TKO Group Holdings announced a $150 million dividend for Q2 2026, payable to Class A common stockholders. The payout arrives eight quarters after Endeavor merged UFC and WWE into the publicly traded vehicle, and six months after the company retired $712 million in term debt ahead of schedule.
The dividend works out to roughly $0.41 per Class A share at current float, assuming 365 million shares outstanding. TKO last paid a quarterly dividend of $131 million in Q4 2025. The 14.5 percent quarter-over-quarter increase follows UFC 312's $21.6 million live gate in Sydney and WWE's three-year extension with the Saudi General Entertainment Authority, worth an estimated $1.8 billion in aggregate rights fees through 2028. Revenue per event is running 11 percent above the company's own guidance from January.
The timing matters for two reasons. First, TKO's capital-return framework prioritizes buybacks over dividends when the stock trades below 12x forward EBITDA—it closed Friday at 13.2x, the highest multiple since the Endeavor transaction. Management is signaling comfort with the valuation and confidence that free cash flow can support both dividends and the $500 million buyback authorization still outstanding. Second, the payout lands before the company's April 30 earnings call, where investors expect updated guidance on Netflix's Raw deal and international sponsorship attach rates. Paying out $150 million now removes that cash from the balance sheet and narrows the range of capital-allocation surprises.
What allocators should watch: TKO's leverage ratio sits at 2.1x net debt to EBITDA, down from 3.8x at the merger close. If the company sustains quarterly dividends above $140 million while keeping leverage below 2.5x, it implies $620 million in annual free cash flow after capex—roughly $170 million more than consensus models. That gap suggests either UFC pay-per-view buys are running hotter than disclosed, or WWE's international media renewals are landing at premiums to domestic comps. The tell will be in the April call's revenue-per-subscriber disclosure for Netflix Raw, which has remained undisclosed since the January launch. Any figure above $0.85 per sub per month would force Street estimates up 8 to 12 percent.
The dividend goes ex on April 18, payable May 2. Class A holders of record as of April 22 will receive the full $150 million pro-rata distribution, minus any shares held in treasury.