TKO Group Holdings Reports 10% Revenue Growth to $1.308 Billion in Q2 2025

TKO Group Holdings, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenue reaching $1.308 billion, a 10% rise from $1.193 billion in the same period last year. The company’s net income attributable to TKO Group Holdings was $98.4 million, compared to $59.1 million in the prior year, reflecting a notable recovery in profitability. For the first half of 2025, revenue totaled $2.577 billion, up from $2.416 billion in the first half of 2024, while net income attributable to TKO increased to $156.8 million from a loss of $44.7 million.

The financial results were bolstered by strong performances across TKO's segments, particularly WWE, which saw a 22% increase in revenue to $556.1 million, driven by higher ticket sales from major events like WrestleMania 41 and increased media rights fees. UFC also contributed positively, with a 5% revenue increase to $415.8 million, primarily due to higher partnerships revenue and media rights fees. However, the IMG segment experienced a 4% decline in revenue to $306.6 million, attributed to reduced media rights revenue following the loss of certain rights.

In terms of operational metrics, TKO's total assets increased to $15.34 billion as of June 30, 2025, compared to $15.11 billion at the end of 2024. The company’s cash and cash equivalents stood at $535.1 million, down from $619.8 million, while accounts receivable rose significantly to $633.5 million from $423.0 million, indicating improved sales and collection efforts. The company also reported a decrease in direct operating costs, which fell by 19% to $476.4 million for the quarter, reflecting cost management initiatives and the impact of the Endeavor Asset Acquisition.

Strategically, TKO completed the Endeavor Asset Acquisition on February 28, 2025, acquiring the IMG business and related assets for approximately $3.25 billion. This acquisition has been accounted for as a common control transaction, allowing TKO to integrate IMG's operations into its financials. The company has also initiated a share repurchase program of up to $2 billion and declared quarterly dividends of $0.38 per share, reflecting its commitment to returning value to shareholders.

Looking ahead, TKO anticipates continued growth driven by its diversified revenue streams and strategic initiatives. The company expects to leverage its expanded portfolio, including the newly acquired IMG business, to enhance its market position and capitalize on emerging opportunities in the sports and entertainment sectors. However, TKO remains cautious of potential market fluctuations and competitive pressures that could impact its future performance.