TKO Group Holdings delivered financial results in its third quarter 2026 earnings call, with UFC’s performance reaching historic heights driven by Conor McGregor’s highly anticipated return to the octagon.
The entertainment company raised its full-year guidance for the second consecutive quarter while revealing viewership numbers that significantly exceeded those of UFC’s unprecedented White House event.
TKO’s President and Chief Operating Officer Mark Shapiro highlighted the company’s position at the intersection of premium sports and live experiences.
“The media landscape is also shifting in our favor. The Paramount combination with Warner Brothers Discovery is an industry-defining moment, and TKO stands to benefit,” Shapiro stated, noting the expanded reach through Paramount Plus, TNT Sports, and HBO platforms.
The quarter’s standout achievement came with UFC 329 at T-Mobile Arena in Las Vegas, which became the highest-grossing event in UFC history with a $26 million gate.
“We drove nearly 16 million viewers to Paramount Plus, peaking at 8.3 million concurrent streams, a record-breaking audience on the platform,” Shapiro announced.
This marked McGregor’s long-awaited return following his rehabilitation period. Shapiro confirmed that “Conor McGregor is rehabbing now and insists he will be back in 2027.”
The McGregor event’s viewership significantly surpassed UFC Freedom 250 at the White House, which had averaged 7 million viewers in the United States according to ESPN reports, with total viewership reaching 8.2 million including 1.2 million from Latin America. The nearly 16 million viewers for UFC 329 demonstrated McGregor’s continuing draw as one of combat sports’ biggest attractions.
Beyond the McGregor spectacle, UFC demonstrated consistent commercial strength throughout the quarter.
“Every single event held outside the Meta Apex sold out. Not most of them, all of them,” Shapiro emphasized. UFC 330 set the record for highest-grossing event at Xfinity Mobile Arena in Philadelphia, while UFC 331 achieved the same distinction at Crypto.com Arena in Los Angeles. The quarter produced ten sellouts and seven arena records spanning five countries.
TKO’s Chief Financial Officer Andrew Schleimer detailed the financial impact. UFC generated revenue of $519 million, up 60 percent, with adjusted EBITDA of $285 million, representing a 72 percent increase.
“Live events revenue increased 83 percent due to continued strong demand, including a record gate for UFC 329 and the two additional events,” Schleimer reported. The UFC adjusted EBITDA margin reached 55 percent, up from 51 percent in the prior year.
Financial incentive packages from host cities contributed meaningfully to results, with significant agreements for events in Philadelphia, Abu Dhabi, Serbia, Arizona, and Oklahoma City. Shapiro noted the growing global demand: “The demand from public and private partners who value our events as cultural and economic catalysts is real, and it is growing.”
Partnership revenue demonstrated the UFC brand’s expanding commercial appeal, increasing 29 percent driven by new partners across technology, gaming, cryptocurrency, financial services, beverages, and automotive categories.
“UFC is white hot and advertisers want to get in front of our audience, specifically our hard to reach demos,” Shapiro said, highlighting that 46 percent of the UFC audience falls within the 18 to 34 demographic.
The company’s Skydance media deal, which began in January 2026, contributed to a 66 percent increase in media rights revenue. Looking ahead, Schleimer indicated that UFC’s fourth quarter calendar includes ten live events with four numbered events, comparable to the prior year, with significant financial incentive packages for UFC 333 in Abu Dhabi and fight nights in Qatar and Saudi Arabia.
TKO raised its full-year 2026 guidance to revenue of $5.79 billion to $5.83 billion and adjusted EBITDA of $2.295 billion to $2.315 billion, representing increases of $10 million and $15 million respectively at the midpoint. The company generated $450 million in free cash flow during the quarter with 81 percent conversion of adjusted EBITDA.
Addressing Middle East operations amid ongoing regional tensions, Shapiro expressed confidence: “The risk is extremely minimal. I think we’ve endured the tough climb thus far this year. We’ve had no events interrupted. We’ve staged all of our events in the Middle East flawlessly.”
