Madison Square Garden Sports (MSGS) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 2025 revenues rose 9% year-over-year to $357.8 million, driven by higher ticket, suite, sponsorship, and media revenues, as well as three additional Knicks and Rangers home games at The Garden.

• Adjusted operating income for the quarter decreased 45% year-over-year to $20.2 million, reflecting higher direct operating and SG&A expenses despite revenue growth.

• Net income for the quarter was $1.1 million, down from $14.2 million in the prior year, primarily due to increased team personnel compensation and NBA luxury tax.

• The company operates as a single segment, primarily focused on the Knicks (NBA) and Rangers (NHL), with most revenue generated in the second and third fiscal quarters.

• Iconic sports franchises, robust fan engagement, and strong top-line trends support a positive business outlook.

Financial highlights

• Total revenues for Q2 were $357.8 million, up from $326.9 million year-over-year, driven by more home games and higher per-game revenue.

• Event-related revenues rose 14% to $139.4 million; suites and sponsorship revenues increased 15% to $79.4 million.

• National and local media rights fees grew 4% to $126.9 million.

• Operating income for the quarter fell 54% to $13.3 million; net income was $1.1 million, with diluted EPS of $0.05.

• Cash and cash equivalents at quarter-end were $107.8 million, with $250 million in available borrowing capacity.

Outlook and guidance

• Confidence in long-term business trajectory, supported by strong demand trends and fan engagement.

• Fiscal 2025 is expected to see higher direct operating expenses, especially team personnel compensation and NBA luxury tax.

• Modest overall ticket revenue growth expected for the fiscal year, with ongoing evaluation of ticket pricing.

• Opportunities remain for further ticket yield improvements and international brand expansion.