TKO GROUP HOLDINGS INC

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

The TKO Group stock rose 2.1% in premarket trading after Seaport Global Securities raised its rating from neutral to buy and set a $210 price target. The research firm modestly lifted its estimates for Q2 2026 and the full year and cited an improved risk-reward profile for the upgrade, saying geopolitical strains in the Middle East that had disproportionately weighed on the stock are now better priced in. Despite broad market weakness and rising oil prices, Wall Street consensus for TKO remains constructive, with an average 12-month price target well above the current level. » More on de.investing.com