Madison Square Garden Sports (MSGS) investor relations material

Executive summary

• Fiscal Q2 2026 revenues rose 13% year-over-year, reaching $459.9 million, driven by record-setting Christmas Spectacular attendance, increased event bookings, and strong per-game revenue growth across ticketing, suites, sponsorship, and merchandise.

• Adjusted Operating Income grew to $190.4 million, and operating income increased 18% to $163.8 million, reflecting robust performance across segments.

• Over 1.2 million tickets were sold for the Christmas Spectacular, the highest in 25 years, with 215 performances.

• Season ticket renewal rates for the Knicks and Rangers were approximately 94%, with per-game ticketing revenue up year-over-year, aided by higher Knicks season ticket prices.

• Merchandise sales set single-game records for both teams, driven by new product launches and exclusive partnerships.

Financial highlights

• Q2 2026 revenues were $459.9 million, up from the prior year, with net income at $92.7 million and diluted EPS at $1.94.

• Event-related revenues rose 20% to $167.2 million, and suites/sponsorship revenues increased 24% to $98.5 million year-over-year.

• Food, beverage, and merchandise revenues rose 8% to $64.3 million, with direct operating expenses up 12%.

• Cash and equivalents at quarter-end were $157.6 million, up from $43.5 million at the start of the period.

• Adjusted Operating Income increased by $9.4 million to $29.7 million, primarily due to revenue growth, partially offset by higher operating expenses.

Outlook and guidance

• Management expects robust growth in both revenue and adjusted operating income for the full fiscal year.

• Ongoing momentum in business fundamentals positions the company for long-term value creation.

• Growth is expected in marketing partnerships and premium hospitality for fiscal 2026.

• The timing benefit from more home games in Q2 will reverse in the second half of the fiscal year.