Madison Square Garden Entertainment Corp. — Fiscal 2027 First Quarter Earnings Summary

Financial Performance:

• Reported revenues of $217.1 million for the quarter ended September 30, 2026, an increase of $58.9 million (37%) compared to $158.3 million in the prior year quarter.
• Reported operating income of $9.7 million, a $39.5 million improvement from a loss of $29.7 million in the prior year quarter.
• Reported adjusted operating income of $34.3 million, an increase of $27.2 million compared to $7.1 million in the prior year quarter.
• Revenues from entertainment offerings were $174.9 million, up $43.5 million (33%) year-over-year.
• Food, beverage, and merchandise revenues were $35.7 million, up $12.9 million (56%) year-over-year.
• Arena license fees and other leasing revenues were $6.6 million, up $2.5 million (60%) year-over-year.
• Direct operating expenses totaled $126.8 million, an increase of $24.4 million from $102.4 million in the prior year quarter.
• Selling, general, and administrative expenses were $66.9 million, an increase of $10.3 million (18%) year-over-year.
• Net income was $8.9 million, compared to a net loss of $21.7 million in the prior year quarter.
• Earnings per share (basic and diluted) were $0.19, compared to a loss per share of $0.46 in the prior year quarter.
• Net cash used in operating activities was $26.2 million, compared to net cash provided by operating activities of $19.8 million in the prior year quarter.
• Net cash used in investing activities was $13.2 million, compared to $6.8 million in the prior year quarter.
• Net cash used in financing activities was $60.6 million, compared to $26.1 million in the prior year quarter.
• Cash, cash equivalents, and restricted cash ended the period at $194.2 million, down from $294.2 million at the beginning of the period.
• Deferred revenue increased to $311.0 million as of September 30, 2026, from $284.6 million as of June 30, 2026.
• Long-term debt was $533.2 million (net of deferred financing costs) as of September 30, 2026, down from $540.3 million as of June 30, 2026.

Guidance and Future Outlook:

• Executive Chairman and CEO James L. Dolan stated the business is off to a strong start in fiscal 2027.
• Management expects live entertainment offerings to continue benefiting from healthy demand.
• Management remains well positioned to drive robust growth in both revenue and adjusted operating income for the fiscal year.

Business Segments and Product Lines:

• Concert revenues increased $30.1 million, driven by a record number of concerts at Madison Square Garden Arena and higher per-concert revenue, partially offset by a decrease in concerts at the Company's theaters.
• Revenues from other live entertainment and sporting events increased $11.2 million due to more events and higher per-event revenue.
• Revenues subject to economics sharing with MSG Knicks and MSG Rangers increased $2.2 million, primarily due to higher suite license fee revenues.
• Food and beverage sales at concerts increased $12.5 million, driven by higher per-concert revenue and increased concert volume at The Garden.
• The Christmas Spectacular production at Radio City Music Hall is scheduled for 231 performances in the 2026 holiday season, compared to 215 in fiscal 2026.
• The New York Knicks and New York Rangers began their 2026-27 regular seasons at The Garden subsequent to the quarter end.

Market and Competitive Landscape:

• The fiscal 2027 first quarter featured a diverse slate of live entertainment offerings across the Company's portfolio of venues.
• The Company reported a new record for the number of concerts in any quarter at Madison Square Garden Arena.

Risks and Challenges:

• The press release includes a standard forward-looking statement disclaimer noting that actual results may differ materially due to risks and uncertainties, including financial community perceptions and factors detailed in the Company's SEC filings.
• Direct operating expenses increased due to higher concert volumes and per-concert costs.
• SG&A expenses increased due to higher employee compensation, benefits, and other cost increases.

Management Commentary and Tone:

• Executive Chairman and CEO James L. Dolan expressed confidence, stating, "Our business is off to a strong start in fiscal 2027."
• Management highlighted the absence of impairment of long-lived assets in the current quarter as a key driver for the improvement in operating income compared to the prior year.

Other Key Points:

• The Company repurchased approximately $25 million of its Class A common stock during the fiscal 2027 first quarter.
• Total share repurchases since the Company's spin-off from Sphere Entertainment Co. in 2023 have reached approximately $230 million.
• Treasury stock increased to 6,421 shares as of September 30, 2026, from 6,106 shares as of June 30, 2026.
• The Company reported no restructuring charges or impairment of long-lived assets in the current quarter, whereas the prior year quarter included $13.8 million in impairments and $1.2 million in restructuring charges.
• Adjusted operating income excludes depreciation, amortization, impairments, share-based compensation, restructuring charges, and other non-cash or non-recurring items.