MSG Entertainment (MSGE) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue reached $246.3 million, up 2% year-over-year, driven by strong concert demand, marketing partnerships, and a record-setting Christmas Spectacular run.

• Over 1.4 million guests attended more than 165 events, with a year-over-year increase in concerts at The Garden, though theater concerts declined.

• The Christmas Spectacular generated $195 million in revenue across 215 performances, with per-show ticketing revenue up year-over-year.

• Completed spin-off from Sphere Entertainment Co. in April 2023, creating a pure-play live entertainment company operating five iconic venues.

• Net income for the nine months ended March 31, 2026 rose 18% year-over-year to $76.2 million, with diluted EPS of $1.59.

Financial highlights

• Q3 2026 revenue: $246.3 million (+2% YoY); nine-month revenue: $864.5 million (+10% YoY); fiscal 2025 revenue: $942.7 million.

• Adjusted operating income for Q3 2026 was $46 million (down 20% YoY); nine-month AOI was $243.5 million (+9% YoY); fiscal 2025 AOI was $222.5 million.

• Unrestricted cash and equivalents at March 31, 2026 were $323 million, up from $157 million sequentially.

• Debt at quarter end was $587 million; net debt as of March 31, 2026 was $263 million; leverage ratio below 3.5x covenant limit.

• Share repurchases totaled $25 million fiscal year to date, with $45 million remaining under buyback authorization.

Outlook and guidance

• Management expects continued robust growth in revenue and adjusted operating income for fiscal 2026, with concert bookings and premium partnerships pacing ahead for fiscal 2027.

• Fiscal 2027 concert bookings are pacing ahead, with record numbers anticipated at The Garden, including a 30-night Harry Styles residency.

• Christmas Spectacular sales for 2026 are underway, with 230 shows on sale, up from 215 last year.

• SG&A expense growth expected to normalize in the June quarter and into fiscal 2027.

• Full cash taxpayer status starting in FY2026.