TKO Group Holdings has officially released its third quarter 2025 earnings—and while total revenue fell 27% from Q2, WWE delivered a standout performance with major growth across live events, media, and partnerships.
According to the report, TKO generated $1.120 billion in total revenue for Q3, down from the previous quarter largely due to the absence of IMG’s Olympic-related revenue from last year. Despite the dip, net income rose to $106.8 million, and Adjusted EBITDA climbed 59% to $360.2 million. The company also raised its full-year projections, now targeting up to $4.72 billion in revenue and up to $1.58 billion in adjusted EBITDA. CEO Ariel Emanuel spoke confidently about the company’s future.
“TKO delivered solid third quarter financial results, and with UFC and WWE’s sustained momentum, we are once again raising our full-year guidance.”
He added that new rights deals and brand expansions—including UFC’s upcoming move to Paramount—are part of the broader vision to “maximize shareholder value.”
WWE: Red Hot in Q3
WWE posted $402.1 million in revenue, up 23% year-over-year. This was driven by:
- $31.4 million increase in live events and hospitality, fueled by the first-ever two-night SummerSlam and the debut of WrestlePalooza under WWE’s new ESPN deal
- $21.5 million jump in media rights and content revenue due to additional programming
- $18.2 million boost from new marketing partners and renewal fees
Adjusted EBITDA for WWE hit $207.8 million, up 19% from last year, despite higher costs from talent, production, and travel. WWE’s adjusted EBITDA margin dipped slightly to 52%.
UFC: Solid, But Down
UFC’s revenue dropped 8% to $325.2 million due to:
- Holding one fewer numbered event compared to the same period in 2024
- Comparisons to last year’s record-breaking UFC 306 at the Sphere in Las Vegas
- Slight declines in media rights, partnerships, and hospitality
Adjusted EBITDA for UFC fell 15% to $165.6 million, with margin slipping to 51%.
TKO attributed the lower UFC figures largely to timing and tough year-over-year comparisons rather than long-term concerns.
Cash & Debt Position
TKO ended Q3 with $861.4 million in cash and $3.759 billion in gross debt. Free cash flow hit $398.9 million, up from $151 million last year.
Despite the top-line revenue drop, the company’s overall profitability and margin growth are a strong indicator of how well WWE and UFC are performing under the TKO umbrella.
With WWE heating up and UFC expected to pick up steam heading into its Paramount debut, TKO appears confident in its upward trajectory.
Do you think WWE’s momentum can carry TKO into a record-breaking Q4? Or does UFC need to bounce back strong to balance the numbers? Sound off in the comments below.
