TKO Group Holdings, Inc. (TKO) AI Stock Analysis

TKO Group Holdings, Inc. operates in the sports and entertainment industry as a subsidiary of Endeavor Group Holdings, Inc. The company produces and licenses live events, television programs, pay-per-view digital and linear content, reality series, and short-form entertainment. It engages in merchandising across video games, apparel, sports equipment, trading cards, collectible memorabilia, digital goods, and toys. TKO also offers travel packages and ticket sales. In addition, the company provides corporate sponsorships and advertising solutions, offering in-venue and in-broadcast advertising opportunities, digital impressions, and content product integration to global brands.

Annual revenue expanded from $1.10B in FY2021 to $1.14B in FY2022, $1.67B in FY2023, $2.80B in FY2024, and $4.74B in FY2025, recording a 5-year revenue CAGR of 37.2%. Gross margin reached 49.6% and operating margin was 20.3% in FY2025, down from an operating margin of 47.8% in FY2022. Net income transitioned from -$35.2M in FY2023 to $9.4M in FY2024 and $195.4M in FY2025, producing diluted EPS of $1.77. Over the trailing twelve months ending June 30, 2026, revenue totaled $5.30B with a profit margin of 4.3% and EPS of $2.86, supported by quarterly revenue growth of 18.2% and quarterly earnings growth of 14.4%.

As of June 30, 2026, TKO held $1.55B in cash and short-term investments against total debt of $4.95B, resulting in net debt of $3.40B. Shareholders' equity was $3.40B, and total assets stood at $16.26B, yielding a debt-to-equity ratio of 1.46 and a current ratio of 1.22. During FY2025, operating cash flow reached $1.29B and free cash flow was $1.16B. Cash deployment in FY2025 included capital expenditures of $127.0M, share buybacks of $866.8M, and dividends paid of $640.7M.

TKO carries a market cap of $33.22B and an enterprise value of $18.18B. The stock trades at a trailing P/E of 61.4x and a forward P/E of 48.8x, compared to the median of its S&P 500 Communication Services peers of 17.1x trailing and 13.8x forward. Its EV to EBITDA ratio is 11.7x versus the peer median of 10.9x, and its price to sales ratio is 6.3x versus 1.8x for peers. Over the past year, TKO delivered a return of -5.1%, trailing the SPY return of 16.8%, though its 5-year return of 217.9% exceeded the SPY 5-year return of 83.0%.

TKO pays a forward annual dividend of $3.16 per share, providing a dividend yield of 1.80% based on quarterly distributions. The dividend payout ratio stands at 131.9%. The company has paid dividends for 2 consecutive years, with an annualized 5-year dividend growth rate of 36.8%. The last ex-dividend date was September 15, 2026.

Analyst recommendations feature 15 Strong Buy, 3 Buy, and 4 Hold ratings, with 0 Sell and 0 Strong Sell ratings. The mean price target is $231.05, representing an upside of 31.7% from the last close of $175.50. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $5.82B and EPS of $4.43, reflecting expected EPS growth of 96.2%. The company recorded 0 EPS beats over the last 4 quarters. The next earnings date is November 4, 2026.

This page is an AI-written research summary of TKO Group Holdings, Inc. (TKO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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