11. EARNINGS PER SHARE ("EPS")

Basic earnings per share is calculated utilizing net income available to common stockholders of the Company during the three and nine months ended September 30, 2026 and 2025, divided by the weighted average number of shares of TKO Class A common stock outstanding during the same period. Diluted earnings per share is calculated by dividing the net income available to common stockholders by the diluted weighted average shares outstanding during the same period. TKO Class B common shares are included in diluted earnings per share only for periods in which their effect is dilutive and are otherwise excluded as anti-dilutive.

On September 15, 2025, the Company entered into an accelerated share repurchase agreement with Morgan Stanley & Co. LLC to repurchase $800.0 million of its Class A common stock. On September 16, 2025, the Company paid $800 million and received an initial delivery of 3,161,430 shares, which reduced weighted-average shares outstanding beginning on that date. The shares received were immediately retired. The final number of shares to be repurchased was to be based on the volume-weighted average price of the Company’s Class A common stock during the term of the agreement, which ultimately concluded in November 2025. Based on the volume-weighted average price of the Company’s Class A common stock from September 16, 2025 through September 30, 2025, the accelerated shares repurchase agreement was in a gain position, and the Company would have received approximately 0.9 million additional shares if the agreement had settled on September 30, 2025. Because receipt of the additional shares would have increased the reported earnings per share amounts, the incremental shares were antidilutive and were excluded from diluted earnings per share for the three and nine months ended September 30, 2025.