v3.26.3
SEGMENT INFORMATION (Tables)
 9 Months Ended
Sep. 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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

UFC:

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

519,223

 

 

$

325,236

 

 

$

1,456,106

 

 

$

1,100,818

 

Direct operating costs (1)

 

 

172,189

 

 

 

104,049

 

 

 

462,996

 

 

 

310,004

 

Selling, general and administrative expenses (1)

 

 

61,706

 

 

 

55,531

 

 

 

172,857

 

 

 

152,973

 

Adjusted EBITDA

 

$

285,328

 

 

$

165,656

 

 

$

820,253

 

 

$

637,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

WWE:

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

399,291

 

 

$

402,099

 

 

$

1,495,899

 

 

$

1,349,781

 

Direct operating costs (1)

 

 

104,291

 

 

 

113,396

 

 

 

401,911

 

 

 

378,120

 

Selling, general and administrative expenses (1)

 

 

77,755

 

 

 

80,886

 

 

 

252,372

 

 

 

240,165

 

Adjusted EBITDA

 

$

217,245

 

 

$

207,817

 

 

$

841,616

 

 

$

731,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

IMG:

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

$

391,301

 

 

$

336,772

 

 

$

1,401,392

 

 

$

1,119,630

 

Direct operating costs (1)

 

 

196,219

 

 

 

198,002

 

 

 

848,012

 

 

 

725,789

 

Selling, general and administrative expenses (1)

 

 

79,234

 

 

 

77,277

 

 

 

261,604

 

 

 

229,893

 

Adjusted EBITDA

 

$

115,848

 

 

$

61,493

 

 

$

291,776

 

 

$

163,948

 

 

(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

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

UFC

 

$

519,223

 

 

$

325,236

 

 

$

1,456,106

 

 

$

1,100,818

 

WWE

 

 

399,291

 

 

 

402,099

 

 

 

1,495,899

 

 

 

1,349,781

 

IMG

 

 

391,301

 

 

 

336,772

 

 

 

1,401,392

 

 

 

1,119,630

 

Total revenue from reportable segments

 

$

1,309,815

 

 

$

1,064,107

 

 

$

4,353,397

 

 

$

3,570,229

 

Corporate and Other

 

 

61,301

 

 

 

63,348

 

 

 

183,682

 

 

 

162,357

 

Eliminations

 

 

(10,961

)

 

 

(7,541

)

 

 

(32,970

)

 

 

(35,430

)

Total revenue

 

$

1,360,155

 

 

$

1,119,914

 

 

$

4,504,109

 

 

$

3,697,156

 

 
Schedule of Reconciliation of Segment Profitability

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

UFC

 

$

285,328

 

 

$

165,656

 

 

$

820,253

 

 

$

637,841

 

WWE

 

 

217,245

 

 

 

207,817

 

 

 

841,616

 

 

 

731,496

 

IMG

 

 

115,848

 

 

 

61,493

 

 

 

291,776

 

 

 

163,948

 

Total Adjusted EBITDA from reportable segments

 

 

618,421

 

 

 

434,966

 

 

 

1,953,645

 

 

 

1,533,285

 

Corporate and Other

 

 

(62,608

)

 

 

(74,756

)

 

 

(198,196

)

 

 

(229,209

)

Total Adjusted EBITDA

 

 

555,813

 

 

 

360,210

 

 

 

1,755,449

 

 

 

1,304,076

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

Equity loss (earnings) of affiliates

 

 

2,667

 

 

 

(1,622

)

 

 

5,468

 

 

 

(11,456

)

Interest expense, net

 

 

(69,945

)

 

 

(50,842

)

 

 

(201,129

)

 

 

(143,814

)

Depreciation and amortization

 

 

(92,964

)

 

 

(129,131

)

 

 

(335,266

)

 

 

(329,063

)

Equity-based compensation expense (1)

 

 

(39,648

)

 

 

(19,898

)

 

 

(119,630

)

 

 

(83,165

)

Merger, acquisition and earn out costs (2)

 

 

(5,195

)

 

 

(4,522

)

 

 

(14,564

)

 

 

(48,562

)

Certain legal costs (3)

 

 

(34,621

)

 

 

(19,239

)

 

 

(128,891

)

 

 

(35,390

)

Restructuring, severance and impairment (4)

 

 

(6,392

)

 

 

(4,980

)

 

 

(7,490

)

 

 

(10,804

)

Debt transaction costs (5)

 

 

—

 

 

 

(8,732

)

 

 

(2,455

)

 

 

(8,732

)

Foreign exchange gains and (losses) (6)

 

 

3,856

 

 

 

2,231

 

 

 

6,450

 

 

 

(12,747

)

Other adjustments (7)

 

 

3,572

 

 

 

(5,536

)

 

 

2,946

 

 

 

(5,931

)

Income before income taxes and equity earnings of affiliates

 

$

317,143

 

 

$

117,939

 

 

$

960,888

 

 

$

614,412

 

 

(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 nine months ended September 30, 2026, these costs include an estimated loss of $2.4 million and $32.4 million, respectively, reflecting the Company’s liability net of insurance recoveries, as well as $4.0 million and $46.0 million, respectively, of professional fees, associated with stockholder litigation related to WWE.
(4)
Includes certain impairment charges as well as costs resulting from the Company’s cost reduction programs. For the three and nine months ended September 30, 2026, these costs included asset impairment charges totaling $4.9 million, related to the WWE and IMG segments. For the three and nine months ended September 30, 2025, these costs included asset impairment charges of $3.6 million within the IMG segment. Refer to Note 5, Supplementary Data, for further information.
(5)
Includes third-party transaction 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 nine months ended September 30, 2026, other adjustments include a $2.1 million and $6.5 million, respectively, of impairment charges related to equity method investments. During the three months ended September 30, 2025, other adjustments include a net loss of $7.1 million related to the sale of certain equity method investments. During the nine months ended September 30, 2025, other adjustments include a net loss of $9.6 million from the sale of certain equity method investments, partially offset by a gain of $1.3 million on the sale of PBR's former headquarters building.