TKO Group Holdings: Initiation Of Coverage – Can International Events Keep Expanding Margins?

The Endeavor Group Holdings, Inc. reported first-quarter 2026 results demonstrating solid revenue and EBITDA growth, driven principally by key segments including UFC, WWE, IMG, and related live events and media rights. The company delivered total revenue of $1.597 billion, a 26% increase from the previous year, and an adjusted EBITDA of $550 million, up 32%, with margin expansion of approximately 150 basis points to 34%. Within the UFC segment, revenue rose 12% to $401 million on fewer events versus the prior year. This increase was largely attributable to the new media rights agreement with Paramount+ and strong Pay-Per-View performance, marking the highest viewership for UFC events on CBS in nearly a decade. Adjusted EBITDA grew in line with revenue, maintaining a 63% margin. However, the quarterly results included two fewer Fight Nights and the absence of a prior-year high-margin Fight Night in Saudi Arabia, resulting in some temporary margin compression. Additionally, the upcoming UFC Freedom 250 event is expected to incur a $30 million loss due to its unique scale and limited sponsorship inventory.