TKO has released their 2025 third quarter results and the good news is the company is generating healthy profits but the bad news it is struggling with merging multiple massive companies.
In a decent turnaround, TKO earned $545 million in the first nine months of 2025 compared to a $185 million loss last year.
The UFC/WWE merger is paying dividends as operating income has skyrocketed to $778 million. TKO ended the quarter with $1.17 billion in cash which is nearly double last year’s levels. Shareholders are also doing well as TKO repurchased $826 million worth of its own stock and paid $124 million in dividends.
TKO Group had a profitable, cash-rich quarter that shows its merger strategy is working but the company is still finding its footing after absorbing so many new businesses at once. What is dragging the company is a decline in revenue, key segments like live events and the International Management Group, which TKO owns.
WWE though remains one of the company’s strongest and most consistent performers. It generated over $1.35 billion in revenue in the first nine months of 2025.
This quarter the WWE brought in $402 million with its three biggest earners being media rights, live events sales and merchandise sales with media rights being the core of WWE’s success. That’s an increase of 23% year-over-year.
Live events though are thriving bringing in both ticket sales and sponsorship dollars. The high-end hospitality offerings through TKO’s On Location division has also boosted margins by turning big pay-per-view weekends into luxury event experiences.
WWE’s overhead costs are being streamlined alongside UFC’s. WWE’s consistent profitability and reliable media income help balance TKO’s broader portfolio which can be more volatile because of live sports timing and international event cycles.
WWE’s future under TKO looks strong, diversified and strategically secure. The wrestling division remains one of TKO’s most dependable moneymakers, fueled by long-term TV and streaming deals with NBCUniversal (Peacock) and international partners. Attendance at live events is climbing, ticket prices have nearly doubled since the merger, and major premium shows like WrestleMania and SummerSlam continue to break revenue and sponsorship records. WWE’s global reach, from the U.S. to the Middle East and Europe, gives TKO steady cash flow even when other sports properties fluctuate. With cross-promotion between UFC and WWE expanding, and sponsorship deals becoming more integrated into live broadcasts, WWE is positioned as a stable “anchor asset” in TKO’s growing entertainment empire.
TKO’s challenge is scaling without overextending. The company’s 2025 acquisitions of IMG, On Location, and PBR have made it a sports-and-entertainment giant but also layered on significant debt and operational complexity. Success will depend on how well management can merge WWE’s scripted entertainment model with UFC’s live combat sports and IMG’s global event business.
