MSGS

Download the Complete Report Here Key Takeaways: 2Q26 revenue of $17.7 million, supported by ~$32 million of sponsorship contract value, provided the first commercial validation of ENHA’s integrated sports and performance-medicine model. Revenue reached $17.7 million versus none a year ago, supported by ~$32 million of sponsorship contract value across 10 sponsors. However, the initial revenue base was concentrated and largely non-cash, with roughly $17.5 million tied to two sponsorship arrangements that included Rezolve equity and Rumble advertising inventory. Against Street’s $43.7 million 2026E revenue estimate (source: TIKR), 1H26 revenue represents ~41% of the full-year estimate, leaving ~$26 million to be generated in 2H26. The focus now shifts to sponsor diversification, stronger cash conversion and meaningful scaling of Live Enhanced. The inaugural Enhanced Games established immediate audience and brand scale, creating a commercial benchmark for future sponsorship and media-rights monetization. The Games generated more than 4 million live views excluding Roku, while Roku distribution made it available across ~100 million North American households. Total global reach exceeded 1 billion people, supported by ~4,000 media stories reaching a combined 16.7 billion unique monthly visitors. A one-hour ESPN E:60 documentary provided additional mainstream media validation. Owned audience increased 884%, social engagements rose 419%, and video views increased 227% during the event period. ENHA now enters future commercial discussions with demonstrated viewership rather than a conceptual property, after securing ~$32 million of sponsorship contract value. As of June 30, ~$4.5 million remained allocated to unsatisfied sponsorship performance obligations, providing modest forward revenue visibility as ENHA expands sponsorship, media-rights and other event monetization. The key next step is converting this reach into repeatable, higher-quality monetization across both the sports property and Live Enhanced. Brand research indicates the inaugural Games established meaningful awareness and brand strength, supporting ENHA’s customer-acquisition strategy. A pre-Games Qualtrics survey found 61% awareness and a 67% positive perception among those familiar with the property, while post-event research positioned Enhanced alongside Hyrox and The CrossFit Games despite its limited operating history. Combined with the 884% increase in owned audience and 1 billion+ global reach, these results suggest the Games investment established meaningful brand equity that ENHA can potentially monetize through Live Enhanced rather than relying on each event as a standalone marketing spend. Athlete outcomes and clinical execution strengthen ENHA’s sports property while building the proprietary-data foundation for Live Enhanced. ENHA has produced three world records across its competitions since inception, including one at the inaugural Games, alongside 21 personal bests across 42 athletes. All athletes also completed the interventional phase of its IRB-approved clinical trial safely, with the medical team making 274 protocol adjustments in the two months before the Games and generating data across biomarkers, interventions and individual responses. The broader performance narrative now extends beyond headline records toward transparent protocols, health outcomes and individualized performance improvement, better aligning the sports property with Live Enhanced’s consumer opportunity across recovery, longevity and everyday performance. The successful Games have also strengthened athlete recruiting, with Olympic champions and world-record holders expressing interest in future events, supporting a reinforcing loop in which stronger rosters can deepen both audience engagement and the data feeding Live Enhanced. Live Enhanced is becoming the more important next-stage proof point as commercialization begins to scale. The platform became fully operational in mid-May, leaving only several weeks of contribution in 2Q, while sponsorship remained the dominant source of the $17.7 million of revenue. Live Enhanced now offers 11 Rx products in the U.S. and two proprietary supplement stacks, with supplements available across 34 countries. The largest customer cohort is currently aged approximately 25 to 45, although demand extends across both genders and into older age groups, supporting an addressable consumer base broader than an athlete-centric demographic. Management cited strong weekly and monthly cohort growth and expects momentum to continue through 2H26 as new categories launch. Enhanced OS materially sharpens the consumer strategy by positioning ENHA around personalized performance medicine. Planned for launch later in 2026, Enhanced OS is designed to combine baseline health information, personal goals, therapies and supplements, wearables and ongoing response data to continuously adjust individual performance protocols. ENHA intends to apply the medical learnings generated through 274 athlete protocol adjustments to a broader consumer population, creating a data and intelligence layer around products that may otherwise become commoditized. Personalization could support multiple-product adoption, stronger retention and higher lifetime value while reducing reliance on price as the primary differentiator. It also completes the intended operating flywheel: sports creates attention and trust, athletes generate data and credibility, Enhanced OS converts those learnings into individual consumer protocols, and a growing consumer population creates additional data that can further improve personalization. The Rezolve relationship could also extend beyond sponsorship, with its AI-commerce capabilities potentially supporting Live Enhanced commerce and conversion as Enhanced OS develops. Peptides represent potentially meaningful regulatory upside for Live Enhanced. Following July FDA advisory activity, ENHA intends to launch six peptides receiving favorable advisory-panel support if the regulatory pathway permits, while strengthening U.S. pharmacy and supply-chain partnerships to support personalized compounding, nationwide fulfillment and improved product margins. Regulatory clarity could expand the addressable market beyond consumers already sourcing peptides through gray-market channels to a broader population unwilling to use untested or unregulated supply. ENHA’s differentiation is likely to depend less on access to individual peptides and more on personalization, protocol design and the data layer around them. As regulatory access broadens and the underlying molecules become more commoditized, Enhanced OS, biomarker and lifestyle data, and individualized protocols should become increasingly important sources of competitive differentiation. Management also expects to expand into cognitive enhancement and other lifestyle-oriented performance categories, broadening the product funnel and creating more opportunities to increase products per customer, wallet share and ultimately lifetime value. ENHA is evolving the sports side from a single annual tentpole toward a year-round engagement and customer-acquisition ecosystem. The first Enhanced Breakers event was held in Los Angeles in July and produced a new weightlifting world record while operating at a fraction of the scale and fixed cost of the inaugural Games. Breakers can expand into additional sports, keep athletes competing between flagship events, provide more frequent content, and give sponsors additional activation opportunities throughout the year. ENHA is also evaluating partnerships with participatory communities such as run clubs and local competitions, extending the concept beyond elite athletes toward a broader base of amateur athletes and health-conscious consumers. Together, these formats could create more frequent, lower-cost touchpoints that keep performance medicine visible year-round. If successfully executed, the model could reduce reliance on purchased digital traffic and strengthen sports as a recurring acquisition channel for Live Enhanced. Marketing is increasingly shifting from purchased acquisition toward owned media and community, but the economic advantage still needs to be demonstrated through conversion and retention. ENHA spent approximately $1.6 million on performance marketing in 2Q, while the larger customer-acquisition investment was embedded in the Games, which generated more than 4 million live views, 1 billion+ global reach and an 884% increase in owned audience. Breakers, athlete content and planned participatory events are intended to sustain that attention between flagship Games and reduce reliance on paid traffic over time. The model could support structurally lower CAC if Games- and community-acquired consumers convert at attractive rates and show stronger retention, but conversion, CAC and retention remain undisclosed. The next stage of the thesis therefore requires ENHA to demonstrate that owned attention can translate into superior customer economics. With the inaugural build complete, future Games economics should improve as ENHA monetizes the infrastructure, audience and commercial relationships established through the first event. Games, athlete and event operating costs reached $52.0 million in 2Q26, contributing to total operating expenses of $79.6 million versus $3.1 million a year ago. Operating and net losses were both $61.9 million compared with approximately $3.0 million in 2Q25, while net loss per share widened to $0.53 from $0.03. Adjusted EBITDA was negative $42.7 million versus negative $2.7 million, bringing the 1H26 adjusted EBITDA loss to $56.2 million. These results reflect the deliberate front-loaded investment required to build the venue, broadcast infrastructure and supporting event platform largely from scratch. A meaningful portion of this cost base should not recur at the same level, with the pool and track available for reuse across future Games and Breakers, while the lower-cost Breakers format provides a way to maintain sports engagement without replicating the scale and fixed cost of the flagship event. ENHA is also evaluating future host cities partly on economic-development financing and other incentives, creating another opportunity to reduce net event costs and support operating leverage as the model scales. The revenue opportunity should also broaden as the Games evolve from a proof-of-concept event into a repeatable sports property. The inaugural event was invitation-only and monetized primarily through sponsorship, whereas future Games could add ticket sales alongside sponsorship and media-rights revenue while leveraging infrastructure and commercial relationships already established. ENHA now enters those discussions with a tangible benchmark of more than 4 million live views and ~$32 million of sponsorship contract value, giving the company greater leverage when pricing sponsorships, media rights and venue economics. The inaugural Games therefore established the upfront sports infrastructure and audience proof point; the next phase is converting those assets into a more scalable revenue-to-cost relationship as the property repeats and monetization expands. Underlying corporate costs were materially below reported 2Q levels, supporting a clearer path to operating leverage as revenue scales. SG&A was $16.6 million, including $4.2 million of Rumble advertising expense and $6.9 million of stock-based compensation, leaving approximately $5.5 million of underlying SG&A, including $1.8 million of salaries and wages and $1.6 million of performance marketing. Transaction expenses added another $10.9 million in 2Q and $12.5 million in 1H26 and should largely roll off. Combined with lower future event costs, this points to a materially leaner expense base entering 2H26 and strengthens the potential for operating leverage as revenue scales. Liquidity reflects the early-stage investment cycle following the inaugural Games, with post-quarter financing activity and liability management helping to support the near-term position. ENHA ended 2Q26 with $19.6 million of cash after using $44.0 million of operating cash and $7.4 million of investing cash during 1H26, while accounts payable and accrued expenses increased to $40.1 million. Following quarter-end, management repaid approximately $10 million of payables, reducing accounts payable to roughly $16 million while maintaining cash near $20 million as of the filing date. ENHA also holds approximately $10 million of Rezolve shares that remain locked through December, while the unrecognized $10 million Zoop title sponsorship provides additional potential value if collectability requirements are satisfied. Despite these sources, additional financing will be required to fund planned operations over the next twelve months. Street estimates sourced from TIKR show EBITDA improving from negative $64.7 million in 2026E to negative $7.5 million in 2027E before turning positive at $51.8 million in 2028E, making the pace of cash-burn normalization a key determinant of future financing needs and dilution. The forward setup now depends on a meaningful 2H operating improvement as ENHA transitions from front-loaded platform investment toward revenue scaling and a more normalized cost base. Current Street estimates sourced from TIKR indicate 2026E revenue of $43.7 million, followed by $131.7 million in 2027E and $256.6 million in 2028E. EBITDA is expected to improve from negative $64.7 million in 2026E to negative $7.5 million in 2027E before turning positive at $51.8 million in 2028E, with margins improving to +20.2% by 2028. With approximately $17.7 million of revenue and negative $56.2 million of adjusted EBITDA through 1H26, estimates imply approximately $26.0 million of 2H26 revenue and an ~$8.5 million EBITDA loss in 2H26, representing a substantial sequential improvement. The absence of another inaugural-scale Games build should materially reduce the expense base, while sponsorship recognition, Live Enhanced commercialization and broader product expansion provide the principal revenue levers into year-end. Delivery against current estimates would provide early evidence that the front-loaded investment made in 1H26 can translate into a significantly more scalable cost structure and eventual operating leverage. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Valuation has compressed materially from the SPAC transaction, creating a meaningful disconnect between current enterprise value and ENHA’s longer-term earnings potential. At a share price of $1.96 and approximately 129 million Class A shares outstanding, ENHA’s implied market capitalization is approximately $252.8 million. Using approximately $20 million of pro forma cash and no financial debt, we calculate enterprise value of approximately $232.8 million. Current enterprise value is therefore more than 80% below the ~$1.2 billion SPAC transaction valuation, reflecting substantial investor skepticism around execution, financing requirements and the timing of profitability. Forward valuation becomes increasingly compelling if ENHA delivers against current 2027-2028 scaling assumptions. Based on current estimates, ENHA trades at approximately 5.3x 2026E revenue, 1.8x 2027E revenue and 0.9x 2028E revenue. EBITDA is expected to remain negative through 2027E before inflecting to positive $51.8 million in 2028E, implying approximately 4.5x 2028E EV/EBITDA and a 20.2% margin. The current valuation therefore embeds a meaningful discount for execution risk, particularly given the substantial revenue growth and margin improvement required over the next two years. Relative valuation remains highly discounted if Live Enhanced develops into the primary earnings engine rather than ENHA being valued principally as an emerging sports property. ENHA trades at approximately 1.8x 2027E revenue and 0.9x 2028E revenue versus subscription-health peer averages of 3.2x and 2.7x, respectively. By 2028E, ENHA’s 4.5x EV/EBITDA also compares with a 14.3x subscription-health peer average. The discount is notable given estimates implying a 142.3% revenue CAGR for ENHA from 2026-2028 versus approximately 17.3% for the subscription-health group. Sports peers trade at substantially higher revenue multiples, averaging 6.4x 2027E and 6.1x 2028E revenue, although their slower growth and different economics make that comparison less directly relevant. The valuation gap remains understandable given ENHA’s limited operating history, near-term financing needs and delayed EBITDA breakeven, but measurable consumer conversion, improving retention and CAC, Enhanced OS adoption and lower recurring event costs could increasingly support a rerating toward the subscription-health framework. Rerating drivers are becoming increasingly measurable as the investment case shifts from proving ENHA can create attention and commercial demand toward demonstrating that those assets can compound through recurring consumer monetization. The inaugural Games generated 1 billion+ global reach, more than 4 million live views excluding Roku and approximately $32 million of sponsorship contract value, while 21 personal bests and 274 athlete protocol adjustments strengthened the data and credibility supporting Live Enhanced. The next phase is translating that foundation into recurring consumer revenue, stronger customer economics and a materially lower recurring event cost base. Delivery against estimates of $131.7 million of revenue in 2027E and $256.6 million in 2028E, alongside EBITDA improving from negative $7.5 million to positive $51.8 million, would materially de-risk the current valuation. The next several quarters should therefore be judged less by incremental media reach and more by Live Enhanced conversion, retention and acquisition efficiency, cash-burn normalization, and ENHA’s ability to sustain the sports flywheel through lower-cost formats such as Breakers and community participation. Read Exec Edge’s Initiation on Enhanced Group, Inc. Here Enhanced CEO Maximilian Martin & CFO Sid Banthiya, Live at NYSE Enhanced CEO Maximilian Martin on Enhanced Games: ICR Conference 2026 Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Enhanced Games Reinforce Audience & Sponsorship, Focus Shifts to Live Enhanced Conversion – Quarterly Update Report appeared first on ExecEdge.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Madison Square Garden Sports (MSGS) is back in focus after its August 13 earnings release, which showed fourth quarter sales of US$278.75 million and a shift from a prior net loss to net income. See our latest analysis for Madison Square Garden Sports. At a share price of US$407.17, Madison Square Garden Sports has a year to date share price return of 57.29% and a 1 year total shareholder return of 106.05%. The 90 day share price return of 15.82% suggests momentum has strengthened following the championship driven earnings beat and the planned Rangers spin off. If this kind of move has you looking beyond a single stock, it could be a good moment to see what else is setting up in the market through the 20 top founder-led companies Madison Square Garden Sports now combines a headline grabbing championship story, record revenue and a pending Rangers spin off. After a 106% 1 year return, the key question is how all of that is currently priced in. Madison Square Garden Sports’ most followed valuation narrative places fair value at $441.17, a little above the recent $407.17 close. This puts the current rally in a tighter context. Read the complete narrative. Want to see what sits behind that revenue and margin story? The fair value hinges on specific media assumptions, playoff income and slim profitability targets. The narrative spells out how those moving parts connect. Result: Fair Value of $441.17 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the reliance on just the Knicks and Rangers, along with structurally lower local media rights fees, could quickly challenge the current valuation story for Madison Square Garden Sports. Find out about the key risks to this Madison Square Garden Sports narrative. The analyst narrative frames Madison Square Garden Sports as about 7.7% undervalued against a US$441.17 fair value. A simple P/S cross-check tells a very different story. MSGS trades at 8.5x sales, compared with 2.6x for peers and 1.3x for the wider US Entertainment industry. The fair ratio for MSGS is 1x, which is far below the current 8.5x. That gap suggests investors today are paying a premium price for each dollar of revenue, with limited room for disappointment if franchise or media assumptions shift. The open question is which signal you trust more: the narrative fair value or the pricing embedded in this multiple. See what the numbers say about this price — find out in our valuation breakdown. Sentiment around Madison Square Garden Sports is clearly mixed, with strong recent returns sitting alongside real questions about concentration and media exposure. If you want to move quickly and build your own view from the ground up, take a closer look at the 1 key reward and 3 important warning signs If you only focus on Madison Square Garden Sports, you could miss other setups that fit your style. Let the Simply Wall Street Screener surface ideas for you. Target higher quality opportunities by scanning for companies that stand out as 50 high quality undervalued stocks based on strong fundamentals and sensible pricing. Build a portfolio with staying power by focusing on solid balance sheet and fundamentals stocks screener (50 results) that can better handle tough conditions and still fund their growth plans. Get in early on potential future leaders by using the screener containing 18 high quality undiscovered gems before they hit everyone else's radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MSGS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in The Madison Square Garden Company? Here are five stocks we like better. Fiscal 2026 results surged as the Knicks’ championship run lifted ticketing, merchandise, sponsorship and arena spending. Revenue reached $1.15 billion, while fourth-quarter revenue rose 37% to $278.7 million and adjusted operating income improved to $39.6 million from a $16.8 million loss. Management expects continued fiscal 2027 growth across tickets, sponsorships, suites, food and beverage, and merchandise, supported by strong renewals, partnerships and planned suite renovations. However, higher team compensation, luxury-tax payments and revenue-sharing costs are expected to pressure results. The proposed Rangers spin-off remains targeted for completion by the end of October, pending board approval and other conditions. The transaction would create separately traded Knicks and Rangers companies, while MSG Sports continues evaluating potential future minority stake sales. Body Slammed Under $100, Is World Wrestling Stock an Opportunity? Madison Square Garden (NYSE:MSGS) reported fiscal 2026 revenue of $1.15 billion and adjusted operating income of $58.7 million, as the New York Knicks’ championship run drove higher ticketing, merchandise, sponsorship and in-arena spending. For the fiscal fourth quarter, revenue rose to $278.7 million from $204.0 million a year earlier, while adjusted operating income was $39.6 million, compared with an adjusted operating loss of $16.8 million in the prior-year quarter. The company said the two periods included the same number of regular-season and playoff home games, although the Knicks advanced to the NBA Finals in fiscal 2026 after reaching the Eastern Conference Finals in fiscal 2025. → Lumentum Just Delivered the AI Growth Investors Wanted MSG Sports: How To Buy the Knicks and Rangers for 50% Off Chief Operating Officer Jamaal Lesane said the Knicks’ championship season generated substantial engagement across New York City, including home-game crowds, citywide watch parties, marketing activations and a championship parade attended by millions of fans. The company said the Knicks set NBA records for per-game gate revenue on multiple occasions during the postseason. Within 24 hours of the team clinching the NBA title, the Knicks also produced their highest-ever single day of merchandise sales, according to Lesane. → Ryman Checks Into a $1.38B Hospitality Upgrade Chief Financial Officer Paul DiCicco said playoff-related revenue in the fourth quarter reached $182.0 million, compared with $115.2 million in the prior-year period. The company hosted nine playoff games at Madison Square Garden in each quarter, with fiscal 2026 playoff revenue averaging about $20.2 million per game, including the benefit of strong non-game-day merchandise sales. Those results were accompanied by higher costs. DiCicco said direct operating, marketing and administrative costs associated with the playoffs averaged approximately $11.2 million per game. Fourth-quarter costs also included $2.9 million related to the company’s proposed spin-off transaction. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Fourth-quarter event-related revenue, which includes ticketing, food, beverage and merchandise, increased 43% year over year to $200.7 million. Suites, sponsorship and signage revenue increased 23% to $39.1 million. National and local media rights fees of $27.7 million were essentially unchanged from the prior year. The company attributed the media-rights result to its amended local telecast rights agreement with MSG Networks and fewer games exclusively available to MSG Networks, partly offset by higher NBA national media-rights fees under the league’s new agreements. Lesane said consumer and corporate demand was strong throughout the regular seasons for both the Knicks and Rangers. The company recorded higher per-game ticket revenue during the 2025-2026 regular seasons and expects combined season-ticket renewal rates to again exceed 90%. The company raised season-ticket prices for the Knicks but did not raise Rangers season-ticket prices after the hockey team did not qualify for the playoffs. Lesane also cited year-over-year increases in merchandise and food-and-beverage spending per customer at the arena. Madison Square Garden Sports signed multiyear marketing partnerships with PwC and Polymarket and renewed agreements with Lexus, Anheuser-Busch and Infosys. The company also reported strong suite sales and renewals, including for renovated Lexus Level Suites. Additional suite renovations are underway and are expected to produce incremental revenue in fiscal 2027. DiCicco said the company expects revenue growth across all in-arena categories in fiscal 2027, including tickets, sponsorships, suites, food and beverage, and merchandise. Sponsorship revenue more than doubled year over year during the postseason, he said, and management expects the Knicks’ title to support further sales activity in the coming year. However, fiscal 2027 results are also expected to reflect higher team compensation, luxury-tax expense and revenue-sharing costs. The NBA salary cap increased by $10.4 million for the 2026-2027 season, while the NHL salary cap rose by $8.5 million. The NBA luxury-tax threshold increased by $12.5 million to approximately $200.4 million, DiCicco said. The Rangers will have one additional regular-season home game and one fewer preseason home game in fiscal 2027 under the NHL’s new collective bargaining agreement. The new agreement is also expected to result in higher Rangers revenue-sharing expense. The company continues to pursue a proposed spin-off of its Rangers business from its Knicks business. Lesane said the transaction would create two separately traded public companies, allowing shareholders to evaluate the assets and growth prospects of each business separately while providing greater strategic and financial flexibility. Madison Square Garden Sports confidentially filed a Form 10 registration statement with the Securities and Exchange Commission in May. Lesane said the company expects to publicly file an updated Form 10 during the week of the call and currently expects to complete the transaction by the end of October, subject to conditions including board approval. Management said it would not rule out future minority stake sales in either team but had no additional developments to report. DiCicco said the company expects tax-law changes to add approximately $60 million in income-tax expense in fiscal 2028, excluding the effect of the proposed spin-off. If the separation is completed, combined tax expense across the two companies would be higher, although the final impact will depend largely on team rosters at that time. At the end of the quarter, the company had approximately $164.5 million in cash and $258.5 million in debt, including $242.0 million outstanding under the Knicks senior secured revolving credit facility and $16.5 million advanced from the NHL. Madison Square Garden Sports Corp (NYSE: MSGS) is a leading sports and entertainment holding company focused on professional sports franchises and related media assets. The company owns and operates teams such as the NBA's New York Knicks, the NHL's New York Rangers and the WNBA's New York Liberty. Through these flagship franchises, MSG Sports offers a range of products and services including ticketing, premium seating and sponsorship opportunities, targeting fans in the New York metropolitan area and beyond. In addition to team operations, Madison Square Garden Sports Corp holds a majority stake in MSG Networks, a regional cable network that broadcasts live sporting events, news and original programming. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Madison Square Garden Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Madison Square Garden (MSGS) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to a loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +65.28%. A quarter ago, it was expected that this sports team and entertainment company would post earnings of $0.66 per share when it actually produced a loss of $0.78, delivering a surprise of -218.18%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Madison Square Garden, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $278.75 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 14.59%. This compares to year-ago revenues of $203.96 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Madison Square Garden shares have added about 60.1% since the beginning of the year versus the S&P 500's gain of 13.2%. While Madison Square Garden has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Madison Square Garden was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$1.22 on $40.4 million in revenues for the coming quarter and -$0.68 on $1.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Lucky Strike Entertainment (LUCK), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +89.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Lucky Strike Entertainment's revenues are expected to be $312.74 million, up 3.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Madison Square Garden Company (MSGS) : Free Stock Analysis Report Lucky Strike Entertainment (LUCK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by robust consumer and corporate demand throughout the regular season, significantly amplified by the Knicks' NBA championship run. The Knicks achieved league-wide records for the highest per-game gate revenues in NBA history on multiple occasions during the postseason. Management attributes merchandise growth to the championship win, noting the highest single-day sales in franchise history within 24 hours of clinching the title. Strategic focus on premium hospitality led to the renovation of Lexus level suites, which drove strong new sales and renewal activity during the fiscal year. Operational milestones included a net increase of 2.2 million social media followers, bringing the combined Knicks and Rangers following to nearly 22 million. Marketing partnership growth was fueled by new multiyear deals and renewals, with postseason sponsorship revenues more than doubling year-over-year. Management emphasized that the proposed spin-off of the Rangers business is intended to allow shareholders to more clearly evaluate the distinct assets and growth prospects of each franchise. Management expects fiscal 2027 revenue growth across all categories, supported by season ticket renewal rates projected to exceed 90%. The company anticipates higher team compensation and luxury tax expenses in fiscal 2027 due to increases in the NBA and NHL salary caps. Revenue sharing expenses are expected to rise in fiscal 2027, driven by organic revenue growth and changes in the new NHL Collective Bargaining Agreement. The Rangers spin-off is currently expected to be completed by the end of October, subject to board approval and various conditions. Guidance for fiscal 2027 assumes incremental revenue from continued suite renovations and the full-year run-rate benefit of new sponsorship deals signed during the championship run. The company recognized $2.9 million in SG&A expenses during the fourth quarter specifically related to the proposed spin-off transaction. Management flagged upcoming tax law changes effective in fiscal 2028, The company estimates approximately $60 million in additional income tax expense for the fiscal year excluding the impact of the proposed spin-off, though the combined expense for the two separate entities would be higher if the transaction is completed. The Rangers will play one additional regular season home game and one fewer preseason game in fiscal 2027 due to the new NHL CBA. Management noted that while the Knicks raised season ticket prices, they chose not to raise prices for the Rangers as the team did not qualify for the playoffs. Management stated the spin-off provides enhanced strategic and financial flexibility and helps clarify asset valuation for investors. They would not rule out a minority stake sale in the future but confirmed no current transactions are underway, citing the continued scarcity and high value of sports assets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that combined income tax expense across two public companies will likely be higher than as a single entity. The spin-off is intended to provide better access to funding and liquidity to manage these future tax obligations starting in fiscal 2028. Management expressed confidence in their partnership with MSG Networks, which runs through the 2028-29 season, and their move into streaming via DAZN. They emphasized the importance of tailored local content and declined to speculate on potential league-level shifts in rights management. Playoff revenues for the fourth quarter reached $182 million, averaging approximately $20.2 million per game including non-game day merchandise. Direct operating expenses and marketing costs for the playoffs averaged approximately $11.2 million per game. Management clarified that any expansion fees would be divided equally among existing teams (30 for NBA, 32 for NHL). Future league distributions, such as national media rights, would be divided pro rata among the increased number of teams.

This article first appeared on GuruFocus. Total Revenues (FY2026): Approximately $1.2 billion. Adjusted Operating Income (FY2026): Nearly $59 million. Total Revenues (Q4 FY2026): $278.7 million, up from $204 million in the prior year period. Event-Related Revenues (Q4 FY2026): $200.7 million, an increase of 43% year over year. Suites, Sponsorship and Signage Revenues (Q4 FY2026): $39.1 million, an increase of 23% year over year. National and Local Media Rights Fees (Q4 FY2026): $27.7 million, essentially unchanged year over year. Adjusted Operating Income (Q4 FY2026): $39.6 million, compared to an adjusted operating loss of $16.8 million in the prior year quarter. Spin-off Related Expenses: $2.9 million in SG&A expenses related to the proposed spin-off transaction. Cash Balance: Approximately $164.5 million at the end of the quarter. Debt Balance: $258.5 million, comprised of $242 million under the Knicks Senior Secured Revolving Credit Facility and $16.5 million advanced from the NHL. Warning! GuruFocus has detected 6 Warning Signs with MSGS. Is MSGS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Knicks won the NBA championship, driving record playoff gate revenues and merchandise sales. Strong season ticket renewals expected to exceed 90% for the combined teams. Robust growth in sponsorship and premium hospitality, with new deals and renewals. Increased media rights fees from the NBA's new national deals and NHL's new Canadian agreement. Proposed spin-off of the Rangers business aims to enhance strategic and financial flexibility for both entities. Higher team compensation, luxury tax, and revenue sharing expenses expected in fiscal 2027. Potential incremental tax expense of approximately $60 million in fiscal 2028 due to tax law changes. Spin-off transaction incurs costs, including $2.9 million in SG&A expenses in the quarter. Rangers did not qualify for playoffs, leading to no season ticket price increase for that team. Local media rights fees were essentially flat due to amended MSG Networks agreement and fewer exclusive games. Q: Regarding the New York Rangers spinoff, can you speak a bit more to the rationale here? Should investors read this as a willingness to sell minority stakes in the teams? Then relatedly, with the pending tax law change, why enter the spin if it now creates a tax challenge across two public companies? A: Jamaal Lesane (COO) stated that the proposed spinoff would enable shareholders to more clearly evaluate each company's assets and growth prospects. He reiterated that the company's position on minority stake sales hasn't changed, noting confidence in the teams' value and scarcity, but did not rule out the possibility of a future sale. Paul DiCicco (CFO) added that the spin provides both companies with strategic and financial flexibility, particularly regarding access to funding for liquidity, while being mindful of the implications of tax law changes. Q: Can you help us understand some more of the financial impacts on the revenues, expenses, and AOI from that championship run? Could you please also give us some operating expense outlook for the next fiscal year, including on the player comp? A: Paul DiCicco (CFO) detailed that the championship run generated significant incremental business. Playoff revenues for the fourth quarter were $182 million, compared to $115.2 million in the prior year period, averaging roughly $20.2 million per game. This was offset by approximately $11.2 million per game in related direct operating, marketing, and administrative costs. For fiscal 2027, he expects results to reflect higher team compensation and luxury tax, noting the NBA salary cap increased $10.4 million and the NHL cap increased $8.5 million. He also anticipates increased revenue share expense due to ongoing revenue growth and the new NHL CBA. Q: There is a range of evolving approaches across leagues and teams right now between traditional RSN distribution, full DTC, as we are seeing with the Braves, leagues trying to centrally manage and package rights. What is your latest thinking about those various options and what makes sense from your perspective for the MSGS teams over time? A: Jamaal Lesane (COO) stated that the Knicks and Rangers have a great partner in MSG Networks, with agreements running through the 2029 seasons. He highlighted MSG Networks' new partnership with The Zone streaming platform as a positive distribution development. He declined to speculate on league plans but expressed confidence in the value of local media coverage and the company's position as a rights holder for the two franchises. Q: Any help quantifying that incremental tax impact for each team when those changes take effect? I guess assuming current payrolls remain unchanged at each team. A: Paul DiCicco (CFO) explained that the tax law changes become effective for the fiscal year ending June 30, 2028. Excluding the impact of the proposed spinoff, the company currently estimates these changes will result in approximately $60 million in additional income tax expense for that fiscal year. He noted that if the spinoff is completed, the combined income tax expense across the two companies will be higher, and the final impact will largely depend on team rosters at that point. Q: On the sponsorship outlook this coming season, what it looks like, especially considering the Knicks win, and what that does for you in terms of both pricing and any added inventory, and how we think about that number in particular for fiscal 2027? A: Paul DiCicco (CFO) reported overwhelming demand from partners during the championship run, with sponsorship revenues more than doubling year over year during the postseason. He stated that the Knicks win should enable the company to sell more sponsorships, and while not providing specific guidance, he expressed confidence in driving another year of growth in fiscal 2027 due to the momentum and run-rate benefits from fiscal 2026 deals. Q: How should we think about the new Rogers deal kicking in this season and the potential financial impact on that? Along with that, do you have any early thoughts on the potential new U.S. NHL deal and the renewal of it following the existing deal that concludes next year? A: Paul DiCicco (CFO) confirmed that the NHL begins a new 12-year media rights agreement with Rogers Communications this upcoming season, which includes a step-up in average annual value with annual escalators. The company will see an increase in its share of those fees. Regarding U.S. deals, he noted the current agreements run through the 2027-2028 season and expressed belief in the value of live professional sports content, expecting the NHL to maximize that opportunity. Q: Do you have any early thoughts or how do you think about the potential financial impact of domestic expansion for the NBA or NHL? I guess what that could mean for your business and the contribution? A: Paul DiCicco (CFO) declined to comment on league strategy regarding expansion. However, he explained that if expansion occurs, any potential expansion fees in the NBA would be divided equally among the 30 existing teams, and similarly for the NHL among the 32 existing teams. He also noted that league distributions, including national media rights revenue, would be divided pro rata amongst the increased number of teams following any potential expansion. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Fiscal 2026 Highlighted by the New York Knicks Winning the NBA ChampionshipProposed Spin-off of New York Rangers Business Expected to be Completed by the End of October 2026 NEW YORK, August 13, 2026--(BUSINESS WIRE)--Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal fourth quarter and full-year ended June 30, 2026. The fiscal 2026 fourth quarter and full year were highlighted by the New York Knicks (the "Knicks") winning the 2025-26 NBA Championship. In addition, the Company's fiscal 2026 fourth quarter and full-year results reflect increases in average per-game revenues for every in-arena revenue category – tickets, suites, sponsorship and food, beverage and merchandise sales; an increase in national media rights fees due to the NBA’s new national media rights deals that began this season; the impact of reductions in local telecast rights fees as a result of amendments to the Knicks' and New York Rangers' ("Rangers") local media rights agreements with MSG Networks; and the impact of the Knicks’ and Rangers' rosters for the 2025-26 seasons. In addition, the Company continues to make progress toward a proposed spin-off of its Rangers business from its Knicks business. As previously announced, the Company confidentially submitted a Form 10 registration statement with the U.S. Securities and Exchange Commission in mid-May. The Company currently expects to complete the spin-off by the end of October 2026, subject to various conditions, including Company board approval. For fiscal 2026, the Company reported revenues of $1,153.8 million, an increase of $114.6 million, or 11%, as compared to the prior year. In addition, the Company reported operating income of $28.9 million, an increase of $14.1 million, and adjusted operating income of $58.7 million, an increase of $20.6 million, both as compared to the prior year.(1) For the fiscal 2026 fourth quarter, the Company generated revenues of $278.7 million, an increase of $74.8 million, or 37%, as compared to the prior year quarter. In addition, the Company reported operating income of $32.2 million and adjusted operating income of $39.6 million, as compared to an operating loss of $22.6 million and adjusted operating loss of $16.8 million, respectively, in the prior year quarter.(1) Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, "Fiscal 2026 was highlighted by the Knicks’ NBA Championship win, as well as robust consumer and corporate demand for both the Knicks and Rangers throughout the year. We are also making progress on the proposed spin-off of our Rangers business, as we remain focused on driving long-term value for shareholders." Financial Results for the Three and Twelve Months Ended June 30, 2026 and 2025: Summary of Financial Results For the fiscal 2026 fourth quarter, revenues of $278.7 million increased $74.8 million, or 37%, as compared to the prior year quarter. The increase was primarily due to higher playoff-related revenues and, to a lesser extent, higher revenues from league distributions, sponsorship and signage revenues, and food, beverage and merchandise sales, partially offset by lower local media rights fees. The Knicks and Rangers played a combined eight regular season home games and nine playoff home games at the Madison Square Garden Arena ("The Garden") in both the current and prior year quarters. Playoff-related revenues increased $66.9 million as compared to the prior year quarter, primarily due to higher average per-game Knicks playoff revenue and higher Knicks merchandise revenues during the team's playoff run as a result of winning the 2025-26 NBA Championship in the current year quarter as compared to the Knicks advancing to the Eastern Conference Finals in the prior year quarter. Revenues from league distributions increased $7.2 million as compared to the prior year quarter, primarily due to an increase in certain league distributions unrelated to national media rights fees and higher national media rights fees as a result of the NBA's new national media rights agreements, which began with the 2025-26 NBA regular season. Sponsorship and signage revenues increased $1.7 million as compared to the prior year quarter, primarily due to higher net sales of existing sponsorship and signage inventory. Food, beverage and merchandise sales increased $1.5 million as compared to the prior year quarter, primarily due to higher average per-game revenue. Local media rights fees decreased $3.5 million as compared to the prior year quarter, primarily due to a reduction in rights fees as a result of amendments to the Knicks' and Rangers' local telecast rights agreements with MSG Networks, as well as a reduction in rights fees as a result of a decrease in the number of games exclusively available to MSG Networks during the current year as compared to the prior year. Direct operating expenses of $159.5 million increased $4.7 million, or 3%, as compared to the prior year quarter. This was primarily driven by higher playoff-related expenses of $49.2 million and, to a lesser extent, higher team personnel compensation of $3.7 million and higher other team operating expenses of $2.8 million, partially offset by lower net provisions for certain team personnel transactions of $48.5 million and, to a lesser extent, lower net provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $2.7 million. Selling, general and administrative expenses of $85.4 million increased $14.6 million, or 21%, as compared to the prior year quarter. This increase was primarily driven by higher playoff-related expenses of $13.4 million and, to a lesser extent, the impact of expenses related to the proposed spin-off transaction of $2.9 million, partially offset by lower other professional fees of $4.2 million. Operating income of $32.2 million increased $54.7 million and adjusted operating income of $39.6 million increased $56.3 million, both as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by higher selling, general and administrative expenses and, to a lesser extent, the increase in direct operating expenses. About Madison Square Garden Sports Corp. Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com. Non-GAAP Financial Measures We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles ("GAAP"), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in miscellaneous income (expense), net, which is not reflected in operating income (loss). We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release. Forward-Looking Statements This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected timing and completion of the proposed separation of our Knicks and Rangers businesses into distinct public companies, the long-term performance, future opportunities and success of the proposed separation of our Knicks and Rangers businesses and the creation of shareholder value through the separation of our Knicks and Rangers businesses. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including operational, financial and legal challenges inherent in implementing a separation of our Knicks and Rangers businesses and our ability to realize any anticipated benefits of any such separation, the impact of business and market conditions, financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates, and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein. Conference Call Information:The conference call will be webcast live today at 10:00 a.m. ET at investor.msgsports.com Conference call dial-in number is 833-461-5787 / Conference ID Number 517527425Webcast replay available at investor.msgsports.com until August 20, 2026 MADISON SQUARE GARDEN SPORTS CORP.ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TOADJUSTED OPERATING INCOME (LOSS)(In thousands)(Unaudited) The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating income (loss) as described in this earnings release: Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods. Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods. Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain employees. Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan. View source version on businesswire.com: https://www.businesswire.com/news/home/20260813101909/en/ Contacts Ari Danes, CFAInvestor Relations(212) 465-6072Grace KaminerInvestor Relations(212) 631-5076

NEW YORK, May 08, 2026--(BUSINESS WIRE)--Madison Square Garden Sports Corp. (NYSE: MSGS) today reported financial results for the fiscal third quarter ended March 31, 2026. The fiscal 2026 third quarter included the continuation of the New York Knicks ("Knicks") and New York Rangers ("Rangers") 2025-26 regular seasons, with a combined five fewer games played at Madison Square Garden Arena ("The Garden") as compared to the prior year quarter. During the quarter, average per-game revenues for every key revenue category – tickets, suites, sponsorship and food, beverage and merchandise sales – increased as compared to the fiscal 2025 third quarter. In addition, fiscal 2026 third quarter operating results reflect an increase in national media rights fees due to the NBA’s new national media rights deals that began this season and the impact of the Knicks’ and Rangers’ rosters for the 2025-26 seasons. Subsequent to the end of the fiscal 2026 third quarter, both teams concluded their regular seasons, with the Knicks currently competing in the NBA playoffs. For the fiscal 2026 third quarter, the Company generated revenues of $432.2 million, an increase of $8.0 million, or 2%, as compared to the prior year period. In addition, the Company reported operating income of $2.0 million, a decrease of $30.4 million and adjusted operating income of $10.3 million, a decrease of $26.6 million, both as compared to the prior year period.(1) Madison Square Garden Sports Corp. Executive Chairman and CEO James L. Dolan said, "Our results this quarter again reflect growth in per-game revenues across all key categories, which is driven by strong demand for our teams. We are also now exploring a potential separation of our Knicks and Rangers businesses into distinct public companies, which we believe would further create long-term value for shareholders." Financial Results for the Three and Nine Months Ended March 31, 2026 and 2025: Summary of Financial Results For the fiscal 2026 third quarter, revenues of $432.2 million increased $8.0 million, or 2%, as compared to the prior year period. The Knicks and Rangers played a combined five fewer regular season games at The Garden during the fiscal 2026 third quarter as compared to the prior year period. As a result, the increase in revenues was primarily due to higher revenues from league distributions, partially offset by lower ticket-related revenues, local media rights fees, food, beverage and merchandise sales, and sponsorship and signage revenues. Revenues from league distributions increased $27.0 million as compared to the prior year period, primarily due to higher national media rights fees as a result of the NBA's new national media rights agreements, which began with the 2025-26 NBA regular season, as well as an incremental league distribution from the NBA in the current year quarter related to the impact of the NBA Cup on the Knicks' 2025-26 game schedule. Suite revenues increased $0.1 million as compared to the prior year period, primarily due to higher net sales of suite products, offset by the Knicks and Rangers playing fewer games at The Garden during the fiscal 2026 third quarter. Ticket-related revenues decreased $12.9 million as compared to the prior year period, primarily due to the Knicks and Rangers playing fewer games at The Garden during the fiscal 2026 third quarter, partially offset by higher average per-game revenue. Local media rights fees decreased $4.0 million as compared to the prior year period, primarily due to a reduction in rights fees as a result of a decrease in the number of games exclusively available to MSG Networks during the current year as compared to the prior year. Food, beverage and merchandise sales decreased $1.2 million as compared to the prior year period, primarily due to the Knicks and Rangers playing fewer games at The Garden during the fiscal 2026 third quarter, partially offset by higher average per-game revenue. Merchandise sales in the fiscal 2026 third quarter included the positive impact of new Rangers’ jersey launches. Sponsorship and signage revenues decreased $0.7 million as compared to the prior year period, primarily due to the Knicks and Rangers playing fewer games at The Garden during the fiscal 2026 third quarter, partially offset by higher net sales of existing sponsorship and signage inventory. Direct operating expenses of $354.5 million increased $38.2 million, or 12%, as compared to the prior year period. This was primarily driven by higher team personnel compensation of $18.8 million, higher provisions for league revenue sharing expense (net of escrow and excluding playoffs) and NBA luxury tax of $15.4 million, and higher net provisions for certain team personnel transactions of $5.4 million, partially offset by other net cost decreases, all as compared to the prior year period. Selling, general and administrative expenses of $73.7 million decreased $1.0 million, or 1%, as compared to the prior year period. This decrease was primarily driven by lower professional fees of $7.2 million and lower other general and administrative expenses, partially offset by higher employee compensation and related benefits of $7.5 million, mainly due to executive management transition costs of $6.9 million recognized in the current year quarter. Operating income of $2.0 million decreased $30.4 million and adjusted operating income of $10.3 million decreased $26.6 million, both as compared to the prior year period, primarily due to the increase in direct operating expenses, partially offset by the increase in revenues and lower selling, general and administrative expenses. Other Matters On February 18, 2026, the Company announced that its board of directors approved the exploration of a possible spin-off that would separate its New York Knicks business from its New York Rangers business. About Madison Square Garden Sports Corp. Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com. Non-GAAP Financial Measures We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) gains or losses on sales or dispositions of businesses, (v) the impact of purchase accounting adjustments related to business acquisitions, and (vi) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. In addition, we believe that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles ("GAAP"), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in miscellaneous income (expense), net, which is not reflected in operating income (loss). We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our Company. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release. Forward-Looking Statements This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential separation of our Knicks and Rangers businesses into distinct public companies, the long-term performance, future opportunities and success of the potential separation of our Knicks and Rangers businesses and the creation of shareholder value through the separation of our Knicks and Rangers businesses. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including operational, financial and legal challenges inherent in implementing a separation of our Knicks and Rangers businesses and our ability to realize any anticipated benefits of any such separation, the impact of business and market conditions, financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates, and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein. MADISON SQUARE GARDEN SPORTS CORP. ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (In thousands) (Unaudited) The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating income as described in this earnings release: Depreciation and amortization. This adjustment eliminates depreciation, amortization and impairments of property and equipment, goodwill and other intangible assets in all periods. Share-based compensation. This adjustment eliminates the compensation expense related to restricted stock units and stock options granted under the Company's employee stock plan and non-employee director plan in all periods. Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain employees. Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan. View source version on businesswire.com: https://www.businesswire.com/news/home/20260508590547/en/ Contacts Ari Danes, CFA Investor Relations (212) 465-6072 Grace Kaminer Investor Relations (212) 631-5076