TKO Group Holdings, Inc.

The Beneish M-Score is -1.566 for 2025, which is above -1.78 and falls in the elevated manipulation-risk zone. That is a screening flag that calls for a closer read, not proof of manipulation. A large revenue step-up tied to an acquisition and a common-control recast are the kinds of items that can make a screen like this trigger, so the restated comparisons are the first place to look. The Altman Z-Score here is the Z-double-prime variant at 1.03, which is below 1.10 and in the distress zone. For a company whose liabilities grew faster than its equity in 2025, that reading signals balance-sheet pressure under this model, though it is a statistical screen and not a forecast of failure. The Piotroski F-Score is 6 of 8 computable signals, which points to a mixed but not weak set of profitability, leverage and efficiency tests. The filing excerpts provided are largely a table of contents and forward-looking statement language, so the specific risk factor text is not fully visible here. Readers may want to look at Item 1A of the 2025 Form 10-K in full, along with the Transition Services Agreement and the Endeavor Asset Acquisition terms described in the 10-Q for the period ended March 31, 2026. The Services Agreement with Endeavor was terminated at closing and replaced by a Transition Services Agreement, so the cost structure of the combined company is still settling. The Q1 2026 MD&A notes that the Acquired Businesses' historical figures include allocations of Endeavor's corporate expenses, which may not match what they would have incurred standalone. Taken together, the strong top-line growth and operating income gains are real in the reported numbers, but the leverage increase, the thin net income, the Beneish flag and the distress-zone Altman reading are the parts that a careful reader should weigh alongside them.

Catalyst.TKO's MD&A describes four ways it monetizes its brands: media rights, live events and hospitality, partnerships and marketing, and consumer products licensing. These run through three reportable segments, UFC, WWE and IMG, plus a Corporate and Other group that includes PBR and boxing. Revenue rose to $4.74 billion in 2025 from $2.8 billion in 2024, a 68.8% increase, and operating income rose to $835.01 million from $282.9 million. The main structural change was the Endeavor Asset Acquisition, which closed on February 28, 2025 and added the IMG business, On Location and PBR. Because the filing treats this as a common-control transaction, prior periods were recast on a combined basis. Readers may want to check how much of the growth reflects that combination rather than the existing UFC and WWE businesses.

Hidden risk.Net income was $195.4 million in 2025, compared with $9.41 million in 2024 and a loss of $35.23 million in 2023, so profit is thin relative to revenue. Operating cash flow of $1.29 billion is 6.58 times net income, a gap readers may want to examine. Total liabilities rose to $6.25 billion from $3.98 billion, equity fell to $3.74 billion from $4.09 billion, and long-term debt rose to $3.72 billion from $2.73 billion. The forward-looking statements also list the company's status as a controlled company, and the definitions state that shares issued to Endeavor affiliates represent roughly 51% of total voting interests, which concentrates governance.