TKO Group (TKO) reported net income of $277.9 million in the third quarter of 2026, compared with $106.8 million in the same period of the prior year, an increase of $171.1 million. The company attributed the improvement to higher revenue, partially offset by higher operating expenses. Diluted earnings per share (EPS) was $1.33, compared with $0.47 a year earlier.
Revenue totaled $1.360 billion, up 21% ($240.2 million). UFC revenue was $519.2 million, an increase of $194.0 million, driven by the new distribution agreement with Skydance and more events. WWE reported $399.3 million, a decrease of $2.8 million, with three fewer major events. The IMG segment totaled $391.3 million, up $54.6 million, with hospitality sales for the 2026 FIFA World Cup.
Adjusted EBITDA (non-GAAP, earnings before interest, taxes, depreciation, amortization and other items the company excludes) was $555.7 million, up 54%, with an adjusted margin of 41%, compared with 32%. Operating cash flow was $472.1 million, and free cash flow (non-GAAP) was $449.9 million. Cash was $630.9 million and gross debt was $4.647 billion as of September 30, 2026.
TKO raised its 2026 guidance: revenue of $5.790 billion to $5.830 billion (previously $5.775 billion to $5.825 billion) and adjusted EBITDA of $2.295 billion to $2.315 billion (previously $2.275 billion to $2.305 billion). The estimate assumes that all live events, including in the Middle East, take place as planned.
The company intends to resume repurchases of Class A shares under the program of up to $3 billion, with about $936.0 million available as of November 4, 2026. It intends to repurchase the remaining balance, funded primarily with additional debt and cash. For the year, it has returned more than $1.6 billion to shareholders through buybacks and dividends. On September 30, 2026, it paid a quarterly dividend of $0.79 per share.
