TKO unveils strong performances for both WWE and UFC as both companies have, and could land, lucrative broadcast rights deals.
TKO Group saw a 491% increase in net income year-on-year, following strong acquisition growth.
Within its second quarter earnings report, TKO reported its net income increase from $46.1 million to $273.1m. It noted the increase was primarily as a result of funds raised by the acquisitions of IMG, Premium Bull Riders (PBR) and OnLocation, as well as a decrease in operating expenses.
The media conglomerate outperformed market projections in Q2 as WWE outpaced UFC in quarterly revenue with both combat sports organisations set for major media rights deals to further increase revenues.
Total TKO revenue for Q2 increased by 10% to $1.3bn, beating out market analysts’ prediction of $1.27bn for the quarter. But it was net income and adjusted EBITDA where TKO saw substantial growth from the same period last year.
TKO reported the $114.8m decrease in expenses related to selling, general and administrative expenses ($3.9m), decrease in depreciation and amortisation ($19.5m) and decrease in direct operating costs related to the write off of unsold tickets from IMG for the 2024 Paris Olympic Games.
Adjusted EBITDA saw a significant 75% year-on-year increase, driven by strong performances across the TKO Group portfolio. The UFC contributed $244.8m – up $12.9m – while WWE surged by $78.5m to reach $329.8m. IMG also posted growth, with adjusted EBITDA rising to $92m, alongside a gain in the ‘Corporate and Other’ segment to $77.1m.
As a result, TKO Group’s adjusted EBITDA margin rose from 25% to 40%. As of June 30, 2025, the company reported gross debt of $2.8bn.
“TKO generated strong financial results in the quarter, led by record performance at both UFC and WWE,” said Ariel Emanuel, Executive Chair and CEO of TKO Group.
“Our live content and experiences are proving a key differentiator for organisations and brands looking to capture audience, and our strategy is tailor made for today’s experience economy and the white-hot sports event marketplace.
“Given the continued momentum across our portfolio and our overall business outlook, we are raising our guidance for the full year.”
WWE
Similar to previous quarters, WWE increased its quarterly revenue to $556.2m, a year-on-year increase of 22%.
This was primarily driven by a $41.6m increase in live events revenue, The company held its largest annual event, WrestleMania, on April 19 and 20 and was backed by an increase in ticket sales
The company is also benefiting from its Netflix broadcast rights deal for its weekly show, WWE RAW, which began in January 2025. Media rights and content revenue grew by $18.2m, whilst consumer products licensing revenue also grew by $6m.
WWE also signed a new streaming rights agreement with ESPN on August 6 to showcase all of its Premium Live Events, including WrestleMania, each year, The deal is worth a reported $1.6bn across the next five years.
“For much of the past 45 years, ESPN has been the institution of record in the world of sports,” said Mark Shapiro, President and COO of TKO Group. “We are proud WWE will now take a prominent seat at its table during such a transformational juncture.”
UFC
UFC’s revenue for Q2 increased 5% year-over-year to $415.9m.
This was attributed to a $9.9m increase in media rights and content revenue, as well as an increase in partnerships and marketing revenue ($85.8m) following new partnerships, including the Group’s deal with Meta.
However, revenue from live events and hospitality decreased by $10.6m. TKO cited a decrease in site fee revenues due to the timing of international events compared to the same period the year prior.
Shapiro revealed TKO is focused on finalising a new domestic media rights deal as its current deal with ESPN expires in 2026.
Reports from Bloomberg suggest the UFC is seeking up to $1bn per-year, a significant increase from the annual $300m it receives as part of its current deal. Netflix and Paramount have emerged as frontrunners.
TKO also revealed it has completed its third and final compensation payment of $125m to those named in the antitrust lawsuit; Le vs. UFC.
UFC was ordered to pay $375m to victims of the lawsuit after final approval by Judge Richard Boulware was granted in February. The suit focuses on fighters who competed in the UFC from 2014 onwards and believed the UFC was using unfair tactics to attempt a monopoly over the MMA market.
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