TKO Group Q1 revenue rises as live events and hospitality grow

TKO group

06/05/2026 21:22

Overview

US sports and entertainment group's Q1 revenue rose 26%, slightly beating analyst expectations

Net income for Q1 improved to $249.8 mln from $165.5 mln last year

Company authorized additional $1 bln share repurchase program

Outlook

TKO reaffirms 2026 revenue target of $5.675 bln to $5.775 bln

Company maintains 2026 Adjusted EBITDA guidance of $2.240 bln to $2.290 bln

Result Drivers

MEDIA RIGHTS FEES - Higher media rights fees, including new distribution agreements with Paramount (UFC), Netflix and ESPN (WWE), drove segment revenue growth

LIVE EVENTS & HOSPITALITY - Strong live event and hospitality sales, especially at WWE's Royal Rumble in Saudi Arabia and On Location's 2026 Milano Cortina Olympics, contributed to revenue gains

PARTNERSHIPS & LICENSING - Growth in partnerships, marketing, and consumer products licensing, including new partners and higher fees from renewals, supported results

Company press release: ID:nBw6V0cvVa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$1.60 bln
$1.59 bln (19 Analysts)
Q1 Net Income
$249.80 mln
Q1 Adjusted EBITDA
$549.80 mln
Q1 Free Cash Flow
$674.50 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $232.00, about 24.1% above its May 5 closing price of $186.94

The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 33 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.)