TKO Group Holdings, Inc. (NYSE: TKO) reported strong second-quarter financial results and raised its full-year 2025 outlook, fueled by solid performances from its UFC and WWE properties and the integration of newly acquired brands.
The company posted $1.3 billion in revenue for Q2 2025, a 10% year-over-year increase, with net income soaring to $273.1 million—up from $46.2 million a year ago. Adjusted EBITDA grew 75% to $526.5 million, representing a margin increase to 40%, compared to 25% in the prior-year quarter.
“TKO generated strong financial results in the quarter, led by record performance at both UFC and WWE,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Our live content and experiences are proving a key differentiator for organizations and brands looking to capture audience.”
The results come amid significant changes for TKO, which completed the acquisition of IMG, On Location, and Professional Bull Riders (PBR) in February. These businesses were integrated into the company’s consolidated reporting as if they had been part of TKO during prior periods.
In conjunction with the earnings announcement, TKO raised its full-year 2025 revenue guidance to between $4.63 billion and $4.69 billion. Adjusted EBITDA is now projected between $1.54 billion and $1.56 billion.
WWE Content Moves to ESPN Streaming in Landmark Deal
Also announced was a major media rights deal between WWE and ESPN, bringing WWE’s premium live events (PLEs) to ESPN’s new direct-to-consumer (DTC) streaming platform starting in 2025. The five-year agreement includes exclusive U.S. streaming of all WWE PLEs, with select events also simulcast on ESPN’s linear channels.
“For much of the past 45 years, ESPN has been the institution of record in the world of sports,” said Mark Shapiro, President and COO of TKO. “We are proud WWE will now take a prominent seat at its table during such a transformational juncture.”
The WWE-ESPN deal marks another milestone in the convergence of live sports and streaming as networks and platforms continue to compete for exclusive content to drive subscriptions and viewership.
Segment Performance
WWE led the quarter with $556.2 million in revenue, a $99.4 million increase over Q2 2024. UFC contributed $415.9 million, up $21.5 million, while IMG posted $306.6 million, down $13 million year-over-year. The drop in IMG revenue was tied to a prior-year write-down of unsold tickets related to the 2024 Paris Olympics.
Adjusted EBITDA growth was widespread, with WWE up $78.5 million to $329.8 million, UFC up $12.9 million to $244.8 million, and IMG rebounding with a $120.2 million jump to $29 million.
TKO’s strong cash position included $396.2 million in operating cash flow and $374.9 million in free cash flow. The company ended the quarter with $535.1 million in cash and $2.769 billion in gross debt.
Looking ahead, Shapiro noted that TKO remains focused on closing its next domestic media rights deal for UFC and fully integrating its newly acquired properties.
“We remain focused on delivering the next UFC domestic media rights deal, integrating industry leaders IMG, On Location, and PBR fully into TKO, and executing on our capital return initiatives,” he said.
