Revenue surged 68.85% year-over-year post-merger, with gross margin expanding from 40.5% to 64.1% and operating margin reaching 27.8% in Q2 2026, though net margin remains thin at 6.6% due to non-operating charges.
TKO Group Holdings, Inc. (TKO) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 5.3B | 4.74B | 2.8B | 1.67B | 1.14B | 1.1B | 974.21M | 960.44M | 930.16M | 800.96M | 729.22M | 658.77M |
| Revenue Growth % | 11.38% | 68.85% | 67.43% | 46.91% | 4.11% | 12.42% | 1.43% | 3.26% | 16.13% | 9.84% | 10.69% | - |
| Cost of Goods Sold | 2.43B | 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 | 2.87B | 2.35B | 1.51B | 995.75M | 754.53M | 446.1M | 382.11M | 288.12M | 295.91M | 241.86M | 275.6M | 239.18M |
| Gross Margin % | 54.08% | 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 | 1.81B | 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 | 1.63B | 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 | 0 | -192.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.06B | 961.25M | 774.98M | 586.19M | 545.14M | 256.02M | 208.54M | 116.51M | 114.48M | 81.05M | 56.46M | 46.41M |
| Operating Margin % | 19.95% | 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 | 1.59B | 1.45B | 1.17B | 750.81M | 605.17M | 333.94M | 294.73M | 199.79M | 184.63M | 146.12M | 118.48M | 107.03M |
| EBITDA Margin % | 30.03% | 30.54% | 41.64% | 44.83% | 53.08% | 30.49% | 30.25% | 20.8% | 19.85% | 18.24% | 16.25% | 16.25% |
| EBITDA Growth % | 30.9% | 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) | 534.07M | 484.99M | 392.84M | 164.62M | 60.03M | 77.92M | 86.19M | 83.28M | 70.16M | 65.07M | 62.02M | 60.62M |
| EBIT | 994M | 822.78M | 283.46M | 446.48M | 543.12M | 256.02M | 206.71M | 120.8M | 121.44M | 78.8M | 56.23M | 38.59M |
| Net Interest Income | -119.77M | -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 | 119.77M | 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 | -303.16M | -341.19M | -742.9M | -379.02M | -141.8M | -26.16M | -37.44M | -21.83M | -8.44M | -16.99M | -3.25M | -10.18M |
| Pretax Income | 754.7M | 620.06M | 32.08M | 207.17M | 403.34M | 229.86M | 171.11M | 94.68M | 106.04M | 64.06M | 53.21M | 36.23M |
| Pretax Margin % | 14.23% | 13.09% | 1.14% | 12.37% | 35.38% | 20.99% | 17.56% | 9.86% | 11.4% | 8% | 7.3% | 5.5% |
| Income Tax | 93.33M | 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 % | 12.37% | 11.9% | 80.12% | 15.18% | 3.55% | 22.82% | 22.99% | 18.61% | 6.08% | 49.05% | 36.4% | 33.35% |
| Net Income | 229.56M | 195.4M | 9.41M | -35.23M | 387.27M | 177.41M | 131.77M | 77.06M | 99.59M | 32.64M | 33.84M | 24.14M |
| Net Margin % | 4.33% | 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 % | 8.85% | 1976.99% | 126.71% | -109.1% | 118.3% | 34.63% | 71% | -22.62% | 205.11% | -3.55% | 40.16% | - |
| Net Income (Continuing) | 661.36M | 546.29M | 6.38M | 175.72M | 389.02M | 177.41M | 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 | 4.97B | 5.51B | 4.63B | 4.74B | 9.91M | 9.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.18 | 2.26 | 0.05 | -0.43 | 4.66 | 2.09 | 2.13 | 0.85 | 1.12 | 0.42 | 0.44 | 0.32 |
| EPS Growth % | 24.99% | 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 | 74.8M | 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% | - | - | 282.98% | 151.67% | 237.01% | 48.57% | 37.4% | 112.91% | 108.05% | 150.53% |
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.
Key Metrics
Top Statement Risk
High leverage and labor costs
Metrics are mathematically derived from official filings.
Merger-Driven Revenue Surge
TKO's revenue jumped 68.85% year-over-year, but this reflects the UFC-WWE merger rather than organic growth. Recent quarters show 18-26% growth, suggesting underlying momentum. According to the latest income statement data, revenue reached $1.5B in Q2 2026.
The reported revenue growth is heavily influenced by the merger, making organic comparisons difficult. However, the sequential progression from $642M in Q4 2024 to $1.5B in Q2 2026 indicates that the combined entity is generating substantial top-line expansion. The growth appears driven by media rights renewals and the shift to streaming, which may provide durability. Investors should monitor whether this pace can be sustained without further acquisitions.
Gross Margin Expansion Signals Pricing Power
Gross margin improved from 40.5% in Q1 2024 to 64.1% in Q2 2026, indicating strong pricing power and cost efficiencies. This suggests TKO is leveraging its content library and distribution deals effectively. Based on reported figures, the margin expansion is a key positive.
The gross margin trend is striking, with a low of 34.3% in Q3 2024 and a high of 64.1% in Q2 2026. This improvement likely reflects the mix shift toward higher-margin media rights and sponsorship revenue, as well as integration synergies. However, the volatility in margins across quarters suggests that event timing and one-time costs can cause fluctuations. The structural drivers appear favorable, but investors should watch for potential compression from rising talent costs.
Operating Leverage Emerging Post-Merger
Operating income scaled from $34.6M in Q3 2024 to $429.8M in Q2 2026, with operating margin expanding from 2.2% to 27.8%. This indicates significant operating leverage as revenue grows faster than fixed costs. As reported in the income statement, SG&A has not grown proportionally.
The operating margin trajectory shows a clear upward trend, with notable improvement in recent quarters. SG&A expenses have increased but at a slower pace than revenue, suggesting that the company is benefiting from scale and cost synergies. The Q4 2025 dip to 8.9% operating margin appears to be an anomaly, possibly due to one-time charges. If the company can maintain this leverage, it could drive substantial earnings growth.
Net Income Suppressed by Non-Operating Items
Despite strong operating income, net margin remains low at 6.6% in Q2 2026, with net income of $101.6M. This gap suggests significant interest expense or non-cash charges. According to the financial statements, net income has been volatile, including a loss in Q1 2024.
The divergence between operating and net income is notable, with net margins consistently below operating margins by a wide margin. This indicates that interest expense, taxes, or other non-operating items are absorbing a large portion of operating profits. The company's substantial debt load (~$9B) likely drives high interest costs, which may limit bottom-line growth. Investors should monitor the company's ability to deleverage and reduce interest burden.
COGS and SG&A Drive Cost Structure
COGS and SG&A are the primary cost lines, with COGS ranging from $556M to $1B quarterly. SG&A has grown from $313M to $462M, reflecting integration and expansion costs. Based on reported data, cost discipline appears improving as revenue scales.
The cost structure is dominated by COGS, which includes event production and content amortization. The gross margin improvement suggests that COGS is not growing proportionally with revenue, likely due to fixed-cost leverage. SG&A has increased but at a slower rate, indicating management is controlling overhead. However, the rise in SG&A in Q2 2026 to $462.6M warrants attention, as it may include one-time integration costs. Overall, cost management appears effective, but the low net margin highlights the impact of financing costs.
Leverage and Labor Risks Cloud Outlook
The substantial debt load (~$9B) and potential for increased athlete costs pose significant risks to margins. Despite strong revenue growth, net income remains thin, and any rise in interest rates or labor expenses could compress profitability. As reported, EBIT declined recently, signaling caution.
Short-sellers would likely focus on the high leverage and the potential for labor cost inflation. The company's net margin of 6.6% is far below its operating margin, indicating that interest costs are a major drag. Additionally, legal challenges to fighter contracts could lead to higher variable costs, permanently reducing margins. The recent decline in EBIT, despite revenue growth, suggests that cost pressures may be emerging. Investors should monitor these risks closely, as they could undermine the positive operating leverage story.