Core Viewpoint - TKO Group Holdings, Inc. is considered one of the best growth stocks for long-term investment despite reporting a significant earnings miss in its fourth quarter results [1] Financial Performance - TKO Group reported an EPS of -$0.08, which was significantly lower than the expected EPS of $0.26, indicating a 130.77% loss [1] - The company's revenues were slightly above forecasts, totaling $1.04 billion compared to the predicted $1.02 billion [1] Analyst Ratings and Price Targets - Bernstein SocGen Group reiterated its Outperform rating and set a price target of $250 for TKO Group [1] - MoffettNathanson raised its price objective for TKO Group from $182 to $190 while maintaining a Neutral rating [4] Future Opportunities - Bernstein anticipates that TKO Group will leverage several growth opportunities in 2026, including the launch of Zuffa Boxing and a new UFC carriage partnership [3] - TKO Group is valued using an EV/EBITDA methodology with a consistent multiple of 16.0x applied to its 2027 adjusted EBITDA forecast [4] Company Overview - TKO Group Holdings, Inc. is a New York-based premium sports and entertainment company operating through its UFC, WWE, and IMG segments [4]

Core Viewpoint - TKO Group Holdings, Inc. has declared a quarterly cash dividend of approximately $150 million, with a per share dividend of $0.78 for Class A common stockholders, to be paid on March 31, 2026 [1] Financial Summary - The dividend will be distributed to Class A common stockholders of record as of the close of business on March 16, 2026 [1] - Future dividend declarations will depend on various factors including operational results, financial condition, market conditions, and cash flow requirements [2] Credit Facility Update - The company has launched a potential upsize of its existing credit facility by up to $900 million, subject to market conditions and customary closing conditions [3] Company Overview - TKO Group Holdings, Inc. operates in the premium sports and entertainment sector, encompassing UFC, WWE, PBR, and Zuffa Boxing, reaching over 1 billion households across 210 countries and territories [5] - The company organizes more than 500 live events annually, attracting over three million fans [5] - TKO also partners with major sports rights holders through IMG and On Location, enhancing its market presence [5]

TKO Group (NYSE: TKO) 2026 Conference Summary Company Overview - **Company**: TKO Group - **Industry**: Media and Entertainment, specifically focused on sports and live events Key Points and Arguments Financial Performance and Guidance - TKO Group reported a strong fourth quarter and provided guidance for 2026, emphasizing high-quality execution and multiple avenues for outperformance [3][6] - The company has secured $15 billion in media deals across its properties for the next 5 to 7 years, providing strong visibility and recurring revenue [6] - The target for partnership revenues has been raised from $1 billion to $1.2 billion by 2030, indicating high visibility and high margins [6] - Current run rate for financial incentive packages is $240 million, with a target of $380 million to $420 million by 2030 [7] Live Events and Experience Economy - TKO Group is experiencing significant demand for live events, with elasticity in pricing, particularly for WWE events [6] - The company has set a target of $380 million to $420 million from financial incentive packages by 2030, up from a current run rate of $240 million [7] - The experience economy is thriving, with consumers seeking unique and communal experiences, which TKO Group aims to capitalize on [53][55] Media Rights and Partnerships - TKO Group has established a strong relationship with Paramount, which is expected to enhance subscriber growth for Paramount+ through UFC content [24][30] - The merger of HBO and Peacock into a competitive platform is seen as beneficial for TKO Group, enhancing its media rights portfolio [24] - The company is focused on maximizing reach on CBS while also supporting Paramount's goals for subscriber growth [31] Boxing Initiative - TKO Group is entering the boxing market, aiming to create a structured league to eliminate corruption and confusion in the sport [82] - The company plans to sign prominent fighters and establish media and partnership deals to grow boxing into a significant revenue stream [84] Capital Allocation and Shareholder Returns - TKO Group has announced a $2 billion share repurchase plan over the next 3-4 years, with a commitment to returning capital to shareholders [88][90] - The company has doubled its dividend and aims to continue increasing shareholder returns while maintaining a prudent approach to capital allocation [86][90] Operational Strategy - TKO Group emphasizes the importance of best-in-class operators and year-round properties to drive growth and efficiency [15][21] - The company is focused on high-quality intellectual property that is scalable and global, seeking to replicate successful operational strategies across its various properties [21][22] Challenges and Market Dynamics - The company acknowledges challenges in the current economic environment, particularly regarding affordability for consumers [64] - TKO Group is aware of the competitive landscape in media rights and is strategically positioning itself to leverage its strong IP and partnerships [24][30] Additional Important Insights - The company is committed to maintaining high margins while investing in talent, with a projected adjusted EBITDA margin of approximately 40% for 2026 [60] - TKO Group is learning from past events, such as the Olympics, to optimize future opportunities and maximize revenue [72][74] - The company is focused on creating a symbiotic relationship between its properties and media partners to enhance audience engagement and growth [35][36]

Core Insights - The year 2025 is characterized as a 'catalytic' year for TKO, shifting focus from formation to execution with an emphasis on high-margin, recurring contractual revenue [1] Performance Highlights - Performance is significantly driven by major domestic media rights deals, including UFC's $7.7 billion agreement with Paramount and WWE's $1.6 billion deal with ESPN [1] - The transition to Paramount+ for UFC aims to eliminate the 'double paywall' on ESPN+, enhancing accessibility and broadening the fan base [1] Financial Targets - Global partnerships have surpassed the $450 million target for 2025, prompting management to increase the 2030 portfolio revenue target from $1 billion to $1.2 billion [1] - The company is rebranding 'site fees' as Financial Incentive Packages (FIPs) to better represent the mix of cash, non-cash subsidies, and value-in-kind support from host cities [1] Strategic Focus - Management has indicated that 2026 will focus on execution rather than acquisitions, downplaying near-term M&A intentions after successfully integrating assets like IMG and On Location in 2025 [1] - The upcoming UFC event at the White House is seen as a strategic investment in 'earned media' and brand sampling, with costs expected to exceed $60 million [1]

Core Insights - TKO Group reported a 12% increase in revenue to over $1 billion and achieved a net profit in a mixed quarter, with CEO Ari Emanuel noting significant momentum in both UFC and WWE [1] - UFC sales increased by 17% to $401 million, with profits rising 20% to $213 million, while WWE profits jumped 44% to $165 million on a 21% revenue increase to $360 million [2][3] - TKO is forecasting full-year revenue between $5.675 billion and $5.775 billion, with adjusted EBITDA expected to be between $2.24 billion and $2.29 billion, both higher than previous estimates [7] TKO Group Performance - The IMG segment experienced a decline in sales to $248 million, while TKO is managing premium hospitality and logistics for the FIFA World Cup 2026 [4] - Free cash flow increased to $1.16 billion, up by $691 million, although expenses also rose [4] Strategic Partnerships and Future Outlook - TKO has established long-term media rights agreements, including a significant seven-year deal with Paramount worth an average of $1.1 billion annually for UFC events starting in 2026, and a landmark rights deal with Netflix for WWE's Monday Night Raw in 2024 [6] - The company is positioned for long-term growth with operational strength and plans to initiate the next phase of its capital return program to deliver sustainable value for shareholders [5]

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]

Group 1 - Cooper Investors Global Equities Fund reported a portfolio return of -3.3% in Q4 2025, with annual returns at 2.6% affected by approximately 5% currency fluctuations [1] - The fund achieved an annualized return of 14.2% over the past three years, compared to the MSCI AC World Index's annualized return of 21.3% for the same period [1] - The firm emphasizes a long-term investment strategy aimed at providing risk-adjusted returns above the market [1] Group 2 - TKO Group Holdings, Inc. (NYSE:TKO) is highlighted as a key investment, being a leading sports and entertainment company [2][3] - As of February 10, 2026, TKO Group Holdings, Inc. stock closed at $214.11 per share, with a one-month return of 2.95% and a twelve-month increase of 21.21% [2] - TKO Group Holdings, Inc. has a market capitalization of $17.586 billion and owns major combat sports assets, including UFC and WWE [3]

Core Insights - TKO Group Holdings, Inc. (NYSE:TKO) is recognized as one of the best stocks to buy for investment, with analysts showing confidence in its growth potential [1] Price Target Updates - JPMorgan raised the price target for TKO Group Holdings from $220 to $225, maintaining an Overweight rating, citing long-term compounded free cash flow growth potential [1] - Susquehanna analyst Joseph Stauff increased the price target from $230 to $251, highlighting expected upside in the company's 2026 earnings estimates due to factors like greater sponsorship and live-event shifts [2] Company Overview - TKO Group Holdings, Inc. is a sports and entertainment company that owns and manages sports and entertainment intellectual property, organizing live events and creating various content formats, including WWE and UFC [3]

Overview - The company is experiencing a successful integration of WWE and UFC, validating the industrial logic behind their merger and achieving results a year ahead of schedule [1] Short-term and Long-term Focus - The management team is balancing short-term priorities with long-term growth strategies, indicating a dual focus on immediate results and future expansion [1] Market Environment - The company is benefiting from an "experience economy," which positively impacts revenue streams such as ticket sales, high-margin site fees, and premium hospitality offerings [1]

Summary of TKO Group Holdings Conference Call Company Overview - **Company**: TKO Group Holdings (NYSE: TKO) - **Key Properties**: UFC and WWE - **Upcoming Ventures**: Launch of Zuffa Boxing in early 2026 Core Industry Insights - **Experience Economy**: The company benefits from a growing experience economy, leading to increased ticket revenue, high-margin site fees, and premium hospitality opportunities [4][5] - **Media Rights Deals**: TKO has secured new media deals worth approximately $15 billion, with an average annual value (AAV) of $2 billion, enhancing revenue predictability and visibility [5][15] Financial Performance and Projections - **Profit Margins**: Both WWE and UFC operate at around 50% profit margins, with expectations for margin accretion from new media deals [5][52] - **Revenue Goals**: TKO aims to reach $1.2 billion in assets and partnerships by 2030, exceeding the previous target of $1 billion [41][52] - **Free Cash Flow**: The company targets a 60% free cash flow conversion on a normalized basis, with expectations for margin expansion to over 35% [52] Strategic Partnerships and Growth Opportunities - **UFC's New Media Partner**: The partnership with Paramount Skydance is expected to enhance UFC's visibility and audience engagement, moving away from the previous pay-per-view model [12][15] - **International Expansion**: TKO sees significant opportunities for monetization outside the U.S., particularly in regions like Australia, MENA, LATAM, Europe, and China [18][19] - **Zuffa Boxing**: Plans to create a boxing promotion similar to UFC, focusing on a stable of fighters and high-profile events, with a management fee structure to minimize risk [22][24] Upcoming Events and Marketing Strategies - **Major Events**: A significant event is planned at the White House, expected to enhance brand visibility and engagement, although no ticket sales will occur [20][21] - **Live Events Demand**: Strong consumer demand for live events is noted, with increased interest from municipalities to host UFC and WWE events [48] Marketing and Sponsorships - **Partnerships and Marketing**: The company has rebranded its sponsorship revenue line to partnerships and marketing, with a strong pipeline of new deals expected [38][40] - **Recent Deals**: Notable partnerships include agreements with DoorDash and Polymarket, contributing to a projected revenue of $450 million for the year [40] Capital Allocation and Shareholder Returns - **Shareholder Returns**: TKO has doubled its dividend and is actively engaged in a share repurchase program, emphasizing a commitment to returning capital to shareholders [54][55] - **M&A Strategy**: The company is not actively seeking acquisitions but remains open to exploring opportunities as they arise [54] Conclusion - TKO Group Holdings is positioned for significant growth through strategic media partnerships, international expansion, and the launch of new ventures like Zuffa Boxing. The focus remains on executing existing deals and enhancing shareholder value through prudent capital allocation and strong revenue growth strategies.