TKO Group Holdings raised its guidance for the second straight quarter as the UFC and the FIFA World Cup helped propel its business in Q3.
The owner of UFC, WWE and IMG reported revenue of $1.36 billion in the quarter, up 21 percent from a year ago, with net income of $277.9 million, up from $171.1 million a year ago. Adjusted EBITDA rose by 54 percent to $555.7 million.
“Our third quarter performance reflects the secular tailwinds powering live events and experiences around the world, and TKO’s assets sit front and center of that premium ecosystem,” said Mark Shapiro, President and COO of TKO. “As we close out what we’ve called our year of execution, our decision to raise full-year guidance for the second time this year is the clearest expression of our conviction across the entire portfolio. Our business is durable and our fundamentals are solid, with the vast majority of our existing revenues locked in for the next five to seven years. Macro trends are firmly in our favor, every facet of sports consumption is pointing north, and we see substantial runway ahead.”
The company’s new guidance for full year 2026 to $5.790 billion to $5.830 billion for revenue and $2.295 billion to $2.315 billion for adjusted EBITDA.
The UFC was the biggest driver of growth, with revenue surging by 60% to $519.2 million in the quarter thanks to strong growth in media rights, sponsorships, live events and consumer products and licensing. Adjusted EBITDA rose by 72 percent to $285.3 million.
On the earnings call, Shapiro said that with Skydance now controlling Warner Bros. Discovery, UFC events will likely begin appearing in other places.
“We’re in conversations as we speak with Skydance about the best way to maximize audience across the Skydance platforms,” Shapiro said. “We have a great partnership with the entire team there. I used to work with David Berson, who’s the head of Skydance Sports, from our days at ESPN. He’s super creative, and we will be maximizing HBO, TNT, Paramount+, CBS, all in the name of expanding eyeballs, expanding viewership, growing audience, and increasing engagement. We are fully aligned strategically with Skydance, and frankly, they’ve made a huge investment in in the UFC, and we want to see that we we help them maximize their returns.”
At the WWE, total revenue fell by 1 percent to $399.3 million, due to a decrease in live events and hospitality revenue, offset by increases in media rights and consumer products. Adjusted EBITDA rose 5 percent to $217.2 million.
At IMG, revenue rose 16 percent to $391.3 thanks to increases in partnerships and marketing revenue, as well as increased hospitality revenue associated with the 2026 FIFA World Cup. Adjusted EBITDA rose 89 percent to $115.9 million.