Strong growth at WWE and resilient UFC performance offset Olympic-related volatility at IMG, as the sports and entertainment group outlines ambitious 2026 targets.
TKO Group Holdings is accelerating its shareholder returns strategy after a year in which escalating media rights deals at WWE and steady growth at UFC pushed profitability sharply higher.
The owner of UFC and WWE reported $1.585bn in adjusted EBITDA for 2025 on 28 February, up 47% year-on-year, and said it intends to launch up to $1bn in additional share repurchases in March. The company plans to fund the buybacks primarily through incremental debt and cash on hand.
The decision comes as TKO’s long-term debt has risen to $3.724bn, up from $2.735bn a year earlier, reflecting a year of capital returns and acquisition integration. Gross debt stood at $3.783bn at year-end.
While full-year revenue declined 3% to $4.735bn – largely due to the absence of Paris 2024 Olympic revenues in its IMG segment – the underlying performance of TKO’s core fight properties strengthened.
WWE revenue increased 22% to $1.709bn, driven primarily by higher media rights income, including the impact of new distribution agreements with Netflix and ESPN. Adjusted EBITDA for WWE rose 32% to $896.5m, with margins expanding to 52% from 49% the previous year.
UFC delivered more measured but consistent growth. Revenue rose 7% to $1.502bn, supported by increases in partnerships, marketing, and media rights fees. Adjusted EBITDA climbed 6% to $851m, with margins holding steady at 57%.
Fourth-quarter numbers reflected a similar pattern. Revenue increased 12% to $1.038bn, while adjusted EBITDA rose 30% to $281.2m. However, quarterly net income was just $0.8m, highlighting the scale of non-cash charges and adjustments within the group’s reporting framework.
Adjusted metrics versus GAAP earnings
For the full year, TKO posted net income of $546.2m, compared to a net loss of $245.8m in 2024, when results were heavily impacted by the $375m settlement of the UFC antitrust lawsuit.
The gap between reported net income and adjusted EBITDA – $1.585bn – reflects depreciation and amortisation of $485m, $117.6m in equity-based compensation, $60.5m in certain legal costs, and $51.7m in merger and acquisition-related expenses.
TKO’s management continues to emphasise adjusted EBITDA as its primary operating metric, arguing it provides a clearer view of cash-generating performance by stripping out non-recurring and non-cash items.
Free cash flow rose to $1.159bn in 2025, up from $467.3m the previous year, with conversion improving to 73% of adjusted EBITDA. Operating cash flow included approximately $296.6m of net pre-payments held in escrow related to the 2026 FIFA World Cup, providing a temporary working capital benefit.
Cash and cash equivalents stood at $831.1m at year-end.
IMG and Olympic comparables
The headline revenue decline in 2025 was driven almost entirely by the IMG and On Location segment, which recorded a 31% fall in revenue to $1.367bn. The prior year included significant revenue from hospitality operations around the 2024 Olympic Games.
Despite the revenue drop, adjusted EBITDA for the segment improved to $160m from a $48m loss in 2024, reflecting the absence of Olympic-related costs and the impact of post-acquisition cost reduction initiatives.
TKO completed the acquisition of IMG, On Location and Professional Bull Riders from Endeavor in February 2025 in a $3.25bn equity transaction. The deal has reshaped the company’s reporting structure, with results presented as if the acquired businesses had been part of TKO during the historical periods shown.
Capital returns accelerate
During 2025, TKO returned more than $1.3bn to equity holders through share repurchases, dividends and related distributions. The company repurchased $866.8m of Class A common stock during the year and paid $185.2m in dividends.
The new $1bn repurchase plan forms part of a broader $2bn authorisation announced in October 2024, of which approximately $1.096bn remained available as of 24 February 2026.
In announcing the expanded buyback, TKO signalled confidence in its forward outlook. For 2026, the company is targeting revenue between $5.675bn and $5.775bn and adjusted EBITDA of $2.240bn to $2.290bn.
Balance sheet and strategic outlook
At year-end, TKO reported total assets of $15.5bn, including $8.44bn in goodwill and $3.33bn in intangible assets, underscoring the acquisition-driven nature of its growth strategy.
Management highlighted the recent launch of Zuffa Boxing as a further avenue for long-term expansion, adding to a portfolio that already stages more than 500 live events annually across UFC, WWE and PBR.
The group’s performance now hinges increasingly on the durability of its premium media rights agreements and its ability to manage integration costs while maintaining margins.
