Financial Data and Key Metrics Changes - In 2025, the company generated revenue of $4.735 billion and Adjusted EBITDA of $1.585 billion, exceeding the upper end of the revised guidance range [18] - Adjusted EBITDA margin increased to 33.5% from just over 22% in 2024, reflecting a significant improvement in profitability [18] - For Q4 2025, revenue was $1.038 billion, a 12% increase year-over-year, while Adjusted EBITDA rose 30% to $281 million [19] Business Line Data and Key Metrics Changes - UFC revenue for Q4 2025 was $401 million, up 17% year-over-year, with an Adjusted EBITDA margin of 53% [20] - WWE generated $360 million in revenue for Q4 2025, a 21% increase, with an Adjusted EBITDA margin of 46% [22] - The IMG segment saw a revenue decrease of 9% to $248 million, with an Adjusted EBITDA loss of $4 million [25] Market Data and Key Metrics Changes - The company secured over $15 billion in long-term media rights agreements across its segments, enhancing revenue visibility and predictability [6][34] - The UFC's debut on Paramount+ drew nearly 5 million streaming views, marking it as the largest exclusive live event in Paramount+ history [9] Company Strategy and Development Direction - The company is focused on execution in 2026, emphasizing operational performance over M&A opportunities [5][73] - A capital return program was launched, including a quarterly cash dividend and share repurchase initiatives totaling up to $2 billion [5][31] - The company aims to achieve $1.2 billion in total partnerships revenue by 2030, reflecting strong growth potential in this area [10][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the content marketplace, citing strong demand for premium content and the potential for significant revenue growth [5][17] - The outlook for 2026 includes targeted revenue of $5.675 billion to $5.775 billion and Adjusted EBITDA of $2.24 billion to $2.29 billion, driven by new media rights deals and global partnerships [33][34] Other Important Information - The company plans to hold a significant event at the White House in June 2026, which is expected to cost upwards of $60 million but aims to generate substantial visibility and audience engagement [12][36] - The integration of IMG and On Location is expected to fuel growth in core IP and enhance the company's position in the sports and entertainment sector [15] Q&A Session All Questions and Answers Question: Advantages of partners bidding for WBD - Management refrained from commenting on the implications of partners bidding for WBD, emphasizing their strong relationships with both Paramount and Netflix [46][48] Question: Zuffa's strategy regarding the Conor Benn deal - Management clarified that the $15 million deal for Conor Benn is for one fight in 2026 and is financially backed by their partner Sela, not TKO directly [49][51] Question: ROI of the White House event - Management indicated that the White House event is seen as a long-term investment for visibility rather than immediate profit, with plans to offset costs through corporate partnerships [52][53] Question: 2026 guidance details - Management provided insights into expected revenue and Adjusted EBITDA growth, highlighting strong performance in UFC and WWE driven by new media rights and financial incentive packages [59][62] Question: Partnership growth opportunities - Management emphasized the growth potential in partnerships, noting that they exceeded their 2025 target and are on track to achieve their 2030 revenue goal [63][64] Question: M&A strategy and execution focus - Management reiterated that 2026 is a year of execution, focusing on operational performance rather than pursuing M&A opportunities [71][73]

Financial Data and Key Metrics Changes - In 2025, the company generated revenue of $4.735 billion and Adjusted EBITDA of $1.585 billion, exceeding the upper end of the revised guidance range [18] - Adjusted EBITDA margin increased to 33.5% from just over 22% in 2024, reflecting a significant improvement in profitability [18] - For Q4 2025, revenue was $1.038 billion, a 12% increase year-over-year, while Adjusted EBITDA rose 30% to $281 million [19] Business Line Data and Key Metrics Changes - UFC revenue for Q4 2025 was $401 million, up 17% year-over-year, with an Adjusted EBITDA margin of 53% [20] - WWE generated $360 million in revenue for Q4 2025, a 21% increase, with an Adjusted EBITDA margin of 46% [22] - The IMG segment saw a revenue decrease of 9% to $248 million, with an Adjusted EBITDA loss of $4 million [25] Market Data and Key Metrics Changes - The company secured over $15 billion in long-term media rights agreements across its segments, enhancing revenue visibility and predictability [6][35] - The UFC's debut on Paramount+ drew nearly 5 million streaming views, marking it as the largest exclusive live event in Paramount+ history [9] Company Strategy and Development Direction - The company is focused on execution in 2026, emphasizing operational performance over M&A opportunities [5][73] - A capital return program was launched, including a quarterly cash dividend and share repurchase initiatives totaling up to $2 billion [5][31] - The company aims to achieve $1.2 billion in total partnerships revenue by 2030, reflecting strong growth potential in this area [10][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the content marketplace and the potential for growth driven by new media rights deals [5][17] - The company anticipates revenue growth of 21% and Adjusted EBITDA growth of 43% for 2026, primarily due to new media rights agreements [33][62] Other Important Information - The company plans to hold a significant event at the White House, expected to cost upwards of $60 million, aimed at increasing brand visibility [12][52] - Financial incentive packages are expected to generate over $300 million in value in 2026, doubling previous amounts [14] Q&A Session Summary Question: Advantages of partners bidding for WBD - Management refrained from commenting on the implications of partners bidding for WBD, emphasizing their strong relationships with both Paramount and Netflix [46][48] Question: Zuffa's strategy regarding the Conor Benn deal - Management clarified that the $15 million deal for Conor Benn is for one fight and is financially backed by their partner Sela, not TKO [49][51] Question: ROI on the White House event - Management confirmed the event is an investment for visibility and audience expansion, expecting to offset half of the costs through partnerships [52][53] Question: 2026 guidance details - Management provided insights on expected revenue and Adjusted EBITDA growth, highlighting contributions from media rights and financial incentive packages [59][62] Question: Growth opportunities in partnerships - Management noted the potential for continued growth in partnerships, emphasizing the appeal of their audience to marketers [63][64] Question: Execution focus for 2026 - Management reiterated that 2026 is a year of execution, focusing on operational performance rather than pursuing M&A opportunities [73]

Financial Data and Key Metrics Changes - In 2025, the company generated revenue of $4.735 billion and Adjusted EBITDA of $1.585 billion, exceeding the upper end of the revised guidance range [19] - Adjusted EBITDA margin increased to 33.5% from just over 22% in 2024, reflecting a significant improvement in profitability [19] - For Q4 2025, revenue was $1.038 billion, a 12% increase year-over-year, while Adjusted EBITDA rose 30% to $281 million [20] Business Line Data and Key Metrics Changes - UFC revenue for Q4 2025 was $401 million, up 17% year-over-year, with an Adjusted EBITDA margin of 53% [21] - WWE generated $360 million in revenue for Q4 2025, a 21% increase, with an Adjusted EBITDA margin of 46% [24] - The IMG segment saw a revenue decrease of 9% to $248 million, with an Adjusted EBITDA loss of $4 million [27] Market Data and Key Metrics Changes - The company secured over $15 billion in long-term media rights agreements across its properties, enhancing revenue visibility and predictability [7] - WWE's partnership with Netflix resulted in 525 million hours of content streamed in its first year, indicating strong audience engagement [8] - UFC's debut on Paramount+ drew nearly 5 million streaming views, marking it as the largest exclusive live event in the platform's history [10] Company Strategy and Development Direction - The company aims to focus on execution in 2026, emphasizing operational efficiency and capital return programs [5][74] - Plans to leverage financial incentive packages (FIPs) to enhance live event economics and drive growth [36] - The company is optimistic about expanding its global partnerships and achieving a target of $1.2 billion in partnerships revenue by 2030 [11][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position within the sports and entertainment ecosystem, anticipating continued growth driven by media rights deals and partnerships [4][18] - The company expects revenue growth of 21% and Adjusted EBITDA growth of 43% for 2026, with a targeted Adjusted EBITDA margin of approximately 39.6% [34] - Management highlighted the importance of upcoming events, including a significant UFC event at the White House, as a strategic investment for long-term visibility [36][52] Other Important Information - The company initiated a capital return program, doubling its quarterly cash dividend and planning to repurchase up to an additional $1 billion of shares [5][33] - Free cash flow for 2025 was $1.159 billion, with a conversion rate of 73% [29] - The company ended 2025 with $3.783 billion in debt and $831 million in cash, resulting in a net leverage ratio of 1.9 times [30] Q&A Session Summary Question: Advantages of partners bidding for WBD - Management refrained from commenting on the implications of partners bidding for WBD, emphasizing their strong business relationships with both companies [46][49] Question: Zuffa's $15 million Conor Benn deal - Management clarified that the deal is for one fight and is financially backed by their partner Sela, not TKO's direct expenditure [50][51] Question: ROI on the White House event - Management indicated that the event is expected to cost upwards of $60 million, with plans to offset half of the cost through corporate partnerships, viewing it as a long-term investment for visibility [52][53] Question: 2026 guidance details - Management provided insights into expected revenue and Adjusted EBITDA growth, highlighting contributions from media rights and financial incentive packages [58][62] Question: Partnership growth opportunities - Management expressed confidence in the growth potential of partnerships, noting the successful exceedance of previous revenue targets and the ongoing expansion into new categories [63][66] Question: M&A strategy for 2026 - Management emphasized that 2026 is a year of execution, focusing on operational performance rather than pursuing acquisitions [74]