it had targeted $5.775 billion to $5.825 billion and $2.275 billion to $2.305 billion; the February range was $5.675 billion to $5.775 billion and $2.240 billion to $2.290 billion.
The outlook assumes TKO stages all live events, including those in the Middle East, as currently planned. President and COO Mark Shapiro said the raise is "the clearest expression of our conviction across the entire portfolio."
What TKO plans to buy back
TKO, which also owns Professional Bull Riders and a boxing joint venture, said about $936.0 million remains on its $3 billion repurchase authorization as of November 4. It expects to use the balance, funded mainly by additional debt and cash on hand, with timing and size at its discretion.
A pre-scheduled trading plan finished on October 30, after the company bought 417,795 shares for about $73.4 million since October 1. Gross debt stood at $4.647 billion on September 30, against cash of $630.9 million.
TKO has returned more than $1.6 billion to equity holders so far this year through buybacks and dividends and related distributions. It is holding a call at 5:00 p.m. ET Wednesday, where it said it would give more detail on its guidance.
Management said the vast majority of its existing revenue is locked in for the next five to seven years.
Sources
- 8-K Filing — TKO Group Holdings, Inc. (TKO) — SEC EDGAR
- Exhibit tko-ex99_1.htm — TKO Group Holdings, Inc. 8-K exhibit — SEC EDGAR
- Exhibit tko-ex99_2.htm — TKO Group Holdings, Inc. 8-K exhibit — SEC EDGAR
- TKO Reports Third Quarter 2026 Results — businesswire.com
