TKO Group Holdings, Inc. yesterday announced financial results for its first quarter ended March 31, 2025.

“TKO is off to a good start in 2025 with both UFC and WWE delivering solid financial results,” said Ariel Emanuel, Executive Chair and CEO of TKO. “Given the strength and momentum of these businesses and no material change to our overall business outlook, we are raising our guidance. At the same time, we are updating guidance to reflect the addition of IMG, On Location, and PBR. Our conviction in our portfolio of assets is strong and we are now focused on integration, driving synergies, the domestic media rights deal for UFC, and our capital return programs.”

Revenue increased 4%, or $46.4 million, to $1.269 billion. The increase primarily reflected an increase of $74.8 million at WWE, to $391.5 million, and an increase of $46.7 million at UFC, to $359.7 million, partially offset by a decrease of $73.4 million at IMG, to $476.3 million.

Net Income was $165.5 million, an increase of $400.0 million from a net loss of $234.5 million in the prior year period. The increase primarily reflected the increase in revenue and a decrease in operating expenses. The decrease in operating expenses reflected a decrease in selling, general and administrative expenses of $305.0 million, a decrease in direct operating costs of $38.0 million, and a decrease in depreciation and amortization of $21.6 million. The decrease in selling, general and administrative expenses was primarily related to the absence of a preliminary legal settlement charge of $335.0 million related to a UFC antitrust matter that was recorded in the prior year period.

Adjusted EBITDA increased 23%, or $78.5 million, to $417.4 million, primarily due to an increase of $53.7 million at WWE, to $193.9 million, and an increase of $32.3 million at UFC, to $227.4 million, partially offset by a decrease of $7.8 million at IMG, to $73.5 million. Corporate and Other was essentially flat as compared to the prior year period.

Cash flows generated by operating activities were $162.8 million, an increase of $117.9 million from $44.9 million, primarily due to higher net income and the timing of working capital, including approximately $100.3 million of pre-payments held in escrow related to the 2026 FIFA World Cup. These increases were partially offset by a payment of $125.0 million related to the UFC antitrust lawsuit as well as payments related to transaction costs in connection with the Acquired Businesses and the timing of bonuses. (See “Other Matters” for further details.)

Free Cash Flow4 was $135.5 million, an increase of $128.0 million from $7.5 million, due to the increase in cash flows generated by operating activities and a decrease in capital expenditures.

Cash and cash equivalents were $470.9 million as of March 31, 2025. Gross debt was $2.776 billion as of March 31, 2025.

The full press release is available at TKOGrp.com.