Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - UBS raised its price target on TKO Group Holdings (NYSE:TKO) to $200 from $195 while maintaining a Buy rating following the company’s stronger-than-expected second-quarter results. According to InvestingPro data, TKO currently trades below its Fair Value, with analysts setting targets as high as $220. The company maintains a "GOOD" overall financial health score, supported by strong liquidity and moderate debt levels.
TKO Group reported second-quarter revenues of $1.31 billion, exceeding UBS’s estimate of $1.27 billion and the Street’s expectation of $1.22 billion. The company’s EBITDA reached $526 million, surpassing UBS’s forecast of $496 million and the Street’s estimate of $475 million, with upside primarily driven by WWE performance. The company has maintained impressive revenue growth of 10% over the last twelve months, with a robust gross profit margin of nearly 70%.
The company increased its full-year revenue and EBITDA guidance by $135 million and $40 million, respectively, at the midpoint. Management maintained its target for free cash flow conversion at over 60% excluding one-time items, while share repurchases are on track to begin in the third quarter.
UBS highlighted details from the newly announced WWE-ESPN deal, noting a 1.81x annual average value step-up for U.S. Premium Live Events to $325 million per year from $180 million. The deal excludes library content, NXT Premium Live Events, and approximately 250 hours of other programming currently included in the NBCU/Peacock agreement.
Management indicated they are in the final stages of UFC renewal negotiations, focusing on monetization and reach. Based on the strong results, UBS increased its revenue and EBITDA estimates by 2-3%, projecting $5.73 billion in revenue and $2.07 billion in EBITDA for 2026. For deeper insights into TKO’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you’ll find our detailed Pro Research Report covering what really matters for informed investment decisions.
In other recent news, TKO Group Holdings Inc. reported its second-quarter 2025 earnings, surpassing analyst forecasts. The company achieved an earnings per share (EPS) of $1.17, exceeding the expected $1.13. Revenue also outperformed projections, reaching $1.31 billion compared to the anticipated $1.22 billion. These results indicate stronger-than-expected performance for the period. Despite the positive financial outcomes, TKO’s stock experienced a decline in after-hours trading. The market’s reaction underscores the complex dynamics at play, although specific reasons for the stock movement were not detailed. Investors may find the earnings and revenue figures significant as they reflect the company’s current financial health.
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