Strong WWE Revenue Growth Anchors TKO’s Q3 Performance
TKO Group Holdings, the parent company of WWE and UFC, unveiled its third-quarter 2025 results this week, revealing $1.12 billion in total revenue—a 27% drop from the previous quarter but with a standout performance from WWE that bucked the broader trend[1][4]. According to veteran wrestling journalist Dave Meltzer, WWE’s robust 23% year-over-year revenue increase, reaching $402.1 million, highlights the brand’s momentum as the company executes on new media deals and international expansion[1][2].
“WWE’s growth trajectory is clear,” Meltzer observed. “Live events, media rights, and partnerships are all up. There’s real optimism backstage about the next phase of the WWE machine.”
Adjusted EBITDA for WWE reached $207.8 million, a 19% increase over the previous year, despite rising talent, production, and travel costs[1]. The gains were partially offset by an 8% dip in UFC revenue and a 59% nosedive in IMG (International Management Group, also owned by TKO) live events revenue, largely due to the absence of last year’s Olympic-related windfall[4]. IMG’s revenue plummeted from $829 million in Q3 2024 to just $336 million in the same period this year[4].
TKO’s Financial Snapshot: Profit, Debt, and Free Cash Flow
TKO finished the quarter with $861.4 million in cash and $3.76 billion in gross debt, reflecting the company’s aggressive acquisition strategy and the long-term liabilities from the UFC purchase[1][2]. Free cash flow, however, surged from $151 million last year to $398.9 million, pointing to improved operational efficiency[1]. Net income for the quarter rose to $106.8 million, with Adjusted EBITDA climbing 59% to $360.2 million[1][3].
“We’re seeing TKO lean into WWE’s upward mobility while navigating the natural ebbs and flows of UFC and IMG,” a source familiar with TKO’s strategy commented. “Free cash flow matters—it’s money they can invest in content, talent, and tech.”
The company also provided updated financial projections, raising full-year 2025 revenue guidance to a possible $4.72 billion and adjusted EBITDA guidance up to $1.58 billion[1][2]. These increases reflect TKO’s optimism about rights deals and brand expansion—notably, UFC’s upcoming move to Paramount—which CEO Ariel Emanuel described as part of a broader effort to “maximize shareholder value”[1].
WWE Media Rights: The ESPN Deal and Ongoing Momentum
A key driver of WWE’s growth is the continuation of its five-year media rights agreement with ESPN, reportedly worth $325 million annually[2]. This deal, which locks in significant revenue for the brand, comes alongside increased fees for WWE’s domestic and international programming.
According to a WWE business operations executive:
“The ESPN deal was a game-changer for our international distribution. We’re seeing new audiences and new revenue streams, and that’s just the start. There’s real excitement about what’s possible with streaming and global markets.”
TKO’s quarterly report also revealed the company repurchased $26 million of its Class A common stock as part of a broader $2 billion share repurchase plan, signaling confidence in its long-term value[2].
UFC’s Slight Decline and the Road Ahead
While WWE surged, UFC experienced an 8% year-over-year revenue drop, generating $325 million in the quarter[4]. The decrease was attributed to UFC hosting one fewer numbered event during the period, which impacted both media rights and ticket sales[4]. This underlines the importance of event cadence and major pay-per-view scheduling in UFC’s financial model.
Sources within Endeavor—UFC’s previous parent company—suggest that the upcoming switch to Paramount could reinvigorate UFC’s television presence and drive engagement ahead of major fights. “UFC is in transition. The media landscape is shifting, and broadcast deals are more important than ever for the bottom line,” a UFC insider noted.
IMG’s Olympic Hangover and Broader Implications
The dramatic decline in IMG’s revenue—down 59% year-over-year—was almost entirely due to last year’s Olympics-related business and a corresponding dip in live events and hospitality in 2025[4]. This illustrates the cyclical nature of event-driven businesses and how, depending on the calendar, TKO’s overall revenue can be materially affected by one-off events.
“IMG’s business is feast or famine, depending on the event calendar,” Meltzer noted. “Olympic years are a windfall, but the hangover is real. The challenge is integrating IMG’s assets into a more predictable, wrestling- and MMA-focused corporate structure.”
TKO’s Strategic Outlook: Content, Acquisitions, and Shareholder Value
TKO’s leadership is bullish about the future, with new rights deals and brand expansions—including WWE’s international touring and UFC’s move to Paramount—expected to drive ongoing growth[1]. CEO Ariel Emanuel emphasized the company’s focus on “sustained momentum” across its portfolio and maximizing shareholder returns[1].
According to a WWE insider close to Chief Content Officer Paul Levesque (Triple H):
“There’s a sense internally that WWE is just scratching the surface on international markets and streaming. With higher-margin revenue streams and new global partnerships, the company is positioned for another leap forward.”
The Wrestling Business in Context: Industry Trends and Competitive Landscape
WWE’s success stands in contrast to a broader industry wrestling (no pun intended) with cord-cutting, shifting consumer habits, and competition from upstart leagues. WWE’s live event and media strategy—enhanced by the ESPN deal—shows how a legacy brand can adapt and thrive in the streaming era.
Meanwhile, AEW and other promotions continue to challenge WWE’s dominance, but WWE’s financials suggest it’s still the industry’s gold standard. “The numbers speak for themselves,” Meltzer said. “WWE’s scale, brand, and media deals make it a juggernaut.”
Investor Sentiment and Regulatory Note
TKO’s quarterly filing explicitly stated that recent regulatory changes—notably President Donald Trump’s “One Big Beautiful Bill Act,” signed in July 2025—are not expected to have a material impact on the company[2]. This suggests TKO is not anticipating major changes from Washington that would compromise its revenue streams or business model.
Conclusion
TKO’s Q3 2025 report reveals a company at a crossroads: WWE is firing on all cylinders, UFC is navigating a transitional media landscape, and IMG faces a post-Olympics lull. Still, TKO’s leadership is optimistic, raising full-year guidance and signaling confidence in content, acquisitions, and shareholder value initiatives.
As Dave Meltzer summed up: “WWE is the engine driving TKO right now. The numbers are strong, the deals are bigger, and the future looks bright for wrestling’s top brand.”
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