Madison Square Garden Sports (MSGS) investor relations material

Executive summary

• Revenue for the quarter ended March 31, 2026 increased 2% year-over-year to $432.2 million, despite five fewer Knicks and Rangers home games at The Garden.

• Net loss widened to $20.0 million from $14.2 million in the prior year period.

• The company is exploring a potential spin-off to separate Knicks and Rangers into distinct publicly traded companies.

• Average per-game revenues increased across tickets, suites, sponsorship, and food, beverage, and merchandise.

• Amendments to local telecast rights agreements reduced annual rights fees for both Knicks and Rangers, impacting media rights revenue.

Financial highlights

• Revenues for the nine months ended March 31, 2026 rose 5% year-over-year to $875.1 million.

• Direct operating expenses increased 12% year-over-year for both the quarter and nine-month periods, driven by higher team personnel compensation and league revenue sharing expenses.

• Adjusted operating income for the quarter fell 72% to $10.3 million; for the nine months, it dropped 65% to $19.2 million.

• Net loss for Q3 was $19.98 million, with basic and diluted loss per share at $0.83.

• League distributions increased $27.0 million, driven by new NBA national media rights and NBA Cup impact.

Outlook and guidance

• Local media rights fees for fiscal 2026 are expected to be $139.2 million, down from $162.9 million in fiscal 2025 due to contract amendments.

• The company expects continued impact from reduced local telecast rights fees in future periods.

• Management highlights strong demand for teams and expects long-term value creation from potential business separation.

• Management believes liquidity is sufficient, with $107 million in cash and $433 million in available borrowing capacity as of March 31, 2026.

• Forward-looking statements caution risks related to the separation and market conditions.