TKO Group Holdings met Wall Street analysts’ revenue expectations in the first quarter, but earnings per share either narrowly beat or fell just short of estimates.
Total revenue at the Ari Emanuel-led sports and live entertainment company rose 26% from the year-ago period to reach $1.597 billion. Earnings per share came in at $1.12 on a diluted basis, up from 69 cents in the 2025 frame. Analysts from S&P Global had put the earnings bar at $1.14, but FactSet had it at $1.11, with the spread resulting from different analysts being polled by the investor services.
Increased rights fees in the quarter, primarily due to Paramount’s 7-year, $7.7 billion rights deal taking effect in January, lifted the UFC division. The IMG unit, which includes the On Location corporate hospitality provider, saw revenue shoot up 38% to $655.4 million, mainly due to sales at last winter’s 2026 Milano Cortina Olympics.
At UFC, the Paramount deal helped push revenue up 12% from the prior-year quarter, to $401.2 million. The upswing from rights fees helped largely offset a decline in live events and hospitality revenue due to fewer “Fight Night” dates than in the comparable 2025 quarter. Adjusted EBITDA also climbed 12%.
Revenue in the WWE division increased 22% to $475.7 million. thanks mostly to higher media rights fees from distribution agreements with Netflix and ESPN. Adjusted EBITDA ticked up 32% as much of the higher fee revenue flowed through to the bottom line.
“TKO is off to a formidable start in 2026,” said Emanuel, who is CEO and executive chair of the company.
Along with reaffirming full-year financial guidance, the company also announced that it authorized a $1 billion share repurchase program, which Emanuel said “underscores our conviction in TKO and its long-term value.”
President and COO Mark Shapiro pointed to two upcoming events in June, which is during the current quarter: the UFC’s “Freedom 250” event on the White House grounds, and the World Cup. On Location, through a partnership with FIFA, is apt to do brisk business at the World Cup, which features an expanded field and a Western fan-friendly setting in multiple North American cities.
“TKO will take center stage this summer, crowning moments for audience growth, cultural relevance, and our business trajectory,” Shapiro said in the earnings release.
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