EX-99.1 2 msgeex99133126.htm EX-99.1 Document

msgelogo8k991era01a.jpg


MADISON SQUARE GARDEN ENTERTAINMENT CORP. REPORTS
FISCAL 2026 THIRD QUARTER RESULTS


NEW YORK, N.Y., May 7, 2026 - Madison Square Garden Entertainment Corp. (NYSE: MSGE) (“MSG Entertainment” or the “Company”) today reported financial results for the fiscal third quarter ended March 31, 2026.

The fiscal 2026 third quarter was highlighted by a diverse mix of live entertainment and sporting events across the Company’s portfolio of venues. That included significant growth in the number of concerts at the Madison Square Garden Arena (“The Garden”) and the last performances in this year's record-setting Christmas Spectacular run. It also included the continuation of the New York Knicks (“Knicks”) and the New York Rangers (“Rangers”) 2025-26 regular seasons at The Garden.

For the fiscal 2026 third quarter, the Company reported revenues of $246.3 million, an increase of $3.8 million, or 2%, as compared to the prior year quarter. In addition, the Company reported operating income of $16.1 million, a decrease of $11.2 million, or 41%, and adjusted operating income of $46.0 million, a decrease of $11.8 million, or 20%, both as compared to the prior year quarter.(1)

Executive Chairman and CEO James L. Dolan said, “We continue to bring an array of live events to our venues, and demand for those entertainment offerings remains strong. As we approach the end of the fiscal year, we remain on track to deliver robust growth in revenue and adjusted operating income in fiscal 2026.”
Results for the Three and Nine Months Ended March 31, 2026 and 2025:
Three Months EndedNine Months Ended
March 31,ChangeMarch 31,Change
$ millions20262025$%20262025$%
Revenues$246.3 $242.5 $3.8 2 %$864.5 $788.6 $75.9 10 %
Operating Income$16.1 $27.3 $(11.2)(41)%$150.2 $147.8 $2.3 2 %
Adjusted Operating Income (1)
$46.0 $57.9 $(11.8)(20)%$243.5 $223.8 $19.8 9 %
Note: Amounts may not foot due to rounding.
(1) See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.










1

Entertainment Offerings, Arena License Fees and Other Leasing
Fiscal 2026 third quarter revenues from entertainment offerings of $165.7 million increased $5.5 million, or 3%, as compared to the prior year quarter.

•Revenues subject to the sharing of economics with Madison Square Garden Sports Corp. ("MSG Sports") pursuant to the Arena License Agreements increased $5.4 million, primarily due to higher suite license fee revenues (excluding those retained by the Company).
•Revenues from concerts increased $3.7 million, primarily reflecting an increase in the number of concerts at The Garden, partially offset by a decrease in the number of concerts at the Company's theaters.
•Revenues from venue-related sponsorship, signage, and suite license fees increased $3.1 million due to higher suite license fee revenues (excluding those shared with MSG Sports pursuant to the Arena License Agreements) and higher sponsorship and signage revenues.
•Revenues from the presentation of the Christmas Spectacular production increased $1.3 million, primarily due to an increase in ticket-related revenue, which reflected higher per-show revenue and one additional performance as compared to the prior year quarter.
•Revenues from other live entertainment and sporting events decreased $7.7 million due to a decrease in the number of events at the Company's venues (including the absence of a multi-day special event held at Radio City Music Hall in the prior year quarter), partially offset by higher per-event revenue.

Fiscal 2026 third quarter arena license fees and other leasing revenues of $35.5 million decreased $1.0 million, or 3%, as compared to the prior year quarter, due to fewer Knicks and Rangers games played at The Garden in the current year quarter, partially offset by higher other leasing revenues.

Fiscal 2026 third quarter direct operating expenses associated with entertainment offerings, arena license fees and other leasing of $118.3 million increased $10.3 million, or 10%, as compared to the prior year quarter.

•Expenses subject to the sharing of economics with MSG Sports pursuant to the Arena License Agreements increased $5.0 million, primarily due to expenses incurred as a result of the increase in suite license fee revenues.
•Expenses for concerts increased $2.6 million, primarily due to an increase in the number of concerts at The Garden, partially offset by a decrease in the number of concerts at the Company’s theaters.
•Venue operating costs increased $2.4 million, primarily due to higher employee compensation and benefits, as well as higher repairs and maintenance expenses.
•Expenses for other live entertainment and sporting events decreased $2.0 million due to a decrease in the number of events at the Company's venues (including the absence of a multi-day special event held at Radio City Music Hall in the prior year quarter), partially offset by higher per-event expenses.

Food, Beverage and Merchandise
Fiscal 2026 third quarter food, beverage and merchandise revenues of $45.1 million decreased $0.7 million, or 2%, as compared to the prior year quarter. The decrease primarily reflected (i) lower food and beverage sales at Knicks and Rangers games of $2.8 million, primarily due to the impact of a combined five fewer Knicks and Rangers games played at The Garden, partially offset by (ii) higher food and beverage sales at concerts held at the Company's venues of $2.4 million, primarily due to an increase in the number of concerts at The Garden, partially offset by a decrease in the number of concerts at the Company's theaters.

Fiscal 2026 third quarter food, beverage and merchandise direct operating expenses of $28.5 million decreased $2.4 million, or 8%, as compared to the prior year quarter. The decrease was primarily due to lower food and beverage costs related to Knicks and Rangers games at The Garden, partially offset by higher food and beverage costs related to concerts, both as compared to the prior year quarter.

Selling, General and Administrative Expenses
Fiscal 2026 third quarter selling, general and administrative expenses of $61.0 million increased $8.8 million, or 17%, as compared to the prior year quarter. This increase was primarily due to (i) an increase in employee compensation and benefits, (ii) higher rent expense, and (iii) other cost increases.

Operating Income and Adjusted Operating Income
Fiscal 2026 third quarter operating income of $16.1 million decreased $11.2 million, or 41%, as compared to the prior year quarter, primarily due to higher selling, general and administrative expenses, restructuring charges and direct operating expenses, partially offset by the absence of impairment of long-lived assets recognized in the prior year quarter and the increase in revenues. Fiscal 2026 third quarter adjusted operating income of $46.0 million decreased $11.8 million, or 20%, as compared to the prior year quarter, primarily due to higher direct operating expenses and higher selling, general and administrative expenses, partially offset by the increase in revenues.
2

About Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The Company’s portfolio includes a collection of world-renowned venues – New York’s Madison Square Garden, Infosys Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre – that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for more than 90 years. More information is available at www.msgentertainment.com.
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other long-lived assets, including right of use assets and related lease costs, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses, (v) gains or losses on sales or dispositions of businesses and associated settlements, (vi) the impact of purchase accounting adjustments related to business acquisitions, (vii) amortization for capitalized cloud computing arrangement costs and (viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, spin-off, and acquisition-related transaction costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles, gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the executive deferred compensation plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in other income (expense), net, which is not reflected in operating income (loss).
We exclude impairments of long-lived assets, including right-of-use assets and related lease costs, as these expenses do not represent core business operating results of the Company. We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company on a consolidated and combined basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release.
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

# # #
Contacts:
Ari Danes, CFA
Senior Vice President, Investor Relations & Treasury
Madison Square Garden Entertainment Corp.
(212) 465-6072		Grace Kaminer
Vice President, Investor Relations & Treasury
Madison Square Garden Entertainment Corp.
(212) 631-5076
Conference Call Information:
The conference call will be webcast live today at 8:30a.m. ET at investor.msgentertainment.com
Conference call dial-in number is 833-461-5787 / Conference ID Number 814544945
Webcast replay available at investor.msgentertainment.com until May 14, 2026
Investor presentation available at investor.msgentertainment.com/events-and-presentations
3

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
 Three Months Ended March 31,Nine Months Ended March 31,
2026202520262025
Revenues:
Revenues from entertainment offerings
$165,688 $160,214 $657,451 $593,571 
Food, beverage, and merchandise revenues45,081 45,808 132,242 124,104 
Arena license fees and other leasing revenue
35,491 36,443 74,769 70,921 
Total revenues246,260 242,465 864,462 788,596 
Direct operating expenses:
Entertainment offerings, arena license fees, and other leasing direct operating expenses
(118,340)(107,995)(382,960)(358,755)
Food, beverage, and merchandise direct operating expenses
(28,453)(30,875)(78,859)(74,898)
Total direct operating expenses(146,793)(138,870)(461,819)(433,653)
Selling, general, and administrative expenses(60,955)(52,112)(185,899)(155,047)
Depreciation and amortization(13,788)(14,372)(41,846)(42,336)
Impairment of long-lived assets— (9,700)(13,782)(9,700)
Restructuring charges(8,623)(84)(10,939)(14)
Operating income16,101 27,327 150,177 147,846 
Interest income2,245 710 3,578 1,447 
Interest expense(9,421)(11,800)(30,872)(38,798)
Other expense, net(700)(949)(1,545)(2,763)
Income from operations before income taxes8,225 15,288 121,338 107,732 
Income tax expense(3,115)(7,252)(45,167)(43,124)
Net income$5,110 $8,036 $76,171 $64,608 
Earnings per share:
Basic$0.11 $0.17 $1.61 $1.34 
Diluted$0.11 $0.17 $1.59 $1.33 
Weighted-average number of shares of common stock:
Basic47,463 47,955 47,452 48,171 
Diluted48,132 48,271 47,893 48,445 

4

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(in thousands)
(Unaudited)

The following is a description of the adjustments to operating income in arriving at adjusted operating income as described in this earnings release:

•Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets.
•Impairment of long-lived assets and related lease costs. This adjustment eliminates the impairment of long-lived assets, including right of use assets and related lease costs.
•Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units and stock options granted under the Company’s Employee Stock Plan and the Company’s Non-Employee Director Plan.
•Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain executives and employees.
•Merger, spin-off, and acquisition-related costs. This adjustment eliminates costs related to mergers, spin-offs and acquisitions, including merger-related litigation expenses.
•Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs.
•Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan.
Three Months Ended March 31,Nine Months Ended March 31,
$ thousands2026202520262025
Operating income$16,101 $27,327 $150,177 $147,846 
Depreciation and amortization13,788 14,372 41,846 42,336 
Impairment of long-lived assets and related lease costs938 9,700 16,016 9,700 
Share-based compensation6,689 6,250 24,019 21,834 
Restructuring charges8,623 84 10,939 14 
Merger, spin-off, and acquisition-related costs
— — — 1,361 
Amortization for capitalized cloud computing arrangement costs19 183 225 552 
Remeasurement of deferred compensation plan liabilities(122)(45)325 149 
Adjusted operating income$46,036 $57,871 $243,547 $223,792 





5

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
As of
March 31,
2026		June 30,
2025
ASSETS
Current Assets:
Cash, cash equivalents, and restricted cash$323,653 $43,538 
Accounts receivable, net89,675 66,781 
Related party receivables, current31,863 22,487 
Prepaid expenses and other current assets93,434 104,326 
Total current assets538,625 237,132 
Non-Current Assets:
Property and equipment, net598,549 621,075 
Right-of-use lease assets453,759 484,544 
Goodwill69,041 69,041 
Indefinite-lived intangible assets63,801 63,801 
Deferred tax assets, net
47,767 54,072 
Other non-current assets185,731 140,177 
Total assets$1,957,273 $1,669,842 
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts payable, accrued and other current liabilities$340,087 $184,360 
Related party payables, current51,100 23,830 
Long-term debt, current30,469 30,469 
Operating lease liabilities, current44,336 35,100 
Deferred revenue287,218 228,642 
Total current liabilities753,210 502,401 
Non-Current Liabilities:
Long-term debt, net of deferred financing costs547,450 568,780 
Operating lease liabilities, non-current564,936 566,484 
Other non-current liabilities43,672 45,477 
Total liabilities1,909,268 1,683,142 
Commitments and contingencies
Equity (deficit):
Class A Common Stock (a)
465 461 
Class B Common Stock (b)
69 69 
Additional paid-in-capital54,394 44,843 
Treasury stock at cost (6,106 and 5,483 shares as of March 31, 2026 and June 30, 2025, respectively)(205,204)(180,204)
Retained earnings229,205 153,034 
Accumulated other comprehensive loss(30,924)(31,503)
Total equity (deficit)48,005 (13,300)
Total liabilities and equity (deficit)$1,957,273 $1,669,842 
_________________
(a) Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 46,526 and 46,076 shares issued as of March 31, 2026 and June 30, 2025, respectively.
(b) Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued as of March 31, 2026 and June 30, 2025.
6

MADISON SQUARE GARDEN ENTERTAINMENT CORP.
SELECTED CASH FLOW INFORMATION
(in thousands)
(Unaudited)
Nine Months Ended
March 31,
20262025
Net cash provided by operating activities$368,053 $142,308 
Net cash used in investing activities
(25,455)(19,379)
Net cash used in financing activities(62,483)(67,010)
Net increase in cash, cash equivalents, and restricted cash280,115 55,919 
Cash, cash equivalents, and restricted cash, beginning of period43,538 33,555 
Cash, cash equivalents, and restricted cash, end of period$323,653 $89,474 



































































7