In a stunning turn of events, WWE has officially surpassed UFC in annual revenue for the first time since the two brands merged under TKO Group Holdings. This remarkable achievement is detailed in the company's fourth quarter and full-year 2025 earnings report, which reveals a significant shift in the landscape of professional wrestling and mixed martial arts. But here's where it gets controversial... Let's dive into the numbers and explore the factors that led to this unexpected turn of events. WWE generated $1.709 billion in revenue for fiscal 2025, a 22% increase year-over-year. UFC, on the other hand, posted $1.502 billion for the same period, putting WWE $207 million ahead of its sister promotion. This marks a milestone that seemed unlikely when TKO was first formed in 2023. The full-year breakdown tells the story of a company firing on all cylinders. Media rights, production, and content crossed the billion-dollar threshold for the first time, reaching $1.000 billion — up $135.1 million (+18%) year-over-year. This growth was driven primarily by WWE's landmark deals with Netflix (Monday Night Raw) and ESPN, which came into effect in 2025 and represent a major step up in rights fees from the prior USA Network arrangement. Live events and hospitality — the category that most closely reflects Premium Live Event and house show performance, including ticket revenue and site fees — reached $412.8 million, up $74.3 million (+22%) from 2024. Partnerships and marketing was the fastest-growing segment, jumping $76.6 million to $159.6 million — nearly doubling year-over-year. New sponsorship deals and renewals at higher rates drove the increase, a sign that advertisers and brand partners are placing significant value on WWE's expanded reach through Netflix and ESPN. Consumer products licensing and other came in at $136.4 million, up $25.3 million (+23%), rounding out a year of broad-based revenue growth across every line item. WWE's Adjusted EBITDA — a key measure of operating profitability — climbed 32% to $896.5 million in 2025, up from $681.1 million. The Adjusted EBITDA margin expanded to 52%, up from 49% the prior year. In a remarkable reversal, WWE now out-earns UFC in absolute profit dollars. UFC's Adjusted EBITDA was $851.0 million — still elite at a 57% margin, but $45 million behind WWE's dollar figure. Despite this impressive growth, WWE's Q4 results highlight how much the international PLE calendar can swing quarterly numbers. Live events and hospitality revenue fell $24.8 million in Q4 compared to the prior year, which TKO attributed directly to holding one fewer international Premium Live Event in the quarter. This is a meaningful data point: a single international PLE is worth in the range of $20–25 million to WWE's top line. Despite that headwind, WWE's Q4 revenue still grew 21% overall, powered by the $64.9 million surge in media rights revenue — the Netflix and ESPN deals running at full strength for the first time. Partnerships and marketing added another $13 million in Q4, and consumer products grew $8.2 million. TKO's overall 2025 performance was impressive, with full-year revenue of $4.735 billion and Adjusted EBITDA of $1.585 billion — a 47% EBITDA increase year-over-year. Free cash flow reached $1.159 billion. The company returned more than $1.3 billion to shareholders through buybacks and dividends during the year. For 2026, TKO is targeting $5.675–$5.775 billion in revenue and $2.240–$2.290 billion in Adjusted EBITDA — roughly 20% top-line growth. The company also announced plans to launch up to $1 billion in share repurchases beginning in March 2026. '2025 was a milestone year, underscoring the durability of our premium IP through record-setting live events and transformational global partnerships,' said TKO President and COO Mark Shapiro. With WWE's media rights agreements fully in effect and the international PLE slate continuing to grow, the financial trajectory heading into WrestleMania season looks as strong as it ever has. But here's where it gets controversial... What do you think? Do you agree with the numbers? Or do you think there's a different interpretation of these results? Share your thoughts in the comments below!
