TKO (TKO Group Holdings) Operating Income: $936 Mil (TTM As of Mar. 2026)

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TKO TKO Group Holdings Inc TKO
63 GF Score
Price $180.62
GF Value $134.00
Valuation Significantly Overvalued
! 6 Warning Signs
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What is TKO Group Holdings Operating Income?

TKO Group Holdings TKO +0.66% 63 Operating Income is $936 Mil as of Mar. 2026. GuruFocus rates TKO with a GF Score™ of 63/100 and a GF Value™ of $134.00 (Significantly Overvalued). The stock has 6 warning signs investors should review.

TKO Group Holdings's Operating Income for the three months ended in Mar. 2026 was $338 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $936 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. TKO Group Holdings's Operating Income for the three months ended in Mar. 2026 was $338 Mil. TKO Group Holdings's Revenue for the three months ended in Mar. 2026 was $1,597 Mil. Therefore, TKO Group Holdings's Operating Margin % for the quarter that ended in Mar. 2026 was 21.20%.

Warning Sign:

TKO Group Holdings Inc operating margin has been in a 5-year decline. The average rate of decline per year is -38.7%.

TKO Group Holdings's 5-Year average Growth Rate for Operating Margin % was -38.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. TKO Group Holdings's annualized ROC % for the quarter that ended in Mar. 2026 was 8.25%. TKO Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 146.76%.


TKO Group Holdings  (NYSE:TKO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

TKO Group Holdings's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1353.916 * ( 1 - 12.04% )/( (14260.923 + 14617.262)/ 2 )
=1190.9045136/14439.0925
=8.25 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=15495.821 - 753 - ( 831.1 - max(0, 1847.163 - 2329.061+831.1))
=14260.923

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=16022.802 - 662.815 - ( 788.891 - max(0, 2192.046 - 2934.771+788.891))
=14617.262

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

TKO Group Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1370.82/( ( (926.549 + max(-314.352, 0)) + (941.615 + max(-27.924, 0)) )/ 2 )
=1370.82/( ( 926.549 + 941.615 )/ 2 )
=1370.82/934.082
=146.76 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(558.277 + 57.126 + 838.958) - (753 + 996.565 + 19.148)
=-314.352

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(760.43 + 8.634 + 1303.826) - (662.815 + 1411.533 + 26.466)
=-27.924

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

TKO Group Holdings's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=338.479/1596.876
=21.20 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


TKO Group Holdings Operating Income Related Terms


TKO Group Holdings Operating Income Historical Data

* Premium members only.

The historical data trend for TKO Group Holdings's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

TKO Group Holdings Operating Income Chart

TKO Group Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial 391.14 544.39 397.31 30.95 835.02

TKO Group Holdings Quarterly Data
Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 237.36 368.31 171.96 57.38 338.48
TKO
63GF Score
TKO Group Holdings Inc TKO
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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TKO Group Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $936 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $936 Mil mean?
TKO Group Holdings (TKO) has a Operating Income of $936 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on TKO Group Holdings and its competitors.
Is TKO Group Holdings' Operating Income too high?
TKO Group Holdings' current Operating Income is $936 Mil. Overall, TKO Group Holdings has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TKO Group Holdings' Operating Income compare to NWSA and WMG?
TKO Group Holdings' Operating Income of $936 Mil can be compared against companies in the Media - Diversified industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Media - Diversified company?
A good Operating Income depends on the Media - Diversified industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on TKO Group Holdings and its competitors. TKO Group Holdings's current Operating Income is $936 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TKO Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, TKO Group Holdings (TKO) is currently considered Significantly Overvalued. The stock's GF Value™ is $134.00, compared to a current price of $180.62 — trading 34.8% above its estimated fair value. The current Operating Income is $936 Mil. TKO Group Holdings' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For TKO Group Holdings (TKO), the current Operating Income is $936 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is TKO Group Holdings (TKO) Overvalued in 2026?

Based on GuruFocus' analysis, TKO Group Holdings stock appears to be overvalued. The current stock price of $180.62 is trading 34.8% above its estimated GF Value™ of $134.00. GuruFocus considers TKO Group Holdings to be Significantly Overvalued.

Key valuation signals for TKO:

  • Operating Income: $936 Mil
  • GF Value™: $134.00 vs. price of $180.62 (34.8% above fair value)
  • GF Score™: 63/100 with 6 warning signs

No single metric tells the full story. See the TKO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


TKO Group Holdings Business Description

Other Exchanges TKO:Mexico
Address 200 fifth Avenue, 7th Floor, New York, NY, USA, 10010
TKO Group Holdings Inc is a sports and sports entertainment company that operates combat sports and sports entertainment companies. It owns and manages valuable sports and entertainment intellectual property. The company distributes content and monetizes its intellectual property through four activities: Media rights, production, and content, Live events and hospitality, Partnerships and marketing and Consumer products licensing, The company has two reportable segments, UFC and WWE. The company generates majority of revenue from the UFC segment. The UFC segment revenue consists of media rights fees associated with the distribution of its programming content, ticket sales, and site fees associated with the business's international live events.
63GF Score

Get the complete analysis for TKO

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$180.62
Price
$134.00
GF Value