TKO Group Holdings raised its 2026 outlook after reporting $1.55 billion in revenue for the second quarter.
TKO’s second-quarter results show that revenue increased 18% from $1.31 billion in the same period last year. Net income rose by $30.8 million to $303.9 million.
Adjusted EBITDA increased 23% to $649.9 million. This measure is used by TKO to assess operating performance before interest, taxes, depreciation, and other company-selected adjustments. It is not the same as net income or cash generated by the business.
TKO now expects full-year revenue of between $5.775 billion and $5.825 billion, up from its previous range of $5.675 billion to $5.775 billion. Its adjusted EBITDA forecast increased from between $2.240 billion and $2.290 billion to a range of $2.275 billion to $2.305 billion.
WWE generated $620.9 million in revenue, a 12% increase from Q2 last year. Adjusted EBITDA also rose 12% to $368.3 million, while the segment’s margin remained at 59%.
Media rights, production and content revenue at WWE climbed by $80.8 million to $359.7 million, principally reflecting higher fees under its ESPN distribution agreement.
That growth offset a $33.7 million decline in live-events and hospitality revenue, which TKO attributed almost entirely to lower WrestleMania 42 ticket sales.
UFC revenue increased 29% to $535.7 million, helped by the Paramount media agreement and partnership income associated with UFC Freedom 250 at the White House. Adjusted EBITDA rose 15% to $280.4 million, although the segment’s margin fell from 59% to 52% because of the event’s financial profile.
IMG produced $354.7 million in revenue, up 16%, and $78.6 million in adjusted EBITDA. FIFA World Cup hospitality sales through On Location drove much of that improvement.
TKO’s quarterly filing also disclosed substantial legal expenses connected to WWE shareholder litigation. TKO excluded $71.1 million in certain legal costs from its adjusted EBITDA calculation for the quarter, including a $30 million expected loss and $25.6 million in professional fees associated with the merger case.
The company said it has returned more than $1.3 billion to equity holders during 2026 through share repurchases, dividends and related distributions. Slightly more than $1 billion remained available under its repurchase authorization as of Monday.
TKO reported $1.60 billion in revenue for Q1, bringing revenue for the first half of 2026 to $3.14 billion. Six-month adjusted EBITDA reached $1.20 billion.
