Q4 2025 TKO Group Holdings Inc Earnings Call Transcript
Key Points
- TKO Group Holdings Inc (TKO) signed two historic US media rights deals in 2025, including UFC's $7.7 billion deal with Paramount and WWE's $1.6 billion deal with ESPN.
- The company launched a capital return program, doubling its quarterly cash dividend and nearly completing $1 billion of share repurchases.
- TKO achieved over $450 million in global partnerships revenue in 2025, exceeding its target, and raised its 2030 partnerships revenue target from $1 billion to $1.2 billion.
- UFC 324's debut on Paramount+ drew nearly 5 million streaming views, becoming the largest exclusive live event in Paramount+ history.
- TKO's adjusted EBITDA margin increased to 33.5% in 2025, with WWE delivering over 50% margins for the first time.
- The White House UFC event is expected to cost upwards of $60 million, with only half of the cost expected to be offset by sellable inventory.
- IMG segment experienced a 9% decrease in revenue and a $4 million adjusted EBITDA loss in the fourth quarter of 2025.
- Live events and hospitality revenue for WWE decreased by 27% in the fourth quarter of 2025 due to the shift in timing of the Saudi PLE.
- The company faces a significant increase in cash tax payments in 2026 due to the absence of tax deductibility benefits from the UFC Antitrust Settlement payments.
- Zuffa Boxing is still in its early stages, with no viewership numbers yet available, and the financial impact remains uncertain.
Good afternoon. Thank you for attending the TKO fourth-quarter and full-year 2025 earnings call.
My name is [Cameron]. I'll be your moderator for today.
(Operator Instructions)
I would now like to pass the conference over to your host, Seth Zaslow, Head of Investor Relations. Please proceed.
Good afternoon and welcome to TKO's fourth-quarter and full-year 2025 earnings call.
A short while ago, we issued a press release, which you can view on our Investor Relations website. A recording of this call will also be available via our website for at least 30 days.
After prepared remarks from Ari Emanuel, TKO's Executive Chair and Chief Executive Officer; Mark Shapiro, TKO's President and Chief Operating Officer; and Andrew Schleimer, TKO's Chief Financial Officer, we will open the call for questions. Mark and Andrew will be handling the Q&A.
The purpose of this call is to provide you with information
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