TKO Group (NYSE:TKO) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

TKO Group (NYSE:TKO) released its quarterly earnings results on Wednesday. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $1.11 by $0.01, FiscalAI reports. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. The company’s quarterly revenue was up 25.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.69 earnings per share.

Here are the key takeaways from TKO Group’s conference call:

• Q1 financials beat on growth — TKO reported $1.597B revenue and $550M adjusted EBITDA (34% margin) and reaffirmed full?year guidance of $5.675–$5.775B revenue and $2.24–$2.29B adjusted EBITDA.
• Media rights momentum — Paramount+/CBS for UFC and ESPN/Netflix deals for WWE are widening reach and engagement (UFC on CBS was the most?watched UFC event since 2016), boosting sampling and downstream monetization opportunities.
• Live events and FIP pipeline — Sellouts, record gates across UFC/WWE/PBR and a growing financial?incentive?package pipeline (multi?market renewals including Baku, Philadelphia, Serbia) are driving revenue upside and expected margin expansion.
• Strong cash generation and shareholder returns — Q1 free cash flow of $675M (123% conversion), net leverage ~2.3x, ~$1B returned in the quarter, and an incremental $1B buyback authorization (plus an $800M ASR) support continued capital returns.
• Near?term event costs and geopolitical risk — Management expects to lose ~$30M on UFC Freedom 250 and acknowledges higher production costs and ongoing Middle East geopolitical uncertainty that could pressure short?term results despite partner commitments to proceed with scheduled events.

TKO Group Price Performance

Shares of NYSE:TKO traded down $0.64 during trading hours on Friday, hitting $186.87. 1,875,713 shares of the company’s stock traded hands, compared to its average volume of 1,288,009. TKO Group has a 52 week low of $152.29 and a 52 week high of $226.94. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.26 and a current ratio of 1.34. The company’s fifty day simple moving average is $197.23 and its two-hundred day simple moving average is $198.69. The company has a market cap of $36.28 billion, a price-to-earnings ratio of 69.73 and a beta of 0.57.

TKO Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were given a dividend of $0.78 per share. The ex-dividend date was Monday, March 16th. This represents a $3.12 annualized dividend and a dividend yield of 1.7%. TKO Group’s dividend payout ratio (DPR) is 138.67%.

Insider Activity

In other news, Director Nick Khan sold 9,518 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $185.99, for a total transaction of $1,770,252.82. Following the completion of the transaction, the director owned 91,100 shares in the company, valued at approximately $16,943,689. This trade represents a 9.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Shane Kapral sold 616 shares of the company’s stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $221.91, for a total transaction of $136,696.56. Following the sale, the chief financial officer directly owned 353 shares of the company’s stock, valued at $78,334.23. This represents a 63.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 31,272 shares of company stock valued at $6,332,236. Insiders own 61.30% of the company’s stock.

Institutional Trading of TKO Group

A number of hedge funds have recently bought and sold shares of the company. CreativeOne Wealth LLC lifted its stake in TKO Group by 2.1% during the fourth quarter. CreativeOne Wealth LLC now owns 2,586 shares of the company’s stock valued at $541,000 after buying an additional 54 shares in the last quarter. Sunbelt Securities Inc. lifted its stake in TKO Group by 6.3% during the third quarter. Sunbelt Securities Inc. now owns 950 shares of the company’s stock valued at $192,000 after buying an additional 56 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in TKO Group by 29.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 249 shares of the company’s stock valued at $52,000 after buying an additional 57 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in TKO Group by 14.1% during the second quarter. Geneos Wealth Management Inc. now owns 582 shares of the company’s stock valued at $106,000 after buying an additional 72 shares in the last quarter. Finally, Axxcess Wealth Management LLC lifted its stake in TKO Group by 5.3% during the fourth quarter. Axxcess Wealth Management LLC now owns 1,425 shares of the company’s stock valued at $298,000 after buying an additional 72 shares in the last quarter. 89.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Wolfe Research restated a “peer perform” rating on shares of TKO Group in a research report on Thursday, March 5th. Zacks Research upgraded shares of TKO Group from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. Wall Street Zen lowered shares of TKO Group from a “hold” rating to a “sell” rating in a research report on Saturday, March 7th. JPMorgan Chase & Co. upped their price target on shares of TKO Group from $220.00 to $225.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 21st. Finally, UBS Group upped their price target on shares of TKO Group from $235.00 to $238.00 and gave the stock a “buy” rating in a research report on Thursday, February 26th. Twelve analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $230.88.

Key Headlines Impacting TKO Group

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO reported Q1 2026 revenue of about $1.60 billion and EPS of $1.12, both slightly ahead of expectations, with revenue up roughly 26% year over year as WWE, UFC and IMG all posted strong growth. TKO Reports First Quarter 2026 Results
• Positive Sentiment: Management increased the share-repurchase authorization by $1 billion, which signals confidence in the business and can support earnings per share over time. Share repurchase authorization increase
• Positive Sentiment: Investor commentary points to the Paramount UFC rights deal as an important boost to TKO’s media revenue outlook and a sign that the company’s combat-sports assets continue to gain value. Paramount UFC deal
• Positive Sentiment: Reports also indicate Saudi partners remain committed to TKO-related partnerships, reducing a potential near-term source of uncertainty around WWE and event funding. Saudi partnerships remain intact
• Neutral Sentiment: TKO’s 2026 revenue guidance of $5.675 billion to $5.775 billion was solid, though it appeared a bit below some Street expectations, which may limit additional upside unless growth accelerates further. 2026 revenue guidance
• Neutral Sentiment: Nick Khan’s sale of 9,518 shares was disclosed, but he still retains a sizable stake; investors may view it as routine insider activity rather than a major red flag. Nick Khan insider sale filing
• Negative Sentiment: Some media coverage around WWE creative criticism and Saudi-related controversy could create reputational noise, even if the direct financial impact appears limited. Saudi Arabia WWE partnership coverage

About TKO Group

TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.

TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.