TKO GROUP HOLDINGS INC

TKO Group said it aims for higher margins, stronger free cash flow and a lower leverage ratio after the merger. The mid-point EBITDA margin is expected at 39.6%, normalized free cash flow conversion at 60% or more, and leverage is expected to fall below 2x by year-end. Management is focused on expanding media rights, live events, international partnerships, capital returns via dividends and aggressive share buybacks, as well as the new Zuffa Boxing. No acquisitions are currently planned, and target revenues from global partnerships by 2030 were mentioned. » More on de.investing.com

Moody’s has upgraded TKO’s Corporate Family Rating from Ba2 to Ba1, raised the probability of default rating to Ba1-PD and set the outlook from positive to stable. The upgrade is justified by expected strong revenue and EBITDA growth, robust free cash flow and moderate leverage, supported by higher media rights, a growing subscriber base and operational leverage from major events in 2026. Moody’s expects revenue growth in the low-20% range for 2026, EBITDA growth of 40%, a reduction in leverage to around 2.5x by end‑2026, and a very strong liquidity position with around $593 million in cash and an undrawn revolving credit facility of over $350 million. » More on de.investing.com

TKO reported Q2 revenue of $1.55bn (up 18% YoY) and adjusted EBITDA of $650m (+23%), while adjusted EPS of $1.34 missed estimates. Management attributed the result to cost-intensive large events and international expansion but raised the full-year guidance for revenue and adjusted EBITDA. Investors reacted positively; the stock rose in after-hours trading as revenue growth, margin expansion and an increased outlook outweighed the EPS miss. » More on de.investing.com