MSG Entertainment (NYSE: MSGE) grows revenue and cash flow in Q3
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Madison Square Garden Entertainment Corp. reported mixed results for the fiscal third quarter ended March 31, 2026. Revenue was $246.3 million, up $3.8 million, or 2%, from the prior-year quarter. Operating income was $16.1 million, down $11.2 million, or 41%, while adjusted operating income was $46.0 million, down $11.8 million, or 20%.
For the first nine months of fiscal 2026, revenue grew to $864.5 million, up 10% year over year. Operating income was $150.2 million, up 2%, and adjusted operating income was $243.5 million, up 9%. Cash, cash equivalents, and restricted cash rose to $323.7 million from $43.5 million as of June 30, 2025, supported by $368.1 million in operating cash flow.
Positive
- Nine-month revenue and cash flow growth: Revenue for the nine months ended March 31, 2026 rose to $864.5 million, up 10% year over year, while net cash from operating activities increased sharply to $368.1 million from $142.3 million, significantly strengthening the Company’s liquidity position.
Negative
- Quarterly profitability declined: For the fiscal 2026 third quarter, operating income fell to $16.1 million, a 41% decrease from the prior-year quarter, and adjusted operating income declined 20% to $46.0 million, indicating margin pressure despite higher revenue.
Insights
Revenue and cash flow strengthened, but quarterly profitability compressed.
MSG Entertainment delivered modest top-line growth in the fiscal 2026 third quarter, with revenue at $246.3 million, up 2% year over year. However, operating income fell to $16.1 million, a 41% decline, and adjusted operating income dropped 20% to $46.0 million, indicating higher costs or mix shifts in the period.
Over the first nine months, revenue rose 10% to $864.5 million, while operating income and adjusted operating income improved to $150.2 million and $243.5 million, respectively. Cash generation was strong, with net cash from operating activities of $368.1 million and cash balances increasing to $323.7 million by March 31, 2026, providing greater financial flexibility despite quarterly margin pressure.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Revenue: $246.3 million
Q3 2026 Operating Income: $16.1 million
Q3 2026 Adjusted Operating Income: $46.0 million
+5 more
8 metrics
Q3 2026 Revenue
$246.3 million
Three months ended March 31, 2026; up 2% year over year
Q3 2026 Operating Income
$16.1 million
Three months ended March 31, 2026; down 41% year over year
Q3 2026 Adjusted Operating Income
$46.0 million
Three months ended March 31, 2026; down 20% year over year
Nine-month Revenue
$864.5 million
Nine months ended March 31, 2026; up 10% year over year
Nine-month Operating Income
$150.2 million
Nine months ended March 31, 2026; up 2% year over year
Nine-month Adjusted Operating Income
$243.5 million
Nine months ended March 31, 2026; up 9% year over year
Cash balance
$323.7 million
Cash, cash equivalents, and restricted cash as of March 31, 2026
Operating Cash Flow
$368.1 million
Net cash provided by operating activities, nine months ended March 31, 2026
Key Terms
Adjusted Operating Income, Deferred revenue, Operating lease liabilities, Additional paid-in-capital, +1 more
5 terms
Adjusted Operating Income financial
"and adjusted operating income of $46.0 million, a decrease of $11.8 million, or 20%"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
Deferred revenue financial
"Deferred revenue | | 287,218 | | | 228,642"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
Operating lease liabilities financial
"Operating lease liabilities, current | | 44,336 | | | 35,100"
Long-term lease payments a company is legally committed to because it rents assets such as offices, factories, or equipment; under modern accounting rules these future rent obligations are recorded on the balance sheet as liabilities. Investors care because operating lease liabilities act like debt that drains future cash, affects measures of leverage and borrowing capacity, and can change profitability and valuation — think of them as a company’s large, ongoing rent payments that limit its financial flexibility.
Additional paid-in-capital financial
"Additional paid-in-capital | | 54,394 | | | 44,843"
Treasury stock financial
"Treasury stock at cost (6,106 and 5,483 shares as of March 31, 2026 and June 30, 2025, respectively)"
Treasury stock is shares that a company has bought back from the public and kept in its own control rather than retiring them. Think of it like a company holding its own tickets in a drawer: those shares no longer vote or receive dividends while held, but the company can reissue or retire them later; this reduces the number of shares available to outside investors and can boost per‑share earnings and influence ownership and stock price.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||||||||
| , | , | |||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code: (212) 465-6000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, Madison Square Garden Entertainment Corp. (the “Company”) announced its financial results for its third quarter ended March 31, 2026. A copy of the press release containing the announcement is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, regardless of any general incorporation language in such filings.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits | ||||
| 99.1 | Press Release dated May 7, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MADISON SQUARE GARDEN ENTERTAINMENT CORP. (Company) | ||||||||
| By: | /s/ DAVID J. COLLINS | |||||||
| Name: | David J. Collins | |||||||
| Title: | Executive Vice President and Chief Financial Officer | |||||||
Dated: May 7, 2026
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 Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, | Change | March 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| $ millions | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| 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:
Conference Call Information:
| 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 | ||||
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, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
Revenues from entertainment offerings | $ | 165,688 | $ | 160,214 | $ | 657,451 | $ | 593,571 | ||||||||||||||||||
| Food, beverage, and merchandise revenues | 45,081 | 45,808 | 132,242 | 124,104 | ||||||||||||||||||||||
Arena license fees and other leasing revenue | 35,491 | 36,443 | 74,769 | 70,921 | ||||||||||||||||||||||
| Total revenues | 246,260 | 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 income | 16,101 | 27,327 | 150,177 | 147,846 | ||||||||||||||||||||||
| Interest income | 2,245 | 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 taxes | 8,225 | 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: | ||||||||||||||||||||||||||
| Basic | 47,463 | 47,955 | 47,452 | 48,171 | ||||||||||||||||||||||
| Diluted | 48,132 | 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, | |||||||||||||||||||||||||
| $ thousands | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Operating income | $ | 16,101 | $ | 27,327 | $ | 150,177 | $ | 147,846 | ||||||||||||||||||
| Depreciation and amortization | 13,788 | 14,372 | 41,846 | 42,336 | ||||||||||||||||||||||
| Impairment of long-lived assets and related lease costs | 938 | 9,700 | 16,016 | 9,700 | ||||||||||||||||||||||
| Share-based compensation | 6,689 | 6,250 | 24,019 | 21,834 | ||||||||||||||||||||||
| Restructuring charges | 8,623 | 84 | 10,939 | 14 | ||||||||||||||||||||||
Merger, spin-off, and acquisition-related costs | — | — | — | 1,361 | ||||||||||||||||||||||
| Amortization for capitalized cloud computing arrangement costs | 19 | 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, net | 89,675 | 66,781 | ||||||||||||
| Related party receivables, current | 31,863 | 22,487 | ||||||||||||
| Prepaid expenses and other current assets | 93,434 | 104,326 | ||||||||||||
| Total current assets | 538,625 | 237,132 | ||||||||||||
| Non-Current Assets: | ||||||||||||||
| Property and equipment, net | 598,549 | 621,075 | ||||||||||||
| Right-of-use lease assets | 453,759 | 484,544 | ||||||||||||
| Goodwill | 69,041 | 69,041 | ||||||||||||
| Indefinite-lived intangible assets | 63,801 | 63,801 | ||||||||||||
Deferred tax assets, net | 47,767 | 54,072 | ||||||||||||
| Other non-current assets | 185,731 | 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, current | 51,100 | 23,830 | ||||||||||||
| Long-term debt, current | 30,469 | 30,469 | ||||||||||||
| Operating lease liabilities, current | 44,336 | 35,100 | ||||||||||||
| Deferred revenue | 287,218 | 228,642 | ||||||||||||
| Total current liabilities | 753,210 | 502,401 | ||||||||||||
| Non-Current Liabilities: | ||||||||||||||
| Long-term debt, net of deferred financing costs | 547,450 | 568,780 | ||||||||||||
| Operating lease liabilities, non-current | 564,936 | 566,484 | ||||||||||||
| Other non-current liabilities | 43,672 | 45,477 | ||||||||||||
| Total liabilities | 1,909,268 | 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-capital | 54,394 | 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 earnings | 229,205 | 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, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| 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 cash | 280,115 | 55,919 | ||||||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 43,538 | 33,555 | ||||||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 323,653 | $ | 89,474 | ||||||||||
7
FAQ
How did MSGE’s revenue perform in the fiscal 2026 third quarter?
MSGE’s fiscal 2026 third-quarter revenue was $246.3 million, increasing 2% from $242.5 million a year earlier. This modest growth reflects a strong lineup of live events and sports bookings across its venues during the quarter, including more concerts at The Garden.
What were MSGE’s operating income trends for Q3 2026?
Operating income for Q3 2026 was $16.1 million, down 41% from $27.3 million in the prior-year quarter. Adjusted operating income also declined 20% to $46.0 million, suggesting higher expenses or event mix changes weighed on quarterly profitability.
How did MSGE perform over the first nine months of fiscal 2026?
Over the nine months ended March 31, 2026, MSGE generated $864.5 million in revenue, up 10% from $788.6 million. Operating income was $150.2 million, slightly above $147.8 million, while adjusted operating income rose to $243.5 million from $223.8 million.
What is MSGE’s cash position as of March 31, 2026?
As of March 31, 2026, MSGE held $323.7 million in cash, cash equivalents, and restricted cash, up from $43.5 million at June 30, 2025. The increase was driven by $368.1 million in net cash provided by operating activities over the nine-month period.
How have MSGE’s net cash flows evolved year over year?
For the nine months ended March 31, 2026, MSGE’s net cash from operating activities was $368.1 million versus $142.3 million a year earlier. Investing activities used $25.5 million and financing activities used $62.5 million, resulting in a $280.1 million net increase in cash.
What is MSGE’s equity position compared with June 30, 2025?
Total equity improved to $48.0 million as of March 31, 2026 from a $13.3 million deficit at June 30, 2025. This shift reflects higher retained earnings and additional paid-in capital, partially offset by increased treasury stock recorded at cost.