Is TKO a Buy? What to Consider in 2026
Short answer
The bull case for TKO Group Holdings (TKO) rests on Media-rights repricing: TKO's core economic engine is selling multi-year rights to its events. Revenue (FY2025) is ~$4.74 billion. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: TKO's value is concentrated in a small number of large rights deals, so any renewal at lower-than-expected terms, or a slip in audience engagement, would matter a lot. Whether TKO is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
TKO Group Holdings owns two of the most recognizable combat-sports and entertainment brands in the world, the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), and after a February 2025 transaction also owns IMG, On Location, and Professional Bull Riders (PBR). The company makes money primarily from media rights (multi-year deals to broadcast and stream its events), live event ticketing and site fees, sponsorship, licensing, and hospitality. The headline example is the roughly $7.7 billion, seven-year UFC media-rights agreement with Paramount that begins in 2026, moving UFC's numbered events onto Paramount+ and away from the traditional pay-per-view model; across all brands TKO says it has more than $15 billion of long-term media rights secured. TKO was formed in 2023 when Endeavor combined UFC, which it had owned since 2016, with WWE, the wrestling business built by the McMahon family, into a single publicly traded company listed on the NYSE. Endeavor (taken private by Silver Lake in 2025) holds a controlling stake of roughly 61%, so TKO trades publicly while a controlling shareholder steers strategy. Ari Emanuel serves as CEO and chairman, and the February 2025 addition of IMG, On Location, and PBR broadened TKO from pure combat sports toward a wider live-sports and events platform.
What's the case for buying TKO?
Media-rights repricing
TKO's core economic engine is selling multi-year rights to its events. The new UFC deal with Paramount, at roughly $7.7 billion over seven years starting in 2026, was a sizable step up from the prior arrangement. With more than $15 billion of long-term rights secured across its brands, a large share of near-term revenue is contracted rather than speculative.
Scarce, must-watch live IP
UFC and WWE produce year-round live programming that audiences watch in real time, which is valuable to streamers and networks trying to anchor subscriptions. That scarcity gives TKO pricing leverage in rights negotiations. Unlike scripted content libraries, live events resist time-shifting and are harder for competitors to replicate.
Margin and synergies
Combining UFC and WWE under one roof was pitched on cost synergies and shared infrastructure. Full-year 2025 adjusted EBITDA of about $1.585 billion grew roughly 47% year over year at a margin near 33.5%, and management has guided to higher revenue and EBITDA for 2026. The model converts a large portion of revenue into operating profit.
Expanded asset base
The 2025 addition of IMG, On Location, and PBR widened TKO beyond combat sports into events, hospitality, and rights representation. New ventures such as Zuffa Boxing add optionality. These assets diversify the revenue mix but also add integration work and exposure to the broader live-events cycle.
What are the risks to TKO?
TKO's value is concentrated in a small number of large rights deals, so any renewal at lower-than-expected terms, or a slip in audience engagement, would matter a lot. The business carries talent, reputational, and regulatory exposure (athlete relations, litigation, and the inherent headline risk of combat sports and a high-profile leadership). A controlling shareholder, Endeavor, holds roughly 61% of votes, which limits the influence of public minority holders. And the stock trades at a high earnings multiple, so disappointments can be punished sharply.
How is TKO valued? (as of 2026-06-27)
- Revenue (FY2025): ~$4.74 billion
- Adjusted EBITDA (FY2025): ~$1.585 billion (up ~47% YoY)
- Adjusted EBITDA margin: ~33.5%
- Net income (FY2025): ~$546 million
- Market cap: ~$39 to 41 billion
- Valuation multiples: P/E ~75; EV/EBITDA ~25
Figures are approximate and tied to the asOf date; verify current numbers before acting. TKO reported full-year 2025 revenue of about $4.74 billion and adjusted EBITDA near $1.585 billion, and guided to roughly $5.7 billion of revenue and $2.2 to 2.3 billion of adjusted EBITDA for 2026. The high P/E reflects amortization and acquisition accounting weighing on reported net income, which is why many investors watch EV/EBITDA and the contracted rights backlog instead.
How do you decide if TKO is a buy?
Rather than asking whether TKO is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold TKO indirectly through an index or sector ETF before adding more.
For the full picture, see the TKO stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about TKO against your real portfolio and see your actual exposure before deciding.
The bottom line on TKO
The bottom line: TKO Group Holdings's story right now is Media-rights repricing, with revenue (fy2025) at ~$4.74 billion. If you believe that narrative continues, the call is about sizing TKO sensibly and checking overlap with what you own; if you doubt it (the risk: tKO's value is concentrated in a small number of large rights deals, so any renewal at lower-than-expected terms, or a slip in audience engagement, would matter a lot.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
Build a basket around TKO with Walnut
Use TKO Group Holdings as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is TKO a good stock to buy right now?
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The case for TKO Group Holdings right now is Media-rights repricing, with revenue (fy2025) at ~$4.74 billion. If you believe that thesis holds, TKO is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is tKO's value is concentrated in a small number of large rights deals, so any renewal at lower-than-expected terms, or a slip in audience engagement, would matter a lot. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does TKO Group Holdings do?
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TKO Group Holdings owns two of the most recognizable combat-sports and entertainment brands in the world, the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment
What are the main risks of TKO?
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TKO's value is concentrated in a small number of large rights deals, so any renewal at lower-than-expected terms, or a slip in audience engagement, would matter a lot. The business carries talent, reputational, and regulatory exposure (athlete relations, litigation, and the inherent headline risk of combat sports and a high-profile leadership). A controlling shareholder, Endeavor, holds roughly 61% of votes, which limits the influence of public minority holders. And the stock trades at a high earnings multiple, so disappointments can be punished sharply.
Is TKO a good stock to buy right now?
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That depends on your goals, time horizon, and risk tolerance, and this is not advice. The bull case is scarce live-sports IP and rights deals that keep repricing higher, like the roughly $7.7 billion UFC-Paramount agreement. The bear case is heavy concentration in a few deals, a controlling shareholder, and a high earnings multiple that leaves little margin for disappointment.
What does TKO Group own?
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TKO owns the UFC (mixed martial arts) and WWE (professional wrestling), its two flagship brands. After a February 2025 transaction it also owns IMG, On Location, and Professional Bull Riders (PBR), and it operates ventures such as Zuffa Boxing. Together these span media rights, live events, hospitality, sponsorship, and licensing.
Does TKO pay a dividend?
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Yes. TKO pays a quarterly cash dividend, around $0.78 to $0.79 per share in 2026, which works out to roughly $3.12 per share annually and a yield near 1.3% at recent prices. The company has also returned capital through share repurchases. Dividend amounts can change, so confirm the latest declaration before relying on it.
Is UFC publicly traded?
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Not on its own. UFC does not trade as a separate stock; it is owned by TKO Group Holdings, which trades on the New York Stock Exchange under the ticker TKO. Buying TKO gives you exposure to UFC alongside WWE, PBR, and TKO's other live-events and media-rights assets.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell TKO; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.