Full Breakdown
WWE Surpasses UFC in Revenue for the First Time Under TKO Group Holdings
2/26/2026, 3:50:15 AM
Financial Performance Overview
In a significant shift within the combat sports and sports entertainment industry, World Wrestling Entertainment (WWE) has officially outperformed the Ultimate Fighting Championship (UFC) in annual revenue for the first time since both organizations came under TKO Group Holdings. For the fiscal year 2025, WWE reported $1.709 billion in total revenue, marking a 22% year-over-year increase, while UFC posted $1.502 billion, placing WWE ahead by approximately $207 million.
Key Revenue Drivers
WWE's financial growth was primarily driven by its media rights agreements, which generated $1.0006 billion, an increase of $135 million from the previous year. This surge in media revenue now constitutes 59% of WWE's total revenue. The company also saw substantial gains in live events, which brought in $412.8 million, up $74.3 million year-over-year, bolstered by international premium live events. Additionally, WWE's partnerships and marketing revenue rose significantly, contributing $159.6 million, a year-over-year increase of $76.6 million.
In contrast, UFC's revenue grew by 7%, or $96 million, largely due to a $62.9 million increase in partnerships and marketing revenue, totaling $314.3 million. UFC's media rights revenue increased by $28.3 million to $907.7 million, reflecting contractual escalations, while live events and hospitality revenue added $12.5 million, reaching $232.9 million.
Profitability Comparison
Despite UFC maintaining a higher Adjusted EBITDA margin of 57% compared to WWE's 52%, WWE's total operating profit surpassed UFC's for the first time. WWE's Adjusted EBITDA rose to $896.5 million, a 32% increase from the previous year, while UFC's Adjusted EBITDA grew by 6% to $851 million. This change indicates a notable shift in profitability dynamics within TKO Group Holdings.
TKO Group Holdings' Overall Performance
On a consolidated basis, TKO Group Holdings reported $4.735 billion in total revenue and $1.585 billion in Adjusted EBITDA for 2025, reflecting a 47% increase in profitability year-over-year. The company also achieved free cash flow of $1.159 billion and returned over $1.3 billion to shareholders through buybacks and dividends. Looking ahead, TKO is projecting revenue between $5.675 billion and $5.775 billion for 2026, alongside an Adjusted EBITDA of $2.24 billion to $2.29 billion.
Criticism & Opposition
While WWE's financial performance has been celebrated, some analysts caution that the overall decline in TKO's revenue, down 3% from the previous year, is attributed to the IMG segment, which experienced reduced revenue following the Paris Olympics in 2024. This aspect raises questions about the sustainability of WWE's growth amidst broader challenges within TKO's portfolio.
What's Next
As TKO Group Holdings prepares for 2026, the launch of Zuffa Boxing, a new boxing venture, is anticipated to serve as a long-term growth driver. CEO Ariel Emanuel emphasized that long-term media rights agreements and operational strength will underpin TKO's future outlook, suggesting that the competitive landscape between WWE and UFC may continue to evolve.
Verbatim Quotes
- “The WWE continues to be the MVP for TKO.” — Mark Shapiro, President and COO of TKO Group Holdings
- “Also see: AJ Styles Set for WWE Hall of Fame 2026: The Undertaker Makes Emotional Announcement TKO’s Overall Performance and 2026 Outlook The strong results from both WWE and UFC helped TKO Group Holdings deliver a solid financial year.” — Ariel Emanuel, CEO of TKO Group Holdings
- “The milestone highlights WWE’s rapid financial growth and signals a changing balance of power within TKO’s portfolio.” — Industry Analyst
This financial landscape indicates a transformative period for TKO Group Holdings, with WWE now positioned as the leading revenue generator within the organization.
