TKO Group beats Q4 revenue estimates, plans $1 billion buyback

TKO group

25/02/2026 21:29

Overview

Sports and entertainment firm's Q4 revenue rose, beating analyst expectations

Company plans $1 bln share repurchase program starting March 2026

Company completed acquisition of IMG, On Location, and PBR businesses

Outlook

Company targets 2026 revenue of $5.675 bln to $5.775 bln

TKO aims for 2026 Adjusted EBITDA of $2.240 bln to $2.290 bln

Company plans up to $1 bln in share repurchases starting March 2026

Result Drivers

UFC REVENUE GROWTH - UFC's revenue increased by $57.5 mln, driven by higher partnerships and marketing revenue, media rights, and live events

WWE MEDIA RIGHTS - WWE's revenue rose by $61.3 mln, largely due to media rights agreements with Netflix and ESPN

IMG REVENUE DECLINE - IMG segment revenue fell by $24.1 mln, affected by the absence of the Arabian Gulf Cup

Company press release: ID:nBw6CHzlJa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.04 bln
$1.02 bln (17 Analysts)
Q4 Net Income
$800,000
Q4 Adjusted EBITDA
$281.20 mln
Q4 Free Cash Flow
$249.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the entertainment production peer group is "buy"

Wall Street's median 12-month price target for TKO Group Holdings Inc is $235.00, about 12.2% above its February 24 closing price of $209.39

The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 35 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)