BATRA

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.

Greetings. Welcome to the Atlanta Braves Holdings, Inc. Fourth Quarter and Year End 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. 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 would like to remind everyone that on today’s call,

management’s prepared remarks may contain forward-looking statements. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today, 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-Ks and earnings press release available on the company’s website. Now I would like to turn the call over to Terence McGuirk, Chairman, President, and CEO of Atlanta Braves Holdings, Inc.

Welcome, everyone, and thank you for joining our fourth quarter and year end 2025 call today. With spring training underway, we are energized about the year ahead. I have been to our North Port, Florida spring training facility over the past two weeks, and I am pleased with the progress of the team and the pieces we have in place. Walt Weiss, our new manager, is working hard and building team momentum as we look toward opening day. We believe we are well positioned with a strong team and the organizational depth to be competitive this season. We continue to focus on improving our team with the ultimate goal of competing and winning another World Series for our fans. As I stated on our last call, we are driven to return to our long tradition of winning and championships, and Alex Anthopoulos, our President of Baseball Operations, has done an excellent job navigating this offseason and adding some key free agents to the team. To that end, we are excited about the addition of Robert Suarez, who was just named by ESPN as the number one reliever in baseball and will form one of the best back ends of a bullpen in the Majors when paired with Raisel Iglesias. We also have Jorge Mateo and Mauricio Dubon, who both can play anywhere on the diamond and will be anchoring the shortstop position until mid-May when Gold Glover and newly signed Ha-Seong Kim returns from a finger injury. Dubon has also won a Gold Glove as a utility infielder in two of the last three seasons. We were also pleased to strengthen our formidable bullpen with the signings of Tyler Kinley and Joel Payamps. We are adding these talented players to an already elite roster that includes reigning National League Rookie of the Year, Drake Baldwin, reigning Gold Glove winner, Matt Olson, former National League MVP, Ronald Acuña Jr., and former Cy Young winner Chris Sale, who we signed to an extension earlier this week, along with the standout players and fan favorites Austin Riley, Spencer Strider, and many, many more. Also, catcher Sean Murphy is recovering nicely from hip surgery last September and is making great strides toward rejoining the team in the early part of the season. We firmly believe we have all the pieces we need to make a postseason run this year and compete for a World Series title. We are not alone in that belief. FanGraphs picked us to compete for a World Series title and named us the number two preseason team in the entire Majors in their power rankings just behind the Dodgers. Now let me address one more important issue that emerged as we started this year: local media broadcasts. As you all know, the industry has been working through the ongoing saga of the decline of Main Street sports. With Main Street out of the way, the Braves now have our local TV rights back, and instead of going through a third-party regional sports network to monetize these rights, we will be stepping into the Main Street role and directly handling the distribution, production, and revenue generation of the full season of games ourselves. We are fortunate to have much of this expertise in-house at the Braves and are confident that we will be able to produce, distribute, and deliver our games and additional Braves content in a way that is compelling and serves our fans very well. We have one of the largest television territories in baseball, spanning multiple states, which affords us the opportunity to optimize our financial outcome, a factor that provides us an advantage that no other Main Street team has. Our goal is to be sure that every fan who wants to watch an Atlanta Braves game can do so. The demand for our product remains incredibly high, which makes the job of reengineering the distribution system much easier. Yesterday, we announced the launch of our new distribution and streaming platform, PraiseVision, introducing our fans to the new platform for Praise broadcasts. Before I turn the call over to Derek, I would like to thank our fans, our team, the entire organization for their continued support and efforts, and recognize that it is through hard work and dedication that we continue to be one of the elite franchises in all of Major League Baseball and across all professional sports. With that, I will turn it over to Derek to walk through our operating performance, ticketing trends, and outlook, including more detail on the local media rights topic.

Thank you, Terry, and good morning, everyone. I will start with one of our most pressing topics as we head into the final weeks before the start of the regular season. For our organization, our priority throughout the whole process around media rights has been clear. We wanted to maximize reach and availability for fans while protecting our economics given the popularity and value of our team. As Terry mentioned, we are excited to launch Brave Vision, a multimedia platform owned and operated by the team, which will serve as the official home of our local television broadcast beginning this season. In bringing our broadcast back under control, our initial focus in 2026 will be our pregame show, our in-game presentation, and postgame content. Importantly, we will maintain full creative oversight of the production as well as the sales, marketing, and distribution of the venture. We have an experienced team that is talented and motivated, so we are confident in our ability to deliver for our fans and excited to see what our operating team can do. Ray’s vision will allow fans to watch us on multiple platforms, including many of the same television providers where fans are used to watching our games, with all games available on a streaming platform in partnership with MLB. Importantly, Gray Media will remain our partner. Starting already with spring training, Gray Media will broadcast 15 spring training games, a 50% increase after the successful partnership last year. In addition, Gray will partner with Gray Media to simulcast a selection of regular season games alongside Braves Vision. These free over-the-air telecasts will be available on Peachtree TV’s Atlanta CW and Peachtree Sports Network in Atlanta and throughout the Southeast through Gray’s network of broadcast stations. This broadcast partnership highlights the Braves’ commitment to engaging fans across Braves Country. In addition to local Braves television broadcasts, the team will appear in nationally televised games this season with various MLB broadcast partners, including Fox, FS1, ESPN, TBS, NBC, Peacock, and Apple TV. As we have said in the past, there is tremendous value in our expansive fan base, and serving our fans is our top priority. We believe this is also in the best long-term interest of our team and our shareholders. With this resolution in place, our focus now shifts to execution, optimizing outcomes across subscriber reach, distribution, advertising, and streaming options while continuing to ensure fan access. I would like to turn now to last season and what we are taking from it as we head into the new year. Despite the season on the field in 2025, we delivered record-breaking regular season ticket sales and sponsorship revenue, underscoring the enduring strength of the Braves brand and the unwavering passion of our fans and partners. We also sold the fourth-highest number of tickets in the past 25 years, which reinforces the tremendous loyalty we have from our Braves Country fan base. Heading into the 2026 season, we are encouraged by strong ticket demand, having already sold more than 1,900,000 tickets across seasons, groups, hospitality packages, and single-game inventory. Our premium clubs continue to be sold out, and there is a robust waitlist on all season product offerings, exemplifying one of the most sought-after season ticket memberships in MLB. Within ticketing, we have also been able to optimize our process through a combination of pricing strategy, product segmentation, and improved inventory management. We are continuing to invest in ticketing analytics so we can better measure demand elasticity by game, opponent, day of week, and seating category. That work is already improving marketing efficiency and conversion, helping us put the right offer in front of the right fan at the right time. Importantly, it also supports our premium and group strategy, which we view as meaningful levers for revenue quality. Looking ahead, we are focused on improving our on-field competitiveness while also building momentum in The Battery Atlanta as a multiuse destination that drives year-round engagement and revenue. We see our business and baseball strategies as aligned. A competitive team supports demand, and our broader development platform supports durability across cycles. The Battery also continues to perform as a multiuse destination, and our strategy centered on diversifying demand drivers and broadening our calendar to increase repeat business visitation is working. With over 380 total events and concerts held in 2025, we reinforced The Battery Atlanta and Truist Park as a premier destination in the Southeast even outside of the Braves’ home schedule. Of these 380, we hosted 144 events across the common areas of our campus, held 147 events at the Coca-Cola Roxy, and added another 95 game day and Truist Park events. This breadth of year-round events is another shining example of why we believe we operate with the most unique partnerships in professional sports. To that point, we continue to expand our non-game day schedule of events throughout the season. As an example, after a successful two-game series last year, we are excited to host the Savannah Bananas for three games this year, further expanding this unique experience at our ballpark. We also recently announced that we will be hosting Braves Country Fest on June 13 in partnership with Live Nation. This features performances by Cody Johnson, Bella Langley, Ernest, and Mackenzie Carpenter, among others. And in addition, Noah Kahan will be performing at Truist Park on July 27. These examples and more reiterate our ability to attract top-tier events to our ballpark and campus throughout the year, and we look forward to continuing our positive momentum with additional concerts, community events, and other activations. Looking forward to 2026, we are confident in our ability to deliver to our fans across Atlanta and across the entire Southeast. We continue to focus on improving our fan experience at the ballpark as well as the overall experience across our campus. The launch of Brave Vision is something that we believe will be a defining moment for our franchise and our fans. Our expansive television market territory is one of the largest in professional sports and gives our team options that few others do. With our media rights resolved ahead of the season, we are excited about the future this brings and focusing on creating the best possible product. With that, I will turn it over to Mike to provide updates on The Battery and our real estate strategy.

Thank you, Derek, and good morning, everyone. Let me start by reinforcing Derek’s comments on our real estate strategy. We continue to view The Battery as a long-term platform that diversifies our business, broadens our audience, and supports durable growth over time. In 2025, we welcomed nearly 9,000,000 visitors to The Battery, mostly in line with our levels from 2024, even as baseball attendance was softer last season. For us, that is a strong indicator that our awareness is increasing given all the events we have hosted and other offerings we have added around The Battery, and that the destination value proposition is resonating beyond game days. From a tenant perspective in The Battery, 2025 was a record year. Our tenants collectively achieved a new annual sales milestone of approximately $137,000,000 across just 30 doors, which we believe ranks among the most successful mixed-use operations in the country. We also continue to strengthen our tenant lineup with the openings of the new Truist Securities building, Walk-On’s Sports Bistreaux, and Shake Shack, among others. We are excited about J. Alexander’s joining The Battery in 2026. From a portfolio standpoint, PennantPark was a key contributor this year. We successfully acquired and closed the property and ended the year at approximately 90% occupancy, an impressive increase from the low 80% range at closing in April. In the fourth quarter alone, we closed just under 50,000 square feet of new deals and have a very strong tenant pipeline into 2026. Across The Battery more broadly, we had a strong year of continued transformation, including meaningful capital investments aimed at improving the guest experience and long-term functionality of the campus. The pedestrian bridge connecting The Henry project to The Battery is nearing completion, which will further enhance connectivity, expand our parking operations, and improve overall flow throughout our growing footprint. We are still opportunistic as we evaluate future transactions and believe our record speaks for itself as we look to optimize the portfolio over time. Importantly, we continue to command rent premiums across our retail, office, and hotel assets with rates above market supported by demand, engagement, and performance. Tenant engagement also remained strong. We continue to secure early lease extensions and receive daily inbound interest from prospective tenants, which gives us confidence in the depth and quality of our pipeline. From a financial standpoint, I am pleased to report that mixed-use development revenue continues to perform well and represented approximately 13% of the company’s total revenue in 2025. We are currently generating over $100,000,000 in revenue on an annualized basis as our mixed-use development revenue continues to expand its role as a meaningful contributor to our team and franchise value. With that, I will now turn over the call to Jill to walk through our financials in detail.

Thanks, Mike. Before I begin, I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season. Our final 2025 home game was in the third quarter. We are pleased to report that 2025 was a strong financial year for our organization. Total revenue in 2025 was $732,000,000. This is an increase of nearly $70,000,000 from $663,000,000 in 2024. As a reminder, the company manages its business based on the following reportable segments: baseball and mixed-use development. Baseball revenue was $635,000,000 in 2025, up from $595,000,000 in 2024. This revenue increase was driven by a combination of increased event, broadcasting, and other revenue. Baseball event revenue was $358,000,000 in 2025, up from $348,000,000 in 2024, primarily due to contractual rate increases on season tickets and existing sponsorship contracts, as well as new premium seating and sponsorship agreements, offset by attendance-related reductions in revenue. Broadcasting revenue, which includes national and regional revenue, was $189,000,000 in 2025, up from $166,000,000 in 2024. Other revenue was up by $8,000,000 to $42,000,000 in 2025 compared to $34,000,000 in 2024, primarily due to events held at Truist Park, including two Savannah Bananas games. Next, our mixed-use development revenue was $97,000,000 in 2025, a $30,000,000 increase from $67,000,000 in 2024. This was primarily driven by a $27,000,000 increase in rental income due to new lease commencements and in-place leases acquired with PennantPark and, to a lesser extent, sponsorship and parking revenue. Adjusted OIBDA was $108,000,000 in 2025, an increase of nearly $70,000,000 from $40,000,000 in 2024. This improvement was driven by an increase of $44,000,000 in baseball OIBDA and an increase of $23,000,000 in mixed-use development adjusted OIBDA due mainly to the increases in revenue in both segments and reduced baseball operating costs. Mixed-use development adjusted OIBDA serves as a proxy for net operating income. Additionally, we have invested in two Battery hotel properties as 50% joint ventures, which are accounted for as equity method investments. Our share of earnings in these investments is not included in mixed-use development adjusted OIBDA but still represents an important part of our operations. Our operating loss was $14,000,000 in 2025 compared to a loss of $40,000,000 in 2024. This improvement was primarily due to increased revenue, partially offset by a $30,000,000 noncash impairment expense associated with the termination of the long-term local broadcast agreement and increased depreciation and amortization. As of 12/31/2025, the company had $100,000,000 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. And with that, Operator, let us open the line for questions.

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

Thank you. Congratulations on standing up Brave’s vision. I was wondering what sort of OpEx or CapEx was reflected in your financials for getting that up and running, or is it more going to be reflected here in the first quarter? And then secondly, if you could remind us, please, on the blackout rules for the local TV. It is TV and streaming opportunities. I know that your press release mentioned that there were some no-blackout issues, but just remind us of that, please. Thanks.

Hi, David. This is Jill. In response to your first question about OpEx and CapEx for the broadcasting business, historically, we have not shared information at that level in our financial statements. We do share with you broadcast revenue, so I really cannot speak to that at this time. Looking forward, as we launch Bravevision, you should expect to see more detail about the financial results of this new operation starting in Q2.

Yeah. And I will take the second one. It is Derek. The blackout rules and the way that we reference them really pertain primarily to the streaming platform. So as we launch brave.tv, which is in partnership with Major League Baseball, in effect if you are a subscriber of graves.tv, you can watch anywhere inside of the territory as part of our local broadcast opportunities. And should you leave the home television territory outside of the Southeast or five, six state area, so long as you are a braves.tv subscriber, you will be able to watch the Braves games wherever you travel inside of the United States. If you are an MLB.tv subscriber, so you have an out-of-market package, you can watch both inside and outside the territory, which is why we referenced the blackout restrictions the way that we did.

Appreciate it. Thanks. And if I could kind of follow on to the media rights aspect, obviously, with the CBA coming up later this year and other leagues looking to redo their national rights deals, what are updated thoughts on how things are evolving? What is the probability that Major League Baseball would want to perhaps negotiate back these local media rights from you later on? They are handling a number of other teams. Thanks.

Hi. This is Terry responding. As you know, our next national media opportunity is 01/01/1929. That will be the next time all of our national rights come up. Rob Manfred, the Commissioner, has been quoted, I think, in saying that if, you know, our best, our best opportunity to possible best opportunity would be to aggregate all of our rights like the NBA, like the NFL, like hockey, and that is still a strategy that is not clear yet as to how we will play that. But the Commissioner will be leading that negotiation in that strategy discussion among the owners. And we will surely keep our shareholders and our analysts up to speed when that happens.

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

Okay. Great. Thanks for taking the question. Let me see. One of the things that I, you know, just stepping back, I am just kind of curious about in terms of the financial cash flow profile of the Braves this year versus years past. You know, in this year, you just reported, you know, the free cash flow was, I guess, a negative $25,000,000 or so if I have got that right. And, you know, when you look ahead to 2026, you know, there is $100,000,000-ish or so of local broadcast revenue that might, you know, be somewhat less as you go through this transition, maybe, maybe not. And then you have got some incremental tax impacts that could be coming up from the tax laws that, you know, limit kind of deductibility of salaries to high-paid employees like, you know, your star baseball players. And so I am just wondering if you could talk a little bit about how you see free cash flow trending going forward and if there is a deficit, how you see kind of financing that? And, you know, given your position as kind of a public company versus others, you know, where you have got the pockets of billionaires to kind of finance it, you know, does this put any pressure on you guys competitively, do you think?

Yep. Thanks for the question. As we think about cash flows, we do tend to think about this in terms of our two businesses: baseball and the real estate business. On the baseball side, what we have said on a few occasions is that our goal is always to reinvest the profit from our team performance and from the operations of baseball into the team. We believe the team is the biggest asset we have that can drive top-line growth for the company, and that is generally what our focus is. Now that said, over the past couple of years, we have launched a master planning project across the stadium where we are adding increased offerings to the stadium, specifically in premium areas and other hospitality areas. We believe those things are already driving great returns and paying dividends for us. On the baseball side, we think of things a little bit differently as we are continuously evaluating opportunistic investments in real estate that we can add to our portfolio, similar to what we did last year on PennantPark. Now as you look forward, I think without disclosing too much here, you may see a difference in how the cash flow comes in with us running the business now as opposed to outsourcing the media business to FanDuel. Like I said earlier, you will begin to see a little bit more of how that plays out when the business really begins to operate in Q2.

Okay. But, you know, I guess I will leave some of that aside. Maybe just one more kind of detailed question. You know, I think there has been some discussion about the changes in tax laws around deductibility of high-salary kind of employees, and, you know, that being a new kind of tax impact for maybe a publicly traded sports franchise like the Braves that the private-owned franchises do not face? I was wondering if you could talk about the materiality of that for you guys and, you know, given that there is at least, you know, maybe another corporate enterprise out there that has some teams that is publicly traded, is there any possibility for you guys to get together with others to lobby for that law to be treating both private and public ownership more fairly?

Burton, it is Derek. I will jump in on this one. You know, we are obviously aware of the 162(m) issue that you are referencing. We have looked into it. We understand, you know, what is out there, and we are working on that. I do not think it is appropriate at this point in time to comment on that, because we are still in the midst of those discussions and what we are trying to do with that. But certainly, certainly aware of what is out there and what we need to do to try to figure that out.

Okay. Alright. Well, I appreciate the answers. Thank you.

And at this time, there are no more questions in queue. I will now turn the call back to management for closing remarks.

So I will close it out. It is Derek. On behalf of the entire management team, I want to thank everybody for participating in today’s call, and we look forward to seeing you and hearing from you again soon. We are 30 days from opening day. Hope you are all paying attention. We are excited to get the season started and look forward to seeing you on March 27 for our opener.

Bye-bye. This concludes today’s conference call. Thank you for your participation. You may now disconnect.