TKO Group (NYSE:TKO) Releases Quarterly Earnings Results, Misses Estimates By $0.07 EPS

TKO Group (NYSE:TKO) issued its quarterly earnings results on Monday. The company reported $1.34 EPS for the quarter, missing analysts’ consensus estimates of $1.41 by ($0.07), FiscalAI reports. The business had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.54 billion. TKO Group had a return on equity of 2.62% and a net margin of 4.33%.The business’s revenue was up 18.2% compared to the same quarter last year. During the same quarter last year, the business posted $1.17 earnings per share.

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

• Positive Sentiment: TKO reported strong Q2 results, with revenue up 18% to $1.547 billion and adjusted EBITDA up 23% to $650 million, while adjusted EBITDA margin expanded to 42%.
• Positive Sentiment: Management raised full-year 2026 guidance to $5.775 billion–$5.825 billion in revenue and $2.275 billion–$2.305 billion in adjusted EBITDA, citing broad-based strength across UFC, WWE, and IMG rather than a single driver.
• Positive Sentiment: On Location’s FIFA World Cup hospitality business exceeded expectations, with more than $2 billion in sales through Q2; TKO now expects full-year World Cup adjusted EBITDA to surpass its prior estimate of approximately $75 million.
• Negative Sentiment: UFC Freedom 250 generated substantial audience and partnership exposure but resulted in an approximately $30 million loss because TKO absorbed unusually high costs and did not sell tickets for the event.
• Positive Sentiment: TKO plans to resume share repurchases under its existing authorization, with just over $1 billion available, after returning more than $1.3 billion to equity holders through dividends and buybacks year to date.

TKO Group Trading Up 0.2%

Shares of TKO Group stock opened at $184.87 on Wednesday. The company has a 50 day simple moving average of $194.69 and a two-hundred day simple moving average of $197.39. The firm has a market cap of $35.89 billion, a PE ratio of 68.98 and a beta of 0.63. TKO Group has a 1 year low of $152.29 and a 1 year high of $226.94. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 1.34.

TKO Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a $0.79 dividend. This is an increase from TKO Group’s previous quarterly dividend of $0.78. This represents a $3.16 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Monday, June 15th. TKO Group’s payout ratio is 117.91%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on TKO. BTIG Research reiterated a “buy” rating and issued a $237.00 target price on shares of TKO Group in a research note on Tuesday. Benchmark reissued a “hold” rating on shares of TKO Group in a research report on Tuesday. Morgan Stanley upped their price target on TKO Group from $225.00 to $230.00 and gave the company an “overweight” rating in a research report on Tuesday. Weiss Ratings raised shares of TKO Group from a “hold (c-)” rating to a “hold (c+)” rating in a report on Thursday, May 7th. Finally, Wall Street Zen upgraded shares of TKO Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Twelve analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $235.00.

Insider Activity at TKO Group

In related news, CFO Andrew M. Schleimer bought 2,696 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average cost of $185.44 per share, for a total transaction of $499,946.24. Following the completion of the transaction, the chief financial officer owned 30,240 shares of the company’s stock, valued at approximately $5,607,705.60. The trade was a 9.79% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nick Khan sold 12,998 shares of TKO Group stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $181.11, for a total value of $2,354,067.78. Following the sale, the director directly owned 48,933 shares of the company’s stock, valued at approximately $8,862,255.63. This trade represents a 20.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have purchased 24,308 shares of company stock valued at $4,499,679 and have sold 42,257 shares valued at $7,946,068. Corporate insiders own 64.30% of the company’s stock.

Hedge Funds Weigh In On TKO Group

Large investors have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC grew its position in TKO Group by 64.2% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 514 shares of the company’s stock worth $104,000 after acquiring an additional 201 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of TKO Group by 127.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 510 shares of the company’s stock worth $78,000 after acquiring an additional 286 shares during the period. Smartleaf Asset Management LLC raised its holdings in TKO Group by 38.0% in the fourth quarter. Smartleaf Asset Management LLC now owns 305 shares of the company’s stock worth $65,000 after purchasing an additional 84 shares in the last quarter. Osterweis Capital Management Inc. purchased a new position in TKO Group during the 2nd quarter valued at about $59,000. Finally, Quarry LP lifted its holdings in shares of TKO Group by 161.1% during the fourth quarter. Quarry LP now owns 282 shares of the company’s stock valued at $59,000 after purchasing an additional 174 shares during the last quarter. Hedge funds and other institutional investors own 89.79% of the company’s stock.

Key Headlines Impacting TKO Group

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

• Positive Sentiment: TKO reported second-quarter revenue of approximately $1.547 billion, up 18% year over year and slightly ahead of analyst expectations. Adjusted EBITDA rose 23% to $650 million, with a 42% margin, signaling strong operating momentum. TKO Reports Second Quarter 2026 Results
• Positive Sentiment: The company raised its 2026 outlook, targeting revenue of $5.775 billion to $5.825 billion and adjusted EBITDA of $2.275 billion to $2.305 billion. The higher EBITDA forecast suggests management expects continued strength across UFC, WWE and other premium live-content businesses. TKO 2026 Guidance
• Positive Sentiment: BTIG reaffirmed its Buy rating and set a $237 price target, implying substantial upside from recent levels. Analysts overall maintain a “Moderate Buy” consensus, supporting the longer-term investment case. BTIG Rating
• Positive Sentiment: TKO announced upcoming UFC, WWE Royal Rumble and PBR events in Arizona, adding future live-event and sponsorship opportunities. Arizona Events Announcement
• Neutral Sentiment: Management characterized the quarter as solid and emphasized momentum in premium live content, while the company also disclosed a WWE shareholder settlement. The settlement could create a financial or legal overhang, but its ultimate impact was not specified. TKO Q2 and WWE Settlement
• Negative Sentiment: Quarterly EPS was $1.34, below consensus estimates of roughly $1.41 to $1.63, despite revenue exceeding forecasts. The shortfall may raise concerns about profitability and cost control. TKO Q2 Earnings Miss
• Negative Sentiment: TKO said the UFC Freedom 250 White House event lost approximately $30 million. Although management presented the broader earnings picture positively, the loss highlights event-specific execution and profitability risks. UFC Freedom 250 Loss

TKO Group Company Profile

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.