TKO Group Holdings (TKO) AI Stock Analysis

• Market Cap: $37.13B
• Dividend Yield: 0.83%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 74.8
• Beta (1Y): 0.76
• Revenue Growth: 56.31%
• EPS Growth: N/A
• Country: US
• Employees: 890
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.47
• Shares Outstanding: 82,136,890
• 10 Day Avg. Volume: 1,108,473
• 30 Day Avg. Volume: 1,216,142
• PEG Ratio: -9.61
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 22.73
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 11.22
• Enterprise Value/Gross Profit: 22.03
• Enterprise Value/Ebitda: 38.30
• 1Y Price Target: $223.53
• Price Target Upside: 22.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 2.55
• Revenue Forecast (FY): $4.70B

• Rating: 63 Neutral
• Price Target: $193.00 ▲(5.72% Upside)

TKO's overall stock score is driven by strong financial performance and positive earnings call highlights, including strategic media rights deals and increased guidance. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Media Rights Deals

The landmark media rights deals significantly enhance TKO's recurring revenue streams and monetization opportunities, providing a stable financial foundation and competitive advantage in the entertainment industry.

Revenue Growth

Strong revenue and EBITDA growth reflect TKO's effective business model and operational execution, indicating robust demand for its entertainment offerings and a positive outlook for future financial performance.

Partnership Expansion

The expansion of partnerships enhances TKO's brand visibility and revenue diversification, strengthening its market position and providing additional growth avenues through strategic collaborations.

Negative Factors

UFC Revenue Decline

The decline in UFC revenue highlights potential vulnerabilities in event scheduling and reliance on specific events for revenue, which could impact overall financial performance if not addressed.

IMG Segment Challenges

Significant revenue drop in the IMG segment underscores the risk of dependency on major events, suggesting a need for diversification to mitigate revenue volatility from cyclical or one-off events.

Operational Efficiency Concerns

A declining gross profit margin indicates potential challenges in cost management and operational efficiency, which could pressure profitability if not addressed through strategic cost control measures.

TKO Group Holdings Business Overview & Revenue Model

Company Description

TKO Group Holdings (TKO) is a diversified holding company that operates primarily in the entertainment and media sectors, with a focus on sports, live events, and associated merchandise. The company is engaged in the development, promotion, and management of various entertainment properties, including professional sports leagues, events, and branded merchandise, catering to a wide range of audiences and consumer interests.

How the Company Makes Money

TKO generates revenue through multiple streams including ticket sales from live events, broadcasting rights for sports leagues, sponsorship and advertising partnerships, and merchandise sales. The company capitalizes on its brand equity by leveraging media rights agreements that allow for broadcasting of its events on various platforms, thus securing significant revenue from both traditional and digital media. Additionally, TKO engages in strategic partnerships with corporations and sponsors that provide financial support in exchange for advertising opportunities and brand visibility during events, further enhancing its revenue generation capabilities.

TKO Group Holdings Financial Statement Overview

Summary

TKO Group Holdings exhibits strong revenue growth and improved profitability, supported by effective cash flow management. The balance sheet shows a healthier debt-to-equity ratio, but past high leverage levels could pose risks. The company is on a positive trajectory with robust cash generation, but should focus on improving operational efficiency and managing leverage to sustain long-term growth.

Income Statement

TKO Group Holdings has shown a strong revenue growth rate of 13.28% in the TTM, indicating robust top-line expansion. The gross profit margin remains healthy at 61.98%, although it has slightly decreased from previous years. The net profit margin has improved to 5.41% from a low of 0.34% in 2024, reflecting better cost management and profitability. However, the EBIT and EBITDA margins have shown some volatility, suggesting potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.72 in the TTM, indicating a more balanced capital structure compared to previous years. However, the return on equity has decreased to 5.09%, which may point to less efficient use of equity capital. The equity ratio is stable, suggesting a solid asset base, but the high leverage in past years poses a potential risk.

Cash Flow

TKO Group Holdings has demonstrated strong free cash flow growth of 30.54% in the TTM, highlighting effective cash management. The operating cash flow to net income ratio is 0.58, indicating a good conversion of earnings into cash. The free cash flow to net income ratio exceeds 1, showing that the company generates more cash than its net income, which is a positive sign for liquidity and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.34B	2.80B	1.67B	1.14B	1.10B	974.21M
Gross Profit	2.21B	1.51B	995.75M	754.53M	446.10M	382.11M
EBITDA	1.27B	676.31M	611.09M	603.15M	341.40M	292.90M
Net Income	228.76M	9.41M	-35.23M	387.27M	177.41M	131.77M
Balance Sheet
Total Assets	15.55B	12.70B	12.69B	3.58B	1.22B	1.32B
Cash, Cash Equivalents and Short-Term Investments	861.41M	525.56M	235.84M	180.57M	415.79M	593.40M
Total Debt	4.04B	3.04B	3.03B	2.78B	619.50M	719.96M
Total Liabilities	6.10B	3.98B	3.84B	3.00B	845.44M	934.89M
Stockholders Equity	3.82B	4.09B	4.11B	568.92M	374.66M	383.99M
Cash Flow
Free Cash Flow	1.01B	508.46M	419.75M	489.32M	430.10M	329.55M
Operating Cash Flow	1.03B	583.41M	468.38M	501.72M	441.24M	351.24M
Investing Cash Flow	-67.58M	-59.05M	12.28M	-13.26M	-11.48M	-21.93M
Financing Cash Flow	-402.62M	-232.26M	-424.47M	-1.18B	162.51M	-199.61M

TKO Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 182.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKO, the sentiment is Negative. The current price of 182.56 is below the 20-day moving average (MA) of 187.21, below the 50-day MA of 192.94, and above the 200-day MA of 169.86, indicating a neutral trend. The MACD of -2.16 indicates Positive momentum. The RSI at 36.34 is Neutral, neither overbought nor oversold. The STOCH value of 36.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKO.

TKO Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	77 Outperform	$27.25B	14.58	17.33%	0.84%	14.91%	9.30%
WBD	70 Outperform	$56.35B	74.24	1.36%	―	-4.29%	―
TKO	63 Neutral	$37.13B	74.82	5.82%	0.83%	56.31%	―
LYV	63 Neutral	$31.30B	100.56	79.63%	―	5.39%	36.94%
WMG	63 Neutral	$15.54B	52.76	54.66%	2.41%	1.36%	-45.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NWSA	58 Neutral	$15.15B	31.49	5.59%	0.75%	-16.36%	29.53%

TKO Group Holdings Corporate Events

TKO Group’s Earnings Call: Media Deals & Growth

TKO Group Holdings, Inc. recently held its earnings call, showcasing a blend of triumphs and challenges. The sentiment was largely positive, driven by landmark media rights deals and record-breaking live events, contributing to a robust financial performance. However, the company faced hurdles in the UFC revenue and IMG segment due to event timing and the absence of one-off events.

TKO Group Holdings Reports Strong Q3 2025 Results

TKO Group Holdings, Inc. is a prominent sports and entertainment company, owning iconic properties such as UFC, WWE, and PBR, and providing services through IMG and On Location. In its latest earnings report, TKO announced its third-quarter 2025 financial results, highlighting a revenue of $1.120 billion and a net income of $106.8 million. The company also raised its full-year 2025 guidance, reflecting strong performance and strategic acquisitions. Key financial metrics showed a 27% decrease in revenue compared to the previous year, primarily due to the absence of the 2024 Paris Olympics revenue. However, net income saw a significant increase due to reduced operating expenses. Adjusted EBITDA rose by 59% to $360.2 million, with WWE and IMG segments contributing positively, despite a decline in UFC. Looking ahead, TKO remains optimistic, focusing on operational execution and maximizing shareholder value, with management expressing confidence in achieving the updated financial targets for the year.

TKO Group Holdings Announces Credit Agreement Amendment

On September 15, 2025, TKO Group Holdings announced an amendment to its credit agreement, refinancing existing loans and securing a $1 billion incremental term loan. This financial maneuver aims to extend the maturity of its revolving credit facility to 2030 and support its $2 billion share repurchase program. TKO has entered into an accelerated share repurchase agreement to buy back $800 million of its Class A common stock and a 10b5-1 trading plan for an additional $174 million. The company plans to complete these repurchases by December 2025, reflecting its confidence in its business and commitment to returning capital to shareholders.

The most recent analyst rating on (TKO) stock is a Buy with a $202.00 price target. To see the full list of analyst forecasts on TKO Group Holdings stock, see the TKO Stock Forecast page.

TKO Group Announces Major Media Rights Deal

On August 11, 2025, TKO Group Holdings announced a seven-year media rights agreement with Paramount, making it the exclusive distributor of UFC events in the U.S. starting in 2026. The agreement, valued at $1.1 billion annually, will see UFC events streamed on Paramount+ and select events simulcast on CBS. This shift from the Pay-Per-View model aims to increase accessibility and engagement, potentially boosting Paramount+’s subscriber growth. The deal is expected to solidify UFC’s position as a leading global sports asset and provide significant economic benefits for TKO, enhancing opportunities for investors, brand partners, and fans.

The most recent analyst rating on (TKO) stock is a Buy with a $132.00 price target. To see the full list of analyst forecasts on TKO Group Holdings stock, see the TKO Stock Forecast page.

TKO Group Holdings’ Securities Offering: Potential Risks and Investor Considerations

The offering of securities and the subsequent use of proceeds by TKO Group Holdings, Inc. presents a potential business risk, as it may lead to dilution of existing shareholders’ equity and impact the company’s stock price. Additionally, the allocation of these proceeds towards new projects or debt repayment could influence the company’s financial stability and operational strategy. Investors should closely monitor how effectively TKO Group Holdings, Inc. manages these funds to mitigate any adverse effects on its market position. The lack of detailed information regarding the use of proceeds further compounds the uncertainty surrounding this risk.

TKO Group’s Earnings Call Highlights Robust Growth

The latest earnings call for TKO Group Holdings, Inc. painted a predominantly positive picture of the company’s financial health and future prospects. The call highlighted record-breaking revenue growth and robust performance in both the UFC and WWE segments. This positive sentiment was further bolstered by significant new partnerships and a lucrative ESPN deal for WWE. Despite some challenges in the UFC’s live events and IMG segment revenue, the overall momentum and raised guidance reflect strong company prospects.