MSG Entertainment (MSGE) investor relations material

Executive summary

• Fiscal 2025 revenue reached $942.7 million, with Q2 revenue at $460 million, both driven by record Christmas Spectacular performance, diversified streams, and strong bookings across concerts, sports, and hospitality.

• Adjusted operating income was $222.5 million for the year and $190.4 million for Q2, both up double digits year-over-year, with reported operating income at $122.1 million for the year and $163.8 million for Q2.

• Over 975 live events hosted at five venues, with nearly 6 million guests in fiscal 2025 and 2.9 million guests at over 475 events in Q2.

• The Christmas Spectacular achieved its highest attendance in 25 years, with 215 performances and over 1.2 million tickets sold.

• Long-term arena license agreements and recurring sponsorships provide stable revenue.

Financial highlights

• Q2 revenue was $459.9 million, up 13% year-over-year, with entertainment, arena license fees, leasing, and F&B/merchandise revenues all increasing.

• Adjusted operating income for Q2 rose 16% to $190.4 million; AOI margin for the quarter was approximately 41%.

• Net income for Q2 was $92.7 million, with diluted EPS of $1.94.

• Unrestricted cash at quarter end was $157 million, up from $30 million in the prior quarter; cash and equivalents at quarter-end were $157.6 million.

• Net debt at year-end was $437 million, with net debt leverage at 2.0x AOI.

Outlook and guidance

• Management expects robust growth in revenue and adjusted operating income for fiscal 2026, with strong momentum into fiscal 2027.

• Concert bookings at The Garden are pacing ahead for the remainder of fiscal 2026 and into fiscal 2027, with a record-breaking Harry Styles residency and other multi-night acts announced.

• Full cash taxpayer status expected starting in FY2026.

• Opportunities exist to further increase Christmas Spectacular show count and ticket pricing next year.