BATRA

Greetings. Welcome to the Atlanta Braves Holdings second quarter 2026 earnings conference call. After today's prepared remarks, we will host a Q&A session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. As a reminder, this call is being recorded. At this time, I would like to turn the call over to Cameron Rudd, Vice President of Investor Relations.

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements that represent our beliefs or expectations about future events. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC. Forward-looking statements are based on current expectations, assumptions, and beliefs, as well as information available to us at this time and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events. During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA.

The full definition of adjusted OIBDA and the reconciliations to the comparable GAAP financial measures are contained in the Form 10-Q and earnings press release available on the company's website. Now I'd like to turn the call over to Terry McGuirk, Chairman, President, and CEO of Atlanta Braves Holdings.

Good morning. Thank you for joining us. Joining me today are Derek Schiller, President and CEO of the Atlanta Braves, Mike Plant, President and CEO of Braves Development Company, and Jill Robinson, our CFO. With only 49 games left in the season, our team continues to play well. Currently, we sit in first place in the National League East with FanGraphs giving the Braves an 89% chance of winning the division and a 99% chance of making the playoffs. While we have dealt with our fair share of injuries this season, the team is getting some of these players back and continues to be playoff bound. Chris Sale has once again performed like a future hall of famer and currently commands the second lowest ERA in all of baseball. Matt Olson and Ozzie Albies have continued to provide production and veteran leadership.

Drake Baldwin has built on his Rookie of the Year season, Raisel Iglesias has been outstanding at the back end of our bullpen. Michael Harris has returned to form and has been exceptional both at the plate and in center field. As we move through the second half of the season, we are encouraged by the progress of several key players who are making their way back from injuries. 23-year-old AJ Smith-Shawver is back from Tommy John surgery and throwing 100 mi an hour and looking like his old self. Five-time All-Star Ronald Acuña Jr. only recently rejoined the team, and his presence makes everyone better. In addition, Sean Murphy and Ha-Seong Kim were on rehabilitation assignments and returned to the team yesterday.

The depth of this team has been on full display in the past few months, and we are excited to be playing at near full strength going into the back half of the season. Our objective remains the same every year: to compete for and win a World Series championship. We have great confidence in Alex Anthopoulos, our President of Baseball Operations, and Walt Weiss, our Field Manager, two of the finest leaders in baseball. Part of the strength of this organization has been our ability to draft successfully and cultivate young players, which has helped the Braves develop a premier minor league system. With the expiration of the trade deadline earlier this week, we added some valuable talent for the stretch, starting with talented outfielder Lane Thomas, as well as multiple players to bolster our pitching depth, including Bailey Falter, Brent Suter, Tyler Uberstine, and Tyler Mahle.

We approached the trade deadline the same way we have in the past, with a mentality of making our team better without sacrificing the next wave of talent. This is a deep and talented organization, and we believe this team is positioned to compete deep in October. We were extremely proud to have had five Braves selected to represent the National League in the All-Star Game. Chris Sale, Matt Olson, Ozzie Albies, Drake Baldwin, and Raisel Iglesias. Chris Sale was selected for the 10th time in his outstanding career. Having five representatives tied for the most among National League teams reflects the talent and depth of this club. I also want to recognize Braves legend Andruw Jones, who was inducted into the National Baseball Hall of Fame on July 26th.

Andruw became the 12th player to enter the hall as a Brave, capping a remarkable career that included 10 consecutive Gold Glove awards, five All-Star selections, and 434 home runs. His impact on our franchise and the city of Atlanta has been extraordinary. Finally, I'd like to thank Braves Country. Attendance and fan engagement have remained very strong with 17 sellouts this season through July. The energy our fans bring to Truist Park makes a real difference to our players and the entire organization. We never take their passion or loyalty for granted. With that, I'll turn the call over to Derek.

Thank you, Terry. I want to echo Terry's appreciation for Braves Country and the continued support our fans showed throughout the season. Providing them with the best possible experience, both at Truist Park and wherever they follow the team, remains one of our highest priorities. That commitment was central to the launch of BravesVision, our owned and operated multimedia platform and the official local television home of the Braves. BravesVision gives us a more direct relationship with our viewers and greater ability to shape how fans experience and engage with the team throughout the season. In a short period of time, we have built the capabilities needed to manage distribution, advertising sales, production, and programming directly, while working with the experienced third-party partners. Our focus remains on delivering a high-quality viewing experience, bringing fans closer to the team, and building a durable platform that can grow over time.

We continue to receive high praise from fans and the media for the superior quality of BravesVision. Work has also begun to expand content on the network, including live batting practice at home games, in addition to our pre- and post-game shows for those fans who want to tune in and see the action ahead of the game. Our entire team continues to work to expand the reach of BravesVision and develop programming and content that strengthens the connection between the team and our fans. We remain encouraged by the early success of BravesVision and are confident that we will replicate or exceed revenue from our prior third-party local rights partner on an annualized basis. Overall, the legacy cable model continues to decline, with some distributors seeing subscriber numbers decrease even more so than previously forecasted, putting pressure on our business.

This is not unique to the Braves. That pressure is being felt across sports. However, our unique ability to manage our business means that we have been insulated from those impacts more than most teams. One example is our incredibly strong direct-to-consumer business, which is outpacing our early projections and positions us well for the future. As you can see in our published financials, we have renamed the revenue line associated with our broadcasting operations to reflect the impact of BravesVision. What was formerly broadcasting has been changed to media-related revenue, given the various items in this line stemming from the launch of BravesVision. Jill will go into more detail on this change in a moment. The enthusiasm of our fans has been evident across Truist Park in the first half of the season.

While our second quarter comparison reflects six fewer regular season home games than last year, underlying fan demand remains strong. Through the first six months of the year, average attendance per home game increased, season ticket demand remained strong, and baseball event revenue grew despite one fewer regular season home game than the first six months of the 2025 season. We believe that performance reflects the enduring strength of Braves Country and the value fans place on experiencing Braves baseball in person. We remain focused on making every visit to Truist Park memorable, from the atmosphere inside the ballpark to the broader experience surrounding each game. In fact, just a few weeks ago, the Information Display & Entertainment Association held its annual IDEA conference, in which it awards its Golden Matrix Awards to recognize superior achievement throughout the event presentation industry.

Our incredibly talented fan experience team received three awards, including Best Overall Production across all sports, honoring overall operational and live entertainment excellence, Best Overall in Baseball, recognizing the top game presentation in the sport, and Best Tribute Video, awarded for the team's special feature production, Hank Aaron tribute video. We also continue to identify opportunities to utilize the ballpark beyond our regular season home game schedule, introducing the venue to new audiences while generating additional activity across the broader campus. During the second quarter, we hosted three Savannah Bananas games, as well as an additional concert in May. These events attracted fans and visitors to Truist Park outside of traditional Braves games and contributed to strong growth in our other revenue.

We hosted the first-ever Braves Country Fest presented by Truist in June, which saw over 100,000 visitors attend a variety of concerts held in the stadium as well as out in The Battery. This was in addition to the Noah Kahan concert held in late July and the upcoming Guns N' Roses concert in September. We continue to work around the clock to make the most of our campus and ballpark, and bring as many fans and visitors as we can. Beyond the ballpark, we're also seeing strong engagement with our fans, including demand for our new City Connect apparel. Taken together, the early response to BravesVision, continued support at Truist Park, and engagement with the Braves brand reinforce our confidence in the strength and reach of our fan base.

We will continue investing in the experiences that bring fans closer to the team, whether they are watching from home, joining us at Truist Park, or engaging with the Braves throughout the community. With that, I'll turn the call over to Mike.

Thank you, Derek. It has now been just over one year since we acquired Pennant Park, and this quarter represents our first full year-over-year comparison with Pennant Park reflected.

We pursued the acquisition because in addition to the strategic and financial benefits, we believed it was a natural extension of our existing mixed-use portfolio and one that would create additional opportunities to drive long-term value. With a full year of Pennant Park operations, we are proud of the progress made and very much consider this to be a strategic piece of our total campus. Inclusive of Pennant Park, occupancy for our entire mixed-use portfolio remains above 93%, a substantial feat for a development of our size. We continue to see very strong engagement with tenants and in May of this year, hit a new record high for our monthly tenant sales. That relationship and engagement allow our team to operate this portfolio with effective consistency.

We are also uniquely positioned to work across our campus on tenant improvements, year to date have seen 130% increase in replacement tenant sales, reinforcing our ability to maximize the opportunities across the campus. In the second quarter, we saw three new grand openings for tenants and currently have 64,000 sq ft of leasable space under redevelopment across a variety of tenants, signifying the growth we continue to see. All of this reflects our continued commitment to developing a diverse and durable revenue base that complements our baseball operation. We remain focused on strengthening the tenant mix, leasing available space, and creating an environment where people want to work, live, visit, and spend time. Battery Atlanta saw 4.7 million visitors through the first half of 2026, a 6.5% increase from last year as our expanded offerings continue to drive visitors from across the Southeast.

Yet another example of our ability to utilize our campus throughout the year was the success of our World Cup viewing parties out on the plaza. Throughout the tournament, we welcomed more than 35,000 fans to the Battery to enjoy watching the games on our large outdoor screen in the plaza as we continue to look for new and innovative ways to maximize our campus. Our objective is not simply to add events or assets, but to pursue opportunities that fit within our broader ecosystem, enhance the experience for visitors, and make productive use of our facilities throughout the year. Taken together, the contribution from Pennant Park, the continued development of The Battery Atlanta, and the growing calendar of events at Truist Park demonstrate how we are building a more balanced and resilient business around our core baseball operations.

We will continue to evaluate opportunities thoughtfully and invest in areas that we believe can create sustainable long-term value for the organization. With that, I'll turn the call over to Jill.

Thanks, Mike. Before I begin, I want to remind everyone that a majority of our revenue is seasonal and aligned with the baseball season. During the second quarter of 2026, we played 34 regular-season home games compared with 40 home games in the second quarter of 2025. In the second quarter, total revenue was $305 million, compared with $312 million in the second quarter of 2025. As a reminder, the company manages its business through two reportable segments: baseball and mixed-use development. Our new BravesVision business that we launched in Q2 is included within our baseball segment. Baseball revenue was $276 million in the second quarter of 2026, compared with $287 million in the second quarter of 2025. Baseball event revenue was $161 million, a decrease of $19 million from the prior year period, primarily due to playing six fewer regular-season home games during the quarter.

Importantly, through the first six months of the year, baseball event revenue increased approximately $4 million, despite one fewer home game. This reflects increased average attendance per regular-season home game, contractual rate increases on season tickets, and favorable single-game ticket sales. As Derek mentioned, we have updated our presentation of revenue from broadcast into a new media-related line. This is similar to how other peers in the media space report revenue. This revenue line includes not only the various revenue-generating pieces of BravesVision, but also national media, radio, and other smaller media-related items. This is consistent with how we have presented historically, as well as how we view the business model. Media-related revenue was $73 million in the second quarter, compared with $81 million in the prior year period.

The decrease primarily reflects the timing of revenue recognition under BravesVision's linear distribution agreements compared with our previous long-term local broadcasting agreement. As Derek stated earlier, we remain very encouraged by the early success of BravesVision and are confident that we will replicate or exceed revenue from our prior third-party local rights partner on an annualized basis. Revenue from linear distribution agreements and other aspects of BravesVision should be viewed on an annualized basis because revenue recognition under these year-round distribution agreements differs from that of our previous local broadcasting agreement, which was largely aligned with the MLB season. In the case of BravesVision, our distribution agreements commenced at the time we signed our contracts with our various distribution partners at the start of the season.

Distribution revenue payments will come in on a slower cadence than our traditional rights fee model payments were received, creating a sizable shift in the timing of cash receipts. Advertising revenue will be paid following the month when the ad airs. Direct-to-consumer payments will also be paid monthly. Since BravesVision effectively launched on April 1st, the 2026 fiscal year will not reflect a full year of distribution revenue. However, most of the other revenue streams will be fully recognized in 2026. Retail and licensing revenue increased approximately $3 million to $22 million, primarily due to strong demand for the new City Connect apparel launched in April. Other baseball revenue increased approximately $13 million to $21 million, primarily due to the greater number of special events held at Truist Park, including three Savannah Bananas games and an additional concert during the quarter.

Turning to our mixed-use development segment, revenue was $29 million in the second quarter, up from $25 million in the prior year period. The increase was primarily driven by higher rental income and parking revenue, including increased tenant recoveries and new lease agreements. As Mike discussed, the quarter also represents our first full year-over-year comparison with Pennant Park included in both periods. Adjusted OIBDA was approximately $12 million in the second quarter of 2026, compared with $66 million in the second quarter of 2025. The decrease primarily reflects lower baseball revenue, as well as an increase in baseball operating costs and SG&A expenses. Baseball operating costs increased due to higher Major League player salaries, BravesVision production and administrative expenses, costs associated with special events at Truist Park, and increased revenue sharing and other shared MLB expenses. These factors were partially offset by improved mixed-use development performance.

Our operating loss was $19 million in the second quarter of 2026, compared with operating income of $42 million in the second quarter of 2025, primarily due to the revenue and expense factors previously discussed. As of June 30, 2026, the company had $116 million of cash and cash equivalents. Substantially all of our cash and cash equivalents are invested in U.S. Treasury securities, other government securities or government-guaranteed funds, AAA-rated money market funds, and other highly rated financial and corporate debt instruments. Because of our borrowing capacity, we were able to offset the timing impact of the BravesVision cash flow and still have approximately $205 million of available borrowing capacity under our league-wide credit facility and the TeamCo Revolver as of June 30th.

We remain in compliance with all financial debt covenants and believe our available sources of liquidity provide us with flexibility to support our operating needs and future priorities. With that, operator, let's open the line for questions.

We will now begin the Q&A session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Joyce with Seaport Research Partners. Your line is open. Please go ahead.

Thank you. You've got your obvious on-field success showing through again, and you also have had a nice reception to the BravesVision launch, but these will come with investments. Just wondering, is there some sort of cadence we should think about for this elevated baseball expense this quarter? Meaning, was there kind of a spike in the BravesVision expenses for the launch, and there could be a little bit less going forward? Any other thoughts on the player salary trends would also be helpful. Thanks.

I'll talk about the expense trend, David. BravesVision aside, you do typically see a spike in expense during Q2 and Q3 when the season is in full motion. We're paying the players, we're operating the stadium, et cetera. That trend is fairly consistent year-over-year, although you'd expect to see a spike each year as salaries continue to rise. As it relates to BravesVision expenses, that is a new set of expenses that we have on our books this year that we haven't had before, as the previous model had revenue all coming in under our rights fee agreement.

Will there be elevated BravesVision expenses going forward, or is this the level to expect it at?

It's going to be an ongoing expense, with expenses being slightly elevated during the season and some expenses in the off-season quarters as well. You can expect this to be a go-forward trend.

Yeah. Understood. Thanks.

Your next question comes from the line of Cameron Mansson-Perrone with Morgan Stanley. Your line is open. Please go ahead.

Thank you. Morning. I wanted to ask about your latest expectations on the salary tax deduction limitations that are expected to be implemented. In particular, I'm curious Do you see the battery and that cash flow generation as being critical in that new framework in terms of supporting your ability to cover that incremental obligation? What other avenues might you have in terms of financing those changes? Thanks.

Hey, Cameron. This is Mike Plant. I think you're specifically asking about 162. Look, we continue to have very positive and active conversations around the issue. The strong consensus of everyone is that it was unintended consequence, and we're very confident we'll have a legislative or a regulatory solution. As we get that, we'll certainly share that information with you.

Got it. Thank you.

Your next question comes from the line of Barton Crockett with Rosenblatt. Your line is open. Please go ahead.

Okay. Thanks for taking the question. I was wondering really about two things. First is, as you look at the future of the league wide kind of media rights, negotiations and reset that is coming up in probably a couple of years. You guys have just launched BravesVision, and one of the talking points is what's going to happen with local and the new kind of league set up. I was just wondering if you could give us a sense of what you guys would advocate for. Do you think out of the gate it makes sense for your rights to be included in whatever the league does? Or is that off the table now that you're starting BravesVision and having such success?

In general, how do you expect the league to kind of accommodate the range of clubs that some of them don't have anything and some of them have really large business operations like yours? That's one question, the other question is.

Are you going to come up with a second question, or do you want me to answer first? This is Terry McGuirk. Okay.

I'm sorry. Go ahead.

Okay. I'll respond to your comments about the media business. I would say on a general basis, we remain incredibly bullish on both our local and our national media prospects. I think we've shown through BravesVision the vitality of the local product, and while there is no firm plan by MLB at this point for any aggregation or change to how we exploit local rights, we are open to that, and that will be led by MLB, and in all likelihood, it will only happen if it's accretive to the entire business. On a national basis, as you know, these are long-term deals. The NBA just concluded one and went from approximately $2.7 billion a year to $7.7 billion a year, midpoint to midpoint of deals. Baseball has been under a long-term agreement that ends 1/1/2029.

I think that will be a long-term deal well into the 2030s, late 2030s possibly. Obviously those negotiations are led by the commissioner, and I think he would also agree that there is a lot of untapped growth in the popularity of baseball, and we're looking to achieve that growth when we get to that deal.

Okay. If I could just follow up on that. With the Dodgers and the New York kind of sports networks being so formidable, do you see a potential for those to be included as part of a league deal? Or any thoughts around the importance of those to a league deal or whether they can continue to exist as their own separate entities as this evolves?

Well, I would say the status quo is just exactly as you just described, very strong local media offerings in the major markets. I would suggest that should there be changes to where we all are at the present, it would be a 30-team activity, and all 30 teams would be involved. As far as the present, until there are changes, we remain very bullish on what we've created and the successes as has been demonstrated.

Okay. All right. I'll leave it there. Thank you.

Your next question comes from the line of Matthew Harrigan with StoneX. Your line is open. Please go ahead.

Thank you. Clearly, your stock doesn't trade off quarterly earnings, how much delta is there in the financials, if you could remind us if you do have an extended playoff run, if you defy the Dodgers and the Brewers? Secondly, at the MLB level, it feels like the international monetization of baseball is not nearly commensurate with the NFL or NBA. What constructive steps do you think the league can take in that direction? Do you think it's just a pretty heavy lift? Clearly the NBA's in a different position, just any thoughts in that regard? Thank you.

I'll answer the second question first on international, I would just parrot the commissioner's comments publicly and to the owners in that he's very bullish on the prospects for international growth. I think the World Baseball Classic just begins to get at that growth, there will be a potential participation in the Olympics coming up in L.A. I think baseball is very mindful of international growth and is making an emphasis on that in the future. The first question was again?

Post-season economics, was that your question?

If you do have an extended playoff run, is that something that really will flow through the financials? Again, I know the financials are not terribly important in a certain sense, just what's the upside if you work through the Dodgers and the Brewers and you really have a nice run?

If we get that far, and we all hope and believe that we can, there will definitely be some upside that'll flow through the baseball event revenue segment in Q4. I certainly don't want to speculate on how much that will be. Don't want to jinx us that way. If you were to go back and look at prior years in Q4, what we did in those periods relative to how far we went in the series, that should give you a baseline. Of course, we think we're better at doing this now than we were back then. Hopefully we would perform even better than those years.

Great. Thank you.

We have reached the end of the Q&A session. I will now turn the call back to management for closing remarks.

Thank you. It's Derek, and just on behalf of everybody at the Braves organization, I want to thank you for joining today's call and look forward to seeing you on the next one. Thank you.

This concludes today's call. Thank you for attending. You may now disconnect.

Greetings. Welcome to the Atlanta Braves Holdings First Quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. As a reminder, this call is being recorded. At this time, I would like to turn the call over to Cameron Rudd, Vice President of Investor Relations.

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements that represent our beliefs or expectations about future events. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC. Forward-looking statements are based on current expectations, assumptions, and beliefs, as well as information available to us at this time, and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events. During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA.

The full definition of non-GAAP financial measures and reconciliations to the comparable GAAP financial measures are contained in the Form 10-Q and earnings press release available on the company's website. Now I'd like to turn the call over to Terry McGuirk, Chairman, President, and CEO of Atlanta Braves Holdings.

Welcome, everyone, and thank you for joining our first quarter 2026 earnings conference call. Joining me today are Derek Schiller, President and CEO of the Atlanta Braves, Mike Plant, President and CEO of the Braves Development Company, and Jill Robinson, our CFO. Before we begin, I'd like to take a moment to remember two Braves icons who passed away last week, our good friend and former owner, Ted Turner, and the best manager to ever wear a Braves uniform, Bobby Cox. Ted was one of a kind, a brilliant businessman, consummate showman, and passionate fan of his beloved Braves. His visionary leadership and innovative approach to broadcast television transformed the Braves into America's team. Under his stewardship, the ball club experienced one of the greatest runs of sustained excellence in Major League Baseball history and brought a World Series championship to Atlanta in 1995.

He was also a legendary philanthropist whose compassion and generosity extended around the world. Bobby Cox led our team to 14 straight division titles, five National League pennants, and the unforgettable World Series title in 1995. He garnered 2,149 wins as Braves manager, the most in franchise history, and delivered the longest period of sustained success for our ball club. Bobby was a four-time winner of the Manager of the Year award. His Braves managerial legacy will never be matched. He was a favorite among all in baseball, especially those who played for him. His wealth of knowledge on player development and the intricacies of managing the game were rewarded with the sport's ultimate prize in 2014, enshrinement into the Baseball Hall of Fame. Our sincere condolences go out to the Turner family and to the Cox family.

Back to the season, we're off to a terrific start this year, both on and off the field. As we start May, we have one of the best records in baseball and are in first place in the National League East. This is the kind of fast start that we were hoping for. We are doing this while still awaiting the return of several impact players who have been recovering from injuries during the early stages of the season. On the mound, we finished the month of April leading the National League in ERA and a strong performance by our both starting rotation and bullpen. At the plate, we led the majors in runs scored and sat third in home runs.

We outscored our competition by 66 runs in March and April, tied for the best run differential in the sport, which I consider one of the best power ranking metrics in baseball. Alex Anthopoulos has put together an exceptional roster, and our new Manager, Walt Weiss, is bringing a competitive spirit and enthusiasm that is working well with the players in the clubhouse. As we have said on a number of occasions, our ultimate goal every year is to compete for and win another World Series for our fans. This start puts us in an outstanding position to continue focusing on the playoffs, which is the first step on that championship journey. Baseball continues to grow and cultivate fans across the country and around the world.

In addition to the recent MLB World Tour series in Mexico City just a few weeks ago, fans from across the globe tuned in for the World Baseball Classic, which was held earlier this spring and featured star performances from several of our current Braves players, including Ronald Acuña Jr. and Ozzie Albies. The focus and commitment to building a worldwide audience will pay huge dividends as MLB markets itself internationally over the next decade. The pitch clock and the introduction of the automated ball-strike challenge system have harnessed technology and strategy, enhancing competitiveness and improving the fan experience, especially for the younger demographic. Our sport is enjoying great momentum and popularity with the fans. In addition to the Braves' strong on-the-field performance, off the field, we have grown revenue and made a number of investments that are focused on the fans and their experience.

In particular, I'd like to commend our entire organization for the launch of BravesVision. We were able to accomplish in an incredibly short amount of time something that most organizations would take a year or more to develop. The Herculean effort by the Braves to build an organization in three months that we expect to meet or exceed the economics generated under our prior RSN agreement is management excellence, in my opinion, and a big victory for the fans. As I turn the call over to Derek, I would like to thank our fans. Attendance has been great to start the year. We know as an organization that we have the greatest fans in baseball, and everything we do is focused on delivering for them. We are steadfast in that commitment, and we do not take their passion and loyalty for granted.

With that, I'll turn it over to Derek to walk through in more detail the launch of BravesVision and additional details on our operating performance in the first quarter.

Thank you, Terry. Good morning, everyone. I wanna start by offering more details on BravesVision. When we developed the plan to launch BravesVision, we recognized that we had an opportunity to create something from the ground up and do it in a way that made the most sense operationally and financially. We have organized the business around five core operating units. They include production, distribution, advertising sales, programming, and direct-to-consumer streaming. We are incredibly pleased with the progress that we have made in short order since launching against each of these areas. From a production standpoint, we were able to leverage existing relationships with Gray Media and Raycom to assist in building out the immediate areas of our focus.

By combining these efforts with our existing Braves team across production, marketing, graphics, and others, we're able to control and produce games and create content that is best for our fans. We have seen and heard from fans who appreciate the fact that their favorite team is running a network without somebody else in between. In terms of distribution, we've enhanced the reach of our broadcast through linear distribution deals and expanded our over-the-air partnerships with Gray Media. We reached agreements prior to opening day that essentially preserved our linear distribution of BravesVision across cable and satellite. In addition, we expanded our over-the-air broadcast reach with Gray to 25 games this season, up from only 15 games last season. In terms of advertising, we have made substantial progress in attracting advertisers by leveraging our sponsorship and marketing teams.

The presentation of our network, the popularity and success of the team, and the ability to deliver a robust audience is something that we know is critically important to our advertisers, and we're proving our value to them. The Atlanta Braves are well known as a premier franchise across professional sports and one that companies want to partner with, as evidenced by our impressive growth in corporate partnerships. We believe that this is a real opportunity for us. We will continue to focus our efforts on bringing the right brands into our network. On the programming front, we are working to expand existing programming beyond just pre-game, in-game, and post-game coverage, though we have additional hours of content. Our focus is on delivering a broadcast by the Braves and for the fans. The control we have over that presentation on BravesVision allows us to do just that.

Our direct-to-consumer product has proven to be best in class, we hear from fans in our footprint and across the country that experience has been seamless, easy to use, and it delivers our games to fans wherever and whenever they want to watch them. We have attracted a very strong subscriber base and are investing in marketing to grow that base as the season continues. Simultaneously, we understand the importance of preserving subscribers and minimizing churn. Just a word on our fans and to echo some of what Terry shared. Our fans have been incredibly appreciative of the direct control the team has over the broadcast. We recognize this, we will continue to innovate and execute to ensure that BravesVision is the best presentation of Major League Baseball.

We built in the matter of only a few weeks what would typically take 12-18 months to assemble and did so with a team leaner than nearly anyone else in the industry by leveraging our in-house experience and top-tier staff. This tremendous achievement is a testament to our vision to control our rights again and be in a position to maximize not only our economics, but the complete fan experience across our geographic territory, Braves Country. Given that this is an earnings call, we know that many of you will want significant details on the financials of BravesVision. We also know you'll likely want metrics to measure our success.

We understand that's important, but it is early days in the launch of BravesVision, so we're going to be thoughtful around which metrics we choose to focus on so that we can give you the best picture of our results. This is only the first quarter with an extremely limited percentage of our total 162 game season, so look for us to share more when we present Q2 earnings. As mentioned on our year-end call, we see our business and baseball strategies as aligned. A competitive team supports demand, and our broader development platform supports revenue throughout the year. There is no doubt that the performance on the field in 2026 has been fantastic. We are thrilled with the way the team has started the season.

While the first quarter had a limited number of home games, we opened the season at home, and attendance has been strong through April. Through the first 18 home games, we are currently averaging approximately 33,000 tickets sold per game and had seven sellouts. Our new ticketing strategy is working well in ensuring that we are maximizing revenue opportunities as we sell additional tickets on a game-by-game basis. Regarding other events outside our regular season, just last week we welcomed the Eagles to Truist Park as part of their farewell tour and welcomed tens of thousands of fans to our ballpark for their concert series. This is only one of our upcoming concerts that have been announced throughout the rest of the year.

We're also excited to have Braves Country Fest presented by Truist on June 13th in partnership with Live Nation, featuring performances by Cody Johnson, Ella Langley, ERNEST, and MacKenzie Carpenter, among others. Lastly, just this past weekend, we hosted a three-game series with the Savannah Bananas, whose product remains exceptionally popular. With three sellouts across Friday, Saturday, and Sunday, we were thrilled to welcome more than 100,000 fans to Truist Park and the Battery. Mike will touch on our real estate development strategy and business in a moment, but I'd like to emphasize that as we head into the summer months, we have a number of exciting events ahead that will drive visitors to The Battery Atlanta. It is clear that we are off to an exceptionally busy start to 2026, and the hard work of everyone in the organization is paying off.

We look forward to many exciting developments in the months ahead. Go Braves. Now over to you, Mike.

Thanks, Derek. The start of the baseball season was clearly reflected across The Battery Atlanta with increased activity throughout the district as fans returned to Truist Park and visitors engaged with the broader mix of restaurants, entertainment venues, retail, office, hotel, and residential offerings. The strength of the multi-use nature of The Battery continues to be one of the key differentiators of the portfolio. We also continue to focus on enhancing the guest experience and further strengthening the tenant mix. We announced earlier this year that a new restaurant will debut at The Battery. The restaurant, Hundredfold, is an American brasserie headed by James Beard award-winning chef, Timothy Hollingsworth that will offer an upscale dining experience, which will add another attractive dining option to our portfolio.

The restaurant's slated to open in the fall at Five Ballpark Center, the office tower housing the Truist Securities Division across the street from the third base gate at Truist Park. This new restaurant will join J. Alexander's as our two new premium dining experiences at The Battery Atlanta. As we previously announced, J. Alexander's is a high-end American cuisine restaurant which recently opened. From a leasing and development perspective, demand for high-quality space at The Battery remains strong. We currently have five new or extended deals signed, which represent nearly 50,000 sq ft of new tenant space. In addition, we have 75,000 sq ft currently under redevelopment. The Battery Atlanta saw nearly 1.4 million visitors in the first quarter as our evolving campus continues to be a premier destination for visitors across Atlanta and the Southeast.

We operate one of the most unique locations in the country, with multiple opportunities throughout the rest of the year for concerts, viewing events, markets, and more, are looking forward to our campus continuing to be an important piece of the Atlanta Braves. This campus has grown to become a landmark in Atlanta and across the entire Southeast as we continue to see dozens of teams in professional and collegiate sports attempt to replicate the model we have built. We have fostered an incredibly strong community and are proud to be approaching the 10-year anniversary of our move to Cobb County. This move was strategic for numerous reasons, our partnership with Cobb County has only strengthened in the last several years.

In fact, just last year, the Braves and The Battery Atlanta generated more than $41 million in total tax revenue for the county, Cobb County Board of Education, CID, and State of Georgia. We look forward to continuing to make a positive impact on the county and the community. With that, I will turn over the call to Jill to walk through the financials in more detail.

Thanks, Mike. Before I start, I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season. Towards the end of the first quarter of 2026, there were five regular season home games played. That being said, we are pleased to report a strong start to our year. Total revenue was $72 million in the first quarter of 2026, up from $47.2 million in the first quarter of 2025. As a reminder, the company manages its business based on the following reportable segments: Baseball and Mixed-Use Development. Baseball revenue was $45.7 million in the first quarter of 2026, up from $28.6 million in the first quarter of 2025.

This revenue increase was driven by an increase in baseball event revenue due to the five regular-season home games in Q1 2026 versus no home games in the same period last year. This increase was partially offset by a decrease in other revenue due to two Savannah Bananas games hosted at Truist Park in Q1 2025, but not in Q1 2026. Mixed-Use Development revenue was $26.3 million in the first quarter of 2026, up from $18.6 million from the same period last year, and was primarily driven by increases in rental income, primarily as a result of the in-place leases associated with the Pennant Park acquisition.

Given that the launch of BravesVision occurred late in the first quarter, we are still working through the reporting elements within our financials and the manner with which we can share details with our analysts and investors. We expect to have more clarity on that when we report our second quarter earnings. That being said, we believe we are on pace to meet or exceed the economics generated under our prior RSN agreement. The timing of the cash flows will be different based on the timing of payments for the different revenue streams. For example, in our prior relationship with Main Street FanDuel Sports Network, we received a license fee with payments being received equally over the first nine months of the year. The revenue and cash flow were predictable, albeit there was uncertainty given the financial health of our partner.

In the case of BravesVision, our distribution agreements commenced at the time we signed our contracts with our various distribution partners at the start of the season. Distribution revenue payments will come in on a slower cadence than our traditional rights fee model payments were received, creating a sizable shift in the timing of cash receipts. Advertising revenue will be paid following the month when the ad airs. Direct-to-consumer payments will also be paid monthly. We're going to work over the coming months to identify the best way to report our financial results and give our investors and analysts the best way to model that going forward. We are being cautious and thoughtful around this given the early few weeks of this new business.

Turning back to specific results, adjusted OIBDA improved to a loss of $17.6 million, up from a loss of $28.5 million in the first quarter of 2025. This improvement was due to an increase in both baseball and mixed-use development revenue, partially offset by an increase in baseball operating costs, including increased player salaries and variable stadium operating expenses due to the increase in regular season home games in Q1 2026 versus the same period last year, and an increase in mixed-use development operating expenses due to the Pennant Park acquisition. Our operating loss improved to $41.3 million in the first quarter of 2026 as compared to an operating loss of $44.5 million in the first quarter of 2025, primarily due to revenue outpacing increases in operating and SG&A expenses.

As of March 31, 2026, the company had $135.2 million of cash and cash equivalents. Nearly all of our cash and cash equivalents are invested in U.S. Treasury securities, other government securities or government-guaranteed funds, AAA-rated money market funds, and other highly rated financial and corporate debt instruments. With that, operator, let's open the line for questions.

Thank you. We will now begin the question-and-answer session. Your first question comes from the line of David Joyce from Seaport Research Partners. Your line is open.

Thank you. Congratulations on launching BravesVision. I appreciate that you're not ready to provide too many new KPIs, but could you help us think through kinda what the differences are and beyond what you've said so far on the contract and offerings from the programming last year versus this? What incremental, you know, new production and platform investments were required to launch this in terms of, like, what the financial implications might be? Thanks.

Hey, David, it's Derek Schiller. I'll take this one. Thank you for the question. Let's first give a little context. It's important to reemphasize why we've done what we've done. First and foremost is we think it's gonna be in the best interest of our fans, delivering the best product for them on TV. It gives us control, which, you know, we always like that in our business. With control, we have optionality with what we do today and in the future for that. You know, I think really importantly, I wanna emphasize some of the things that Terry and I touched on in our remarks, is that we're very bullish about what this management team can do, and this is a great example of that in standing up BravesVision.

When we did so, we stood it up with the intent to focus initially primarily on the game with the direct adjacent programming being a pre-game show and post-game. I think there's some opportunity for us, as we mentioned, to extend some of the programming. Really at the end of the day, I mean, that is what the fans want first and foremost, is the ability to watch the game, watch the pre- and post-game shows with that. We're focused on that. That's gone really well. The fan feedback has been fantastic. I wanna emphasize from an economics perspective, at this point in time, we can safely say that we're gonna meet or exceed the economics, which unto itself is a pretty large statement that we can make. We will see some expenses as it relates to additional programming.

We're gonna be mindful of that, and we're going to be very selective. At this point in time, I think we're giving you the best glimpse into the economics. Jill, I don't know if you wanna give any more commentary on that, but that's basically what we've got.

The one thing I would add, David, is that because of our partnership with Raycom, our upfront investment, particularly capital investment, was relatively minimal.

Great. Thank you.

Your next question comes from the line of Barton Crockett from Rosenblatt. Your line is open.

Okay, great. Thanks for taking the question, and congratulations on a great start to the season here. I wanted to ask about an element of the BravesVision setup, and I understand you know, there's a limit on what you can really say at this point. Could you tell us about the TV kind of footprint? You know, I've noticed you've got all the major kind of distributors in there, but there is a notable name, Cox, which I haven't seen in the lineup. You know, anything you can say about the reach you've got now on TV versus what you had before, and if there's scope for that to change as we, you know, go through the season or into next year.

Sure. I'll take that again. It's Derek. Hey, Barton. You know, first, our Part of the reason why we took on this television project and launching BravesVision ourselves is in addition to what I said about our belief that we could do it's the marketplace. The Braves have the benefit of having one of the largest television territories in all of sports. So we wanna try to capture that. We think we're in the best position to do so. The way that I would describe it, to answer your question, is there's really a couple ways that we approach the marketplace, and it's largely very similar to what Main Street did. It would be described as a linear distributed network adding on over-the-air components.

In our case, we're extending the number of over-the-air games from 15-25, as we mentioned, and then also allowing fans to have a direct consumer streaming option via the Braves.TV. In the linear distributed product, which is what you were asking about, we have replicated, the amount of distributors that were previously with us are all largely the same from what we had, including Cox. They have partnered with Charter Communications. As you know, there's been a combination of those. That may be why you're looking at that. We can say at this point in time, all of the major distributors that distribute into the Braves television territory are carrying BravesVision.

Okay. Thank you for that clarification. If I could ask one other kind of thing about this, just to get some just adjectives around this. I understand you may not give numbers, you know, as you've taken control of the streaming, can you give us any sense of how large the streaming kind of audience is relative to linear? Just some adjective, you know, sense of that and, you know, whether that's changed much as you've taken it over versus what it was under the prior regime.

Yeah, for context, we are streaming through Major League Baseball's mlb.tv, or in our case, braves.tv, element. They, they do a fantastic job, as we called it, a best-in-class approach to the marketplace. Our fans have really enjoyed that. Last year for additional context, last year was the first year that we added streaming into the marketplace. In that case, it was handled by Main Street. We didn't have an exact glimpse into how many subscribers were subscribed to the product because it was them that's managing that. It's a little bit difficult to look at comparisons. I can give you just general terms, is that we're very happy with the amount of fans that have signed up for subscriptions to braves.tv.

We are currently working on ways to report on the information and the amount of people that are watching our product, 'cause again, you can watch via linear, you can watch via OTA or the streaming. As referenced in our earlier commentary, we're continuing to build on how we are going to showcase the amount of people that watch. Look for that information to come in the future.

Okay. That's great. If I could just ask one last question and kind of shifting gears. Just as I kind of look at your free cash flow and your net debt, you know, your free cash flow is traditionally defined cash flow from operations less CapEx has been negative for the past couple of years, and your net debt has gone up, you know, from, you know, the $400-ish range in the 2022, 2023 zip code to $600 million-ish now, including some spending on Pennant. How should we think about this going forward? I mean, you know, obviously there's, you know, some constraints on how much debt you'd wanna add, and you know, but also a need to kind of invest in your business. How should we kind of think about how you guys balance this going forward?

Well, thanks for the question, Barton. I'll tackle the debt question first. As you look at the increase in debt over the past couple years, keep in mind that on the real estate side of our portfolio, we've added not just Pennant Park but Five Ballpark. Both of those increases in debt are tied to, you know, revenue-generating assets that have been extremely profitable for us. On the baseball side, most of our debt on the stadium and otherwise is pretty well set. We're not looking to increase leverage on that. We have two revolving debt instruments, which as of March 31st is about $265 million of borrowing capacity. We believe that creates a lot of flexibility for us in the future.

From a free cash flow perspective, over the past couple years, we've been very focused on improvements in the ballpark, which increase the fan experience for our fans and also our revenue-generating. It's our master planning project that we've talked about in investor days and other such events. Those have been capital projects that have largely been spent in Q4 and Q3. That's been an impact to our free cash flow as well.

The implication is the free cash flow trajectory should be, you know, perhaps less negative or positive going forward?

I mean, I think we've done the big master planning projects that generate the highest returns. Going forward in the future I would expect that those would come down a little bit, that spending would come down a little bit, although we're still in the early stages of planning for that.

Okay. All right. Thank you.

Your next question comes from the line of Matthew Harrigan from Benchmark.

Thank you. Your friends at Live Nation have talked about, you know, premiumization in terms of getting more efficiency on pricing. You know, clearly, that's particularly apropos when the Braves are having a playoff run, which things are looking good for you. Do you feel like you're optimally priced at this point, I mean, in terms of assuring access, you know, for everyone, and at the same time, you know, really taking the cream on the high end as well? Do you think you have latitude in your pricing structure over a period of time? Obviously, the amenities, I'm sure it's not the Miami Grand Prix with $200 nachos, but just any thoughts on that?

Matthew, it's Derek. I'll take that. Thanks for the question. I think one of the great things about the Braves and baseball as a whole is that we do have a wide variety of ticketing options and price points that we can offer our fans, and that is absolutely the truth here at Truist Park as well. We believe, and we've stated this in the past, that there was room for growth on the average ticket price over the past years, and we certainly have worked on that. We're still a fan-friendly, as I call it, situation where if you are looking for something that is more value offered, we can certainly give you that option. We have also done very well at optimizing our premium.

Our premium is defined as largely those tickets that have some level of amenity associated with them, whether it be a club or something else, a food and beverage component to that. In fact, in relating to Jill's previous commentary, some of the additions that we have made to the ballpark in the form of our master planning projects have included expanding upon some of the premium as well as hospitality space related offerings that we have because we are meeting what the fans had wanted, and that's where we have seen the highest demand. Our premium seats as of now continue to be sold out, and we're seeing high demand on those and feel very good about the price points that we are offering those as we stand today.

I know you're reticent on commenting on league issues, but when you look at parity and, you know, obviously, maintaining the growth of the league and keeping the players happy, what's your perspective on floors, caps and revenue sharing? I know you got some ossification as a result of past experiences, but you got so much going on with baseball right now it'd be a shame to stun it with a lockout, as everyone knows.

Hi, this is Terry. I would steer those questions to Rob Manfred, the Commissioner of Baseball. We're in pretty active discussions at his office with the Players Association. As you know, the CBA concludes on December 1st of this year, and Baseball will be engaging as it normally does throughout this year to culminate at that point with either a new deal or other activities. There's been lots of discussion as to what might be included in those talks. I'm not in a position today to discuss them.

You should mention also Bobby Cox has one of the unbreakable sports records with most game expulsions. Quite the character. Anyway, thanks for your tolerance on the question.

We love Bobby. He's one of our icons, and every player who ever played for him would walk across hot coals for him. He's an amazing guy, and we'll be honoring him further as the season goes on.

We have reached the end of our question-and-answer session. I will now turn the call back over to management for closing remarks.

Well, thank you for joining us on today's call. Appreciate it. A reminder that our next home game is tomorrow versus the Cubs. It's 7:15. We look forward to you watching us in the stands or maybe on BravesVision. A final point is, prior to tomorrow's game, we will be doing a pregame tribute for both Bobby Cox as well as Ted Turner. Appreciate you joining us for that. I wanna thank everybody for the call and see you next time.

This concludes today's conference call. Thank you for your participation. You may now disconnect.