10-Q · May 8, 2026
Madison Square Garden Sports Corp. reported revenues of $432.2 million for Q3 2026, reflecting a 2% increase from $424.2 million in the prior year quarter, although the company posted a net loss with an EPS of -$0.83.…
Earnings analysis · 10-K
MSGS earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
MSG Sports delivered fiscal 2026 revenue of $1,153.822 million and diluted EPS of $0.32, with results supported by the Knicks’ NBA Championship and higher league distributions. Profitability improved materially, but…
Read full summary
MSG Sports delivered fiscal 2026 revenue of $1,153.822 million and diluted EPS of $0.32, with results supported by the Knicks’ NBA Championship and higher league distributions. Profitability improved materially, but championship-related revenue is event-driven, local media fees were structurally reduced, and debt increased the company’s sensitivity to floating interest rates. The potential Rangers spin-off adds strategic optionality but also meaningful execution and separation uncertainty; the 10-K provides no quantitative forward guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.32
- Operating margin
- 2.5%
- Segment
- One operating segment: total revenue $1,153.822 million; event-related revenue $536.546 million, media rights $295.740 million, sponsorship/signage/suite licenses $255.349 million, and league distributions/other $66.187 million.
What stood out
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Revenue and operating profit recovered
Fiscal 2026 revenue increased 11% to $1,153.822 million from $1,039.220 million in fiscal 2025 and $1,027.149 million in fiscal 2024. Operating income nearly doubled to $28.868 million from $14.808 million, while net income recovered to $7.759 million from a $22.438 million loss.
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Championship boosted event revenue
The Knicks’ 2026 NBA Championship generated an additional $66.893 million of playoff-related revenue, while league distributions increased $41.361 million. Event-related revenue rose to $536.546 million from $462.533 million, making it the largest disclosed revenue category.
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Premium sports franchise positioning
The company’s asset positioning is centered on the recognized New York Knicks and New York Rangers franchises, both of which play at Madison Square Garden. Management operates and reports the business as one segment and identifies total-company operating results as the basis for resource allocation.
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Adjusted profitability improved
Adjusted operating income increased 54% to $58.726 million from $38.156 million, despite higher direct operating expenses of $833.702 million and SG&A of $285.995 million. Direct operating expenses included $130.218 million of league revenue-sharing and NBA luxury-tax provisions.
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Debt repayment and liquidity focus
Liquidity remained substantial relative to near-term operations, with $164.511 million of cash and $433.000 million of additional borrowing capacity as of June 30, 2026. The company repaid $25.000 million under the Knicks facility and $7.500 million under the Rangers NHL advance during the year.
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Low capex and no buybacks
Capital intensity was low: capital expenditures were $1.407 million in fiscal 2026 versus $3.621 million in fiscal 2025 and $1.451 million in fiscal 2024. No shares were repurchased during fiscal 2026, although $184.639 million remained available under the repurchase authorization.
What to watch
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Structural local media revenue decline
The amended local telecast agreements reduced the Knicks’ annual rights fee by 28% and the Rangers’ by 18%, eliminated annual escalators, and drove local media-rights revenue down $31.644 million in fiscal 2026. Stated annual fees fell to $139.237 million from $162.939 million, and the company expects reduced rates to continue in future periods.
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Rangers spin-off execution risk
The potential Rangers Distribution would separate the Rangers from the Knicks into two publicly traded companies, with each Class A and Class B shareholder expected to receive one Spinco share for every two MSGS shares. The filing states there is no assurance the transaction will occur and lists Board approval, league approval, a tax opinion, and SEC Form 10 effectiveness as conditions.
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Floating-rate debt and leverage exposure
The company had $242.000 million outstanding under the Knicks Revolving Credit Facility and $16.500 million under the Rangers NHL Advance Agreement as of June 30, 2026; it also borrowed an additional $20.000 million under the Knicks facility on July 22, 2026. Because the credit facilities use floating rates, a hypothetical 100-basis-point increase would raise annual interest expense by approximately $2.4 million.
Management's outlook
The 10-K provides no quantitative revenue or EPS outlook. It describes a potential Rangers spin-off but gives no completion date in the filing; completion remains subject to Board approval, league approval, a tax opinion, and SEC Form 10 effectiveness.
Earlier filings 4
10-Q · February 6, 2026
MSG Sports reported quarterly revenue of $403,424 (in thousands) for the three months ended December 31, 2025, up $45,665 or 13% versus the prior-year quarter, driving operating income of $22,180 (in thousands) and…
10-K · August 13, 2024
MSG Sports emphasizes leveraging its iconic Knicks and Rangers franchises, long-term local media rights and integrated partnerships with MSG Entertainment to grow recurring media, sponsorship and premium hospitality…
10-Q · February 6, 2024
Madison Square Garden Sports reported revenue of $326,898,000 and diluted EPS of $0.59 for the three months ended December 31, 2023, modestly beating consensus. Revenue and margins declined versus the prior-year quarter…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.