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This afternoon, TKO Group (WWE and UFC) published a note on its official website regarding the financial results of the company during the third quarter of 2025. It is worth noting a general decrease in revenues, with the exception of WWE. Below is a summary of the most important data and figures:
NEW YORK – (BUSINESS WIRE) – TKO Group Holdings, Inc. ("TKO" or the "Company") (NYSE: TKO) announced today the financial results for its third quarter ended September 30, 2025.
"TKO delivered solid financial results in the third quarter and, with the sustained momentum of UFC and WWE, we are raising our annual projections once again," said Ariel Emanuel, Chief Executive Officer of TKO. "Having secured multi-year historic media rights deals for UFC, WWE, and Zuffa Boxing, our conviction in TKO has never been stronger. We remain focused on operational execution, including preparing for the launch of UFC with Paramount, integrating and leveraging synergies with IMG, On Location, and PBR, and maximizing value for shareholders."
Revenues decreased by 27%, or 420.8 million dollars, to 1.120 billion dollars. The decrease mainly reflected a 29.7 million dollar reduction in UFC (to 325.2 million dollars), a 75.8 million dollar increase in WWE (to 402.1 million dollars), and a 492.4 million dollar decrease in IMG (to 336.7 million dollars). The decrease in the IMG segment was mainly due to revenues recorded in the same period of the previous year related to the 2024 Paris Olympics.
Net income was 106.8 million dollars, an increase of 103.4 million compared to 3.4 million in the previous period. The increase was mainly due to a reduction in operating expenses, partially offset by the decrease in revenues. The reduction in operating expenses reflected a decrease in direct operating costs of 572.0 million dollars, partially offset by an increase in depreciation and amortization of 14.2 million dollars. Selling, general, and administrative expenses remained virtually the same. The decrease in direct operating costs was mainly due to expenses recorded in the IMG segment during the previous period for the 2024 Paris Olympics.
Adjusted EBITDA increased by 59%, or 134.0 million dollars, to 360.2 million dollars, due to a 32.5 million increase in WWE (to 207.8 million dollars), a 115.6 million increase in IMG (to 61.4 million), and a 15.9 million increase in Corporate and Other (to -74.6 million), partially offset by a 30.0 million decrease in UFC (to 165.6 million).
The adjusted EBITDA margin increased to 32% from 15%.
Cash flows generated from operating activities were 416.8 million dollars, an increase of 238.8 million compared to 178.0 million, mainly due to higher net income and working capital timing.
Free cash flow was 398.9 million dollars, an increase of 247.9 million compared to 151.0 million, due to increased operating cash flows and a reduction in capital expenditures.
Cash and cash equivalents amounted to 861.4 million dollars as of September 30, 2025. Gross debt was 3.759 billion dollars at the same date.
Revenues increased by 23%, or 75.8 million dollars, to 402.1 million, mainly related to a 31.4 million increase in live events and hospitality, a 21.5 million increase in media rights, production, and content, and an 18.2 million increase in partnerships and marketing. The increase in live events and hospitality was mainly due to higher ticket sales and increased venue fees, especially related to the first two-night SummerSlam and Wrestlepalooza, the launch event for the company's new distribution agreement with ESPN. The increase in media rights, production, and content was mainly due to higher fees for WWE's premium live events, with two additional nights of programming compared to the previous year. The increase in partnerships and marketing was due to new partners and higher renewal fees compared to the previous period.
Adjusted EBITDA increased by 19%, or 32.5 million dollars, to 207.8 million, mainly due to the revenue increase (as described above), partially offset by increased expenses. Direct operating costs increased due to higher talent, production, marketing, and other event-related costs. Selling, general, and administrative expenses increased mainly due to higher travel costs. The adjusted EBITDA margin decreased to 52% from 54%.
