v3.26.1
SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2026
SEGMENT INFORMATION [Abstract]  
Schedule of Adjusted EBITDA

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

UFC:

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

535,662

 

 

$

415,835

 

 

$

936,883

 

 

$

775,582

 

Direct operating costs (1)

 

 

192,182

 

 

 

116,283

 

 

 

290,807

 

 

 

205,955

 

Selling, general and administrative expenses (1)

 

 

63,026

 

 

 

54,760

 

 

 

111,151

 

 

 

97,442

 

Adjusted EBITDA

 

$

280,454

 

 

$

244,792

 

 

$

534,925

 

 

$

472,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

WWE:

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

620,950

 

 

$

556,142

 

 

$

1,096,608

 

 

$

947,682

 

Direct operating costs (1)

 

 

158,992

 

 

 

142,656

 

 

 

297,620

 

 

 

264,724

 

Selling, general and administrative expenses (1)

 

 

93,633

 

 

 

83,747

 

 

 

174,617

 

 

 

159,279

 

Adjusted EBITDA

 

$

368,325

 

 

$

329,739

 

 

$

624,371

 

 

$

523,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

IMG:

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

354,557

 

 

$

306,590

 

 

$

1,010,091

 

 

$

782,858

 

Direct operating costs (1)

 

 

188,583

 

 

 

202,770

 

 

 

651,793

 

 

 

527,787

 

Selling, general and administrative expenses (1)

 

 

87,447

 

 

 

74,826

 

 

 

182,370

 

 

 

152,616

 

Adjusted EBITDA

 

$

78,527

 

 

$

28,994

 

 

$

175,928

 

 

$

102,455

 

 

(1)
Direct operating costs and selling, general and administrative expenses included in the measure of Adjusted EBITDA for each segment exclude reconciling items included in the reconciliation of segment profitability below.
Schedule of Revenue

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

UFC

 

$

535,662

 

 

$

415,835

 

 

$

936,883

 

 

$

775,582

 

WWE

 

 

620,950

 

 

 

556,142

 

 

 

1,096,608

 

 

 

947,682

 

IMG

 

 

354,557

 

 

 

306,590

 

 

 

1,010,091

 

 

 

782,858

 

Total revenue from reportable segments

 

$

1,511,169

 

 

$

1,278,567

 

 

$

3,043,582

 

 

$

2,506,122

 

Corporate and Other

 

 

48,475

 

 

 

44,632

 

 

 

122,381

 

 

 

99,009

 

Eliminations

 

 

(12,566

)

 

 

(14,757

)

 

 

(22,009

)

 

 

(27,889

)

Total revenue

 

$

1,547,078

 

 

$

1,308,442

 

 

$

3,143,954

 

 

$

2,577,242

 
Schedule of Reconciliation of Segment Profitability

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

UFC

 

$

280,454

 

 

$

244,792

 

 

$

534,925

 

 

$

472,185

 

WWE

 

 

368,325

 

 

 

329,739

 

 

 

624,371

 

 

 

523,679

 

IMG

 

 

78,527

 

 

 

28,994

 

 

 

175,928

 

 

 

102,455

 

Total Adjusted EBITDA from reportable segments

 

 

727,306

 

 

 

603,525

 

 

 

1,335,224

 

 

 

1,098,319

 

Corporate and Other

 

 

(77,426

)

 

 

(77,037

)

 

 

(135,588

)

 

 

(154,453

)

Total Adjusted EBITDA

 

 

649,880

 

 

 

526,488

 

 

 

1,199,636

 

 

 

943,866

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

Equity loss (earnings) of affiliates

 

 

4,436

 

 

 

(7,310

)

 

 

2,801

 

 

 

(9,834

)

Interest expense, net

 

 

(70,619

)

 

 

(48,207

)

 

 

(131,184

)

 

 

(92,972

)

Depreciation and amortization

 

 

(98,500

)

 

 

(99,397

)

 

 

(242,302

)

 

 

(199,932

)

Equity-based compensation expense (1)

 

 

(40,396

)

 

 

(32,996

)

 

 

(79,982

)

 

 

(63,267

)

Merger, acquisition and earn out costs (2)

 

 

(6,973

)

 

 

(4,268

)

 

 

(9,369

)

 

 

(44,040

)

Certain legal costs (3)

 

 

(71,055

)

 

 

(9,693

)

 

 

(94,270

)

 

 

(16,151

)

Restructuring, severance and impairment (4)

 

 

(747

)

 

 

(4,305

)

 

 

(1,098

)

 

 

(5,824

)

Debt transaction costs (5)

 

 

(2,455

)

 

 

—

 

 

 

(2,455

)

 

 

—

 

Foreign exchange gains and (losses) (6)

 

 

(699

)

 

 

(10,101

)

 

 

2,594

 

 

 

(14,978

)

Other adjustments (7)

 

 

(1,267

)

 

 

2,048

 

 

 

(626

)

 

 

(395

)

Income before income taxes and equity earnings of affiliates

 

$

361,605

 

 

$

312,259

 

 

$

643,745

 

 

$

496,473

 

 

(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.
(2)
Includes (i) certain costs of professional advisors related to strategic transactions, primarily the Endeavor Asset Acquisition and (ii) certain costs related to integration initiatives resulting from the Endeavor Asset Acquisition.
(3)
Includes costs, net of insurance recoveries, related to certain litigation matters including antitrust lawsuits for UFC and stockholder litigation related to WWE and Endeavor. For the three and six months ended June 30, 2026, these costs include an estimated loss of $30.0 million reflecting the Company’s liability net of probable insurance recoveries, as well as $25.6 million and $42.0 million, respectively, of professional fees, associated with stockholder litigation related to WWE.
(4)
Includes costs resulting from the Company’s cost reduction programs.
(5)
For the three months ended June 30, 2026, the Company recognized $2.5 million of third-party transactions costs associated with the Company's debt refinancing transactions as described in Note 8, Debt.
(6)
Includes gains and losses on foreign exchange transactions.
(7)
Includes other miscellaneous nonoperating gains and losses. During the three and six months ended June 30, 2026, other adjustments include a $4.4 million impairment of an equity method investment, partially offset by miscellaneous nonoperating income. During the three months ended June 30, 2025, other adjustments include a net gain of $2.2 million related to the sale of certain equity method investments. During the six months ended June 30, 2025, other adjustments includes a net loss of $2.5 million on the sale of certain equity method investments, partially offset by a gain of $1.3 million on the sale of PBR’s former headquarters.