SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2025

The following tables present summarized financial information for each of the Company’s reportable segments (in thousands):


	Three Months Ended
	March 31,
UFC:	2025		2024
Revenue	$	359,747	$	312,990
Direct operating costs (1)		89,672		82,315
Selling, general and administrative expenses (1)		42,682		35,592
Adjusted EBITDA	$	227,393	$	195,083

	Three Months Ended
	March 31,
WWE:	2025		2024
Revenue	$	391,540	$	316,721
Direct operating costs (1)		122,068		100,458
Selling, general and administrative expenses (1)		75,532		76,050
Adjusted EBITDA	$	193,940	$	140,213

	Three Months Ended
	March 31,
IMG:	2025		2024
Revenue	$	476,268	$	549,652
Direct operating costs (1)		325,017		378,560
Selling, general and administrative expenses (1)		77,790		89,809
Adjusted EBITDA	$	73,461	$	81,283

(1)

Direct operating costs and selling, general and administrative expenses included in the measure of Adjusted EBITDA for each segment excludes reconciling items included in the reconciliation of segment profitability below.

Schedule of Revenue


	Three Months Ended
	March 31,
	2025			2024
UFC	$	359,747		$	312,990
WWE		391,540			316,721
IMG		476,268			549,652
Total revenue from reportable segments	$	1,227,555		$	1,179,363
Corporate and Other		54,377			52,229
Eliminations		(13,132	)		(9,144	)
Total revenue	$	1,268,800		$	1,222,448

Schedule of Reconciliation of Segment Profitability


	Three Months Ended
	March 31,
	2025			2024
UFC	$	227,393		$	195,083
WWE		193,940			140,213
IMG		73,461			81,283
Total Adjusted EBITDA from reportable segments		494,794			416,579
Corporate and Other		(77,416	)		(77,705	)
Total Adjusted EBITDA		417,378			338,874
Reconciling items:
Equity earnings of affiliates		(2,524	)		(2,807	)
Interest expense, net		(44,765	)		(61,177	)
Depreciation and amortization		(100,535	)		(122,069	)
Equity-based compensation expense (1)		(30,271	)		(32,180	)
Merger and acquisition costs (2)		(39,772	)		(520	)
Certain legal costs (3)		(6,458	)		(345,199	)
Restructuring, severance and impairment (4)		(1,519	)		(9,549	)
Other adjustments (5)		(7,320	)		(8,364	)
Income (loss) before income taxes and equity earnings of affiliates	$	184,214		$	(242,991	)

(1)

Equity-based compensation represents non-cash compensation expense for various awards issued under the TKO 2023 Incentive Award Plan, awards assumed in connection with the acquisition of WWE in September 2023, and awards issued under Endeavor Group Holdings, Inc.’s 2021 Plan. For the three months ended March 31, 2025 and March 31, 2024, equity-based compensation includes $1.0 million and $9.0 million, respectively, of expense associated with certain services provided by an independent contractor in the WWE segment. For the three months ended March 31, 2024, equity-based compensation includes $2.4 million of expense associated with accelerated vesting of the Replacement Awards related to the workforce reduction of certain employees in the WWE segment and Corporate and Other.

(2)

Includes certain costs of professional advisors related to strategic transactions, primarily the Endeavor Asset Acquisition.

(3)

Includes costs related to certain litigation matters including antitrust lawsuits for UFC and WWE and matters where Mr. McMahon has agreed to make future payments to certain counterparties personally. For the three months ended March 31, 2024, these costs include the preliminary legal settlement of the UFC antitrust lawsuit for $335.0 million, as described in Note 16, Commitments and Contingencies.

(4)

Includes costs resulting from the Company’s cost reduction program as described in Note 15, Restructuring Charges.

(5)

Primarily relates to losses of $6.5 million on the sale of certain equity method investments and losses on foreign exchange transactions, partially offset by a gain of $1.3 million on the sale of PBR's former headquarters during the three months ended March 31, 2025. Primarily relates to losses on foreign exchange transactions during the three months ended March 31, 2024.