The UFC‘s new licensing deal with Paramount Skydance helped boost TKO‘s first quarter earnings as the pact with Paramount+ kicked in at the start of the year.
TKO saw revenue for the quarter grow 26% year over year to $1.6 billion, while adjust earnings before interest, taxes depreciation and amortization grew 32% to $549.8 billion. That was fueled by a $51.2 million increase for UFC as the new seven-year, $7.7 billion deal with Paramount began for the MMA league.
“TKO’s first quarter results reflect the strength and durability of our premium IP. Our media rights portfolio is firmly in place, our financial incentive packages continue to scale, and demand for our premium live events and experiences is healthy,” said Mark Shapiro, TKO’s president and COO. “With UFC Freedom 250 at the White House and On Location’s FIFA World Cup partnership, TKO will take center stage this summer, crowning moments for audience growth, cultural relevance and our business trajectory.”
The momentum at the start of the year prompted TKO to affirm its full-year financial targets
for revenue of $5.675 billion to $5.775 billion and adjusted EBITDA of $2.240 billion to $2.290 billion. The board has also authorized another $1 billion in stock buybacks, on top of a $2 billion program authorized last year.
“TKO is off to a formidable start in 2026, with strong results and continued momentum across each of our businesses,” said Ariel Emanuel, executive chair and CEO of TKO. “We are reaffirming our full-year
guidance, and today’s incremental $1 billion share repurchase authorization underscores our conviction
in TKO and its long-term value.”
UFC revenue increased in the quarter despite the fact that the league had two more events in Q1 2025 because of a quirk of the calendar. Despite the dip, UFC revenue grew 12%, or $41.5 million, to $401.2 million while adjusted EBITDA increased 12%, or $27.1 million, to $254.5 million.
WWE saw revenue spike 22%, or $84.2 million, to $475.7 million, powered by a $47.2 million increase in live events and hospitality revenue, a $30.1 million increase in media rights, production and content revenue and a $6.3 million increase in consumer products licensing and other revenue. Adjusted EBITDA increased 32%, or $62.2 million, to $256.1 million.
At the IMG unit that houses the On Location event hospitality business, the Milan-Cortina Winter Olympics drove a 38% increase in revenue to $655.4 million. Adjusted EBITDA increased 32%, or $23.8 million, to $97.3 million.
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