Breaking Down Endeavor Group Holdings, Inc. (EDR) Financial Health: Key Insights for Investors

You're looking at Endeavor Group Holdings, Inc. (EDR) not just as a sports and entertainment powerhouse, but as a case study in how a complex balance sheet drives a strategic exit. The direct takeaway is this: the company's financial health, marked by massive top-line growth but also significant leverage, made the Silver Lake take-private deal at $27.50 per share in early 2025 the inevitable next step for stakeholders.

Honestly, the final full-year public filing, released in February 2025, painted a clear picture: a company that pulled in $7.111 billion in 2024 revenue, but still posted a net loss of $1.215 billion for the year, largely due to discontinued operations and impairments. That's a tough trade-off for public investors, so the privatization-which closed in March-was a clean way to de-risk.

Here's the quick math: with total debt sitting at $5.678 billion at the end of 2024, the priority was always deleveraging (reducing debt) and simplifying the structure. The spin-off of assets like PBR and On Location to TKO Group Holdings for $3.25 billion in an all-equity deal, also expected to close in Q1 2025, was a defintely smart way to start that process. Now, the real question is how the new private structure will manage that debt load while continuing to grow its core Owned Sports Properties and Representation segments.

Revenue Analysis

You need to understand where Endeavor Group Holdings, Inc. (EDR) makes its money, especially since the company's structure is changing dramatically in 2025. The core takeaway is that the growth engine has been in live sports, with the Owned Sports Properties segment driving the most significant revenue increase, but this is changing with the major asset sales to TKO Group Holdings, Inc. (TKO) this year.

Looking at the last full fiscal year before the 2025 restructuring-the year ended December 31, 2024-Endeavor Group Holdings, Inc. reported total consolidated revenue of $7.111 billion. This represented a substantial year-over-year growth rate of 29.5% compared to 2023, which is a massive jump, but it was largely acquisition-driven.

Breakdown of Primary Revenue Sources

Endeavor Group Holdings, Inc.'s revenue streams are split across three main segments: Owned Sports Properties, Events, Experiences & Rights, and Representation. The Owned Sports Properties segment is the most important, generating the highest revenue and growth in 2024. Here's the quick math on how the $7.111 billion in 2024 revenue broke down:

• Owned Sports Properties: $2.985 billion, or 42.0% of total revenue.
• Events, Experiences & Rights: $2.529 billion, or 35.6% of total revenue.
• Representation: $1.688 billion, or 23.7% of total revenue.

The Owned Sports Properties segment, which includes the Ultimate Fighting Championship (UFC), Professional Bull Riders (PBR), and the acquired World Wrestling Entertainment (WWE), saw its revenue soar by 64% in 2024. That's a huge number, and it was primarily fueled by the September 2023 acquisition of WWE, which alone contributed approximately $1.0 billion to the segment's 2024 revenue.

The Events, Experiences & Rights segment, covering everything from the Miami Open and Madrid Open tennis tournaments to premium hospitality via On Location, grew by 16% in 2024. This segment got a boost from major events like the Paris 2024 Olympic and Paralympic Games and Super Bowl LVIII. The Representation segment, which includes the WME talent agency, grew revenue by a more modest 9%, mostly from growth across talent, music, and sports.

Near-Term Revenue Stream Changes (2025)

The 2024 figures are the historical high-water mark for this structure. The biggest risk and opportunity for 2025 is the dramatic change in the company's footprint. The take-private transaction by Silver Lake and the sale of key assets to TKO Group Holdings, Inc. (TKO) are expected to close in early 2025. This means the revenue mix for the remainder of 2025 will look very defintely different.

TKO is acquiring Professional Bull Riders (PBR), On Location, and certain IMG assets for $3.25 billion. This move essentially carves out a significant portion of the high-growth Owned Sports Properties and Events, Experiences & Rights segments. Endeavor Group Holdings, Inc. is also exploring the sale of other assets like OpenBet, IMG Arena, the Miami Open, and the Madrid Open. The remaining core business will be heavily weighted toward the Representation segment and its retained interests. For more on the company's long-term direction, you should review the Mission Statement, Vision, & Core Values of Endeavor Group Holdings, Inc. (EDR).

Profitability Metrics

You need to know if Endeavor Group Holdings, Inc. (EDR) is turning its massive revenue into real profit, and the short answer is that while its gross margin is excellent, non-operating costs are sinking the bottom line. The company's profitability picture for the near-term, as reflected in its trailing twelve months (TTM) data through November 2025, shows a strong core business struggling under a heavy debt and expense load.

The company's full-year 2024 consolidated revenue hit an impressive $7.111 billion, a figure buoyed by acquisitions like World Wrestling Entertainment (WWE). But when you look past the top line, the story changes. The full fiscal year 2024 ended with a substantial net loss of $(1,214.761) million, primarily due to impairment charges and high interest expenses. This is why the company was taken private by Silver Lake in March 2025, a move that shields its financials from public scrutiny now, but the public data still shows the underlying issues.

Here's the quick math on the TTM margins, which are the closest public figures we have to the end of 2025:

• Gross Profit Margin: 60.80%
• Operating Margin: -3.54%
• Net Profit Margin: -10.86%

The gross profit margin is defintely the bright spot, showing Endeavor Group Holdings, Inc. is highly efficient at managing its direct operating costs (Cost of Goods Sold). A TTM Gross Profit Margin of 60.80% is significantly higher than the industry average for comparable sectors like Advertising Agencies at 51.4% or Broadcasting at 37.8%. This tells you the core business-managing talent and running owned sports properties like UFC-is fundamentally sound in its pricing and cost control.

Still, operational efficiency falls apart quickly after that. The negative operating margin of -3.54% (TTM through November 2025) means that once Selling, General, and Administrative (SG&A) expenses are factored in, the company is losing money on its day-to-day operations. This is a sharp reversal from the prior year's trend, as the company reported operating income of $303.570 million in 2023, which turned into an operating loss of $(152.910) million for the full year 2024. The shift shows a clear deterioration in cost management and operational scale over that period.

The net profit margin of -10.86% is the final, painful number. Compared to the Advertising Agencies industry average net margin of -1.9% and the Broadcasting industry average of -6.6%, Endeavor Group Holdings, Inc.'s loss is much deeper. The gap between the negative operating margin and the even more negative net margin highlights the crushing effect of non-operating expenses, particularly high interest payments on the company's substantial debt load and one-time impairment charges.

You can dive deeper into the full context of these numbers in our comprehensive analysis: Breaking Down Endeavor Group Holdings, Inc. (EDR) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

When you look at Endeavor Group Holdings, Inc. (EDR)'s balance sheet in early 2025, you see a company that relies on significant debt to fuel its expansive, asset-heavy growth strategy in the sports and entertainment world. The key takeaway is that the company operates with a higher-than-average debt load for its sector, a situation that will be dramatically amplified by the pending take-private transaction.

As of the most recent data (March 2025), Endeavor Group Holdings, Inc. reported a total debt of approximately $6.35 billion. This total debt includes a substantial long-term component, with about $3.43 billion categorized as long-term debt as of December 31, 2024. Short-term liabilities, which include the current portion of long-term debt, were considerable, totaling around $5.00 billion due within a year as of March 2025. This high short-term obligation, compared to a current ratio of only 0.81, suggests that short-term liquid assets are not enough to cover immediate liabilities, which is defintely a point of caution.

The company's Debt-to-Equity (D/E) ratio-a measure of how much debt is used to finance assets relative to the value of shareholder equity-stood at approximately 0.63 as of March 2025. Here's the quick math: a ratio below 1.0 is often seen as conservative, meaning the company uses more equity than debt. But you have to compare it to the industry. The average D/E ratio for the broader Entertainment industry is about 0.67, so Endeavor Group Holdings, Inc. was right in line, or slightly better, than its peers before the major acquisition news.

The real shift in Endeavor Group Holdings, Inc.'s financing strategy comes from the Silver Lake-led buyout, expected to close in the first quarter of 2025. This move fundamentally rebalances the debt-to-equity mix, pushing the company's leverage to a much higher level. To fund the transaction, the new structure involves issuing about $7.25 billion of new debt and over $8 billion in new and rollover equity. This massive influx of debt caused S&P Global Ratings to downgrade the company's credit rating to 'B+' from 'BB-' in January 2025. S&P specifically noted that the company's adjusted leverage is expected to jump to about 9.0x in 2025, a very high level that signals a much greater reliance on debt for its capital structure.

The company's approach to balancing debt and equity can be summarized by its recent activities:

• Debt Refinancing: In November 2024, Endeavor Group Holdings, Inc. refinanced existing loans, including a new $2.75 billion term loan maturing in 2031, to extend maturity dates and manage its debt profile.
• Credit Facility Expansion: A Margin Loan Agreement was amended in March 2025, increasing the credit facility to a total of $3 billion, with an additional $1.925 billion fully drawn.
• Equity Funding (Acquisition): The Silver Lake take-private deal is the main source of new equity, with over $8 billion in equity funding the transaction, alongside the new debt.

This is a highly leveraged model, betting on the strong revenue growth from assets like TKO Group Holdings to service the debt. You can dive deeper into who is funding this new capital structure by Exploring Endeavor Group Holdings, Inc. (EDR) Investor Profile: Who's Buying and Why?

Here is a snapshot of the company's debt profile:

Liquidity and Solvency

You need to know if Endeavor Group Holdings, Inc. (EDR) had enough short-term cash to cover its bills, especially given the significant corporate changes in early 2025. The direct takeaway is that while the company's traditional liquidity ratios were concerningly low, the impending take-private deal with Silver Lake fundamentally mitigated the public investor's risk of a liquidity crunch.

The standard liquidity measures, the Current Ratio and Quick Ratio, show a tight short-term financial position. As of early 2025 (Trailing Twelve Months), Endeavor Group Holdings, Inc.'s Current Ratio was only 0.81. This means the company had only 81 cents of current assets (cash, receivables, etc.) for every dollar of current liabilities (bills due within a year). The Quick Ratio, which strips out inventory and other less-liquid assets, was even lower at 0.42. Frankly, anything below 1.0 on the Current Ratio is a red flag, suggesting a structural reliance on future cash flow or external financing to manage short-term obligations.

This low ratio is a symptom of the company's working capital structure. The Net Current Asset Value was a negative $6.45 billion on a TTM basis. This substantial negative working capital is common in businesses that collect cash upfront, like event ticketing and booking (unearned revenue), but it still requires careful cash flow management. It's a tight spot, defintely. Here's the quick math on their cash generation:

• Operating Cash Flow (OCF): $348.27 million (TTM)
• Capital Expenditures (CapEx): -$190.91 million (TTM)
• Free Cash Flow (FCF): $157.36 million (TTM)

The cash flow statement overview for the TTM period ending in early 2025 shows the business was generating positive cash from core operations, with Operating Cash Flow (OCF) at $348.27 million. This is a strength, as it shows the underlying business model is cash-generative. Investing Cash Flow was primarily driven by capital expenditures of $190.91 million, leaving a positive Free Cash Flow (FCF) of $157.36 million. Financing Cash Flow, however, was heavily influenced by the company's large debt load, which stood at approximately $5.68 billion at year-end 2024.

What this estimate hides is the massive corporate shift. The main liquidity concern for public investors-the risk of the company being unable to meet its debt obligations-was effectively neutralized by the take-private transaction. Silver Lake acquired Endeavor Group Holdings, Inc. for $27.50 per share in cash, with the deal closing in March 2025. The focus shifted from managing public debt to completing the acquisition and planned asset sales, such as the transfer of PBR, On Location, and IMG to TKO Group Holdings, Inc. (TKO) in an all-equity deal valued at $3.25 billion. For a deeper dive into the company's financial health before the delisting, check out our full post: Breaking Down Endeavor Group Holdings, Inc. (EDR) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at Endeavor Group Holdings, Inc. (EDR)'s valuation ratios to see if there's a clear buy, hold, or sell signal, but honestly, the biggest signal came back in March 2025: the company was acquired by Silver Lake and subsequently delisted. This corporate action is the ultimate valuation event, so the ratios we look at now are a post-mortem of what drove that decision.

At the time of its final trading days, Endeavor Group Holdings, Inc. (EDR) was trading around $29.25 per share. The valuation metrics suggested a mixed, but high-growth, picture. The trailing 12-month (TTM) Price-to-Book (P/B) ratio stood at 2.28, which is reasonable for an asset-light, high-growth media and entertainment company. But the Enterprise Value-to-EBITDA (EV/EBITDA) ratio was a staggering 36.18, which is defintely high and signals that the market was pricing in significant future growth, or that the high debt load was inflating the Enterprise Value.

Here's the quick math on the core valuation metrics:

• Forward Price-to-Earnings (P/E): 10.81
• Price-to-Book (P/B): 2.28
• Enterprise Value-to-EBITDA (EV/EBITDA): 36.18

The Forward P/E of 10.81 suggests the stock was undervalued relative to its projected earnings, especially when compared to the high EV/EBITDA. This disconnect often happens with companies carrying substantial debt, where the EV metric captures the debt, making the company look more expensive on an EV basis than on a simple P/E basis.

Stock Trend and Analyst View Before Acquisition

The stock price trend leading up to the acquisition was positive, which makes sense; a buyer wouldn't offer a premium if the stock was in freefall. Over the 52 weeks leading into November 2025, Endeavor Group Holdings, Inc. (EDR)'s stock had climbed by approximately +15.16%, outperforming the S&P 500. The 52-week trading range was between $26.26 and $35.89.

Analyst consensus was generally a 'Hold' recommendation, with an average price target of $27.81. The final trading price of $29.25 was actually above this average target, suggesting the market had already moved past the consensus view, likely due to the impending acquisition news or the finalization of the deal terms. This highlights why following the smart money-like Silver Lake's move-can be more profitable than following the average analyst target.

Dividend Policy and Payout Reality

You might see a dividend yield listed for Endeavor Group Holdings, Inc. (EDR), but it's not a reliable income play. The TTM dividend yield was around 0.82%, representing an annual dividend of $0.24 per share. However, the TTM payout ratio was negative, at -64.86%. This negative number is crucial: it means the company was paying a dividend while reporting negative earnings per share (EPS). The dividend was not covered by current profits, which is a red flag for a sustainable income stream, even if the total amount was small. For a deeper dive into the company's financial structure and the debt that drove the high EV/EBITDA, you can check out the full analysis at Breaking Down Endeavor Group Holdings, Inc. (EDR) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Endeavor Group Holdings, Inc. (EDR) right now, but honestly, the single biggest risk and opportunity for public investors is that the company won't be public for much longer. The primary risk isn't a new competitor; it's the successful execution of the take-private deal, which caps your upside at the offer price.

The company's financial health is currently defined by a massive corporate restructuring, which is a near-term operational and strategic risk. The plan is a two-part exit strategy: Silver Lake's acquisition and the major asset sale to TKO Group Holdings, Inc. (TKO). If either of these transactions encounters unexpected regulatory hurdles or financing issues, the stock price could defintely fall well below the offer price.

The Overarching Strategic Risk: Going Private

The core risk for any current shareholder is transaction risk. Silver Lake, a major private equity firm, has agreed to acquire all outstanding shares of Endeavor Group Holdings, Inc. (EDR) it doesn't already own for $27.50 per share in cash. This deal was expected to close by the end of the first quarter of 2025. Once this closes, the stock is delisted, and the public market's ability to price future growth or new media rights deals is gone. That's the end of the line for your investment in EDR as a public entity.

Here's the quick math on the major transactions that define the 2025 outlook:

• Silver Lake Take-Private: Stockholders receive $27.50 per share.
• TKO Asset Sale: Endeavor is selling assets like PBR, On Location, and IMG to TKO in an all-equity deal valued at $3.25 billion.
• Discontinued Operations: The Sports Data & Technology segment (OpenBet and IMG ARENA) was sold in a management buyout in late 2024, removing a revenue stream but simplifying the remaining business.

Financial Risks and Leverage

Even setting aside the take-private deal, the company carries a substantial debt load, which is a classic financial risk. As of December 31, 2024, Endeavor Group Holdings, Inc.'s total debt stood at $5.678 billion, which is a heavy weight for any company, even one with premium assets like the UFC and WWE (through its majority ownership of TKO). This debt level makes the company sensitive to interest rate changes and limits financial flexibility if a major event is postponed or canceled.

Also, the company took a hit on asset valuation. In the 2024 fiscal year, Endeavor Group Holdings, Inc. recorded impairment charges of $75.7 million related to goodwill and intangibles in the Events, Experiences & Rights segment. That's a clear signal that some of their past acquisitions or investments in that area haven't performed to expectations, and that segment's Adjusted EBITDA for the year was a negative $(29.8) million. One clean one-liner: High debt and asset write-downs are a bad combination.

For context, here are the latest full-year financial figures that underpin the company's valuation, based on the fiscal year ending December 31, 2024:

Mitigation and Next Steps

The mitigation strategy is the transaction itself. By going private, Silver Lake is essentially taking on the execution risk and the debt load away from the public market. For you, the action is simple: Monitor the closing date of the Silver Lake acquisition. If you're looking for a deeper dive into the numbers before the final bell, you can review more of our analysis on the company's core business segments at Breaking Down Endeavor Group Holdings, Inc. (EDR) Financial Health: Key Insights for Investors. Your concrete next step is to check the latest SEC filings for any updates on the Q1 2025 closing timeline.

Growth Opportunities

You're looking for a clear map of what drives Endeavor Group Holdings, Inc. (EDR) now that it's gone private, and the direct takeaway is this: the company's future is overwhelmingly tied to the global growth of its majority-owned subsidiary, TKO Group Holdings (TKO), which houses UFC and WWE. The strategic decision to go private, led by Silver Lake for $27.50 per share, was a massive corporate simplification that cut away non-core assets to focus on premium, live sports content.

The biggest strategic initiative in 2025 wasn't an acquisition, but a massive divestiture and privatization. The Silver Lake take-private transaction closed on March 24, 2025, at an equity valuation of $13 billion and a consolidated enterprise value of $25 billion. This move lets the management team, now backed by a private equity giant, invest aggressively in the core growth engines without the constant pressure of quarterly public reporting. They got lean, fast.

Core Growth Drivers: TKO and WME

The new, private Endeavor Group Holdings, Inc. is now fundamentally a holding company for two high-margin, high-growth businesses: its controlling stake in TKO and its world-class talent agency, WME. This focus is the primary growth driver going forward, centered on media rights, sponsorships, and live event expansion.

• UFC's Global Expansion: The Ultimate Fighting Championship (UFC) continues to tap into new international markets and secure lucrative media rights deals, driving revenue through contractual escalations and site fees.
• WWE's Content Value: World Wrestling Entertainment, Inc. (WWE) offers a massive library of intellectual property (IP) and consistent live event revenue, which, when combined with UFC, creates a powerful, integrated sports content powerhouse in TKO.
• Representation Strength: The Representation segment, primarily WME, is seeing growth across its talent, music, and sports groups, proving its resilience and market dominance in securing top-tier talent and brand partnerships.

2025 Financial Projections (The Pre-Deal View)

To be fair, the analyst projections for the full 2025 fiscal year were largely based on the structure before the divestitures of assets like IMG, On Location, and PBR to TKO, and the sale of OpenBet for $450 million. What this estimate hides is the simplifying effect of those sales, which reduce complexity but also some revenue streams. Still, the market's forward-looking view was strong, predicting significant growth driven by the core assets.

Here's the quick math for the former public entity's expected performance for the full 2025 fiscal year, which frames the underlying momentum:

Even with the divestitures, the remaining core business is expected to show strong organic growth, especially from the premium live content under TKO. The average analyst price target before the take-private was still around $27.81, reflecting a belief in the intrinsic value of the underlying assets.

Competitive Advantages in a Private Structure

Endeavor's competitive advantage (economic moat) is its diversified, yet integrated, portfolio of premium, live intellectual property (IP). It controls the content (UFC/WWE), the talent (WME), and the distribution. This vertical integration is defintely hard to replicate. The privatization by Silver Lake, a long-time investor, is a strategic move, not a distress sale. It allows the company to execute long-term, capital-intensive strategies-like TKO's global expansion-without the short-term market scrutiny that can derail big bets. The focus is now on maximizing the value of TKO and WME, which are both market leaders in their respective spaces. For more on the foundational principles guiding these decisions, you can read the Mission Statement, Vision, & Core Values of Endeavor Group Holdings, Inc. (EDR).