WWE & UFC revenue up big in TKO quarterly report, creative criticism addressed
WWE & UFC continue to perform for TKO in yet another big quarter for the combat sports and hospitality buoyed company.
TKO announced their financials Wednesday ahead of their 5 PM Eastern investors call, the notes of which can be found below.
TKO’s total revenues increased to $1.597 year over year (YOY), powered by WWE’s $475.7 million (up $84.2 YOY) and UFC’s $401.2 million (up $41.5 million). IMG/On Location was the biggest performer of them all, seeing an increase of $179.1 million to $655.4 million YOY thanks to the 2026 Winter Olympics.
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Specifically for WWE, the first quarter saw them take in $281.7 million in media rights, $123.5 million in live events and hospitality, $26.2 million in partnerships & marketing, and $44.3 million in consumer products & licensing.
The live events & hospitality segment saw the biggest increase YOY, followed by media rights. The driver was the Royal Rumble being held in Saudi Arabia.
Of note, legal costs increased to $23.2 million, up from $6.5 million in Q1 of 2025. The reason, among others, are “costs, net of insurance recoveries, related to certain litigation matters including antitrust lawsuits for UFC and stockholder litigation for WWE and Endeavor.”
Call Notes/Prepared Remarks
- Mark Shapiro said they are “firmly moving ahead with scheduled events in Saudi Arabia and the region” for both WWE and UFC, “even and despite a challenging environment.” He confirmed Saudi Arabia’s PIF will not withdraw their financial commitment to TKO as they did with LIV Golf. He said all six events with WWE/UFC/Zuffa boxing are taking place as planned
- Shapiro said they still plan on losing $30 million for the UFC White House card.
- Shapiro said WWE Elimination Chamber had a “meaningful” YOY increase in its debut on ESPN, and was the second highest arena gate in company history.
- Shapiro said they were “not concerned about ticket performance whatsoever” for WWE WrestleMania 42 and that it was “unrealistic” to expect growth there YOY. They said it was still one of the highest gates in WWE history and outperformed anywhere else they could have held it.
- He followed that up by addressing criticism of WWE creative. He defended it, saying they listen to all feedback but that what they have been hearing is “not new criticism.”
Q&A
Shapiro was asked during the call about the fan criticism about WWE and he re-iterated some of the points he made on the recorded call, saying listening to any and all feedback is “high priority” for them and while they listen and learn, “balancing the fan experience with the business of sports is never easy,” comparing it with complaints about Hollywood, movies, and ticket prices.
He said change takes getting used to and that fans used to complain about NBA sponsor patches and that even the L.A. Dodgers added a rights partner on the field at Dodgers Stadium. He also mentioned the critics for when ads were introduced in key times for the NCAA Final Four, NFL games, etc.
He said there is “no magic formula and no magic serum” to adding the commercial element into WWE’s presentation and that it’s a trial and error over time and that they have pushed boundaries for events, leaning into some more than others.
“Most important, our product comes first,” he said, noting that fans are unique, super passionate and how marketers want access to their IP. They are working to do that while maintaining a balance and that “revenue allows us to be more creative with our product and our superstars.”
He added that, “Our audience is resilient. We can’t take them for granted. Currently, we have record attendance, record viewers, and record engagement,” he said.
He was later asked about similar critiques about UFC fight cards which he replied, “Bottom line, we don’t buy it.” He put over the last numbered event, the amount of young fighters making their way up the ranks, and that with any sport, there are natural ebbs and flows with star power, comparing it to a time in the NBA when fans had similar complaints.
Asked about the success of one off events in the MMA space and competition, TKO CFO Andrew Schleimer said they made an eight figure investment in doubling fighter bonuses and that fighter compensation continues to grow as “we would never turn a blind eye to our most meaningful investment.” Shapiro that that everything is competition in combat sports with other events, but didn’t seem to have any concerns about those competitors.
Since 2011, Josh has been a contributing editor to Wrestling Observer/F4WOnline.com and also hosts the Punch-Out podcast. He has also written for Fight Magazine, Bloody Elbow, Bleacher Report, and other websites. He's a 2000 graduate of the University of Maine, worked in pro sports, and once was an indie ring announcer.