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.

Core Insights - TKO Group Holdings reported a revenue of $1.12 billion for the quarter ended September 2025, marking a 64.4% increase year-over-year, while EPS was $0.50, down from $0.53 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.08 billion by 4.13%, but the EPS fell short of the consensus estimate of $0.55 by 9.09% [1] Revenue Breakdown - Net Revenue for IMG was $336.7 million, slightly below the estimated $338.46 million [4] - Net Revenue for UFC was $325.2 million, compared to the average estimate of $342.4 million, reflecting an 8.4% year-over-year decline [4] - Net Revenue for WWE was $402.1 million, surpassing the average estimate of $348.64 million, showing a 23.2% year-over-year increase [4] - UFC Partnerships and Marketing generated $70.8 million, exceeding the estimate of $64.8 million [4] - Corporate & Other net revenues were $63.3 million, above the estimate of $60.05 million [4] - WWE Media Rights, Production, and Content revenue was $248.9 million, compared to the estimate of $217.13 million [4] - WWE Live Events and Hospitality revenue reached $82.5 million, exceeding the estimate of $64.94 million [4] - WWE Partnerships and Marketing generated $39.9 million, above the estimate of $32.38 million [4] - WWE Consumer Products Licensing and Other revenue was $30.8 million, compared to the estimate of $28.25 million [4] - UFC Live Events and Hospitality revenue was $43.6 million, slightly below the estimate of $44.79 million [4] - UFC Media Rights, Production, and Content revenue was $200.5 million, compared to the estimate of $217.88 million [4] - Eliminations reported a revenue of -$7.4 million, better than the estimate of -$14.7 million [4] Stock Performance - TKO Group's shares have returned -5.4% over the past month, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company generated revenue of $1.12 billion in Q3 2025, with adjusted EBITDA of $360 million and an adjusted EBITDA margin of 32% [13][14] - Year-over-year revenue decreased by 27%, while adjusted EBITDA increased by 59%, and adjusted EBITDA margin improved from 15% in the prior year period [14] - Free cash flow for the quarter was $399 million, with a conversion rate of adjusted EBITDA at 111% [23][24] Business Line Data and Key Metrics Changes - UFC segment revenue was $325 million, a decrease of 8%, with adjusted EBITDA of $166 million, down 15% [15][16] - WWE segment revenue increased by 23% to $402 million, with adjusted EBITDA rising by 19% to $208 million [17][18] - IMG segment revenue decreased by 59% to $337 million, but adjusted EBITDA improved significantly from -$7 million to $61 million [20][21] Market Data and Key Metrics Changes - UFC's media rights production and content revenue decreased by 7% to $201 million, while WWE's media rights production and content revenue increased by 9% to $249 million [15][18] - WWE's live events revenue increased by 61% to $83 million, driven by higher ticket sales and site fee revenue [17] - The company secured significant media rights agreements, including a seven-year, $7.7 billion deal with Paramount for UFC and a five-year partnership with ESPN for WWE [5][7] Company Strategy and Development Direction - The company is focused on maximizing shareholder value, preparing for UFC's Paramount debut, and launching Zuffa Boxing in 2026 [11][30] - Strategic priorities include sustaining strong performance across all businesses, capitalizing on new growth opportunities, and enhancing global partnerships [11][30] - The company aims to achieve $450 million in high-margin partnership revenue by 2025 and targets $1 billion in total company partnership revenue by around 2030 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's momentum, citing strong demand for premium sports content and experiences [5][11] - The company raised its full-year 2025 guidance for revenue to $4.69 billion-$4.72 billion and adjusted EBITDA to $1.57 billion-$1.58 billion [26] - Management highlighted the importance of site fees and global partnerships as significant revenue drivers for 2026 and beyond [30][66] Other Important Information - The company announced a 100% increase in its quarterly cash dividend program, with a payment of approximately $150 million made under the new program [24] - A $1 billion stock buyback program was launched, with an ASR agreement to repurchase $800 million of Class A Common Stock [24][25] Q&A Session Summary Question: Discussion on UFC media rights and international opportunities - Management emphasized the importance of execution and operational expansion, focusing on maximizing media rights opportunities internationally [37][39] Question: WWE live events revenue growth - Management noted that both premium live events and weekly events contributed to revenue growth, with high capacity and appropriate pricing strategies [40][41] Question: Distribution model with Paramount and pay-per-view model - Management clarified that while some markets still utilize pay-per-view, the focus is on expanding distribution through subscription models [46] Question: Incremental flow-through margin percentage and fighter pay structure - Management indicated that the new media rights deal would be margin accretive, with plans for increased fighter pay in line with historical margins [48][49] Question: Opportunities in boxing and potential for larger investments - Management expressed a strong appetite for boxing, focusing on super fights and the Zuffa Boxing league, while remaining cautious about distractions from core operations [52][56] Question: Site fees as a revenue driver - Management highlighted the potential for significant revenue from site fees, particularly with upcoming events in Saudi Arabia and ongoing discussions with various municipalities [64][66]

Core Insights - The earnings season is underway, with mixed results from various companies, highlighting resilience in consumer spending despite economic challenges [1][2][3] - Netflix's stock is under pressure due to a one-time tax expense in Brazil, leading to a 9% drop at the open, despite analysts remaining optimistic about future content and growth [1][2][3] - Beyond Meat has experienced a significant surge in stock price, up nearly 600% in three trading sessions, driven by a short squeeze, despite ongoing operational losses and declining sales [4][5][6] Company Performance - Netflix reported a strong quarter but missed earnings expectations due to an unexpected tax expense, with shares trading at approximately 45 times forward earnings [1][2][3] - Texas Instruments warned of slowing order trends, indicating potential challenges in demand [1][2] - Hilton and AT&T reported earnings beats and positive outlooks, reflecting consumer resilience [1][2] Market Trends - The market is showing resilience with strong earnings reports from various sectors, including banks and consumer goods, while meme stocks are experiencing volatility driven by retail investor interest [1][2][3] - The meme stock phenomenon is characterized by speculative trading, with stocks like Beyond Meat and Krispy Kreme seeing significant price movements due to high short interest [4][5][6][7] - Analysts suggest that the earnings growth in the current quarter may come more from underperforming sectors rather than tech and communication services [2][3] Future Outlook - Netflix's strategy of offering a range of pricing options is seen as effective, with expectations for revenue to double by the end of 2025 [2][3] - The plant-based meat market's potential is being questioned, with Beyond Meat's fundamentals not supporting its recent stock price surge [5][6][7] - The broader market may be experiencing speculative trading as investors seek opportunities in stocks with high volatility [4][5][6][7]

Core Insights - TKO Group Holdings Inc (NYSE:TKO) is identified as a trending stock amidst rising AI bubble warnings, with bullish sentiments expressed by industry experts [1] - The company owns and operates leading combat sports assets, including UFC and WWE, which are crucial for its economic performance [2] Financial Performance - Upcoming earnings for TKO are anticipated to be critical, especially in comparison to UFC's performance [2] - The company has made strategic acquisitions, including Premier Bull Riding (PBR), sports marketing agency IMG, and On Location, enhancing its portfolio [2] Market Position - TKO's core assets, UFC and WWE, continue to dominate the company's economic landscape, accounting for the majority of its financial performance [2] - The recent deal with ESPN is expected to positively impact WWE's performance, contributing to TKO's overall growth [2]

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]

TKO Group Holdings Conference Call Summary Company Overview - **Company**: TKO Group Holdings (NYSE: TKO) - **Date**: September 10, 2025 - **Key Speaker**: Marc Shapiro, President and COO Key Industry Insights Media Rights and Partnerships - TKO has successfully renegotiated media rights deals, significantly increasing revenue streams - UFC secured a seven-year deal worth **$1.1 billion**, double the previous ESPN deal [5][6] - WWE's new media rights include a **10-year deal** for WWE Raw with Netflix and a **five-year deal** for SmackDown [6] - Paramount+ is seen as a strong partner for WWE, leveraging CBS's sports history to grow audience and brand [12][11] Revenue Growth and Financial Performance - TKO is experiencing strong financial performance with **60%+ free cash flow conversion** and projected **35% to 40% EBITDA margins** [23][23] - The company anticipates **$400 million** in global partnerships, up from **$30 million** when UFC was acquired [26] - TKO is focused on capital returns, including a **dividend increase** and a share buyback program [56][59] Live Events and Ticketing - Demand for live events remains high, with TKO optimizing ticket pricing and capacity [31] - The company is seeing record ticket yields, particularly in UFC events, with plans to replicate this success in WWE [35][37] - Upcoming events, such as WrestlePalooza, are expected to enhance brand visibility and revenue [39] Boxing and Future Opportunities - TKO is launching Zuffa Boxing, aiming for **12 to 16 fights per year** and exploring media rights for these events [20][19] - The company plans to partner with Saudi Arabia for high-profile boxing events, minimizing financial risk [18] Additional Insights Strategic Focus - TKO emphasizes a humble approach despite current successes, focusing on execution and long-term growth strategies [7] - The company is not actively pursuing acquisitions but remains open to opportunistic deals [56] Operational Efficiency - TKO maintains a lean cost structure while ensuring competitive fighter pay, which is crucial for retaining talent [48][49] - The integration of UFC and WWE operations is ongoing, with expectations for increased synergies and efficiencies [22] Market Trends - There is a growing trend towards premium experiences in live events, with consumers seeking personalized and exclusive opportunities [32][33] - TKO is capitalizing on this trend through its On Location hospitality services, enhancing the overall event experience [33] Conclusion - TKO Group Holdings is positioned for continued growth through strategic media partnerships, robust financial performance, and a focus on enhancing live event experiences. The company is committed to returning capital to shareholders while exploring new opportunities in boxing and global partnerships.

Group 1 - Baird initiated coverage on TKO Group Holdings with an Outperform rating and a $225 price target, citing strong positioning in the evolving media landscape [1] - The analysts highlighted the company's recent media rights agreements for UFC and WWE, noting that the deals provided greater visibility into long-term performance while also strengthening brand value [1] - Additional upside drivers for TKO include potential growth from boxing, site fees, dynamic pricing, and new partnerships [1] Group 2 - Baird concluded that TKO was well-positioned to capitalize on these opportunities and maintained it would remain an attractive asset for investors [2]

The deal increases Netflix’s live sports portfolio after adding the NFL and WWE. The 2026 World Baseball Classic will mark the first time Netflix will stream a live event in Japan. (Photo: Eric Espada via Getty Images) https://t.co/iyxVuG9CRw https://t.co/welFLx7o6H ...