MSG Knickerbockers Corp. — Fiscal 2027 First Quarter Earnings Summary

Financial Performance

• Revenues for the three months ended September 30, 2026, were $45.5 million, an increase of $6.0 million (15%) compared to $39.5 million in the prior year period.
• Operating loss was $25.5 million, an improvement of $2.0 million (7%) compared to an operating loss of $27.4 million in the prior year period.
• Adjusted operating loss was $20.0 million, an improvement of $0.8 million (4%) compared to an adjusted operating loss of $20.8 million in the prior year period.
• Net loss for the period was $31.1 million, compared to a net loss of $8.8 million in the prior year period.
• Basic and diluted loss per common share was $1.29, compared to $0.37 in the prior year period.
• Direct operating expenses increased $0.5 million (7%) to $8.8 million, driven by higher merchandise expenses ($1.6 million), team personnel compensation ($1.3 million), and net provisions for personnel transactions ($0.7 million), partially offset by a $3.0 million decrease in league revenue sharing and NBA luxury tax provisions.
• Selling, general, and administrative expenses increased $3.0 million (5%) to $60.8 million, primarily driven by $3.6 million in spin-off transaction expenses, partially offset by $1.2 million in lower employee compensation and benefits.
• Cash and cash equivalents decreased to $40.0 million at September 30, 2026, from $164.5 million at June 30, 2026.
• Net cash used in operating activities was $146.3 million, compared to $85.0 million in the prior year period.
• Total debt increased to $298.5 million (combining current and long-term debt) at September 30, 2026, from $258.5 million at June 30, 2026.
• Deferred revenue increased significantly to $366.9 million (current and non-current) at September 30, 2026, from $166.0 million at June 30, 2026.

Business Segments and Product Lines

• Revenue growth was primarily driven by higher league distributions of $3.1 million, mainly due to increases in certain league distributions unrelated to national media rights fees.
• Food, beverage, and merchandise sales increased $2.6 million, primarily due to higher Knicks merchandise revenues driven by demand following the team's 2025-26 NBA Championship win.
• The Company owns and operates the New York Knicks (NBA) and the Westchester Knicks (NBAGL).

Other Key Points

• On October 26, 2026, the Company completed the spin-off of its New York Rangers business; fiscal 2027 first quarter consolidated results include the Rangers' financial results.
• The New York Knicks began their 2026-27 regular season at Madison Square Garden with a banner raising and ring celebration commemorating the 2025-26 NBA Championship.
• The Company reported restructuring charges of $0.6 million for the period, compared to zero in the prior year period.
• Share-based compensation expense was $4.0 million for the period, compared to $4.8 million in the prior year period.
• The Company disclaims any obligation to update forward-looking statements contained in the release.