TKO Group Holdings just delivered another quarter that came in stronger than the company expected, and management is getting even more confident about where 2026 is heading. For the second quarter in a row, TKO has raised its full-year financial targets as revenue and profits continue climbing across the company.
On November 4, TKO released its third-quarter 2026 financial results, reporting $1.360 billion in revenue and $277.9 million in net income. Adjusted EBITDA came in at $555.7 million, while the company’s adjusted EBITDA margin increased from 32% to 41%.
The overall numbers were significantly higher than the same period last year. Revenue increased 21%, or $240.2 million, while net income jumped from $106.8 million to $277.9 million. UFC was one of the biggest drivers behind that growth. Revenue for the promotion increased by $194 million to $519.2 million, while adjusted EBITDA rose by $119.7 million to $285.3 million.
WWE’s numbers told a slightly different story. Revenue decreased by $2.8 million to $399.3 million, although WWE’s adjusted EBITDA actually increased by $9.4 million to $217.2 million during the quarter.
TKO’s IMG segment also had a strong quarter, with revenue increasing $54.6 million to $391.3 million. Adjusted EBITDA for the segment jumped $54.5 million to $115.9 million. Those results have given TKO enough confidence to raise its full-year expectations for the second quarter in a row. The company now expects 2026 revenue between $5.790 billion and $5.830 billion, while its adjusted EBITDA target has been increased to between $2.295 billion and $2.315 billion.
TKO President and COO Mark Shapiro made it clear that the upgraded guidance reflects the company’s confidence in its entire portfolio.
“Our third quarter performance reflects the secular tailwinds powering live events and experiences around the world, and TKO’s assets sit front and center of that premium ecosystem.”
Shapiro specifically pointed to the decision to raise the company’s full-year guidance for the second time this year as evidence of how executives currently view the business.
“As we close out what we’ve called our year of execution, our decision to raise full-year guidance for the second time this year is the clearest expression of our conviction across the entire portfolio.”
He also argued that TKO has plenty of stability moving forward, with much of its existing revenue already secured several years into the future.
“Our business is durable and our fundamentals are solid, with the vast majority of our existing revenues locked in for the next five to seven years. Macro trends are firmly in our favor, every facet of sports consumption is pointing north, and we see substantial runway ahead.”
TKO also generated $472.1 million from operating activities during the quarter and reported $449.9 million in free cash flow. As of September 30, the company had $630.9 million in cash and cash equivalents alongside $4.647 billion in gross debt.
Shareholders have also been seeing plenty of that money come back their way. After previously announcing quarterly dividend payments, TKO revealed that it has now returned more than $1.6 billion to equity holders during 2026 through share repurchases, dividends and related distributions.
The latest report paints a pretty clear picture of where TKO stands heading toward the end of 2026. WWE revenue slipped slightly during the quarter, but its adjusted EBITDA still grew, while major gains elsewhere helped TKO raise its expectations for the entire year yet again.
What do you make of TKO raising its 2026 financial targets for the second quarter in a row, especially with WWE revenue dipping while its adjusted EBITDA increased? Let us know what you think in the comments.
