📊 TKO Key Takeaways
Is TKO Group Holdings, Inc. (TKO) a Good Investment?
TKO exhibits strong free cash flow generation (27.2% FCF margin) and reasonable operational efficiency (17.6% operating margin), providing financial stability. However, declining revenues (-3.1% YoY), exceptionally weak capital returns (ROE 5.2%, ROA 1.3%), and elevated leverage (1.01x D/E) amid flat earnings growth indicate structural challenges that offset operational strengths.
Why Buy TKO Group Holdings, Inc. Stock? TKO Key Strengths
- Exceptional free cash flow generation with 27.2% FCF margin ($1.3B annually)
- Solid operating margin of 17.6% demonstrating pricing power and cost management
- Adequate liquidity and interest coverage (4.1x) providing debt service cushion
TKO Stock Risks: TKO Group Holdings, Inc. Investment Risks
- Revenue declining 3.1% YoY signals weakening demand in core entertainment/amusement services
- Severely depressed returns on capital (ROE 5.2%, ROA 1.3%) indicate inefficient asset deployment
- Elevated leverage (1.01x D/E, $3.8B long-term debt) against declining revenues creates refinancing risk
Key Metrics to Watch
- Revenue trajectory and underlying segment performance trends
- Free cash flow conversion sustainability under declining revenue environment
- Debt/Equity ratio management and refinancing capacity given maturity profile
TKO Group Holdings, Inc. (TKO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 27.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
TKO Profit Margin, ROE & Profitability Analysis
TKO vs Services Sector: How TKO Group Holdings, Inc. Compares
How TKO Group Holdings, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is TKO Group Holdings, Inc. Stock Overvalued? TKO Valuation Analysis 2026
Based on fundamental analysis, TKO Group Holdings, Inc. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
TKO Group Holdings, Inc. Balance Sheet: TKO Debt, Cash & Liquidity
TKO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: TKO Group Holdings, Inc.'s revenue has grown significantly by 192% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.43 indicates the company is currently unprofitable.
TKO Revenue Growth, EPS Growth & YoY Performance
TKO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.1B | -$21.6M | $-0.27 |
| Q2 2025 | $1.2B | -$44.7M | $-0.55 |
| Q1 2025 | $1.2B | $58.4M | $0.69 |
| Q3 2024 | $449.1M | -$21.6M | $-0.26 |
| Q2 2024 | $305.2M | -$44.7M | $-0.55 |
| Q1 2024 | $306.7M | -$103.8M | $-1.26 |
| Q3 2023 | $340.7M | -$21.9M | $-0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TKO Group Holdings, Inc. Dividends, Buybacks & Capital Allocation
TKO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for TKO Group Holdings, Inc. (CIK: 0001973266)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TKO
What is the AI rating for TKO?
TKO Group Holdings, Inc. (TKO) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TKO's key strengths?
Claude: Exceptional free cash flow generation with 27.2% FCF margin ($1.3B annually). Solid operating margin of 17.6% demonstrating pricing power and cost management.
What are the risks of investing in TKO?
Claude: Revenue declining 3.1% YoY signals weakening demand in core entertainment/amusement services. Severely depressed returns on capital (ROE 5.2%, ROA 1.3%) indicate inefficient asset deployment.
What is TKO's revenue and growth?
TKO Group Holdings, Inc. reported revenue of $4.7B.
Does TKO pay dividends?
TKO Group Holdings, Inc. pays dividends, with $185.2M distributed to shareholders in the trailing twelve months.
Where can I find TKO SEC filings?
Official SEC filings for TKO Group Holdings, Inc. (CIK: 0001973266) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TKO's EPS?
TKO Group Holdings, Inc. has a diluted EPS of $2.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TKO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, TKO Group Holdings, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TKO stock overvalued or undervalued?
Valuation metrics for TKO: ROE of 5.2% (sector avg: 16%), net margin of 4.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy TKO stock in 2026?
Our dual AI analysis gives TKO Group Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TKO's free cash flow?
TKO Group Holdings, Inc.'s operating cash flow is $1.3B, with capital expenditures of N/A. FCF margin is 27.2%.
How does TKO compare to other Services stocks?
Vs Services sector averages: Net margin 4.1% (avg: 10%), ROE 5.2% (avg: 16%), current ratio 1.26 (avg: 1.5).