Endeavor Group Holdings, Inc. (EDR)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 revenue was $1.568B, with a net loss of $237.2M and Adjusted EBITDA of $277.1M; Adjusted EBITDA margin was 17.7% (vs 13.7% in Q3) amid higher impairments and M&A-related costs .
• There was no earnings call due to the pending Silver Lake take-private; Endeavor reiterated the $27.50 per share cash deal and a required $0.06 quarterly dividend prior to closing, expected by end of Q1 2025 .
• Segment mix: Representation grew strongly in Q4 (+17% y/y), Owned Sports Properties increased (+4% y/y), while Events, Experiences & Rights was modestly lower (-1% y/y) in the quarter .
• Corporate portfolio actions accelerated: sale of OpenBet and IMG ARENA via a management buyout (approx. $450M consideration) and asset transfer to TKO (IMG, On Location, PBR; valued at $3.25B) with closing targeted near-term/within Q1 2025, pulling forward from “first half 2025” in prior guidance .
• Stock reaction catalysts near term are deal-driven: Silver Lake closing at $27.50, TKO asset transfer timing, and progress on divesting events (Miami Open, Madrid Open, Frieze) .

What Went Well and What Went Wrong

What Went Well

• Representation segment revenue rose to $501.6M (+17% y/y) and Adjusted EBITDA increased to $108.2M (+5% y/y), supported by WME talent, music, sports and nonscripted growth .
• Owned Sports Properties delivered $670.4M revenue (+4% y/y) and Adjusted EBITDA of $237.2M (+6% y/y), reflecting continued strength at UFC, WWE and PBR .
• “We closed out 2024 with continued momentum reflecting strong demand for premium content and live events,” said CEO Ariel Emanuel, highlighting focus on asset transfers to TKO and private transaction completion .

What Went Wrong

• GAAP profitability pressured by non-GAAP items: Q4 impairment charges ($75.7M), M&A/strategic costs (~$37.6M), and other losses (including FX), contributing to a net loss and net margin of -15.1% .
• Events, Experiences & Rights Q4 Adjusted EBITDA fell to $11.0M (down 20% y/y), and the segment posted a full-year Adjusted EBITDA loss (-$29.8M), reflecting event timing and portfolio repositioning .
• Interest expense remained elevated ($105.3M in Q4), and total debt increased sequentially to $5.678B at quarter-end (from $5.228B in Q3) .

Financial Results

Segment revenue

Segment Adjusted EBITDA

KPIs and balance sheet

Note: No Wall Street estimate comparisons included; S&P Global consensus for EDR Q4 2024 was unavailable due to mapping limitations.

Guidance Changes

Earnings Call Themes & Trends

Note: The company did not host an earnings call for Q4 2024 due to the take-private process .

Management Commentary

• “We closed out 2024 with continued momentum reflecting strong demand for premium content and live events. Over the next few months, our focus remains on completing our sale of IMG, On Location, and PBR to TKO; closing our take-private transaction with Silver Lake; and ensuring Endeavor is well-positioned for long-term success in representation.” — Ariel Emanuel, CEO .
• Prior quarter tone: “Our owned sports and representation segments delivered solid results… we remain focused on delivering for our clients… and completing the sale of PBR, On Location and IMG to TKO.” — Q3 management comment .
• Q2 emphasis on demand and execution amid take-private process: “TKO and PBR benefited from strong consumer demand… we remain focused… as we work toward the close of our take-private transaction.” — Q2 management comment .

Q&A Highlights

• No Q4 earnings call or Q&A was held due to the pending take-private transaction .

Estimates Context

• S&P Global (Capital IQ) consensus estimates for Q4 2024 revenue and EPS were unavailable for EDR due to a CIQ mapping limitation; therefore, comparisons versus Wall Street estimates could not be made. If consensus becomes available, we will update estimate comparisons accordingly.

Key Takeaways for Investors

• Execution on corporate actions is the primary near-term driver: closing Silver Lake’s $27.50 per share take-private and the TKO asset transfer, both targeted by end of Q1 2025; timing appears to be accelerating for the TKO transaction, a positive surprise versus Q3’s first-half timing .
• Representation remains a core earnings anchor with Q4 strength; sustained growth in WME talent/music/sports supports medium-term margin resilience even as events mix normalizes .
• Watch GAAP vs non-GAAP divergence: impairments ($75.7M), M&A/strategic costs (~$37.6M), and FX/other items weighed on GAAP; Adjusted EBITDA margin improved to 17.7% in Q4, highlighting underlying operating strength .
• Balance sheet trends: cash rose to $1.201B while total debt increased to $5.678B; near-term deleveraging hinges on asset sales/transactions and post-close capital structure decisions .
• Events, Experiences & Rights volatility persists; strategic review and potential disposals (Miami/Madrid Open, Frieze) could streamline the portfolio and reduce earnings variability .
• Absence of an earnings call limits qualitative color; rely on 8-K disclosures and transaction updates as the key catalysts and signals of execution risk .
• Short-term trading: align positions with deal timelines and closing certainty; medium-term thesis: post-transaction Endeavor focused on representation with improved quality of earnings and reduced event-driven volatility .