TKO Raises 2026 Forecast Again and Prices $1 Billion in Notes

TKO Group Holdings raised its 2026 revenue and adjusted EBITDA forecasts for the second time this year and priced $1 billion in debt as it plans to complete the remaining share repurchases under its existing authorization.

The company now projects 2026 revenue of $5.790 billion to $5.830 billion, compared with its August range of $5.775 billion to $5.825 billion. Its adjusted EBITDA forecast increased to $2.295 billion to $2.315 billion from $2.275 billion to $2.305 billion. Adjusted EBITDA is a non-GAAP measure.

TKO priced 6.5% senior secured notes due 2031 through indirect subsidiary TKO Worldwide Holdings, LLC. Net proceeds are for general corporate purposes and may include distributions to parent entities for share repurchases. The notes will carry a first-priority lien on the collateral backing TKO’s current senior secured credit facilities. The offering is expected to close on or about Nov. 13, subject to customary conditions.

As of Nov. 4, approximately $936 million remained under TKO’s authorization to repurchase up to $3 billion of its Class A shares. TKO expects to buy back the remaining amount, primarily with additional debt and cash on hand. It has not set a schedule or share count for the purchases, and their timing and amount remain at the company’s discretion.

For the quarter ended Sept. 30, revenue was $1.36 billion, up 21% from a year earlier. Net income totaled $277.9 million, and adjusted EBITDA was $555.7 million. At quarter-end, TKO had $4.647 billion in gross debt and $630.9 million in cash and cash equivalents.

TKO’s portfolio includes UFC, WWE, PBR, its Zuffa Boxing joint venture, IMG and On Location. TKO’s 2026 projections depend on all scheduled live events, including those in the Middle East, taking place as planned.