Cash conversion efficiency remains high, with an operating cash flow to net income ratio of 2.80 in 2026Q1, enabling the company to fund $838.3 million in share repurchases.
| Cash from Operations | 1.82B | 1.29B | 583.41M | 468.38M | 501.72M | 178.6M | 319.87M | 120.98M | 186.72M | 96.59M | 56.62M | 49.55M |
| Operating CF Margin % | - | 27.15% | 20.8% | 27.96% | 44.01% | 16.31% | 32.83% | 12.6% | 20.07% | 12.06% | 7.76% | 7.52% |
| Operating CF Growth % | 882.85% | 120.38% | 24.56% | -6.65% | 180.93% | -44.17% | 164.39% | -35.21% | 93.31% | 70.59% | 14.26% | - |
| Net Income | 385.19M | 195.4M | 6.38M | 175.72M | 389.02M | 177.41M | 131.77M | 77.06M | 99.59M | 32.64M | 33.84M | 24.14M |
| Depreciation & Amortization | 529.39M | 484.99M | 392.84M | 164.62M | 60.03M | 77.92M | 86.19M | 83.28M | 70.16M | 65.07M | 62.02M | 60.62M |
| Stock-Based Compensation | 52.89M | 0 | 94.64M | 57.11M | 23.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -9.94M | 20.75M | 0 | 6.83M | 2.33M | -2.99M | -3.02M | 9.92M | -1.06M | 13.57M | 12.15M | -9.67M |
| Other Non-Cash Items | 339.56M | 532.41M | -1.3M | 36.17M | 28.67M | 26.02M | 62.76M | 46.07M | 160.33M | 171M | 142.64M | 166.26M |
| Working Capital Changes | 441.99M | 52.18M | 90.86M | 27.93M | -2.08M | -99.76M | 42.17M | -95.35M | -25.79M | -49.36M | -68.51M | -49.97M |
| Change in Receivables | -287.88M | -140.21M | -52.68M | 15.07M | -26.4M | -120.63M | 70.04M | -41.49M | -3.53M | -12.51M | 5.46M | -19.15M |
| Change in Inventory | 0 | 0 | 0 | 0 | 5.63M | 1.16M | -1.29M | -499K | 579K | -1.8M | -364K | -1.43M |
| Change in Payables | 787.17M | 97.66M | 220.85M | 38.19M | -5.18M | 22.72M | 5.09M | -31.95M | 26.75M | 8.11M | -6.58M | 0 |
| Cash from Investing | -14.85M | -146.89M | -59.05M | 12.28M | -13.26M | -188.81M | 11.88M | -35.81M | -66.09M | -133.74M | -24.09M | -18.72M |
| Capital Expenditures | -71.02M | -126.95M | 0 | -48.63M | -12.4M | -39.23M | -27.66M | -69.09M | -32.27M | -24.71M | -29.9M | -20.01M |
| CapEx % of Revenue | 1.4% | 2.68% | 2.67% | 2.9% | 1.09% | 3.58% | 2.84% | 7.19% | 3.47% | 3.09% | 4.1% | 3.04% |
| Acquisitions | 111.98M | -2.88M | 0 | 381.15M | -875K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -41.31M | 11.68M | -59.05M | -321.01M | -17.61M | 4.33M | 0 | 1.44M | 1M | 0 | 0 | 0 |
| Cash from Financing | -703.44M | -635.73M | -232.26M | -424.47M | -1.18B | -317.06M | 39.91M | -162.19M | -90.88M | -37.13M | 141.43M | -40.04M |
| Debt Issued (Net) | 1.86B | 978.72M | 7.52M | -33.41M | -82.6M | -112.35M | 85.61M | -13.46M | -4.78M | 5.86M | 156.24M | -4.34M |
| Equity Issued (Net) | -1.82B | -962.87M | -165M | -100M | 0 | -162.66M | 2.63M | -81.12M | 1.95M | 3.04M | 20.86M | 1.07M |
| Dividends Paid | -714.63M | -640.74M | -67.26M | -296.59M | -1.1B | -36.41M | -37.25M | -37.43M | -37.24M | -36.85M | -36.56M | -36.34M |
| Share Repurchases | -1.71B | -866.8M | -165M | -100M | -2.88M | -165.63M | 0 | -83.44M | 0 | 0 | 0 | 0 |
| Other Financing | -22.25M | -10.85M | -7.53M | 5.52M | -2.88M | -5.64M | -11.08M | -30.18M | -50.8M | -9.16M | 893K | -419K |
| Net Change in Cash | 1.1B | 507.88M | 289.72M | 55.27M | -694.11M | -327.27M | 371.65M | -77.01M | 29.76M | -74.28M | 173.96M | -9.21M |
| Free Cash Flow | 1.75B | 1.16B | 508.46M | 419.75M | 489.32M | 139.37M | 292.21M | 51.9M | 154.44M | 71.88M | 26.72M | 29.54M |
| FCF Margin % | 34.56% | 24.47% | 18.13% | 25.06% | 42.92% | 12.73% | 29.99% | 5.4% | 16.6% | 8.97% | 3.66% | 4.48% |
| FCF Growth % | 138.89% | 127.89% | 21.13% | -14.22% | 251.11% | -52.31% | 463.05% | -66.4% | 114.87% | 169.03% | -9.57% | - |
| FCF per Share | 8.99 | 5.97 | 2.96 | 5.07 | 5.88 | 1.68 | 3.51 | 0.58 | 1.74 | 0.92 | 0.34 | 0.39 |
| FCF Conversion (FCF/Net Income) | 4.54x | 6.58x | 62.01x | -13.30x | 1.30x | 1.01x | 2.43x | 1.57x | 1.87x | 2.96x | 1.67x | 2.05x |
| Interest Paid | 114.14M | 0 | 267.51M | 226.5M | 118.31M | 0 | 103M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 35.38M | 0 | 89.02M | 23.2M | 14.79M | 0 | 10.18M | 0 | 0 | 0 | 0 | 0 |
Regulatory Athlete Labor Exposure
As reported in recent financial filings, TKO's operating cash flow to net income ratio reached 2.80 in 2026Q1, illustrating a consistent trend where cash generation significantly exceeds accounting profits due to substantial non-cash depreciation and amortization charges inherent in the company's post-merger asset-heavy business model.
The persistent divergence between net income and operating cash flow suggests that TKO's reported earnings are heavily suppressed by merger-related accounting adjustments. Investors should interpret this as a sign that the underlying business is far more cash-generative than the headline net income figures imply, provided that these non-cash charges do not mask future capital replacement needs.
Based on TKO's quarterly data, the free cash flow margin has demonstrated a strong upward trajectory, peaking at 42.2% in 2026Q1, which indicates that the company is successfully converting its high-margin media rights revenue into substantial liquidity while managing its operational cost base effectively.
The expansion of FCF margins appears to be driven by the successful integration of UFC and WWE commercial operations, allowing for greater scale without proportional increases in capital expenditure. This trend warrants further investigation into whether this margin profile is sustainable or if it reflects the timing of lumpy media rights payments.
According to recent SEC filings, TKO maintains a disciplined capital expenditure profile with CapEx as a percentage of revenue remaining low at 1.3% in 2026Q1, suggesting that the company's primary value is derived from intellectual property rather than heavy investment in physical infrastructure or manufacturing assets.
The minimal capital intensity of the business model supports the thesis that TKO functions more as a global content platform than a traditional industrial entity. This low requirement for maintenance CapEx provides management with significant flexibility to allocate cash toward debt reduction or strategic acquisitions.
Financial statements indicate that TKO's working capital changes have been a consistent source of cash, with a positive contribution of $236.2 million in 2026Q1, reflecting the company's ability to collect media rights and sponsorship payments well in advance of the associated event production costs.
This favorable working capital cycle appears to be a structural advantage of the sports-media model, where broadcasters and sponsors provide upfront capital. Investors should monitor this closely, as any shift in payment terms or a slowdown in sponsorship renewals could lead to a rapid reversal of this cash inflow.
As evidenced by the $838.3 million in share repurchases during 2026Q1, TKO is aggressively utilizing its robust free cash flow to return capital to shareholders, while simultaneously balancing these outflows with ongoing dividend payments and strategic investments in the company's core sports entertainment ecosystem.
The scale of recent share repurchases suggests that management views the current equity valuation as attractive relative to the company's long-term cash-generating potential. However, the combination of dividends and buybacks warrants monitoring to ensure that these capital returns do not compromise the company's ability to fund future IP acquisitions.
Quick answers to the most common questions about buying TKO stock.
TKO Group Holdings, Inc. (TKO) generated $1.29B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TKO Group Holdings, Inc. (TKO) generated $1.16B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
TKO Group Holdings, Inc. (TKO) spent $127.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, TKO Group Holdings, Inc. (TKO) returned $640.7M to shareholders via cash dividends and spent $866.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.