TKO earnings for Q3 2025: Mark Shapiro and Nick Khan on WWE-ESPN debut

Full audio of the TKO third quarter 2025 earnings call

TKO released its third-quarter report on Wednesday evening. The following condenses and summarizes notable elements the company reported. You can read the documents below.

TKO reported a revenue increase for WWE of 23%, or $75.8 million, to $402.1 million, primarily related to a $31.4 million increase in live events and hospitality revenue, a $21.5 million increase in media rights, production and content revenue and a $18.2 million increase in partnerships and marketing revenue. TKO cited the reason for WWE’s increase in live events and hospitality revenue, primarily due to higher ticket sales revenue, as well as an increase in site fees for the first-ever two-night Summerslam and Wrestlepalooza. TKO cited the increase in WWE’s media rights, production and content revenue to higher rights fees for WWEโ€™s premium live events, and the increase in partnerships and marketing revenue was primarily due to new partners and an increase in fees from renewals.

TKO reported an adjusted EBITDA increase of 19%, or $32.5 million, to $207.8 million. According to the company, this is primarily due to the revenue increase that was partially offset by an increase in expenses. Direct operating expenses increased primarily due to higher talent, production, marketing and other event-related costs. It also cited higher travel costs for the increase of selling, general and administrative expenses.

The third-quarter report confirms WWE and ESPN’s five-year media rights deal has an average annual value of $325 million, as previously reported.

TKO reveals it repurchased approximately $26 million of its outstanding Class A common stock under a privately negotiated transaction. The repurchases and the privately negotiated transaction were completed under TKOโ€™s previously announced $2.0 billion share repurchase authorization.

TKO’s income statements showed a net income loss of $21.7 million in 2024 to $197.7 million in 2025 over a nine-month period.

In TKO’s balance sheet, it still reports a $3,701,000 long-term debt, a large part of it from the UFC purchase, which is on TKO’s books.

In its full-year 2025 guidance, TKO continued to emphasize financial gains compared to last year than what it previously said and expected. Expected revenue for 2025 is now $4.72 billion, up from $4.60 billion. And adjusted EBITDA is up to $1.58 billion, up from $1.57 billion.

The company’s quarterly report filing noted that TKO does not expect President Donald Trump’s “One Big Beautiful Bill Act” to have a material impact on the company. The bill was signed into law on July 4, 2025.

Notes from the Q3 2025 earnings conference call:

– TKO executive chairman and CEO Ari Emmanuel begins the call by discussing the growth and marquee events for UFC, WWE, Professional Bull Riding, Zuffa Boxing and IMG. Emmanuel highlighted WWE’s deal with the General Sports Authority to bring Wrestlemania 43 to Saudi Arabia, and he praised the “impressive” ratings for Smackdown, which he said led primetime cable ratings nine times during the quarter. He also noted Raw maintained its spot in Netflix’s global top 10 throughout the quarter, “extending a streak which began with the launch in January.”

– Emmanuel also highlighted WWE’s global partners, like Maybelline, that contributed to its growth.

– TKO CFO Andrew Schleimer: “We remain laser-focused on operational execution. UFC and WWE remain our core drivers, and we continue to see a significant trend in these brands.”

– Schleimer discusses the financials of all TKO’s businesses.

– Schleimer says TKO will increase its guidance for revenue and adjusted EBITDA for the third quarter in a row and will target revenue of $4.69 to $4.72 billion and adjusted EBITDA to $1.57 to $1.58 billion, an increase of $45 million and $25 million, respectively.

“The increase is related to strong operating performance at UFC and WWE through the first nine months of the year, as well as our anticipated performance for the remainder of the year. It also reflects the accelerated timing of the WWE PLE deal with ESPN, net of cost associated with terminating the NBCU deal early.”

– Schleimer looks ahead to Q4, citing WWE’s new domestic rights deal with ESPN and two main roster PLE events. He notes that a Saudi Arabia event shifted from Q4 2025 to the start of Q1 2026, but he still believes there will be a strong financial performance for TKO in the next quarter.

– Schleimer expects UFC’s seven-year deal with Paramount and ESPN’s five-year deal with ESPN to bring “attractive visibility for our businesses for years to come.”

– On site fees, Schleimer says, “We continue to see meaningful momentum in securing significant financial incentives and deliver measurable financial impact by bringing our events to cities in the United States and around the globe. We’re focused on a multi-pronged strategy that is focused on receiving higher value from markets we currently have incentive packages with, site fees from markets we’ve been to, but don’t currently receive a fee from, as well as site fees from new markets.”

– Schleimer noted there will be three PLEs in Saudi Arabia in 2026 compared to one in 2025 and reiterated TKO’s previously communicated target of $1 billion in total partnership revenue by 2030.

– Schleimer discusses TKO’s business venture into boxing in 2026.

– The Q/A portion begins with TKO president and COO Mark Shapiro explaining UFC’s international deal with Paramount. “It’s all about brand, reach, dollars.”

– WWE president Nick Khan is asked about WWE’s live event business heading into 2026.

“We’ve increased prices appropriately with the marketplace. That’s for the PLEs, Raw, Smackdown, Saturday Night’s Main Event and every other ticketed program that WWE has. We remain bullish on it. A couple of years ago, when TKO was stood up, one of the first things that we collectively did was reduce the non-televised live events, which created more scarcity in the marketplace for our televised events and our continued international expansion only furthered that. Even in January, you’ll see us on a European tour for Raw and Smackdown, leading into Royal Rumble, which takes place in Saudi Arabia. Tickets already on fire for that event, and again, creates more scarcity in the United States, which is a good thing for our overall gate.”

– Shapiro talks about the distribution model for UFC’s media rights.

Shapiro on UFC fighter pay: “… We do believe that there is going to be meaningful accretion to our operating margins going forward.”

UFC senior executive vice president and COO Lawrence Epstein said deals are being negotiated and fighter pay is expected to increase based on incentives.

– Shapiro talks about TKO’s plans for boxing.

– Schleimer reiterates that TKO will benefit from three Saudi Arabia events in 2026, as well as a Royal Rumble in the country, when it comes to site fees. Shapiro says TKO has a team that is constantly working on site fees for UFC, WWE and boxing.

“This is a high-margin revenue opportunity that we are approaching like a heat-seeking missile,” Shapiro said.

Shapiro says this team has been working together for the last three months after making outside hires for their “revenue generation team.” He describes it as a “six-person roster that is dialing for dollars.”

“Raw has really gained so much momentum,” Shapiro said. “When you’re No. 1 in 29 out of 30 countries week to week on Netflix, that catches a lot of people’s eyes, and that kind of opens the doors for these conversations we’re having with regional governments and municipalities, etc.”

– Schleimer and Shapiro talk about how UFC’s new media rights deal affects sponsorships.

– There’s a question is about WWE and ESPN’s partnership. Khan says WWE was pleased with the coverage of Wrestlepalooza on ESPN.

Khan said:

If you noticed any of the promotion going into our first event with them, Wrestlepalooza, which is a new event for us, which we’re really pleased with. You saw wall to wall coverage on all ESPN platforms, so much so that on College GameDay, the morning of Wrestlepalooza, you had the entire panel. Pat McAfee, Coach Saban, Kirk Herbstreit, Desmond Howard, Reece Davis all predicting the winner of Brock Lesnar versus John Cena. It was phenomenal. It’s going to take time for ESPN to grow that platform the way that they want to grow it. We’re patient. We’ll continue to put on our product the way that we think only we can do.

Shapiro added:

ESPN can be one of the best marketing partners in the media space. When they strategize and get behind something. We’ve seen that firsthand with the UFC. And to Nick’s point, Wrestlepalooza was an incredible launch. Great for our brand, great exposure out there and in some of their most prominent shows with some of their most prominent talent promoting our event. We want to sustain that. We need to sustain that. And I think at the same time, it’s extremely important to us. And we’re watching like everybody else to see that as they renew a lot of their, distribution partner deals, that they get the ability to authenticate for free. So, you know, ESPN DTC, if you’re, so-and-so subscriber, you know, I’m not going to get into, you know, who has it and who doesn’t. You know, some of these folks can just authenticate and they get the DTC partnership for free. They just carry the app and others are paying $29.99. And it’s their goal, of course, to redo all their transmission deals and get these consents. And we’re, you know, we’re anxious to see that happen.

Shapiro noted that YouTube TV “is a prime example” of Disney attempting to get renewals with carriers that would include the ESPN direct-to-consumer streaming service that broadcasts WWE PLEs.

TKO Q1 2024 earnings call (5/8/2024)

John Pollock and I will discuss the TKO earnings report on Thursday (May 9) on Pollock & Thurston at 3 pm ET. YouTube link here: https://youtube.com/live/VWp8qawhTMM

The following notes are repurposed from this thread.

======

$TKO earnings release mentions WWE made a $25 million deal with NBCU to keep Raw on USA Network in Q4.

Seems like a bargain for NBCU. WWE’s current deal with NBCU for Raw is/was worth an average of $265M per year. A quarter of that would be $66M.

TKO reports a net loss of $250M for Q1, largely due to the $335M antitrust lawsuit settlement.

The $9M equity expense here must refer to the 96,558 shares (~$9M) awarded to Dwayne Johnson, dated the Sunday of Wrestlemania (4/7/2024). Dwayne’s Form 4 for that transaction: https://sec.gov/Archives/edgar/data/1973266/000095017024043101/xslF345X05/ownership.xmlโ€ฆ

WWE generated $316.7M in revenue for Q1. UFC generated $313M. https://d18rn0p25nwr6d.cloudfront.net/CIK-0001973266/a855147b-8d25-4e56-a88c-69249e33585a.pdfโ€ฆ

UFC continues to be more profitable, as expected.

TKO earnings release says: “In April, UFC 300 was one of the most successful and highest-grossing events in UFC history with a gate of $16.5 million and attendance of 20,067 at T-Mobile Arena in Las Vegas.” This gate figure probably includes fees. Pollstar data shows the event drew $14.9M and sold 18,245 tickets.

The Hollywood Reporter with a TKO-friendly headline

TKO Smashes Wall Street Revenue Expectations, Raises Guidance as UFC Settlement Hits Profits

TKO raised its guidance for full-year 2024:

Revenue: $2.610B to $ 2.685B, up from $2.757B to $2.650B

*Adjusted EBITDA: $1.185B to $1.205B, up from $1.150B to $1.170B

Free Cash Flow: “in excess of 40%”, down from “in excess of 50%”

*This is a non-GAAP measure of profit that should be thought of more as a performance metric, as it excludes lawsuit settlements, stock compensation. TKO defines adjusted EBITDA as: “net income, excluding income taxes, net interest expense, depreciation and amortization, equity-based compensation, merger and acquisition costs, certain legal costs, restructuring, severance and impairment charges, and certain other items when applicable. Adjusted EBITDA includes amortization expenses directly related to supporting the operations of the Company’s segments, including content production asset amortization.”

CFO Andrew Schleimer says Wrestlemania in Las Vegas is tied to cash and non-cash incentives.

Schleimer calls the Elimination Chamber site fee in Perth the highest for an international PLE outside of Saudi Arabia (which is $50M each event).

Q&A begins. TKO CEO Ari Emanuel is not on the call. Only Mark Shapiro and Andrew Schleimer.

TKO President Mark Shapiro says WWE Saudi events were highly tied to Vince McMahon, but Nick Khan has built a strong relationship and hand-off from Vince of that relationship. No plans at this point for more events but they are looking at “eventizing” or “festivalizing” the existing (twice a year) events in Saudi Arabia.

brandon@wrestlenomics.com


Brandon Thurston has written about wrestling business since 2015. He operates and owns Wrestlenomics.


TKO earnings Q4 2023 takeaways: Shapiro on if Vince will sell stock, MLW got $20 million settlement, Ari is Chair, Rock’s IP contract

brandon@wrestlenomics.comย 

Vince McMahon

  • Discussion of Vince McMahon on the call was minimal. McMahon still owns 11.8% of all TKO shares, although he resigned from his roles with TKO and WWE last month.
  • “[Vince McMahon will] do whatever he’s going to do and we’re on the sideline,” TKO COO Mark Shapiro said in response to an analyst question on whether McMahon intends to sell any of his shares.
  • “We’ll have a look, we’ll see. We have no idea on timing. We’re not having any discussion with him. He’s given us no point of view on his motive or if he plans to sell or not sell, or if he does, how much. So we’re going to wait around and find out just like you.”
  • Because of his resignation, McMahon was forced to forfeit 86,918 shares of unvested stock compensation, which have a market value of about $7.4 million. Those forfeited units are nominal compared to the 20,352,105 TKO shares he still holds.
  • TKO’s annual report makes clear, as previous TKO and WWE filings have previously, that McMahon is still paying “certain counterparties” installments. This refers to various nondisclosure agreements McMahon made to prevent women who formerly worked for the company from possibly coming forward with sexual misconduct claims. Despite McMahon’s recent separation from the company, these costs are still being counted toward TKO’s expenses and liabilities.

In connection with the acquisition of WWE, the Company assumed $3.5 million of liabilities related to future payments owed by Mr. McMahon to certain counterparties, of which $2.0 million was paid directly by Mr. McMahon during the period of September 12, 2023 through December 31, 2023.

MLW got a $20 million settlement

  • TKO’s annual report revealed WWE settled with MLW for $20 million to dismiss MLW’s antitrust lawsuit against WWE in December. From TKO’s annual report:

On December 22, 2023, the parties [WWE and MLW] notified the court that they had entered into a settlement agreement in the amount of $20.0 million and stipulated that the case should be voluntarily dismissed with prejudice. In light of the settlement, the case was dismissed with prejudice on December 26, 2023.

  • My reading of the statement in the filing is that WWE paid $20 million and didn’t pay anything additional toward MLW’s legal costs. MLW likely shared a healthy portion of the settlement amount with the high-profile Kasowitz firm that was representing MLW. Read literally, WWE’s $20 million settlement cost wouldn’t include any of WWE’s own legal costs toward litigating this case.

Ari Emanuel is TKO’s new Chairman

  • TKO CEO Ari Emanuel was established as TKO Board Chairman, as of Feb. 22, replacing Vince McMahon in that role. Emanuel was already a TKO Board member previously. Steve Koonin, who works full-time as CEO of the Atlanta Hawks and State Farm Arena, has been established as lead independent director.

Financial stuff

  • For the full year of 2023, WWE generated $1.326 billion in revenue. UFC generated $1.292 billion.ย 
  • TKO’s net income (the final measure of profitability) for the year was $175.7 million. In future years the company should be more profitable as this year was impacted by merger, restructuring, and severance costs. In 2022, WWE and UFC. combined, recorded $389 million in net income.
  • Both companies were profitable in 2023, but UFC is more profitable, despite generating slightly less revenue. TKO breaks down separate profitability metrics for WWE and UFC only into its preferred non-GAAP measure, adjusted EBITDA (which excludes interest costs, taxes, depreciation, amortization, legal costs, merger costs, and other expenses at TKO’s whim). By that measure, UFC recorded $755.7 million and WWE recorded $533.1 million for 2023.

Dwayne Johnson’s IP deal

  • The contract giving Dwayne Johnson all rights to intellectual property related to his Rock character was disclosed in the annual report. As part of his agreement to join the TKO Board last month, the company had already disclosed that Johnson was given these IP rights as well as $30 million in TKO stock. The stock will be given to him in installments through the end of 2025.ย 
  • To contrast how valuable Johnson’s Board deal is, Brad Keywell, founder of an AI software company, was added to the Board at the same time and was given a stock award of $182,000 and an annual retainer of $107,000.ย 
  • The IP contract, which wasn’t previously published, details the IP Johnson now has rights to, which includes the name “The Rock”, “Rocky Maivia” and many of his well-known wrestling move names and catchphrases. From the agreement:

โ€œRock IPโ€ means any and all Intellectual Property Rights throughout the world at any time owned by the TKO Group Parties, or any of their respective Affiliates, whether registered or unregistered, relating to (a) the following ring names and taglines: โ€œThe Rockโ€, โ€œRocky Maiviaโ€, โ€œTeam Corporateโ€, โ€œRock Nationโ€, โ€œThe Nationโ€, โ€œRoody Pooโ€, โ€œCandy Assโ€, โ€œJabroniโ€, โ€œIf you smell what The Rock is cookingโ€, โ€œThe Samoan Sensationโ€, โ€œThe Blue Chipperโ€, โ€œThe Brahma Bullโ€, โ€œThe Peopleโ€™s Championโ€, โ€œThe Great Oneโ€, โ€œKnow Your Role and Shut Your Mouthโ€, โ€œTeam Bring Itโ€, โ€œThe Rock Just Bring Itโ€, โ€œThe Peopleโ€™s Elbowโ€, โ€œRock Bottomโ€, โ€œFinally, The Rock has come back to …โ€, โ€œIt doesnโ€™t matter whatโ€ฆโ€, โ€œBlue Hellโ€, โ€œThe millionsโ€ฆ (and millions)โ€, โ€œRockpocalypseโ€, โ€œProject Rockโ€ and โ€œThe most electrifying man in sports and entertainmentโ€, (b) the logos and all other Intellectual Property Rights set forth on Schedule A, ย  (c) all other service marks and trademarks relating to the items in clauseย (a) and (b) and (c) all other nicknames, caricatures, voice, signature, gestures, routines, costumes or parts of costumes, accessories, crowns, relating to the items in clauseย (a) , (b) or (c).

Where will Raw air in the U.S. from October to December?

TKO CFO Andrew Schleimer said the company is working on distribution for U.S. broadcast rights for Raw for the fourth quarter of this year. There’s currently no TV home set for Raw for October through December of this year. Raw’s deal with NBCUniversal to broadcast on the USA Network expires at the end of September 2024, and the Netflix deal doesn’t start until January 2025.ย 

“We are in the process of securing distribution for Raw during the interim period in Q4,” Schleimer said on the call. “We will provide further details once we have an update.”

Due to uncertainty about what revenue U.S. Raw rights will provide in the fourth quarter, TKO assumed no profitability toward U.S. rights for Raw in that period included in the company’s guidance of $1.15 billion to $1.17 billion in adjusted EBITDA for the full year of 2024.

WWE business percentage differences: attendance, PLE viewership

The earnings release stated WWE’s live event average attendance increased by 34% in 2023, but no actual average attendance number was given.ย 

We have 2022 full-year numbers, though, for WWE pre-merger. If we assume TKO is referring to worldwide attendance, then, this disclosure would imply average annual attendance for WWE in 2023 was about 8,300.ย 

That’s based on WWE’s 2022 reporting that it ran 231 events, drawing a total of 1,429,800 attendees for an average attendance of about 6,200.

I believe these numbers reflect paid attendees. Checking these numbers against WrestleTix’s estimates of tickets distributed, WWE distributed an average of 6,962 tickets in 2022 and 8,980 in 2023, an increase of 29%, a delta close to the 34% reported increase.

In case the release actually refers only to U.S. and Canadian attendance, WrestleTix numbers confirm a closer percentage difference: 6,753 in 2022, up 32% to 8,945 in 2023. In that case, WWE reported North American average attendance in 2022 of 6,070. A 34% increase over 6,070 would imply North American average attendance in 2023 of about 8,100.

TKO’s release also said the two PLEs in 2023 saw domestic viewership increases on Peacock of 25% (presumably Fastlane) and 22% (presumably Survivor Series).ย 

PLE viewership on Peacock continues to benefit from increases in Peacock subscribers, which were at 31 million in Q4, up 55% from 20 million subscribers in Q4 2022, according to Comcast’s reporting.

TKO stock response

As of 11:00 am ET on Wednesday, TKO shares were trading at $85.27, down about 1%, just under the major indexes, on the first day of trading since the company reported earnings on Tuesday evening.

MoffettNathanson lowered its stock price target to $90, down from $95 previously, according to Mike Ozanian of Forbes.