Madison Square Garden Sports Corp. — Fiscal 2026 Earnings Summary

Financial Performance

• Full-year 2026 revenues reached $1,153.8 million, an increase of $114.6 million (11%) compared to $1,039.2 million in the prior year.
• Fourth quarter 2026 revenues were $278.7 million, a $74.8 million (37%) increase compared to $204.0 million in the prior year quarter.
• Full-year 2026 operating income was $28.9 million, up $14.1 million (95%) from $14.8 million in the prior year.
• Fourth quarter 2026 operating income was $32.2 million, a $54.7 million improvement from an operating loss of $22.6 million in the prior year quarter.
• Full-year 2026 adjusted operating income was $58.7 million, an increase of $20.6 million (54%) from $38.2 million in the prior year.
• Fourth quarter 2026 adjusted operating income was $39.6 million, a $56.3 million improvement from an adjusted operating loss of $16.8 million in the prior year quarter.
• Full-year 2026 net income was $7.759 million, compared to a net loss of $22.438 million in the prior year.
• Fourth quarter 2026 net income was $28.297 million, compared to a net loss of $1.780 million in the prior year quarter.
• Direct operating expenses for the full year were $833.7 million, up from $755.1 million in the prior year; fourth quarter expenses were $159.5 million, up from $154.8 million.
• Selling, general and administrative expenses for the full year were $286.0 million, up from $266.1 million; fourth quarter expenses were $85.4 million, up from $70.9 million.
• Cash and cash equivalents at June 30, 2026, were $164.5 million, up from $144.6 million at June 30, 2025.
• Total debt was $258.5 million ($16.5 million current, $242.0 million long-term) at June 30, 2026, down from $291.0 million ($24.0 million current, $267.0 million long-term) at June 30, 2025.
• Deferred revenue was $165.4 million (current) and $0.6 million (noncurrent) at June 30, 2026, compared to $164.2 million (current) and $0.7 million (noncurrent) at June 30, 2025.
• Net cash provided by operating activities for the full year was $62.7 million, down from $91.6 million in the prior year.

Guidance and Future Outlook

• The Company expects to complete the proposed spin-off of its New York Rangers business from its New York Knicks business by the end of October 2026, subject to various conditions including board approval.
• The Company confidentially submitted a Form 10 registration statement with the SEC in mid-May 2026.
• Management remains focused on driving long-term value for shareholders through the separation of the Knicks and Rangers businesses.

Business Segments and Product Lines

• Fiscal 2026 results were highlighted by the New York Knicks winning the 2025-26 NBA Championship.
• Average per-game revenues increased across all in-arena categories (tickets, suites, sponsorship, and food, beverage, and merchandise) for both the Knicks and Rangers.
• National media rights fees increased due to new NBA national media rights deals beginning in the 2025-26 season.
• Local media rights fees decreased due to amendments to the Knicks' and Rangers' local telecast rights agreements with MSG Networks and a reduction in games exclusively available to MSG Networks.
• Playoff-related revenues increased $66.9 million in the fourth quarter, driven by higher average per-game Knicks playoff revenue and merchandise sales during the championship run.
• Revenues from league distributions increased $7.2 million in the fourth quarter due to higher national media rights fees and other league distributions.
• Sponsorship and signage revenues increased $1.7 million in the fourth quarter due to higher net sales of existing inventory.
• Food, beverage, and merchandise sales increased $1.5 million in the fourth quarter due to higher average per-game revenue.

Market and Competitive Landscape

• The Company operates the New York Knicks (NBA), New York Rangers (NHL), Westchester Knicks (NBAGL), and Hartford Wolf Pack (AHL).
• The Company operates the MSG Training Center in Greenburgh, NY.
• The Knicks and Rangers played a combined eight regular season home games and nine playoff home games at Madison Square Garden Arena in both the current and prior year fourth quarters.

Risks and Challenges

• Forward-looking statements regarding the proposed separation involve risks including operational, financial, and legal challenges inherent in implementing the separation.
• Actual results may differ from forward-looking statements due to business and market conditions, financial community perceptions, and rating agency views.
• The Company disclaims any obligation to update forward-looking statements.

Management Commentary and Tone

• Executive Chairman and CEO James L. Dolan stated that fiscal 2026 was highlighted by the Knicks' NBA Championship win and robust consumer and corporate demand for both teams.
• Management expressed confidence in making progress on the proposed spin-off while remaining focused on long-term shareholder value.

Other Key Points

• The Company reported a $2.9 million impact from expenses related to the proposed spin-off transaction in the fourth quarter's SG&A expenses.
• Share-based compensation for the full year was $21.5 million, up from $17.9 million in the prior year.
• Restructuring charges for the full year were $2.1 million, compared to zero in the prior year.
• The Company recognized gains of $3.1 million related to the remeasurement of liabilities under the Executive Deferred Compensation Plan for the full year.
• Basic weighted-average shares outstanding for the full year were 24.2 million, compared to 24.1 million in the prior year.
• Diluted basic income per share for the full year was $0.32, compared to a loss of $0.93 in the prior year.
• The Company has Class A and Class B common stock outstanding, with 19.5 million Class A shares and 4.5 million Class B shares as of June 30, 2026.