Revenue growth accelerated to 25.9% in 2026Q1, while operating margins reached 21.2% as the company successfully integrated its core sports entertainment assets.
| Sales/Revenue | 5.06B | 4.74B | 2.8B | 1.67B | 1.14B | 1.1B | 974.21M | 960.44M | 930.16M | 800.96M | 729.22M | 658.77M |
| Revenue Growth % | 33.76% | 68.85% | 67.43% | 46.91% | 4.11% | 12.42% | 1.43% | 3.26% | 16.13% | 9.84% | 10.69% | - |
| Cost of Goods Sold | 1.72B | 2.39B | 1.29B | 679.21M | 385.62M | 649.08M | 592.1M | 672.33M | 634.25M | 559.1M | 453.62M | 419.59M |
| COGS % of Revenue | - | 50.43% | 46.1% | 40.55% | 33.82% | 59.27% | 60.78% | 70% | 68.19% | 69.8% | 62.21% | 63.69% |
| Gross Profit | 1.75B | 2.35B | 1.51B | 995.75M | 754.53M | 446.1M | 382.11M | 288.12M | 295.91M | 241.86M | 275.6M | 239.18M |
| Gross Margin % | 34.49% | 49.57% | 53.9% | 59.45% | 66.18% | 40.73% | 39.22% | 30% | 31.81% | 30.2% | 37.79% | 36.31% |
| Gross Profit Growth % | - | 55.26% | 51.81% | 31.97% | 69.14% | 16.75% | 32.62% | -2.63% | 22.35% | -12.24% | 15.22% | - |
| Operating Expenses | 2.33B | 1.39B | 736.64M | 409.56M | 209.39M | 190.08M | 173.57M | 171.61M | 181.43M | 160.81M | 219.13M | 192.77M |
| OpEx % of Revenue | - | 29.27% | 26.27% | 24.45% | 18.37% | 17.36% | 17.82% | 17.87% | 19.51% | 20.08% | 30.05% | 29.26% |
| Selling, General & Admin | 1.51B | 1.58B | 736.64M | 409.56M | 209.39M | 190.08M | 173.57M | 171.61M | 181.43M | 160.81M | 219.13M | 192.77M |
| SG&A % of Revenue | - | 33.32% | 26.27% | 24.45% | 18.37% | 17.36% | 17.82% | 17.87% | 19.51% | 20.08% | 30.05% | 29.26% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | -192.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.01B | 961.25M | 774.98M | 586.19M | 545.14M | 256.02M | 208.54M | 116.51M | 114.48M | 81.05M | 56.46M | 46.41M |
| Operating Margin % | 20.04% | 20.3% | 27.63% | 35% | 47.81% | 23.38% | 21.41% | 12.13% | 12.31% | 10.12% | 7.74% | 7.04% |
| Operating Income Growth % | - | 24.04% | 32.21% | 7.53% | 112.93% | 22.76% | 78.99% | 1.77% | 41.24% | 43.54% | 21.67% | - |
| EBITDA | 1.54B | 1.45B | 1.17B | 750.81M | 605.17M | 333.94M | 294.73M | 199.79M | 184.63M | 146.12M | 118.48M | 107.03M |
| EBITDA Margin % | 30.47% | 30.54% | 41.64% | 44.83% | 53.08% | 30.49% | 30.25% | 20.8% | 19.85% | 18.24% | 16.25% | 16.25% |
| EBITDA Growth % | 40.25% | 23.84% | 55.54% | 24.07% | 81.22% | 13.3% | 47.52% | 8.21% | 26.36% | 23.33% | 10.7% | - |
| D&A (Non-Cash Add-back) | 528.25M | 484.99M | 392.84M | 164.62M | 60.03M | 77.92M | 86.19M | 83.28M | 70.16M | 65.07M | 62.02M | 60.62M |
| EBIT | 583.97M | 822.78M | 283.46M | 446.48M | 543.12M | 263.47M | 206.71M | 120.8M | 121.44M | 78.8M | 56.23M | 38.59M |
| Net Interest Income | -97.36M | -202.72M | -249.12M | -239.04M | -139.57M | -33.22M | -33.78M | -21.39M | -10.9M | -12.73M | -628K | -575K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 395K | 1.82M | 4.73M | 4.51M | 2.01M | 2.39M | 1.79M |
| Interest Expense | 97.36M | 202.72M | 249.12M | 239.04M | 139.57M | 33.61M | 35.6M | 26.12M | 15.4M | 14.74M | 3.02M | 2.37M |
| Other Income/Expense | -299.12M | -341.19M | -742.9M | -379.02M | -141.8M | -26.16M | -37.44M | -21.83M | -8.44M | -16.99M | -3.25M | -10.18M |
| Pretax Income | 715.52M | 620.06M | 32.08M | 207.17M | 403.34M | 229.86M | 171.11M | 94.68M | 106.04M | 64.06M | 53.21M | 36.23M |
| Pretax Margin % | 14.13% | 13.09% | 1.14% | 12.37% | 35.38% | 20.99% | 17.56% | 9.86% | 11.4% | 8% | 7.3% | 5.5% |
| Income Tax | 86.59M | 73.77M | 25.71M | 31.45M | 14.32M | 52.45M | 39.34M | 17.62M | 6.45M | 31.42M | 19.37M | 12.08M |
| Effective Tax Rate % | 12.1% | 11.9% | 80.12% | 15.18% | 3.55% | 22.82% | 22.99% | 18.61% | 6.08% | 49.05% | 36.4% | 33.35% |
| Net Income | 385.19M | 195.4M | 9.41M | -35.23M | 387.27M | 177.41M | 131.77M | 77.06M | 99.59M | 32.64M | 33.84M | 24.14M |
| Net Margin % | 7.61% | 4.13% | 0.34% | -2.1% | 33.97% | 16.2% | 13.53% | 8.02% | 10.71% | 4.08% | 4.64% | 3.67% |
| Net Income Growth % | 124.43% | 1976.99% | 126.71% | -109.1% | 118.3% | 34.63% | 71% | -22.62% | 205.11% | -3.55% | 40.16% | - |
| Net Income (Continuing) | 628.93M | 546.29M | 6.38M | 175.72M | 389.02M | 273.63M | 131.77M | 77.06M | 99.59M | 32.64M | 33.84M | 24.14M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.15B | 5.51B | 4.63B | 4.74B | 9.91M | 9.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.98 | 2.26 | 0.05 | -0.43 | 4.66 | 2.09 | 2.13 | 0.85 | 1.12 | 0.42 | 0.44 | 0.32 |
| EPS Growth % | 45.97% | 4031.63% | 112.72% | -109.23% | 122.97% | -1.88% | 150.59% | -24.11% | 166.67% | -4.55% | 37.5% | - |
| EPS (Basic) | - | 2.42 | 0.12 | -0.43 | 4.66 | 2.32 | 2.13 | 0.99 | 1.28 | 0.43 | 0.44 | 0.32 |
| Diluted Shares Outstanding | 194.63M | 194.01M | 171.88M | 82.81M | 83.16M | 83.16M | 83.16M | 90.23M | 88.62M | 78.47M | 77.54M | 76.33M |
| Basic Shares Outstanding | 77.33M | 80.82M | 81.34M | 82.81M | 83.16M | 83.16M | 83.16M | 78.16M | 77.54M | 76.74M | 76.15M | 75.7M |
| Dividend Payout Ratio | - | 327.9% | 714.88% | - | 282.98% | 20.52% | 28.27% | 48.57% | 37.4% | 112.91% | 108.05% | 150.53% |
Regulatory Athlete Labor Exposure
According to recent financial disclosures, TKO achieved a significant revenue growth rate of 25.9% in 2026Q1, reflecting the successful consolidation of UFC and WWE assets into a unified media powerhouse that continues to capitalize on high-demand live sports content across global distribution channels.
The acceleration in top-line performance suggests that the company is effectively leveraging its combined intellectual property to command premium pricing in media rights renewals. Investors should monitor whether this growth trajectory remains sustainable as the initial benefits of the merger integration begin to normalize against more difficult year-over-year comparisons.
As reported in quarterly filings, TKO's gross margin profile has exhibited notable fluctuations, ranging from 40.5% to 56.0% over the last ten quarters, which highlights the inherent sensitivity of the business model to event production costs and the timing of high-margin media rights recognition.
The variability in gross margins appears to be driven by the lumpy nature of live event staging and the amortization of acquired intangible assets. While the company demonstrates strong pricing power, the inconsistency in margin performance warrants further investigation into the underlying cost-to-serve for its diverse portfolio of combat and entertainment properties.
Based on TKO's reported figures, the company demonstrated improved operating efficiency in 2026Q1 with an operating margin of 21.2%, suggesting that management is successfully extracting synergies and scaling corporate overhead more effectively than in the immediate post-merger periods where margins were significantly more compressed.
The ability to expand operating margins while maintaining high revenue growth indicates that the company is beginning to realize the benefits of its shared-service model. However, analysts should remain cautious, as the current operating leverage may be temporarily inflated by the timing of corporate expense recognition and potential cost-cutting initiatives.
Financial statements indicate that TKO's net income has experienced significant volatility, including a net margin of 15.5% in 2026Q1, which appears heavily influenced by non-operating items and merger-related accounting adjustments that obscure the underlying cash-generating capability of the core sports entertainment business.
The disparity between operating income and net income suggests that interest expenses and tax profile anomalies continue to weigh on the bottom line. Investors should look past the headline EPS figures to evaluate the company's true earnings power, as non-cash charges related to the merger likely distort the reported profitability metrics.
While TKO currently enjoys robust demand, the potential for increased athlete labor costs or legal challenges to existing contractor models, as noted in recent industry context, poses a material risk that could lead to a permanent step-up in variable costs and significant operating margin compression.
Short-term profitability gains may be masking long-term structural risks associated with the company's reliance on its current talent compensation framework. If regulatory or labor pressures force a shift toward a more traditional league-union model, the current margin structure may prove unsustainable, necessitating a re-evaluation of the company's long-term terminal value.
Quick answers to the most common questions about buying TKO stock.
For fiscal year 2025, TKO Group Holdings, Inc. (TKO) reported total revenue of $4.74B. This represents a 618.8% increase compared to $658.8M in 2015.
TKO Group Holdings, Inc. (TKO) is profitable, generating $195.4M in net income for the fiscal year ending 2025 with a net profit margin of 4.1%.
TKO Group Holdings, Inc. (TKO) reported an operating income of $961.3M, resulting in an operating profit margin of 20.3%. This margin reflects the operational efficiency of the business before interest and taxes.
TKO Group Holdings, Inc. (TKO) generated $2.35B in gross profit for the year, representing a gross profit margin of 49.6%. This demonstrates the company's core pricing power and production efficiency.