TKO Group Holdings 2025 Q2 Earnings Net Income Surges 491.3%

TKO Group Holdings (TKO) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The company raised full-year guidance, reflecting strong performance across its portfolio. The standout metric was net income, which jumped 491.3% year-over-year to $273.1 million, showcasing the company’s robust profitability and strategic momentum.

Revenue
TKO Group Holdings' total revenue grew by 9.7% to $1.31 billion in 2025 Q2, exceeding $1.19 billion in the prior year. The growth was driven by performance from UFC, WWE, and other segments. UFC revenue reached $415.9 million, up 5% year-over-year, while WWE revenue surged 22% to $556.2 million. IMG revenue declined slightly to $306.6 million, a 4% decrease from $319.6 million, but corporate and other revenue grew 9% to $44.6 million.

Earnings/Net Income
TKO's EPS soared 64.4% to $1.20 in 2025 Q2 compared to $0.73 in the prior year. This impressive gain was underpinned by a dramatic rise in net income to $273.1 million, a 491.3% increase from $46.18 million in 2024 Q2. The company recorded its highest net income for the fiscal second quarter in over two decades, demonstrating strong earnings growth and profitability.

Price Action
Following the earnings report, TKO's stock price declined in the short term. During the latest trading day, the share price fell 7.03%. Over the most recent full trading week, the stock dropped 7.27%, and for the month-to-date period, it fell 11.76%.

Post-Earnings Price Action Review
A strategy of buying TKO shares after its revenue increased quarter-over-quarter and holding for 30 days has historically delivered strong returns over the past three years. This strategy achieved a 66.34% return, outperforming the benchmark return of 38.56% by 27.78%. The compound annual growth rate (CAGR) was 32.56%, showcasing consistent growth. Despite a maximum drawdown of 0.00%, the strategy had a Sharpe ratio of 0.89, indicating robust risk-adjusted returns, though it exhibited high volatility of 36.71%.

CEO Commentary
Ariel Emanuel, Executive Chair and CEO of TKO, highlighted the company’s strong second-quarter performance, driven by record results at UFC and WWE. He emphasized the value of live content and experiences in the current sports event market and expressed optimism about TKO’s strategic positioning in the experience economy. Emanuel also mentioned the company's momentum across the portfolio, citing the decision to raise full-year guidance due to continued business performance and a positive outlook.

Guidance
TKO raised its full-year 2025 guidance, increasing revenue targets to a range of $4.630 billion to $4.690 billion and Adjusted EBITDA to a range of $1.540 billion to $1.560 billion. The company attributed this upward revision to ongoing momentum across its portfolio and a favorable business outlook.

Additional News
TKO completed the acquisition of businesses operating under the IMG brand, On Location, and Professional Bull Riders (PBR) on February 28, 2025, for $3.25 billion in an equity transaction. These acquisitions are being integrated into TKO’s operations. In a separate development, TKO announced a share repurchase program of up to $2.0 billion, expected to begin in Q3 2025 and conclude in three to four years. Additionally, the company announced a quarterly cash dividend program, with the first dividend of approximately $75 million paid on March 31, 2025.

TKO also reached a $375.0 million settlement for the Le UFC antitrust lawsuit in September 2024, with three equal installments paid through June 2025. These developments reflect TKO’s strategic focus on capital return and its proactive approach to managing legal matters, both of which support long-term value creation for shareholders.