TKO Group Lifts 2026 Outlook, Prices $1B Debt Deal and Beats Profit Forecasts

TKO Group Holdings, Inc. recently reported its third-quarter financial results, topping analyst earnings projections and raising its full-year guidance for the second straight quarter. The sports and entertainment company posted quarterly earnings per share of $1.33, beating consensus estimates of $1.20, while earnings reached $0.47 per share during the same timeframe last year. Revenue rose 21.4% year over year to $1.36 billion, falling slightly short of analyst projections of $1.38 billion.

The operational momentum was led by UFC, where revenue climbed 60% to $519 million and adjusted EBITDA jumped 72% to $285 million. Chief Financial Officer Andrew Schleimer attributed the performance to higher media rights revenue under the Skydance agreement alongside an expanded schedule of 12 events. President and Chief Operating Officer Mark Shapiro noted that UFC 329 generated a record $26 million gate and attracted almost 16 million Paramount+ viewers. Meanwhile, WWE revenue dropped 1% due to fewer major events, while On Location generated about $90 million in full-year adjusted EBITDA.

Following the results, TKO lifted its full-year 2026 revenue guidance to between $5.79 billion and $5.83 billion, with adjusted EBITDA targeted at $2.295 billion to $2.315 billion. The business produced $450 million in free cash flow during the quarter. To support its capital allocation plans, subsidiary TKO Worldwide Holdings priced a $1.0 billion offering of 6.500% Senior Secured Notes due 2031. Net proceeds will cover general corporate purposes, including distributions to fund repurchases under the firm's $3 billion share buyback program.

Investment analysts and major funds have responded to the company's financial results. Zacks upgraded the company to a Rank 1 Strong Buy based on its improved earnings outlook, while institutional ownership reached 89.79% after Bahl & Gaynor LLC enlarged its stake by 36.1% in the third quarter. Simply Wall St noted that an analyst consensus fair value sits at $234.39, framed against Wall Street price targets spanning from $185.00 to $275.00, though the company currently trades at a price-to-earnings ratio above historical industry averages.

Governance filings also detailed recent insider activity, as Chief Executive Officer Ariel Emanuel sold 24,702 shares at an average price of $194.39 on August 18 to satisfy tax withholding obligations. Additionally, Director Nick Khan sold 9,189 shares at an average price of $175.19 on October 15. In total, insiders have offloaded 97,325 shares over the past 90 days, while retaining 64.30% ownership of the company.