## TKO (TKO Group Holdings, Inc.) — deep dive using filings (10-K + latest 10-Q) ### Quick navigation (pick a track) 1) **Business model & moat** (UFC / WWE flywheel) 2) **Financial scorecard** (FY + latest quarter / YTD) 3) **Segment engine room** (UFC vs WWE vs IMG) 4) **Capital structure, debt & liquidity** 5) **Key risks & “what can break” checklist** 6) **My “things to watch next” dashboard (based on disclosures)** --- ## 1) What TKO *is* (in the company’s own framing) TKO describes itself as a “premium sports and sports entertainment company” built around **UFC** (combat sports) and **WWE** (sports entertainment). ["premium sports"](0000950170-25-027778|0) ### The monetization model (4 recurring revenue pillars) TKO explicitly frames monetization around four principal activities: 1) **Media rights & content** (long-term licensing + streaming) 2) **Live events** (ticketing + site fees + hospitality) 3) **Sponsorship** (in-venue/in-broadcast/digital inventory) 4) **Consumer products licensing** (games, merch, collectibles, etc.) ["four principal activities"](0000950170-25-027778|0) ### Why this model tends to be “high quality” (structurally) TKO argues it has structural advantages vs traditional leagues: it controls production/IP, isn’t constrained by seasonality, and can scale event count/location. ["Unlike traditional sports leagues"](0000950170-25-027778|0) --- ## 2) Financial scorecard (filing-based) ### 2A) FY2024 vs FY2023 — cash generation and scale (USD, **in thousands**) | Metric | FY2024 | FY2023 | |---|---:|---:| | Total assets | $12,699,936 ["Total assets"](0000950170-25-027778|0) | $12,690,739 ["Total assets"](0000950170-25-027778|0) | | Cash & cash equivalents (year-end) | $525,556 ["Cash and cash equivalents"](0000950170-25-027778|0) | $235,839 ["Cash and cash equivalents"](0000950170-25-027778|0) | | Net cash provided by operating activities | $583,410 ["Net cash provided"](0000950170-25-027778|0) | $468,381 ["Net cash provided"](0000950170-25-027778|0) | | Share repurchases | $(165,000) ["Repurchase of Class A"](0000950170-25-027778|0) | $(100,000) ["Repurchase of Class A"](0000950170-25-027778|0) | **Read-through:** TKO’s operating cash flow in FY2024 ($583.4m) covered meaningful capital return (repurchases $165m) *while* still growing cash year-end to $525.6m. ["Net cash provided by operating activities"](0000950170-25-027778|0) ["CASH AND CASH EQUIVALENTS, END OF PERIOD"](0000950170-25-027778|0) ### 2B) Latest quarterly snapshot — balance sheet scale and leverage trend From the **latest 10‑Q (quarter ended Sept. 30, 2025)**: | Balance sheet line (USD, in thousands) | Sep 30, 2025 | Dec 31, 2024 | |---|---:|---:| | Cash & cash equivalents | $861,410 ["Cash and cash equivalents"](0001193125-25-267014|0) | $619,787 ["Cash and cash equivalents"](0001193125-25-267014|0) | | Total assets | $15,546,959 ["Total assets"](0001193125-25-267014|0) | $15,111,782 ["Total assets"](0001193125-25-267014|0) | | Long-term debt | $3,701,067 ["Long-term debt"](0001193125-25-267014|0) | $2,735,305 ["Long-term debt"](0001193125-25-267014|0) | | Total stockholders’ equity | $9,427,458 ["Total stockholders' equity"](0001193125-25-267014|0) | $10,121,000 ["Total stockholders' equity"](0001193125-25-267014|0) | **Interpretation:** By Sept. 30, 2025, reported long‑term debt is higher vs year‑end 2024, while cash also increased (so *gross* leverage rose, but liquidity improved too). ["Long-term debt"](0001193125-25-267014|0) ["Cash and cash equivalents"](0001193125-25-267014|0) --- ## 3) Segment engine room: UFC vs WWE vs IMG ### 3A) Segment definitions changed after the Endeavor Asset Acquisition The 10‑Q states: **prior to the Endeavor Asset Acquisition** it had two reportable segments (UFC, WWE), and **after** it reports three (UFC, WWE, IMG). ["Prior to the Endeavor Asset Acquisition"](0001193125-25-267014|0) ["three reportable segments"](0001193125-25-267014|0) ### 3B) Latest quarter + YTD segment P&L (USD, in thousands) **Reportable segments — Revenue & Adjusted EBITDA** | Segment | Q3’25 revenue | Q3’24 revenue | 9M’25 revenue | 9M’24 revenue | |---|---:|---:|---:|---:| | UFC | $325,236 ["Revenue"](0001193125-25-267014|0) | $354,971 ["Revenue"](0001193125-25-267014|0) | $1,100,818 ["Revenue"](0001193125-25-267014|0) | $1,062,319 ["Revenue"](0001193125-25-267014|0) | | WWE | $402,099 ["Revenue"](0001193125-25-267014|0) | $326,302 ["Revenue"](0001193125-25-267014|0) | $1,349,781 ["Revenue"](0001193125-25-267014|0) | $1,099,826 ["Revenue"](0001193125-25-267014|0) | | IMG | $336,772 ["Revenue"](0001193125-25-267014|0) | $829,141 ["Revenue"](0001193125-25-267014|0) | $1,119,630 ["Revenue"](0001193125-25-267014|0) | $1,698,389 ["Revenue"](0001193125-25-267014|0) | | Segment | Q3’25 Adj. EBITDA | Q3’24 Adj. EBITDA | 9M’25 Adj. EBITDA | 9M’24 Adj. EBITDA | |---|---:|---:|---:|---:| | UFC | $165,656 ["Adjusted EBITDA"](0001193125-25-267014|0) | $195,630 ["Adjusted EBITDA"](0001193125-25-267014|0) | $637,841 ["Adjusted EBITDA"](0001193125-25-267014|0) | $622,610 ["Adjusted EBITDA"](0001193125-25-267014|0) | | WWE | $207,817 ["Adjusted EBITDA"](0001193125-25-267014|0) | $175,269 ["Adjusted EBITDA"](0001193125-25-267014|0) | $731,496 ["Adjusted EBITDA"](0001193125-25-267014|0) | $566,794 ["Adjusted EBITDA"](0001193125-25-267014|0) | | IMG | $61,493 ["Adjusted EBITDA"](0001193125-25-267014|0) | $(54,253) ["Adjusted EBITDA"](0001193125-25-267014|0) | $163,948 ["Adjusted EBITDA"](0001193125-25-267014|0) | $(64,220) ["Adjusted EBITDA"](0001193125-25-267014|0) | **How to “read” this table like an analyst** - **WWE is the standout YTD growth engine** (revenue and Adj. EBITDA both materially higher Y/Y). ["WWE: 2025"](0001193125-25-267014|0) ["WWE: 2024"](0001193125-25-267014|0) - **IMG is the big swing factor**: massive prior-year comps (the filing attributes the decline largely to the prior year including 2024 Paris Olympics hospitality revenue). ["prior year included hospitality"](0001193125-25-267014|0) - **UFC is steadier** on 9M revenue/Adj. EBITDA but had a softer quarter vs prior year. ["UFC: 2025"](0001193125-25-267014|0) ["UFC: 2024"](0001193125-25-267014|0) --- ## 4) Capital structure, shares, control, and “who really owns the economics” ### 4A) Dual-class share structure (control lens) As of Sept. 30, 2025 the 10‑Q shows both Class A and Class B shares outstanding (and corresponding equity lines). ["Class A common stock"](0001193125-25-267014|0) ["Class B common stock"](0001193125-25-267014|0) ### 4B) Debt stack & refinancing disclosures (what matters most) **FY2024 debt composition (USD, in thousands)** | Debt line | Dec 31, 2024 | Dec 31, 2023 | |---|---:|---:| | First Lien Term Loan (due Nov 2031) | $2,750,000 ["First Lien Term Loan"](0000950170-25-027778|0) | $2,728,766 ["First Lien Term Loan"](0000950170-25-027778|0) | | Secured Commercial Loans (due Nov 2028) | $30,267 ["Secured Commercial Loans"](0000950170-25-027778|0) | $31,867 ["Secured Commercial Loans"](0000950170-25-027778|0) | | Total principal | $2,780,267 ["Total principal"](0000950170-25-027778|0) | $2,760,633 ["Total principal"](0000950170-25-027778|0) | | Total debt (net) | $2,759,274 ["Total debt"](0000950170-25-027778|0) | $2,736,315 ["Total debt"](0000950170-25-027778|0) | **Key covenant/structure takeaway (from filings):** the 10‑K describes a revolver covenant framework tied to a First Lien Leverage Ratio test that applies only if revolver usage exceeds a threshold. ["financial covenant"](0000950170-25-027778|0) **Most important “recent event” debt-wise (latest 10‑Q):** in Sept. 2025 the company amended/refinanced the credit agreement, including an **additional $1.0 billion incremental first lien secured term loan** and extended revolver maturity to Sept. 2030. ["additional $1.0 billion"](0001193125-25-267014|0) ["extended the maturity"](0001193125-25-267014|0) --- ## 5) Key risks & “what can break” checklist (filing-driven) Below are the *practical* risk buckets I’d monitor, tied to what TKO emphasizes in its disclosures: ### A) Distribution partner dependence (media rights concentration) The 10‑K explicitly highlights reliance on key distributors and flags renewal/maintenance risk around major agreements (e.g., Netflix for Raw, and other domestic relationships). ["dependent on maintaining"](0000950170-25-027778|0) ["Netflix became the exclusive"](0000950170-25-027778|0) ### B) Litigation can be financially material The 10‑Q discusses the UFC antitrust settlement path and related charges/payments (including the $375.0m settlement and installment structure). ["settle all claims"](0001193125-25-267014|0) ["$375.0 million"](0001193125-25-267014|0) ### C) Leverage + refinancing exposure The 10‑K highlights substantial indebtedness and interest rate sensitivity (example: a 100 bps increase ~ $28m annual interest expense impact). ["substantial amount of indebtedness"](0000950170-25-027778|0) ["approximately $28 million"](0000950170-25-027778|0) ### D) Segment volatility (IMG / On Location cycle risk) The 10‑Q attributes IMG revenue decline primarily to a prior-year Olympics-driven comp, which is a useful reminder that parts of IMG/On Location can be event-cycle sensitive. ["prior year included"](0001193125-25-267014|0) --- ## 6) “Interactive” monitoring dashboard (built from disclosed KPIs) If you want to track TKO like an analyst *without leaving filings*, here’s a simple dashboard of **what to check each quarter**, based on what management discloses: 1) **Segment Revenue + Segment Adj. EBITDA**: UFC / WWE / IMG (watch mix shifts). ["Revenue"](0001193125-25-267014|0) ["Adjusted EBITDA"](0001193125-25-267014|0) 2) **Corporate & Other drag** (can swamp segment gains). ["Corporate and Other"](0001193125-25-267014|0) 3) **Debt actions**: amendments, incremental tranches, transaction costs, revolver usage. ["Credit Agreement Amendment"](0001193125-25-267014|0) 4) **Liquidity trend**: cash vs debt (direction matters more than level). ["Cash and cash equivalents"](0001193125-25-267014|0) ["Long-term debt"](0001193125-25-267014|0) 5) **Event cadence KPIs**: UFC and WWE event counts disclosed in the 10‑Q (helps explain quarter-to-quarter swings). ["Numbered events"](0001193125-25-267014|0) ["Premium live events"](0001193125-25-267014|0) --- ### Appendix: TKO “at a glance” (structure & scale anchors) - FY2024 year-end: **$12.70B total assets**. ["Total assets"](0000950170-25-027778|0) - Latest quarter shown (Sept. 30, 2025): **$15.55B total assets**. ["Total assets"](0001193125-25-267014|0) - FY2024 operating cash flow: **$583.4M**. ["Net cash provided by operating activities"](0000950170-25-027778|0) - FY2024 debt: **$2.75B first lien term loan due Nov 2031** (plus secured commercial loans). ["First Lien Term Loan"](0000950170-25-027778|0) --- If you want, I can extend this into a **full “initiation-style” writeup** next (valuation framework, unit economics by revenue stream, and a filings-backed timeline of major events like media rights renewals / acquisition integration / capital return) using the same source set (10‑K + 10‑Q + 8‑Ks).

## TKO (TKO Group Holdings, Inc.) — deep dive using filings (10-K + latest 10-Q) ### Quick navigation (pick a track) 1) **Business model & moat** (UFC / WWE flywheel) 2) **Financial scorecard** (FY + latest quarter / YTD) 3) **Segment engine room** (UFC vs WWE vs IMG) 4) **Capital structure, debt & liquidity** 5) **Key risks & “what can break” checklist** 6) **My “things to watch next” dashboard (based on disclosures)** --- ## 1) What TKO *is* (in the company’s own framing) TKO describes itself as a “premium sports and sports entertainment company” built around **UFC** (combat sports) and **WWE** (sports entertainment). ["premium sports"](0000950170-25-027778|0) ### The monetization model (4 recurring revenue pillars) TKO explicitly frames monetization around four principal activities: 1) **Media rights & content** (long-term licensing + streaming) 2) **Live events** (ticketing + site fees + hospitality) 3) **Sponsorship** (in-venue/in-broadcast/digital inventory) 4) **Consumer products licensing** (games, merch, collectibles, etc.) ["four principal activities"](0000950170-25-027778|0) ### Why this model tends to be “high quality” (structurally) TKO argues it has structural advantages vs traditional leagues: it controls production/IP, isn’t constrained by seasonality, and can scale event count/location. ["Unlike traditional sports leagues"](0000950170-25-027778|0) --- ## 2) Financial scorecard (filing-based) ### 2A) FY2024 vs FY2023 — cash generation and scale (USD, **in thousands**) | Metric | FY2024 | FY2023 | |---|---:|---:| | Total assets | $12,699,936 ["Total assets"](0000950170-25-027778|0) | $12,690,739 ["Total assets"](0000950170-25-027778|0) | | Cash & cash equivalents (year-end) | $525,556 ["Cash and cash equivalents"](0000950170-25-027778|0) | $235,839 ["Cash and cash equivalents"](0000950170-25-027778|0) | | Net cash provided by operating activities | $583,410 ["Net cash provided"](0000950170-25-027778|0) | $468,381 ["Net cash provided"](0000950170-25-027778|0) | | Share repurchases | $(165,000) ["Repurchase of Class A"](0000950170-25-027778|0) | $(100,000) ["Repurchase of Class A"](0000950170-25-027778|0) | **Read-through:** TKO’s operating cash flow in FY2024 ($583.4m) covered meaningful capital return (repurchases $165m) *while* still growing cash year-end to $525.6m. ["Net cash provided by operating activities"](0000950170-25-027778|0) ["CASH AND CASH EQUIVALENTS, END OF PERIOD"](0000950170-25-027778|0) ### 2B) Latest quarterly snapshot — balance sheet scale and leverage trend From the **latest 10‑Q (quarter ended Sept. 30, 2025)**: | Balance sheet line (USD, in thousands) | Sep 30, 2025 | Dec 31, 2024 | |---|---:|---:| | Cash & cash equivalents | $861,410 ["Cash and cash equivalents"](0001193125-25-267014|0) | $619,787 ["Cash and cash equivalents"](0001193125-25-267014|0) | | Total assets | $15,546,959 ["Total assets"](0001193125-25-267014|0) | $15,111,782 ["Total assets"](0001193125-25-267014|0) | | Long-term debt | $3,701,067 ["Long-term debt"](0001193125-25-267014|0) | $2,735,305 ["Long-term debt"](0001193125-25-267014|0) | | Total stockholders’ equity | $9,427,458 ["Total stockholders' equity"](0001193125-25-267014|0) | $10,121,000 ["Total stockholders' equity"](0001193125-25-267014|0) | **Interpretation:** By Sept. 30, 2025, reported long‑term debt is higher vs year‑end 2024, while cash also increased (so *gross* leverage rose, but liquidity improved too). ["Long-term debt"](0001193125-25-267014|0) ["Cash and cash equivalents"](0001193125-25-267014|0) --- ## 3) Segment engine room: UFC vs WWE vs IMG ### 3A) Segment definitions changed after the Endeavor Asset Acquisition The 10‑Q states: **prior to the Endeavor Asset Acquisition** it had two reportable segments (UFC, WWE), and **after** it reports three (UFC, WWE, IMG). ["Prior to the Endeavor Asset Acquisition"](0001193125-25-267014|0) ["three reportable segments"](0001193125-25-267014|0) ### 3B) Latest quarter + YTD segment P&L (USD, in thousands) **Reportable segments — Revenue & Adjusted EBITDA** | Segment | Q3’25 revenue | Q3’24 revenue | 9M’25 revenue | 9M’24 revenue | |---|---:|---:|---:|---:| | UFC | $325,236 ["Revenue"](0001193125-25-267014|0) | $354,971 ["Revenue"](0001193125-25-267014|0) | $1,100,818 ["Revenue"](0001193125-25-267014|0) | $1,062,319 ["Revenue"](0001193125-25-267014|0) | | WWE | $402,099 ["Revenue"](0001193125-25-267014|0) | $326,302 ["Revenue"](0001193125-25-267014|0) | $1,349,781 ["Revenue"](0001193125-25-267014|0) | $1,099,826 ["Revenue"](0001193125-25-267014|0) | | IMG | $336,772 ["Revenue"](0001193125-25-267014|0) | $829,141 ["Revenue"](0001193125-25-267014|0) | $1,119,630 ["Revenue"](0001193125-25-267014|0) | $1,698,389 ["Revenue"](0001193125-25-267014|0) | | Segment | Q3’25 Adj. EBITDA | Q3’24 Adj. EBITDA | 9M’25 Adj. EBITDA | 9M’24 Adj. EBITDA | |---|---:|---:|---:|---:| | UFC | $165,656 ["Adjusted EBITDA"](0001193125-25-267014|0) | $195,630 ["Adjusted EBITDA"](0001193125-25-267014|0) | $637,841 ["Adjusted EBITDA"](0001193125-25-267014|0) | $622,610 ["Adjusted EBITDA"](0001193125-25-267014|0) | | WWE | $207,817 ["Adjusted EBITDA"](0001193125-25-267014|0) | $175,269 ["Adjusted EBITDA"](0001193125-25-267014|0) | $731,496 ["Adjusted EBITDA"](0001193125-25-267014|0) | $566,794 ["Adjusted EBITDA"](0001193125-25-267014|0) | | IMG | $61,493 ["Adjusted EBITDA"](0001193125-25-267014|0) | $(54,253) ["Adjusted EBITDA"](0001193125-25-267014|0) | $163,948 ["Adjusted EBITDA"](0001193125-25-267014|0) | $(64,220) ["Adjusted EBITDA"](0001193125-25-267014|0) | **How to “read” this table like an analyst** - **WWE is the standout YTD growth engine** (revenue and Adj. EBITDA both materially higher Y/Y). ["WWE: 2025"](0001193125-25-267014|0) ["WWE: 2024"](0001193125-25-267014|0) - **IMG is the big swing factor**: massive prior-year comps (the filing attributes the decline largely to the prior year including 2024 Paris Olympics hospitality revenue). ["prior year included hospitality"](0001193125-25-267014|0) - **UFC is steadier** on 9M revenue/Adj. EBITDA but had a softer quarter vs prior year. ["UFC: 2025"](0001193125-25-267014|0) ["UFC: 2024"](0001193125-25-267014|0) --- ## 4) Capital structure, shares, control, and “who really owns the economics” ### 4A) Dual-class share structure (control lens) As of Sept. 30, 2025 the 10‑Q shows both Class A and Class B shares outstanding (and corresponding equity lines). ["Class A common stock"](0001193125-25-267014|0) ["Class B common stock"](0001193125-25-267014|0) ### 4B) Debt stack & refinancing disclosures (what matters most) **FY2024 debt composition (USD, in thousands)** | Debt line | Dec 31, 2024 | Dec 31, 2023 | |---|---:|---:| | First Lien Term Loan (due Nov 2031) | $2,750,000 ["First Lien Term Loan"](0000950170-25-027778|0) | $2,728,766 ["First Lien Term Loan"](0000950170-25-027778|0) | | Secured Commercial Loans (due Nov 2028) | $30,267 ["Secured Commercial Loans"](0000950170-25-027778|0) | $31,867 ["Secured Commercial Loans"](0000950170-25-027778|0) | | Total principal | $2,780,267 ["Total principal"](0000950170-25-027778|0) | $2,760,633 ["Total principal"](0000950170-25-027778|0) | | Total debt (net) | $2,759,274 ["Total debt"](0000950170-25-027778|0) | $2,736,315 ["Total debt"](0000950170-25-027778|0) | **Key covenant/structure takeaway (from filings):** the 10‑K describes a revolver covenant framework tied to a First Lien Leverage Ratio test that applies only if revolver usage exceeds a threshold. ["financial covenant"](0000950170-25-027778|0) **Most important “recent event” debt-wise (latest 10‑Q):** in Sept. 2025 the company amended/refinanced the credit agreement, including an **additional $1.0 billion incremental first lien secured term loan** and extended revolver maturity to Sept. 2030. ["additional $1.0 billion"](0001193125-25-267014|0) ["extended the maturity"](0001193125-25-267014|0) --- ## 5) Key risks & “what can break” checklist (filing-driven) Below are the *practical* risk buckets I’d monitor, tied to what TKO emphasizes in its disclosures: ### A) Distribution partner dependence (media rights concentration) The 10‑K explicitly highlights reliance on key distributors and flags renewal/maintenance risk around major agreements (e.g., Netflix for Raw, and other domestic relationships). ["dependent on maintaining"](0000950170-25-027778|0) ["Netflix became the exclusive"](0000950170-25-027778|0) ### B) Litigation can be financially material The 10‑Q discusses the UFC antitrust settlement path and related charges/payments (including the $375.0m settlement and installment structure). ["settle all claims"](0001193125-25-267014|0) ["$375.0 million"](0001193125-25-267014|0) ### C) Leverage + refinancing exposure The 10‑K highlights substantial indebtedness and interest rate sensitivity (example: a 100 bps increase ~ $28m annual interest expense impact). ["substantial amount of indebtedness"](0000950170-25-027778|0) ["approximately $28 million"](0000950170-25-027778|0) ### D) Segment volatility (IMG / On Location cycle risk) The 10‑Q attributes IMG revenue decline primarily to a prior-year Olympics-driven comp, which is a useful reminder that parts of IMG/On Location can be event-cycle sensitive. ["prior year included"](0001193125-25-267014|0) --- ## 6) “Interactive” monitoring dashboard (built from disclosed KPIs) If you want to track TKO like an analyst *without leaving filings*, here’s a simple dashboard of **what to check each quarter**, based on what management discloses: 1) **Segment Revenue + Segment Adj. EBITDA**: UFC / WWE / IMG (watch mix shifts). ["Revenue"](0001193125-25-267014|0) ["Adjusted EBITDA"](0001193125-25-267014|0) 2) **Corporate & Other drag** (can swamp segment gains). ["Corporate and Other"](0001193125-25-267014|0) 3) **Debt actions**: amendments, incremental tranches, transaction costs, revolver usage. ["Credit Agreement Amendment"](0001193125-25-267014|0) 4) **Liquidity trend**: cash vs debt (direction matters more than level). ["Cash and cash equivalents"](0001193125-25-267014|0) ["Long-term debt"](0001193125-25-267014|0) 5) **Event cadence KPIs**: UFC and WWE event counts disclosed in the 10‑Q (helps explain quarter-to-quarter swings). ["Numbered events"](0001193125-25-267014|0) ["Premium live events"](0001193125-25-267014|0) --- ### Appendix: TKO “at a glance” (structure & scale anchors) - FY2024 year-end: **$12.70B total assets**. ["Total assets"](0000950170-25-027778|0) - Latest quarter shown (Sept. 30, 2025): **$15.55B total assets**. ["Total assets"](0001193125-25-267014|0) - FY2024 operating cash flow: **$583.4M**. ["Net cash provided by operating activities"](0000950170-25-027778|0) - FY2024 debt: **$2.75B first lien term loan due Nov 2031** (plus secured commercial loans). ["First Lien Term Loan"](0000950170-25-027778|0) --- If you want, I can extend this into a **full “initiation-style” writeup** next (valuation framework, unit economics by revenue stream, and a filings-backed timeline of major events like media rights renewals / acquisition integration / capital return) using the same source set (10‑K + 10‑Q + 8‑Ks).