TKO Group Holdings Inc. (TKO) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, TKO scores 54 out of 100, earning a letter grade of D+ and the verdict label "Roarable Sell — Weak Fundamentals / Trim." Across the five pillars, the fundamental cash engine scores 16 out of 20, reflecting an ROIC of 9.9% and an FCF yield of 3.17%. The whale 13F flow pillar scores 8 out of 20 for institutional accumulation and options positioning. The insider conviction pillar scores 9 out of 20 based on SEC Form 4 and Congressional PTR cluster flow. The macro regime fit pillar scores 7 out of 20, reflecting a beta of 1.1 and sector sensitivity. The forensic balance sheet pillar scores 14 out of 20, supported by an Altman Z-Score of 3.7, a Piotroski F-Score of 8 out of 9, and a Debt/Equity ratio of 1.

For a prospective investor evaluating the stock today, the pattern is a business with reasonable cash generation and a balance sheet that the rating treats as sound, paired with weak signals from institutional flow, insider activity, and macro fit. The upside case rests mainly on the cash engine and balance sheet pillars. The valuation tradeoff is visible in the market data: per the market data section, trailing P/E is 61.9 and forward P/E is 57.6, while EV/EBITDA is 36.1. Those multiples are high relative to the fundamental cash engine score, so the rating implies that expectations embedded in the price are demanding. The weak whale flow and insider pillars suggest that sophisticated participants in the source data are not showing conviction, which is the basis for the rating's trim verdict.

Per the SEC financials, operating income rose from $30.9M in FY 2024 to $835.0M in FY 2025, and net income moved from $6.4M to $546.3M over the same period. Per the market data section, operating margin is 17.6% and net margin is 11.5%, while gross margin is reported as 0%. Per the Roarable RQD rating, ROIC is 9.9%, the Altman Z-Score is 3.7, and the Piotroski F-Score is 8 out of 9. Debt was $3724.1M against cash of $831.1M at FY 2025, and the rating reports a Debt/Equity ratio of 1.

Per the recent news and catalysts section, the most prominent item is a Seeking Alpha report, flagged as a CATALYST and marked GREEN, describing Service Properties stock rising after TKO offered to buy a hospitality portfolio for $2B. Other items are flagged YELLOW as MARKET WIRE and include a Trefis piece questioning whether the stock is expensive, a Yahoo Finance earnings preview, an Investing.com report that the stock hit a 52-week low at 170.89 USD, a Simply Wall St forecast piece, and a HowStuffWorks piece on WWE's ownership chain involving TKO and Endeavor. The 52-week low headline is consistent with the 52-week range of $170.14 - $226.94 in the market data. The butterfly supply-chain graph reports a supply chain of NONE, with no butterfly links and no proprietary signals.

• What specific business lines and customers generate the reported $4735.2M of FY 2025 revenue?
• Why does the FY 2025 EPS field read N/A when net income is reported at $546.3M, and what is the reported share count?
• What drove the sharp swing in net income from $6.4M in FY 2024 to $546.3M in FY 2025, and is that change recurring?
• What is the source of the gross margin figure of 0%, and does it reflect the reporting structure of the company?
• What are the terms, timing, and financing of the proposed $2B hospitality portfolio acquisition referenced in the catalyst news?