TKO Group Holdings, Inc. (TKO)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable franchise, improving economics, and a price that offers a margin of safety. TKO controls UFC and WWE, two brands with loyal audiences and scarce live content; that can be a moat. The filed numbers show progress: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.5B and net income $101.6M, or $1.34 per diluted share. Fiscal Q1 2026, the quarter ended 2026-03-31, had $1.6B revenue, $89.4M net income, and $1.12 per share. For fiscal year 2025, ended 2025-12-31, revenue was $4.7B, net income $195.4M, and EPS $2.26, though that year included a weak fiscal Q4 with a $2.4M net loss. The turnaround category fits: fiscal year 2023, ended 2023-12-31, lost $35.2M, while fiscal 2024 earned $9.4M and fiscal 2025 earned $195.4M. Yet the quality metrics are mixed. FairStock calculations at the 2026-10-13 close show ROE of 7.06%, ROCE of 4.50%, and a Piotroski F-Score of 7/9. Free cash flow is strong: $1.7B trailing, a 12.7% FCF yield. But the P/E is 60.79, P/B is 3.81, and the Graham Number is $54.22 against a $173.86 price, a negative margin of safety of 220.66%. EV/EBITDA of 11.34 and PEG of 1.15 are not extreme, but the Altman Z-Score of 1.11 signals financial fragility. Growth is real, but the price already assumes a lot. I would want more consistent profits and a wider cushion before calling this bargain.

In plain English: The company runs sports and entertainment brands such as UFC and WWE, selling live events, TV rights, and merchandise. The business has grown and made money in recent quarters, but profits have been uneven and it had losses a few years ago. At the recent price, the stock looks expensive compared with what it earns, even though it produces a lot of cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer