TKO Group Holdings, the parent company of UFC and WWE, has reported a standout second quarter, driven by record performances across live events, expanded partnerships, and strategic growth in media rights. Executives highlighted continued momentum and elevated guidance for the full fiscal year.
Strategic Growth and Operational Highlights
CEO Ariel Emanuel credited the strong quarter to disciplined execution across TKO’s diversified sports and entertainment portfolio. He pointed to the newly secured domestic media rights agreement with ESPN for WWE’s premium live events as a milestone that adds a predictable revenue stream. Emanuel also emphasized growth in brand partnerships, citing expanded relationships with Anheuser-Busch InBev and Fanatics as value-driving differentiators.
WWE’s Money in the Bank at the Intuit Dome was noted as the highest-grossing arena event in company history, while the first-ever two-night SummerSlam welcomed over 113,000 fans—further evidence of WWE’s growing fanbase and commercial power. In parallel, UFC continued to break arena attendance records and deepen its economic impact on host cities.
“With our ongoing momentum and positive business outlook, we are once again increasing our full-year 2025 guidance,” Emanuel announced.
Financial Performance: Q2 2025
CFO Andrew Schleimer reported across-the-board growth, highlighting the company’s ability to convert revenue into strong margins and free cash flow.
- Total Q2 Revenue: $1.308 billion, up 10% year-over-year
- Adjusted EBITDA: $526 million, up 75%
- EBITDA Margin: 40%, up from 25% last year
- Free Cash Flow: $375 million, with a 71% conversion rate
Segment Results
- UFC
- Revenue: $416 million (up 5%)
- Adjusted EBITDA: $245 million (up 6%)
- Marketing & Partnerships: $86 million (up 39%)
- WWE
- Revenue: $556 million (up 22%)
- Adjusted EBITDA: $330 million (up 31%)
- Marketing & Partnerships: $58 million (up 136%)
- Live Events & Hospitality: $186 million (up 29%)
- Record partnership revenue at WrestleMania 41
- IMG
- Revenue: $307 million (down 4%)
- Adjusted EBITDA: $29 million, a $120 million turnaround
- Margin: 9%, a sharp improvement from -29%
- Corporate and Other
- Revenue: $45 million (up 9%)
- Adjusted EBITDA: -$77 million (improved from -$91 million)
Outlook for 2025
TKO has increased its full-year projections for the second consecutive quarter:
- Revenue Target: $4.63 billion to $4.69 billion
- Adjusted EBITDA: $1.54 billion to $1.56 billion
According to Schleimer, the revision is due to consistent overperformance across UFC and WWE operations and continued strength in consumer demand and brand engagement.
“We’re also targeting free cash flow conversion above 60% for the year,” he added.
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