TKO Group Holdings, Inc. (TKO) SEC Filings & Earnings Calls

Legal costs: increased SG&A due to legal fees and settlement costs related to WWE stockholder litigation.

“The increase in selling, general and administrative expenses primarily reflected legal fees and settlement costs associated with stockholder litigation related to WWE.” · word for word

FIFA World Cup escrow: working capital impacted by $22.4M in net pre-payments held in escrow related to FIFA World Cup 2026.

“Working capital for the three months ended June 30, 2026 and June 30, 2025 included approximately $22.4 million and $164.8 million, respectively, of net pre-payments held in escrow related to FIFA World Cup 2026.” · word for word

Litigation costs

“Corporate and Other selling, general and administrative expenses increased by $79.9 million, or 67%. This increase was primarily driven by $61.4 million of higher legal fees associated with certain litigation matters, including the Company's estimated loss of $30.0 million reflecting the Company’s liability net of probable insurance recoveries and $25.6 mill” · word for word

Debt increase and interest expense

“Interest expense, net increased by $22.4 million, or 46%, to $70.6 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was driven primarily by incremental interest expense from higher debt levels maintained during the current year as compared to the prior year due to the $1.0 billion and $900.0 mil” · word for word

High leverage and debt service

“First Lien Term Loan $4.6 billion; interest expense increased 35% to $60.6 million due to higher debt levels.”

Litigation costs

“Certain legal costs $23.2 million, including antitrust lawsuits for UFC and stockholder litigation.”

Concentration on key media agreements

“Revenue growth heavily dependent on new content distribution agreements (Paramount, Netflix, ESPN).”

Dependence on FIFA World Cup prepayments for cash flow boost; timing may not recur

“including approximately $582.4 million of net pre-payments held in escrow related to FIFA World Cup 26” · word for word

Gross debt of $4.671 billion remains significant

“Gross debt was $4.671 billion as of March 31, 2026.” · word for word

Controlled Company Governance

“Because Endeavor Group Holdings, Inc. and its controlling shareholder, Silver Lake, control more than 50% of our combined voting power for the election of directors, we are considered a 'controlled company' for the purposes of the NYSE’s rules and corporate governance standards.” · word for word

Related Party Transactions

“We are majority owned by Endeavor Group Holdings, Inc., which is the parent company of WME Group, a network of businesses that represent talent, intellectual property and brands. As a result, we have in the past, and may in the future, engage in various ordinary course commercial transactions with WME Group’s businesses and other businesses owned by Endeavor” · word for word

Increased leverage from incremental term loan; interest rate exposure from variable rate debt.

“$900M incremental term loan at SOFR + 2.00%; revolver at SOFR + 1.50%-1.75%.”

IMG segment revenue decline due to Olympics comparison; potential volatility from event-driven revenue.

“IMG segment revenue decreased $24.1M in Q4 and $602.9M for FY2025 due to prior-year Olympics.”

Increase in depreciation and amortization due to intangible asset acceleration; may pressure GAAP earnings.

“Depreciation and amortization increased $54.0M in Q4 due to acceleration of WWE intangible assets.”

Dependence on key distribution partners (Netflix, Paramount, ESPN)

“We depend on key relationships with television and cable networks, satellite providers, digital streaming partners and other distribution partners.” · word for word

Cord cutting and streaming shift reducing traditional TV revenue

“The number of subscribers and ratings of television networks and advertising revenues in general have been impacted by viewers moving to alternative media content providers, a process known as “cord cutting” and “cord shaving”.” · word for word

Talent retention and discovery risk

“Our success depends, in large part, upon our ability to identify, discover and retain athletes and athletic performers who have the physical ability and presence or charisma to succeed in our live events, programming content and, with respect to WWE, the portrayal of characters in our live events and programming.” · word for word

Vince McMahon misconduct investigation and legal costs

“On June 17, 2022, WWE and its then Board of Directors announced that a special committee of independent members of its Board of Directors (the “Special Committee”) was formed to investigate alleged misconduct by WWE’s then-Chief Executive Officer, Vincent K. McMahon.” · word for word

Cybersecurity and data privacy compliance costs

“Any of these IT Systems and Confidential Information are vulnerable to service interruptions, security breaches, and other cybersecurity risks that threaten their confidentiality, integrity and availability, including as a result of inadvertent or intentional actions by our employees, partners, and vendors, or from attacks by threat actors or other malicious” · word for word

Revenue decline at UFC due to event timing and tough comps from UFC 306 at Sphere.

“Revenue decreased 8%... primarily due to holding one less numbered event... impact of UFC 306, which was held at Sphere in Las Vegas and was the highest-grossing event in UFC history, in the prior year period.”

Integration risk from acquired businesses (IMG, On Location, PBR) and synergy realization.

“We remain focused on... further integrating and unlocking synergies with IMG, On Location, and PBR.”

UFC revenue decline due to event timing

“UFC revenue decreased by $29.7 million, or 8%, primarily driven by $15.8 million of lower media rights and content revenue from holding one less numbered event compared to the prior year.” · word for word

IMG revenue volatility from large events

“IMG segment revenue decreased by $492.4 million, or 59%, primarily attributable to a $494.8 million decline in On Location revenue as the prior year included hospitality related revenues generated from the 2024 Paris Olympics.” · word for word