TKO Group Holdings, Inc. (TKO)

Price$185.06Cached quoteAs of 2026-09-25 02:51 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth is already matched by a demanding valuation.

TKO closed at $202.31 on August 20, 2026. Using a roughly $36.5 billion equity value and June net debt near $4.04 billion gives an enterprise value around $40.5 billion. That is about 17.7 times the midpoint of management's 2026 adjusted operating-profit guidance of $2.29 billion, or roughly 26.6 times the $1.53 billion trailing reported EBITDA in the supplied history. Those prices can work if current growth persists, but they leave little traditional value-investor margin of safety.

Big pictureCash generation is improving, but event timing makes one strong half-year look better than normal.

Reported operating cash flow rose from $586 million in 2024 to $1.29 billion in 2025, while 2025 operating income recovered to $835 million from just $31 million. First-half 2026 free cash flow, meaning cash left after operating and capital spending, reached $1.02 billion. However, $604.8 million of first-half operating cash reflected World Cup customer prepayments held in escrow. Revenue also swings with major events: IMG's 2025 revenue fell sharply after the 2024 Paris Olympics, while the 2026 World Cup is now providing a temporary boost.

Business strengthPremium media rights support durable earnings, while rising debt weakens the balance-sheet cushion.

First-half 2026 revenue grew about 22% from the comparable supplied figures, and second-quarter revenue rose 18%, helped by higher UFC and WWE media-rights income. Management consequently raised full-year revenue guidance to $5.775-$5.825 billion and adjusted operating-profit guidance to $2.275-$2.305 billion. The balance sheet is less comfortable: gross debt reached $4.66 billion and net debt about $4.04 billion in June, versus $2.93 billion net debt at 2025 year-end. Goodwill of $8.45 billion also greatly exceeds $3.40 billion of stockholders' equity.

What could change the storyFurther upside needs sustained growth and disciplined buybacks; weaker cash conversion would quickly hurt value.

TKO spent about $968 million on share repurchases in the first half of 2026 and another $117 million on dividends, while stock compensation was about $80 million. The completed $800 million accelerated buyback retired 4.17 million shares at roughly $192 each, below today's price, but management had explicitly planned to fund much of the program with incremental debt; first-quarter borrowings were $900 million. The bull case needs media-rights growth and post-World-Cup cash generation to support debt reduction. Persistent free cash flow below roughly $1.4-$1.6 billion would make today's valuation much harder to defend.

AI: News

Guidance RaisedStrong second-quarter growth led TKO to raise its 2026 outlook, supporting higher long-term earnings expectations.

On August 3, 2026, TKO reported second-quarter revenue of $1.547 billion, up 18%, and adjusted EBITDA of $649.9 million, up 23%. It raised full-year revenue guidance to $5.775-$5.825 billion and adjusted EBITDA guidance to $2.275-$2.305 billion. Because results arrived after the August 3 close, August 4 provides the nearest market reaction: shares opened about 5% higher but finished only 0.3% above the prior close. The initial jump is consistent with enthusiasm, although broader trading can also affect the price.

Large Buyback CompletedTKO retired more shares through an $800 million buyback, but financed capital returns partly with added debt.

On June 30, 2026, TKO announced completion of an $800 million accelerated repurchase covering 4,167,298 shares. Combined with its separate trading plan, first-half repurchases reached roughly $968 million, and management later said slightly more than $1 billion remained under its authorization. Retiring shares can increase each remaining investor's claim on future earnings, especially when purchases occur below today's price. The offset is leverage: management previously said these repurchases would be funded primarily with incremental debt and cash, reducing downside protection.

World Cup Sales SurgeRecord World Cup hospitality demand strengthened TKO's 2026 results, though much of the benefit is event-specific.

On May 28, 2026, TKO said On Location's World Cup hospitality program had already generated more revenue than any previous World Cup program, with over half a million packages allocated. By March 31, sales revenue had more than doubled that of any prior World Cup hospitality program. The event subsequently helped IMG's second-quarter revenue rise 16%. This improves 2026 earnings and cash expectations, but investors should not treat all of that revenue as recurring because the World Cup is a periodic event.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$4.74B	$4.88B	$3.22B	$1.14B	$1.03B
Operating expenses	$3.90B	$4.85B	$2.85B	$595.8M	$640.8M
Operating income	$835.0M	$30.9M	$375.8M	$544.4M	$391.1M
Operating margin	17.63%	0.63%	11.65%	47.75%	37.90%
EBITDA	$1.32B	$488.9M	$599.8M	$604.4M	$454.4M
EBITDA margin	27.88%	10.01%	18.60%	53.01%	44.03%
Net income	$195.4M	$9.4M	−$35.2M	$389.0M	$273.6M
Net profit margin	4.13%	0.19%	−1.09%	34.12%	26.52%
Basic EPSper basic share	$2.42	$0.12	-$0.43	$0.00	—
Diluted EPSper diluted share	$2.26	$0.02	-$0.43	$0.00	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈8.05%of listed shares

Silver Lake West VoteCo, L.L.C. / Durban Egon5.98M shares · Jun 3, 2025

View holders

Top 20 reported holders of TKO
Holder	% owned
Silver Lake West VoteCo, L.L.C. / Durban Egon	≈8.05%5.98M shares
Endeavor Group Holdings, Inc.	≈8.05%5.98M shares
BlackRock, Inc.	7.63%5.67M shares
MORGAN STANLEY	6.33%4.7M shares
STATE STREET CORP	6.23%4.63M shares
VANGUARD CAPITAL MANAGEMENT LLC	5.40%4.01M shares
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	5.02%3.73M shares
Ninety One UK Ltd	4.22%3.14M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.10%3.05M shares
PRICE T ROWE ASSOCIATES INC /MD/	3.55%2.64M shares
XN LP	3.35%2.49M shares
Lindsell Train Ltd	2.82%2.1M shares
BANK OF AMERICA CORP /DE/	2.81%2.09M shares
GEODE CAPITAL MANAGEMENT, LLC	2.33%1.73M shares
Invesco Ltd.	2.15%1.6M shares
UBS Group AG	1.84%1.37M shares
DARLINGTON PARTNERS CAPITAL MANAGEMENT, LP	1.82%1.35M shares
Clearbridge Investments, LLC	1.74%1.29M shares
FMR LLC	1.11%821.84K shares
AMERICAN CENTURY COMPANIES INC	1.06%786.02K shares

Percentages use 74.33M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys314$1.93B disclosed value

Sells (SEC code S)124$79.47M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 12, 2026Form 4 · 10b5-1	Khan NickDirector	SellClass A Common Stock	200	$216.06	$43.2K	81.5K
Jun 12, 2026Form 4 · 10b5-1	Khan NickDirector	SellClass A Common Stock	100	$214.93	$21.5K	81.7K
Jun 12, 2026Form 4 · 10b5-1	Khan NickDirector	SellClass A Common Stock	200	$213.34	$42.7K	81.8K
Jun 12, 2026Form 4 · 10b5-1	Khan NickDirector	SellClass A Common Stock	300	$211.81	$63.5K	82.0K
Jun 12, 2026Form 4 · 10b5-1	Khan NickDirector	SellClass A Common Stock	1.4K	$211.25	$295.8K	82.3K