TKO Group Holdings, Inc. (TKO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

TKO Group Holdings, Inc. (TKO) Media & Communications Profile

TKO Group Holdings, Inc. is a sports and entertainment powerhouse specializing in live events, media content, sponsorships, and consumer product licensing. Operating globally, TKO leverages its premium sports and entertainment brands to deliver content across broadcast, streaming, and digital platforms, distinguishing itself through diverse revenue streams and extensive international reach.

What Is the Investment Thesis for TKO?

The company's ability to generate revenue through media rights, live events, sponsorships, and consumer products provides a buffer against economic downturns. With a market capitalization of $14.2B and a profit margin of 4.5%, TKO demonstrates financial stability. Key growth catalysts include expanding media partnerships and increasing global viewership. However, investors may want to evaluate the competitive landscape and potential risks associated with content production and distribution. The company's P/E ratio of 62.80 suggests a premium valuation, indicating high investor expectations for future growth.

Based on FMP financials and quantitative analysis

TKO Key Highlights

Market capitalization of $14.2B, reflecting substantial investor confidence in TKO's market position.

• P/E ratio of 62.80, indicating a premium valuation based on earnings expectations.
• Profit margin of 4.5%, demonstrating profitability in the competitive sports and entertainment industry.
• Gross margin of 48.7%, showcasing efficient cost management in content production and distribution.
• Dividend yield of 1.45%, providing a modest return to shareholders.

Who Are TKO's Competitors?

TKO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TKO's Key Strengths?

Strong brand portfolio and market position.

• Diversified revenue streams.
• Global reach and distribution network.
• Experienced management team.

What Are TKO's Weaknesses?

High dependence on media rights agreements.

• Vulnerability to economic downturns.
• Exposure to content piracy and copyright infringement.
• Potential for talent disputes and labor issues.

What Could Drive TKO Stock Higher?

Expansion of media rights agreements to new territories and platforms.

• Continued growth in sponsorship revenue through strategic partnerships.
• Launch of new digital content initiatives to engage wider audiences.
• Potential acquisitions of complementary businesses to expand market reach.

What Are the Key Risks for TKO?

Financial-distress signal — its Altman Z-Score of 1.53 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 4 of the last 8 reported quarters.
• Rich valuation — a P/E of 62.80 runs well above the Communication Services sector’s ~17.60x, leaving little room for a miss.
• Economic downturns impacting consumer spending on entertainment.
• Increased competition from other entertainment companies.
• Dependence on key talent and potential labor disputes.
• Changes in media consumption habits and technology.

What Are the Growth Opportunities for TKO?

• Expansion of Media Rights: TKO can capitalize on the increasing value of sports and entertainment media rights by securing new partnerships and expanding existing agreements. The global sports media rights market is projected to reach $85.7 billion by 2027, offering substantial revenue potential. TKO's strong portfolio of premium brands positions it to negotiate favorable deals and increase its media revenue streams. This expansion can be achieved through strategic partnerships with streaming platforms and broadcast networks, enhancing content distribution and reach.
• Growth in Sponsorship Revenue: TKO has the opportunity to increase its sponsorship revenue by attracting new corporate partners and expanding existing relationships. The global sponsorship market is estimated at $66 billion annually, providing a significant revenue opportunity. TKO can leverage its live events and media platforms to offer compelling sponsorship packages, including in-venue advertising, content integration, and digital impressions. This growth can be driven by targeting specific industries and tailoring sponsorship offerings to meet their marketing objectives.
• Consumer Products Licensing: TKO can further monetize its brands through consumer products licensing, including video games, apparel, equipment, and memorabilia. The global licensed merchandise market is valued at over $300 billion, offering a substantial revenue opportunity. TKO can expand its licensing program by partnering with leading manufacturers and retailers, developing innovative products, and leveraging its brand recognition to drive sales. This growth can be achieved through strategic partnerships and targeted marketing campaigns.
• International Expansion: TKO can expand its global footprint by entering new markets and increasing its presence in existing international regions. The international sports and entertainment market is experiencing rapid growth, driven by increasing disposable incomes and growing demand for premium content. TKO can leverage its existing content and distribution channels to reach new audiences, and can tailor its offerings to meet local preferences. This expansion can be achieved through strategic partnerships and localized marketing efforts.
• Development of Digital Content: TKO can capitalize on the growing demand for digital content by developing new formats and platforms. The digital media market is experiencing rapid growth, driven by increasing internet penetration and changing consumer behavior. TKO can develop short-form video content, interactive experiences, and social media campaigns to engage with audiences and generate revenue. This growth can be achieved through strategic investments in digital content creation and distribution.

What Threats Does TKO Face?

• Intense competition from other entertainment companies.
• Changing consumer preferences and media consumption habits.
• Regulatory changes and legal challenges.
• Economic instability and geopolitical risks.

What Are TKO's Competitive Advantages?

• Strong brand recognition and reputation in the sports and entertainment industry.
• Extensive network of media partners and distribution channels.
• Exclusive rights to premium sports and entertainment content.
• Diversified revenue streams across multiple business segments.

What Does TKO Do?

TKO Group Holdings, Inc. stands as a prominent sports and entertainment company, engaging in the creation, production, and distribution of live events and diverse content. The company operates through four key segments: Media and Content, Live Events, Sponsorships, and Consumer Products Licensing. Its foundation lies in producing live events, television programs, and both long-form and short-form video content, which are disseminated across broadcast, pay television, streaming services, and various digital and social media platforms, reaching audiences in approximately 170 countries. Beyond content creation, TKO is involved in merchandising a wide array of products, including video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys. The company also facilitates the sale of travel packages and tickets related to its events. A significant aspect of TKO's revenue generation comes from corporate sponsorships and advertising, offering in-venue and in-broadcast advertising opportunities, content product integration, and digital impressions. Headquartered in New York, TKO Group Holdings, Inc. operates as a subsidiary of Endeavor Group Holdings, Inc., benefiting from the resources and expertise of its parent company. This structure allows TKO to maintain a strong market presence and continue expanding its global footprint in the sports and entertainment industry. TKO's strategic focus on content creation, media rights, and live event production positions it as a key player in the evolving media landscape.

What Products and Services Does TKO Offer?

• Produces live sports and entertainment events globally.
• Creates and distributes television programs and video content.
• Offers content across broadcast, pay television, and streaming platforms.
• Engages in merchandising of video games, apparel, and memorabilia.
• Sells travel packages and tickets to events.
• Facilitates corporate sponsorships and advertising opportunities.
• Operates in approximately 170 countries.

How Does TKO Make Money?

• Generates revenue through media rights agreements.
• Earns income from live event ticket sales and sponsorships.
• Monetizes content through advertising and subscriptions.
• Derives revenue from consumer product licensing and merchandising.

What Industry Does TKO Operate In?

TKO Group Holdings, Inc. operates within the dynamic and competitive entertainment industry, characterized by evolving media consumption habits and technological advancements. The industry is experiencing growth in streaming services and digital content, with companies vying for market share through content creation and distribution. TKO's focus on live events and media rights positions it favorably, leveraging the enduring appeal of sports and entertainment. Competitors like Warner Music Group (WMG) and Roku, Inc. (ROKU) also vie for audience attention and revenue, highlighting the need for TKO to innovate and maintain its competitive edge.

Who Are TKO's Key Customers?

• Sports fans and entertainment enthusiasts worldwide.
• Television networks and streaming services.
• Corporate sponsors and advertisers.
• Retailers and distributors of consumer products.

Over the past six months, TKO Group Holdings, Inc. insiders filed 15 SEC Form 4 transactions — 11 sales and 4 purchases. On net that is roughly 50K shares disposed (about $12.7M), a signal worth weighing alongside the fundamentals.

TKO Group Holdings, Inc. has missed Wall Street's EPS estimate in 4 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 8.2% below estimates on average.

TKO Group Holdings, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.53 places it in the distress zone, a signal of elevated financial risk.

Return on equity for TKO Group Holdings, Inc. stands at 6.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.4%, showing how much profit it generates from its asset base. TKO trades at a trailing price-to-earnings ratio of 62.80, above the Communication Services sector average of ~17.60x. Its free cash flow yield is 11.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.22 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.6%, the inverse of the P/E and a quick read on earnings relative to price.

TKO Group Holdings, Inc. (TKO) Valuation Context

Valued at $14.2B, TKO is classified as a large-cap stock. Analyst price targets span from $210.00 to $235.00, with a consensus of $227.00. At the current price of $189.64, that implies approximately 20% upside potential. Relative to its peer group, TKO's quantitative score of 72/100 is roughly in line with the peer average of 75/100.

TKO Revenue & Earnings Trend

In Q2 FY2026, TKO generated $1.55B in top-line revenue, marking a sequential decrease of 3.1%. The company recorded net income of $101.6M, with diluted EPS of $0.52. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Communication Services. Across the four most recent quarters, TKO averaged $0.29 in diluted EPS.

Company Profile

TKO Group Holdings, Inc. operates in the Entertainment industry within the Communication Services sector. It is headquartered in New York City, US. The company is led by CEO Ariel Zev Emanuel. TKO has traded publicly since 2023.

TKO Financials

TKO earnings history & estimates →

TKO Latest News

TKO Analyst Consensus

TKO MoonshotScore

TKO Communication Services Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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