TKO Group Holdings (NYSE:TKO) Q3 2025 Earnings Call November 05, 2025 05:00 PM ET Company ParticipantsAriel Emanuel - Executive Chair and CEOLawrence Epstein - SEVP and COOAndrew Schleimer - CFOBen Swinburne - Head of U.S. Media ResearchMark Shapiro - President and COOSeth Zaslow - Head of Investor RelationsConference Call ParticipantsNone - AnalystEric Handler - Managing Director and Senior Research AnalystVikram Kesavabhotla - Senior Research AnalystRyan Gravett - Associate AnalystBrandon Ross - AnalystPe ...

TKO Group Holdings (NYSE:TKO) Q3 2025 Earnings Call November 05, 2025 05:00 PM ET Company ParticipantsAriel Emanuel - Executive Chair and CEOLawrence Epstein - SEVP and COOAndrew Schleimer - CFOBen Swinburne - Head of U.S. Media ResearchMark Shapiro - President and COOSeth Zaslow - Head of Investor RelationsConference Call ParticipantsNone - AnalystEric Handler - Managing Director and Senior Research AnalystVikram Kesavabhotla - Senior Research AnalystRyan Gravett - Associate AnalystBrandon Ross - AnalystPe ...

Core Insights - TKO Group Holdings is benefiting from media rights deals, additional UFC and WWE events, and rising site fees, supporting its growth outlook [1] - BTIG has named TKO Group a Top Pick, maintaining a Buy rating with a price forecast of $235, based on a sum-of-the-parts EV/EBITDA model [2] Financial Performance - UFC gate receipts in Q3 2025 totaled approximately $31 million across ten fights, down from $40 million year-over-year, aligning with expectations due to tough comparisons [3] - Premium numbered events generated $8–$11 million each, while fight night events averaged $2-$3 million, with average ticket prices ranging from $130 to $275 [4] - TKO's first major boxing event, Canelo vs. Crawford, generated around $47 million in gate receipts with an average ticket price of $670, attracting 41.4 million global livestream viewers [5] Media Rights and Revenue - TKO signed a long-term media rights deal with Paramount Skydance to stream 12 annual Zuffa Boxing events starting January 2026, following a $7.7 billion deal for UFC's U.S. domestic rights [6] - UFC's core unit economics estimate a net profit of approximately $35 million per fight in 2025, with media rights accounting for about 60% of event revenue [7] - Partnerships and marketing contribute around $7 million per fight, with live events generating about $6 million; potential upside in partnership revenue could rise 25% year-over-year in 2025 [8] Growth Projections - BTIG projects UFC revenue growth of 25-37% in 2026, with EBITDA margins between 57% and 60.5%, alongside growth in WWE and IMG segments [9] - Fiscal 2025 revenue is projected at $4.69 billion, increasing to $6.01 billion in fiscal 2026, with adjusted EBITDA expected to rise from $1.56 billion to $2.30 billion [10] Market Position - TKO remains the leading combat sports entertainment platform with strong pricing power and industry-leading margins, supported by a loyal fan base [11]

Are you going to take the option to opt out of your current media rights deals in 2029. And will you use that opportunity to make more bigger deals with streamers. The the reality is we really went a long ways to put that into our contracts uh in the last agreement and I think having the ability to do that, having the option to do that, I think will be valuable for us.But we haven't made any decision on that. We have we have great partners. Uh we have some change in some of our partners including with CBS.U ...