TKO Posts Strong Q1 Results, Raises 2025 Guidance on WWE, UFC Momentum and New Acquisitions

TKO Group Holdings (NYSE: TKO) reported solid financial performance for the first quarter of 2025, driven by growth at both WWE and UFC. The company also raised its full-year revenue and earnings guidance, factoring in continued strength across its core businesses and the recent addition of IMG, On Location, and Professional Bull Riders (PBR) to its portfolio.

“TKO is off to a good start in 2025,” Ariel Emanuel, Executive Chair and CEO of TKO, said in a press release. “Given the strength and momentum of these businesses and no material change to our overall business outlook, we are raising our guidance.”

Q1 2025 Financial Highlights:

• Revenue: $1.27 billion, up 4% year-over-year
  • WWE contributed $391.5 million, up $74.8 million
  • UFC generated $359.7 million, up $46.7 million
  • IMG revenue dropped $73.4 million to $476.3 million
• Net Income: $165.5 million, a swing from a $234.5 million loss in Q1 2024
• Adjusted EBITDA: $417.4 million, up 23%
• Free Cash Flow: $135.5 million, up from $7.5 million
• Cash on Hand: $470.9 million as of March 31
• Gross Debt: $2.776 billion

The surge in net income was primarily due to higher revenues and a steep drop in expenses. The prior year included a $335 million legal settlement tied to a UFC antitrust lawsuit, which inflated selling, general, and administrative costs.

WWE and UFC Drive Growth

WWE led the charge in profitability, with Adjusted EBITDA increasing $53.7 million to $193.9 million. UFC followed closely with a $32.3 million rise to $227.4 million. Corporate and other segments remained largely flat.

Cash Flow and Legal Settlements

Operating cash flow rose sharply to $162.8 million, boosted by increased net income and working capital changes. However, this was partially offset by a $125 million payment related to the UFC antitrust case and other transaction-related costs. Additionally, $100.3 million in prepayments for the 2026 FIFA World Cup were held in escrow.

Portfolio Expansion

On February 28, TKO closed its acquisition of IMG, On Location, and PBR. The earnings release reflects these as if they were part of the company in prior periods due to common control accounting treatment.

Updated 2025 Outlook

• Excluding acquisitions: Revenue target raised to $3.005–$3.075 billion; Adjusted EBITDA now expected to reach $1.390–$1.430 billion
• Including acquisitions: Revenue expected between $4.490–$4.560 billion; Adjusted EBITDA targeted at $1.490–$1.530 billion

With major domestic media rights negotiations ahead for UFC and ongoing efforts to integrate its new acquisitions, TKO leadership signaled confidence in the portfolio’s ability to continue delivering returns.