TKO Group Q2 revenue beats estimates; 2026 outlook lifted

TKO group

03/08/2026 21:20

Overview
US sports and entertainment group's Q2 revenue rose 18% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 climbed 23% yr/yr to $649.9 mln
Company raised full-year 2026 revenue and Adjusted EBITDA guidance, plans more share repurchases

Outlook
TKO raises 2026 revenue guidance to $5.775 bln-$5.825 bln
Company lifts 2026 Adjusted EBITDA outlook to $2.275 bln-$2.305 bln

Result Drivers
MEDIA RIGHTS FEES - Co said higher media rights fees, including new distribution agreements for UFC with Paramount and WWE with ESPN, drove revenue growth
PARTNERSHIPS AND MARKETING - Growth in partnerships and marketing revenue, particularly from new partners and renewals, contributed to higher segment revenues, with UFC Freedom 250 event cited as a driver
HOSPITALITY SALES - IMG segment revenue rose due to FIFA World Cup 2026 hospitality sales at On Location

Company press release: ID:nBw3SdngXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.55 bln
$1.53 bln (17 Analysts)
Q2 Net Income
 
$303.90 mln
 
Q2 Adjusted EBITDA
 
$649.90 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 $232.50, about 27.9% above its July 31 closing price of $181.81
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 33 three months ago

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(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.)