Revenue Growth Acceleration
TKO's revenue grew 25.9% YoY from $1.27B to $1.60B in Q1 FY2026, reflecting strong momentum across its live sports and entertainment properties, including WWE and UFC events.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
TKO delivered strong Q1 FY2026 results with revenue surging 25.9% YoY to $1.60B and net income jumping 53.0% to $89.4M, driven by robust operating leverage, though long-term debt rose sharply by 68.4% to $4.64B.
Revenue
$1.6B
+25.86% YoY
EPS (Diluted)
$1.12
+62.32% YoY
Operating Income
$338.48M
+42.60% YoY
Source: SEC XBRL
TKO Group Holdings (TKO) reported Q1 FY2026 revenue of $1.6B, up 25.9% year over year. Operating margin was 21.2%, up 2.5 points from 18.7% a year earlier. Operating cash flow was $694.54M, up 326.6% year over year. TKO's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 0 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.34 | 1.50 | Miss -10.9% |
| Mar 2026This filing | 1.12 | 1.20 | Miss -6.7% |
| Dec 2025 | -0.08 | 0.30 | Miss -126.3% |
| Sep 2025 | 0.47 | 0.73 | Miss -36.0% |
Reported EPS of $1.12 versus the $1.20 analyst consensus — a -6.7% miss for Mar 2026.
Compiled by AI from this SEC filing
TKO's revenue grew 25.9% YoY from $1.27B to $1.60B in Q1 FY2026, reflecting strong momentum across its live sports and entertainment properties, including WWE and UFC events.
Source: 10-Q Income Statement
Operating income rose 42.6% YoY to $338.5M, with operating margin expanding approximately 250 basis points to 21.2%, indicating that revenue growth is outpacing cost increases and driving meaningful profitability improvement.
Source: 10-Q Income Statement
Operating cash flow surged 326.6% YoY from $162.8M to $694.5M, a dramatic improvement that signals significantly stronger cash generation from core business operations in Q1 FY2026.
Source: 10-Q Cash Flow Statement
SG&A expenses grew only 4.7% YoY to $380.2M despite 25.9% revenue growth, demonstrating strong cost discipline and contributing to the meaningful margin expansion seen in the quarter.
Source: 10-Q Income Statement
Long-term debt rose 68.4% YoY to $4.64B, while the company also repurchased $838.3M in shares, reflecting an aggressive capital allocation strategy that has increased financial leverage and reduced stockholders' equity by 18.9% to $3.38B.
Source: 10-Q Balance Sheet & Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Long-term debt surged 68.4% YoY to $4.64B, pushing the debt-to-equity ratio to 2.22x. This elevated leverage increases TKO's sensitivity to interest rate changes and could constrain financial flexibility in a downturn or if operating performance weakens.
Source: 10-Q Balance Sheet
Stockholders' equity fell 18.9% YoY to $3.38B, partly driven by the $838.3M in share buybacks. While buybacks can signal management confidence, the combination of rising debt and shrinking equity materially increases financial risk for the company.
Source: 10-Q Balance Sheet & Cash Flow Statement
TKO's revenue is heavily dependent on live sports events (UFC and WWE) and associated media rights deals. Any disruption to event scheduling, athlete availability, or renegotiation of key media contracts could significantly impact revenue.
Source: 10-Q Income Statement
Despite a 21.2% operating margin, TKO's net margin is only 5.6%, suggesting significant below-the-line costs such as interest expense, amortization of intangibles, or non-operating charges that compress profitability and could worsen if debt levels rise further.
Source: 10-Q Income Statement
Total assets grew 6.7% YoY to $16.0B, a figure that likely includes substantial goodwill and intangible assets from the TKO merger. Any impairment of these assets could result in large non-cash charges that would significantly impact reported earnings.
Source: 10-Q Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.60 $B | 1.27 $B | +25.86% |
Operating Income $M | 338.48 $M | 237.36 $M | +42.60% |
Net Income $M | 89.35 $M | 58.41 $M | +52.98% |
EPS (Basic) $ | 1.16 $ | 0.72 $ | +61.11% |
EPS (Diluted) $ | 1.12 $ | 0.69 $ | +62.32% |
SG&A Expense $M | 380.24 $M | 363.29 $M | +4.67% |
Answers draw on this SEC filing and the data on this page
TKO delivered double-digit revenue growth in Q2 FY2026 fueled by new media deals and marquee events, but net income rose only 3.3% due to a $30 million litigation charge and higher interest costs.
TKO Group Holdings delivered a dramatic profitability turnaround in FY2025, with operating income surging 2,598% to $835M and net income jumping 2,964% to $195M, even as revenue dipped 3.1% to $4.74B, driven by sharply lower SG&A costs and improved operational efficiency.
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