Abstract
TKO Group Holdings will report quarterly results on February 25, 2026 Post Market; this preview summarizes consensus expectations for revenue, margins, and adjusted EPS alongside recent developments and majority analyst views.
Market Forecast
For the current quarter, forecasts point to revenue of $1.03 billion, an adjusted EPS estimate of $0.30, and EBIT of $129.80 million; year-over-year projections imply revenue up 69.83%, adjusted EPS up 88.02%, and EBIT up 20.74%. The company’s main business mix emphasizes Media Rights, Production and Content, Live Events and Hospitality, Partnerships and Marketing, and Consumer Products Licensing and Other; outlook commentary centers on stable content monetization and seasonal live-event tailwinds. The most promising segment is Media Rights, Production and Content with last quarter revenue of $644.23 million and a robust year-over-year trajectory implied by continued distribution expansion.
Last Quarter Review
In the previous quarter, TKO Group Holdings delivered revenue of $1.12 billion, a gross profit margin of 60.74%, GAAP net profit attributable to the parent company of $41.01 million, a net profit margin of 3.66%, and adjusted EPS of $0.47; year-over-year changes showed revenue up 64.40% and adjusted EPS up 67.86%. A key financial highlight was EBIT of $200.70 million, reflecting strong operational leverage despite near-term integration costs. Main business highlights included Media Rights, Production and Content at $644.23 million, Live Events and Hospitality at $282.75 million, Partnerships and Marketing at $133.59 million, and Consumer Products Licensing and Other at $66.87 million, showcasing a diversified monetization base.
Current Quarter Outlook
Main Business: Media Rights, Production and Content
Media Rights, Production and Content remains the centerpiece of monetization and visibility for TKO Group Holdings in this quarter. With last quarter’s $644.23 million contribution, this segment anchors recurring revenue through long-dated distribution contracts, pay-per-view events, and international sublicensing. The quarter’s forecasted revenue increase suggests incremental content availability and continued engagement, particularly around marquee events and shoulder programming that fill schedule gaps. Margin dynamics in this segment typically benefit from high fixed-cost absorption; if viewership metrics and affiliate rates hold, gross profit margin can remain resilient even as production volumes fluctuate. A key watch point is mix between domestic and international carriage fees, which can influence per-unit economics, but the overall structure supports the guidance range implied by EBIT forecasts.
Most Promising Business: Live Events and Hospitality
Live Events and Hospitality is positioned to extend last quarter’s momentum, supported by the calendar’s premium event cadence and expanded premium seating and hospitality packages. The segment’s $282.75 million performance last quarter highlights the leverage embedded in sold-out arenas and price optimization across ticket tiers. Near-term drivers include event density, venue mix skewing toward higher-capacity locations, and incremental VIP experiential offerings that lift per-attendee spend. Costs are variable with staffing, security, and venue fees, yet operational planning can keep unit economics efficient if attendance rates remain high. While weather, local market conditions, and scheduling shifts can introduce volatility, the broader demand trajectory points to continued contribution to consolidated revenue growth this quarter.
Stock Price Sensitivities: Margins, EPS Delivery, and Event Mix
This quarter’s share performance is likely to hinge on margin outcomes versus expectations, the degree to which adjusted EPS meets the $0.30 forecast, and how event mix feeds through to profitability. Investors will parse gross profit margin sustainability relative to last quarter’s 60.74%, especially in light of media distribution renewals and production cost alignment. Adjusted EPS carries signaling power for integration progress, synergy capture, and cost discipline; a clean beat versus the estimate could reset sentiment, while a miss would catalyze scrutiny of expense controls. Event mix matters because premium live cards and international stadium shows can swing revenue and operating income, amplifying upside if the calendar tilts toward higher-yield properties and creating headline risk if any flagship events face timing or logistical constraints.
Analyst Opinions
The balance of institutional commentary skews bullish, with the majority pointing to supportive revenue seasonality, margin stabilization, and improving adjusted EPS cadence. Noted sell-side voices emphasize that EBIT growth of 20.74% year over year alongside an 88.02% uplift in adjusted EPS is consistent with normalization of integration costs and content monetization patterns. Analysts argue that the forecasted $1.03 billion revenue base reflects healthy demand across media distribution and live events, providing enough scale to sustain margins even if production intensity steps up. The prevailing view expects the net profit margin to inch higher from last quarter’s 3.66% as cost synergies mature and event pricing remains firm, setting the stage for constructive commentary on forward quarters. The majority outlook highlights that execution against the live-event calendar and adherence to production schedules should keep revenue growth near forecast levels, with limited downside risk assumed for the current reporting period.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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