Madison Square Garden Sports (MSGS) investor relations material

Executive summary

• Fiscal Q2 2026 revenues rose 13% year-over-year, reaching $459.9 million for entertainment and $403.4 million for sports, driven by record Christmas Spectacular attendance, increased event bookings, and higher ticket, suite, sponsorship, and merchandise revenues, partially offset by reduced local media rights fees.

• Adjusted operating income increased to $190.4 million for entertainment and $29.7 million for sports, with net income for sports at $8.2 million and for entertainment at $92.7 million.

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

• Merchandise sales set single-game records for both teams, and the Christmas Spectacular sold over 1.2 million tickets, the highest in 25 years.

• Multi-year marketing partnerships, suite renovations, and new sublease agreements contributed to growth in premium hospitality and sponsorship revenue.

Financial highlights

• Total Q2 revenues were $459.9 million for entertainment and $403.4 million for sports, with sports up from $357.8 million year-over-year.

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

• Net income for Q2 was $92.7 million for entertainment and $8.2 million for sports, with diluted EPS of $1.94 and $0.34, respectively.

• Cash and equivalents at quarter-end were $157.6 million for entertainment and $81.3 million for sports, with $408 million in available borrowing capacity for sports.

• Direct operating expenses for sports rose 13% to $311.4 million, mainly from higher team personnel costs, league revenue sharing, and NBA luxury tax.

Outlook and guidance

• Management expects robust growth in both revenue and adjusted operating income for the full fiscal year, with ongoing momentum in business fundamentals and strong event demand.

• 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.

• Media rights revenues are expected to remain at reduced rates due to contract amendments.

• Sufficient liquidity is anticipated to fund operations and obligations for the foreseeable future.