Ari Emanuel’s TKO Group Holdings Meets Q1 Goals with Support from Paramount Rights Deal for UFC
TKO Group Holdings has met Wall Street analysts’ revenue expectations for the first quarter, though its earnings per share have varied slightly from estimates.
The company, led by Ari Emanuel, reported a total revenue increase of 26% year-over-year, reaching $1.597 billion. Earnings per share stood at $1.12 on a diluted basis, a rise from 69 cents the previous year. Analysts at S&P Global had anticipated earnings of $1.14, while FactSet’s expectation was slightly lower at $1.11, reflecting discrepancies among the analysts polled.
The growth was attributed to higher rights fees, particularly following Paramount’s 7-year, $7.7 billion rights agreement that went into effect in January, which positively impacted the UFC division. The IMG unit, encompassing On Location corporate hospitality, experienced a remarkable 38% revenue increase to $655.4 million, largely due to sales generated during the 2026 Milano Cortina Olympics.
In the UFC division, revenue rose 12% year-over-year to reach $401.2 million. This increase was primarily due to the shift in rights fees, which helped offset a decrease in live events and hospitality earnings resulting from fewer “Fight Night” dates compared to the prior year. Adjusted EBITDA for the division also saw a 12% increase.
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The WWE division reported a 22% revenue increase to $475.7 million, driven largely by higher media rights fees from new distribution agreements with Netflix and ESPN. Adjusted EBITDA for WWE climbed by 32%, as a significant portion of the added revenue contributed directly to profit.
“TKO is off to a formidable start in 2026,” remarked CEO and Executive Chair Ari Emanuel.
The company has reaffirmed its full-year financial guidance and announced a $1 billion share repurchase program, with Emanuel stating that this initiative “underscores our conviction in TKO and its long-term value.”
President and COO Mark Shapiro highlighted two significant events planned for June: the UFC’s “Freedom 250” taking place on the White House grounds and the upcoming World Cup. Through its alliance with FIFA, On Location is expected to capitalize on the World Cup, which features an expanded field and a favorable setting for fans across multiple North American cities.
“TKO will take center stage this summer, crowning moments for audience growth, cultural relevance, and our business trajectory,” Shapiro expressed in the earnings release.
