Core Insights - Madison Square Garden Entertainment (MSGE) reported a quarterly loss of $0.46 per share, better than the Zacks Consensus Estimate of a loss of $0.59, and compared to a loss of $0.4 per share a year ago, indicating an earnings surprise of +22.03% [1] - The company achieved revenues of $158.26 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.42%, and showing an increase from year-ago revenues of $138.71 million [2] - MSG Entertainment shares have increased by approximately 25.1% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of MSG Entertainment's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $2.59 on revenues of $437.28 million, and for the current fiscal year, it is $1.73 on revenues of $1 billion [7] Industry Context - The Media Conglomerates industry, to which MSG Entertainment belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact MSG Entertainment's stock performance [5][6]

Financial Performance - For the fiscal 2026 first quarter, the company reported revenues of $158.3 million, an increase of $19.5 million, or 14%, compared to the prior year quarter [3]. - The company experienced an operating loss of $29.7 million, an increase of $11.3 million, or 61%, compared to the prior year quarter [4]. - Adjusted operating income for the fiscal 2026 first quarter was $7.1 million, an increase of $5.2 million compared to the prior year quarter [4]. - Revenues from entertainment offerings were $131.3 million, up $16.2 million, or 14%, compared to the prior year period [6]. - Food, beverage, and merchandise revenues increased by $3.9 million, or 20%, to $22.8 million compared to the prior year period [8]. - Selling, general, and administrative expenses rose by $10.8 million, or 24%, to $56.6 million compared to the prior year quarter [10]. - The company anticipates solid growth in both revenue and adjusted operating income for fiscal 2026, driven by strong momentum in bookings [3]. Stock and Shareholder Activities - The company repurchased approximately $25 million of its Class A common stock during the fiscal 2026 first quarter, totaling approximately $205 million since the spin-off from Sphere Entertainment Co. in 2023 [12][13]. Asset and Liability Management - Total current assets increased to $264,217,000 as of September 30, 2025, up from $237,132,000 on June 30, 2025, representing an increase of approximately 11.5% [28]. - Total liabilities rose to $1,745,625,000 as of September 30, 2025, compared to $1,683,142,000 on June 30, 2025, indicating an increase of about 3.7% [28]. - Deferred revenue increased to $285,681,000 as of September 30, 2025, up from $228,642,000 on June 30, 2025, reflecting a growth of about 25% [28]. - The company reported a total deficit of $65,798,000 as of September 30, 2025, compared to a deficit of $13,300,000 on June 30, 2025, indicating a significant increase in the deficit [28]. - Accounts receivable increased to $81,184,000 as of September 30, 2025, from $66,781,000 on June 30, 2025, representing an increase of approximately 21.5% [28]. - Operating lease liabilities, current, decreased to $32,310,000 as of September 30, 2025, from $35,100,000 on June 30, 2025, showing a reduction of about 8% [28]. - The company’s retained earnings decreased to $131,380,000 as of September 30, 2025, down from $153,034,000 on June 30, 2025, reflecting a decline of approximately 14.1% [28]. Cash Flow Analysis - Net cash provided by operating activities was $19,808,000 for the three months ended September 30, 2025, compared to a net cash used of $27,359,000 in the same period of 2024 [30]. - Net cash used in financing activities was $26,077,000 for the three months ended September 30, 2025, compared to net cash provided of $38,107,000 in the same period of 2024 [30]. Operational Highlights - The Christmas Spectacular production is set to have 215 performances in the 2025 holiday season, an increase from 200 performances in fiscal 2025 [2]. - Direct operating expenses associated with entertainment offerings increased by $2.1 million, or 2%, to $88.6 million compared to the prior year quarter [7].

Group 1 - Madison Square Garden Entertainment Corp. will host a conference call to discuss its fiscal first quarter results for the period ending September 30, 2025 [1] - The conference call is scheduled for Thursday, November 6, 2025, at 10:00 a.m. Eastern Time [1] - A press release reporting the company's results will be issued prior to the market opening [1] Group 2 - Participants can join the call by dialing 888-660-6386 and using the conference ID number 8020251 approximately 10 minutes before the call [1] - The call will also be available for listening [1]

Group 1: Music Stocks Overview - Seven music stocks to watch include Tencent Music Entertainment Group, NetEase, Warner Music Group, Dolby Laboratories, Madison Square Garden Entertainment, Zeta Network Group, and LiveOne, identified by MarketBeat's stock screener tool [2] - Music stocks represent publicly traded companies primarily engaged in the music industry, including record labels, streaming platforms, and live-event companies, providing exposure to revenue streams like streaming subscriptions, licensing, royalties, and live ticket sales [2] Group 2: Tencent Music Entertainment Group (TME) - Tencent Music Entertainment Group operates online music entertainment platforms in China, offering services such as music streaming, online karaoke, and live streaming [3] - The company provides QQ Music, Kugou Music, Kuwo Music, and WeSing, enabling personalized music discovery and sharing of karaoke performances [3] Group 3: NetEase (NTES) - NetEase, Inc. is involved in online games, music streaming, online intelligent learning services, and internet content services, operating through various segments including Games and Related Value-Added Services, Youdao, Cloud Music, and others [4] Group 4: Warner Music Group (WMG) - Warner Music Group Corp. operates as a music entertainment company with segments in Recorded Music and Music Publishing, focusing on artist discovery, marketing, promotion, and licensing of music [4] Group 5: Dolby Laboratories (DLB) - Dolby Laboratories, Inc. develops audio and imaging technologies for various entertainment platforms, including cinema and mobile devices, and licenses technologies like AAC, AVC, and Dolby Atmos [5] Group 6: Other Companies - Madison Square Garden Entertainment (MSGE) is mentioned but lacks specific details in the provided content [6] - Zeta Network Group (ZNB) offers online entertainment performances and music education services, operating an online platform that includes various curricula [7] - LiveOne, Inc. focuses on live music acquisition, distribution, and monetization, operating platforms like LiveXLive and PodcastOne [7]

Core Insights - Dove has partnered with Madison Square Garden Entertainment Corp. to become an Official Partner of the Rockettes, coinciding with their 100th anniversary and the 2025 Christmas Spectacular [1][4] - The partnership will feature Dove's Holiday Treats Limited-Edition Collection, which includes six festive fragrances and a new Body Mist format, available nationwide [1][6] Product Offerings - The Holiday Treats Limited-Edition Collection includes Body Wash, Beauty Bar, Scrubs, Deodorant, Liquid Hand Wash, and new Body Mist formats [1][4] - The collection features six seasonal scents: Sugar Cookie Sprinkle, Peppermint Bark, Spiced Chai Latte, Frosted Plum Berry, Gingerbread Delight, and Hot Cocoa Swirl, with some being exclusive to specific retailers [7][5] Marketing and Activations - Multiple activations will take place at Radio City Music Hall, including a photobooth, product integration in lounges, and product gifting for audience members after select shows [3] - The collection will be prominently featured in a Times Square billboard during the Christmas Spectacular, which attracts over one million guests during its eight-week run [3] Availability and Pricing - The Dove Holiday Treats Limited-Edition Collection is available in stores and online from $3.99 to $7.99 each, and will be sold through January 2026, while supplies last [6]

Core Insights - PensionBee has announced a partnership with Madison Square Garden Entertainment to become an official College Hoops Partner, aiming to enhance financial education among college basketball fans [1][2] Company Overview - PensionBee is a leading retirement savings provider managing over $9 billion in assets and serving approximately 300,000 customers globally, focusing on simplicity, transparency, and accessibility [4] - The company offers various types of IRAs, including Traditional, Roth, SEP, and Safe Harbor IRAs, utilizing portfolios powered by high-quality ETFs from State Street Investment Management [4] Partnership Details - As part of the partnership, PensionBee will receive prominent digital signage placement in the arena during key college basketball games, targeting the issue of over a trillion dollars in orphaned 401(k) assets left by Americans when changing jobs [2][3] - The collaboration aims to support individuals at different stages of their financial journey, from recent graduates to seasoned professionals managing multiple retirement accounts [3]

Core Insights - Goldman Sachs has added four new stocks to its Conviction List, which are expected to have double-digit upside potential and three of which offer reliable dividends [4][5][6]. Group 1: Goldman Sachs Conviction List - The Conviction List is a curated selection of stocks that Goldman Sachs analysts believe will outperform the market, focusing on themes like artificial intelligence and sustainability [2][4]. - The four new stocks added in October are Abbott Laboratories, Air Products and Chemicals, Hershey, and Madison Square Garden Entertainment [5][6]. Group 2: Stock Details - **Abbott Laboratories**: Offers a 1.74% dividend with a target price of $157, indicating a potential 17% gain [7][8]. - **Air Products and Chemicals**: Provides a 2.63% dividend and has a target price of $335, suggesting a 23% upside [9][15]. - **Hershey**: Features a 2.82% dividend with a target price of $222, representing a potential 19% gain [16][20]. - **Madison Square Garden Entertainment**: A live entertainment company with a target price of $52, indicating a 15% upside [21][23].

Group 1 - The analyst downgraded Madison Square Garden Entertainment (NYSE: MSGE) to a hold rating due to concerns about the impact of Billy Joel's residency absence and the demand outlook for FY26 [1] - The investment strategy focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of buying quality companies at a discount to their intrinsic value [1] Group 2 - There are no disclosed stock, option, or derivative positions in any of the companies mentioned, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's opinions and is not influenced by any business relationships with the companies mentioned [2]

Core Insights - Madison Square Garden Entertainment (NYSE: MSGE) is experiencing strong demand for live events at its renowned venues, which positively impacts its financial performance [1] Financial Performance - The latest financial results of MSGE indicate robust performance driven by the popularity of live events [1]

PART I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) Madison Square Garden Entertainment Corp. is a leading live entertainment company operating iconic venues and producing marquee content like the Christmas Spectacular, primarily concentrated in the New York City market - The company operates as a leader in live entertainment experiences, managing a portfolio of iconic venues such as Madison Square Garden, Radio City Music Hall, and The Chicago Theatre[14](index=14&type=chunk)[15](index=15&type=chunk) - Key business strategies include enhancing the live entertainment experience, increasing venue utilization with unique events and residencies, delivering marketing exposure for partners, offering premium hospitality, and utilizing customer data to drive revenue[17](index=17&type=chunk)[19](index=19&type=chunk) - In Fiscal Year 2025, the company hosted nearly **6 million** guests at more than **975 events** across its venues[22](index=22&type=chunk) - The company has long-term Arena License Agreements with MSG Sports, requiring the New York Knicks (NBA) and New York Rangers (NHL) to play their home games at The Garden[27](index=27&type=chunk) - The Christmas Spectacular production is a core property, selling approximately **1.1 million tickets** across **200 performances** in Fiscal Year 2025[35](index=35&type=chunk)[36](index=36&type=chunk) - As of June 30, 2025, the company had approximately **1,200 full-time** and **5,400 part-time employees**, with about **71%** of the total workforce represented by unions[70](index=70&type=chunk)[73](index=73&type=chunk) [Item 1A. Risk Factors](index=12&type=page&id=Item%201A.%20Risk%20Factors) The company faces significant risks including intense competition, heavy reliance on the Christmas Spectacular, economic sensitivity, geographic concentration in New York City, regulatory challenges, substantial indebtedness, cybersecurity threats, and Dolan Family control - The company's business is highly competitive, facing challenges from other leisure activities, entertainment venues, and changing consumer tastes[75](index=75&type=chunk)[76](index=76&type=chunk) - Financial results are significantly dependent on the Christmas Spectacular production, which accounted for **18% of total revenues** in Fiscal Year 2025[79](index=79&type=chunk) - The Madison Square Garden Complex benefits from a New York City real estate tax exemption, which amounted to **$43.0 million** for Fiscal Year 2025, with potential material impact if repealed or amended[86](index=86&type=chunk) - The business is geographically concentrated in New York City, making it vulnerable to adverse local events, economic conditions, and regulatory changes, such as the renewal of The Garden's zoning special permit[93](index=93&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, the company is highly leveraged with total indebtedness of **$609 million**[111](index=111&type=chunk) - The company faces evolving cybersecurity risks, having previously addressed a payment card issue in November 2016 at several of its venues[125](index=125&type=chunk) - The Dolan Family Group controls the company with approximately **64.0% of the total voting power**, enabling them to prevent changes in control and influence corporate actions[137](index=137&type=chunk)[140](index=140&type=chunk) [Item 1B. Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[153](index=153&type=chunk) [Item 1C. Cybersecurity](index=24&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cyber risk management program overseen by the Audit Committee and a cybersecurity leadership team, including regular testing, incident response, and employee training, acknowledging past incidents and evolving threats - The company's cyber risk management program is overseen by the Audit Committee of the Board of Directors and senior management[153](index=153&type=chunk)[159](index=159&type=chunk) - A cybersecurity leadership response team, including the Chief Security Officer (CSO), CFO, and General Counsel, is in place to manage threats and incidents[156](index=156&type=chunk)[157](index=157&type=chunk) - The program includes regular system security testing, an incident response policy, security awareness training, and vulnerability analysis systems[154](index=154&type=chunk) - A payment card issue affecting merchandise and food/beverage locations at several venues was identified and addressed in November 2016[160](index=160&type=chunk) [Item 2. Properties](index=25&type=section&id=Item%202.%20Properties) The company owns the Madison Square Garden Complex and The Chicago Theatre, and operates Radio City Music Hall and the Beacon Theatre under long-term lease agreements, in addition to leasing administrative and executive office space Property Portfolio | Property | Location | Ownership | Seating Capacity | | :--- | :--- | :--- | :--- | | Madison Square Garden Complex | New York, NY | Owned | ~21,000 (The Garden) | | The Theater at MSG | New York, NY | Owned | ~5,600 | | The Chicago Theatre | Chicago, IL | Owned | ~3,600 | | Radio City Music Hall | New York, NY | Leased | ~6,000 | | Beacon Theatre | New York, NY | Leased | ~2,800 | [Item 3. Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is a defendant in various lawsuits, but management does not believe their resolution will have a material adverse effect on the company - The company is involved in various lawsuits, but management does not expect the outcomes to materially and adversely affect the business[164](index=164&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[165](index=165&type=chunk) PART II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A Common Stock trades on the NYSE under "MSGE," with no current plans for cash dividends, and a stock repurchase program authorized for up to $250 million, of which $40 million was repurchased in FY2025 - The company's Class A Common Stock trades on the New York Stock Exchange (NYSE) under the symbol "MSGE"[167](index=167&type=chunk) - The company does not currently have plans to pay a cash dividend on its common stock for the foreseeable future[171](index=171&type=chunk) - Under its $250 million stock repurchase program, the company repurchased **1,117,601 shares** for approximately **$40 million** in Fiscal Year 2025, with approximately **$70 million** remaining available for future repurchases as of June 30, 2025[172](index=172&type=chunk) [Item 6. [Reserved]](index=28&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In Fiscal Year 2025, revenues decreased by 2% to $942.7 million, primarily due to lower event-related revenues, while operating income rose 9% to $122.1 million due to reduced expenses, though net income significantly decreased by 74% to $37.4 million due to a prior-year tax benefit, with Adjusted Operating Income (AOI) increasing 5% to $222.5 million, and the company maintaining sufficient liquidity with $43.0 million in cash and $134.0 million available under its revolving credit facility [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For Fiscal Year 2025 compared to 2024, total revenues decreased by $16.5 million (2%) to $942.7 million, driven by declines in entertainment offerings and food/beverage, partially offset by increased arena license fees, leading to a 9% increase in operating income to $122.1 million due to reduced expenses, despite a sharp 74% drop in net income to $37.4 million primarily from a prior-year tax benefit, while Adjusted Operating Income (AOI) rose 5% to $222.5 million Consolidated Results of Operations (Fiscal Year 2025 vs. 2024) | Financial Metric | FY 2025 ($M) | FY 2024 ($M) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 942.7 | 959.3 | (16.5) | (2)% | | Total Direct Operating Expenses | (535.6) | (568.8) | 33.2 | 6% | | Operating Income | 122.1 | 111.9 | 10.2 | 9% | | Net Income | 37.4 | 144.3 | (106.9) | (74)% | - The decrease in revenues from entertainment offerings was primarily due to lower event-related revenues of **$49.2 million**, partially offset by a **$20.2 million** increase in revenues from the Christmas Spectacular production[218](index=218&type=chunk) - The Christmas Spectacular's revenue growth was driven by higher per-show revenue and an increase in performances to **200** in FY2025 from **193** in FY2024, with ticket sales rising to approximately **1.1 million** from over **1.0 million**[221](index=221&type=chunk) - The increase in operating income was primarily due to decreased direct operating expenses and lower restructuring charges, which offset the decline in revenues and an **$11.2 million** impairment charge on long-lived assets[239](index=239&type=chunk) Reconciliation of Operating Income to Adjusted Operating Income (AOI) | Metric | FY 2025 ($M) | FY 2024 ($M) | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Income | 122.1 | 111.9 | 10.2 | 9% | | Depreciation & Amortization | 57.8 | 53.9 | 3.9 | 7% | | Impairment of long-lived assets | 11.2 | 0.0 | 11.2 | NM | | Share-based compensation | 27.7 | 24.5 | 3.2 | 13% | | Restructuring charges | 1.1 | 17.6 | (16.6) | (94)% | | **Adjusted Operating Income** | **222.5** | **211.5** | **11.0** | **5%** | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash on hand, operating cash flow, and its revolving credit facility, with $43.0 million in unrestricted cash and $134.0 million available under its refinanced $150 million revolving credit facility as of June 30, 2025, alongside a new $609.4 million term loan, both maturing in June 2030, which management believes provides sufficient liquidity for the foreseeable future Liquidity Position as of June 30, 2025 | Item | Amount ($M) | | :--- | :--- | | Unrestricted Cash & Cash Equivalents | 43.0 | | Total Debt Outstanding | 609.4 | | Available Revolver Capacity | 134.0 | - On June 27, 2025, the company refinanced its credit facilities, establishing a new five-year **$609.4 million** term loan and a **$150 million** revolving credit facility, both maturing on June 27, 2030[256](index=256&type=chunk)[259](index=259&type=chunk) Cash Flow Summary (Fiscal Years 2025 vs. 2024) | Cash Flow Activity | FY 2025 ($M) | FY 2024 ($M) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 115.3 | 111.3 | | Net Cash used in Investing Activities | (23.7) | (62.4) | | Net Cash used in Financing Activities | (81.6) | (99.7) | Future Contractual Obligations as of June 30, 2025 | Obligation | Total ($M) | Year 1 ($M) | Years 2-3 ($M) | Years 4-5 ($M) | More Than 5 Years ($M) | | :--- | :--- | :--- | :--- | :--- | :--- | | Leases | 1,109.6 | 30.8 | 125.8 | 115.4 | 837.6 | | Debt Repayments | 609.4 | 30.5 | 60.9 | 518.0 | 0.0 | | **Total** | **1,719.0** | **61.2** | **186.8** | **633.4** | **837.6** | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risk from changes in interest rates on its variable-rate debt and from market performance affecting its defined benefit pension plans, with a hypothetical 200 basis point interest rate increase raising annual interest expense by $12.2 million, and pension obligations sensitive to discount rates and asset returns - The company is subject to interest rate risk on its variable-rate credit facilities; a hypothetical **200 basis point** increase in floating rates would increase annual interest expense by **$12.2 million**[283](index=283&type=chunk) - The company's defined benefit pension plans are subject to market risk; a **25 basis point** decrease in the assumed discount rate would increase the projected benefit obligation by approximately **$2.9 million**[286](index=286&type=chunk) - A **25 basis point** decrease in the long-term return on pension plan assets assumption would increase the net periodic pension benefit cost by **$280 thousand** for Fiscal Year 2025[289](index=289&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's audited consolidated and combined financial statements and supplementary data, which begin on page F-1 of the report - This item refers to the full financial statements and supplementary data which are included starting on page F-1 of the Annual Report[290](index=290&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=45&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[291](index=291&type=chunk) [Item 9A. Controls and Procedures](index=45&type=section&id=Item%209A.%20Controls%20and%20Procedures) Based on management's evaluation, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of June 30, 2025, and internal control over financial reporting was also concluded to be effective, as audited by their independent registered public accounting firm - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[292](index=292&type=chunk) - Management concluded that internal control over financial reporting was **effective** as of June 30, 2025, based on the COSO framework; this assessment was audited by Deloitte & Touche LLP[295](index=295&type=chunk) [Item 9B. Other Information](index=45&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[297](index=297&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=45&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[298](index=298&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=46&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item will be included in the proxy statement for the 2025 annual meeting of stockholders and is incorporated by reference - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2025 proxy statement[300](index=300&type=chunk) [Item 11. Executive Compensation](index=46&type=section&id=Item%2011.%20Executive%20Compensation) Information required for this item will be included in the proxy statement for the 2025 annual meeting of stockholders and is incorporated by reference - Information regarding executive compensation is incorporated by reference from the forthcoming 2025 proxy statement[301](index=301&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=46&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required for this item will be included in the proxy statement for the 2025 annual meeting of stockholders and is incorporated by reference - Information regarding security ownership is incorporated by reference from the forthcoming 2025 proxy statement[302](index=302&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=46&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required for this item will be included in the proxy statement for the 2025 annual meeting of stockholders and is incorporated by reference - Information regarding related party transactions and director independence is incorporated by reference from the forthcoming 2025 proxy statement[303](index=303&type=chunk) [Item 14. Principal Accountant Fees and Services](index=46&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required for this item will be included in the proxy statement for the 2025 annual meeting of stockholders and is incorporated by reference - Information regarding principal accountant fees and services is incorporated by reference from the forthcoming 2025 proxy statement[304](index=304&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=47&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and all exhibits filed as part of the Form 10-K report, including key corporate agreements such as the Distribution Agreement with Sphere Entertainment, Articles of Incorporation, credit agreements, and various employment and lease agreements - This item lists all documents filed as part of the report, including financial statements and exhibits such as material contracts and governance documents[307](index=307&type=chunk) [Item 16. Form 10-K Summary](index=52&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to provide a summary for the Form 10-K - The Company has elected not to provide summary information[315](index=315&type=chunk) Financial Statements and Notes to Financial Statements This section presents the company's audited consolidated and combined financial statements for the fiscal years ended June 30, 2025, 2024, and 2023, including the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Deficit, with accompanying notes detailing accounting policies, revenue recognition, leases, debt, pension plans, and extensive related party transactions with Dolan Family-controlled entities [Consolidated Balance Sheets](index=58&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company reported total assets of $1.67 billion, an increase from $1.55 billion in the prior year, with total liabilities also increasing to $1.68 billion from $1.58 billion, and the total deficit improving to $13.3 million from $23.2 million, primarily due to net income and changes in additional paid-in capital Consolidated Balance Sheet Highlights (as of June 30) | Account | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | 43.5 | 33.6 | | Total Current Assets | 237.1 | 219.1 | | Property and equipment, net | 621.1 | 633.5 | | Total Assets | **1,669.8** | **1,552.7** | | Total Current Liabilities | 502.4 | 505.8 | | Long-term debt, net | 568.8 | 599.2 | | Total Liabilities | **1,683.1** | **1,575.9** | | Total Deficit | **(13.3)** | **(23.2)** | [Consolidated and Combined Statements of Operations](index=59&type=section&id=Consolidated%20and%20Combined%20Statements%20of%20Operations) For the fiscal year ended June 30, 2025, the company generated $942.7 million in total revenues, a slight decrease from $959.3 million in 2024, while operating income increased to $122.1 million from $111.9 million, and net income attributable to stockholders was $37.4 million, or $0.78 per basic share, a significant decrease from $144.3 million, or $2.99 per basic share, in 2024, which was impacted by a large tax benefit Statements of Operations Highlights (Years Ended June 30) | Account | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Total Revenues | **942.7** | **959.3** | 851.5 | | Total Direct Operating Expenses | (535.6) | (568.8) | (499.9) | | Operating Income | **122.1** | **111.9** | 105.0 | | Net Income Attributable to Stockholders | **37.4** | **144.3** | 76.6 | | Basic EPS | **$0.78** | **$2.99** | $1.48 | | Diluted EPS | **$0.77** | **$2.97** | $1.47 | [Note 4. Revenue Recognition](index=73&type=section&id=Note%204.%20Revenue%20Recognition) The company disaggregates its revenue into several categories, with ticketing and venue license fees being the largest contributor, totaling $862.8 million from contracts with customers in FY2025, and has significant remaining performance obligations, with an estimated $558.2 million of revenue expected to be recognized in future periods as of June 30, 2025 Disaggregation of Revenue (Years Ended June 30) | Revenue Category | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | Ticketing and venue license fee revenues | 453.2 | 463.3 | 396.4 | | Sponsorship, signage, suite license, and advertising commission | 252.7 | 254.1 | 243.1 | | Food, beverage, and merchandise revenues | 150.5 | 162.1 | 135.9 | | **Total revenues from contracts with customers** | **862.8** | **886.0** | **779.8** | | Arena license fees and other leasing revenue | 79.9 | 73.3 | 71.7 | | **Total Revenues** | **942.7** | **959.3** | **851.5** | - As of June 30, 2025, the company had **$558.2 million** in estimated future revenue related to remaining performance obligations, with **$189.0 million** expected to be recognized in Fiscal Year 2026[465](index=465&type=chunk) [Note 12. Credit Facilities](index=81&type=section&id=Note%2012.%20Credit%20Facilities) In June 2025, the company refinanced its debt, establishing a new credit agreement with a $609.4 million term loan facility and a $150 million revolving credit facility, both maturing in June 2030, with the total principal balance outstanding at $609.4 million as of June 30, 2025, and the facilities subject to floating interest rates and financial covenants with which the company was in compliance - The company refinanced its debt on June 27, 2025, entering into a new agreement for a **$609.4 million** term loan and a **$150 million** revolver, both maturing in 2030[500](index=500&type=chunk) Debt Maturities as of June 30, 2025 | Fiscal Year Ending June 30 | Principal Amount ($M) | | :--- | :--- | | 2026 | 30.5 | | 2027 | 30.5 | | 2028 | 30.5 | | 2029 | 30.5 | | 2030 | 487.5 | | **Total** | **609.4** | [Note 16. Related Party Transactions](index=93&type=section&id=Note%2016.%20Related%20Party%20Transactions) The company engages in extensive related party transactions with other entities controlled by the Dolan Family, primarily MSG Sports and Sphere Entertainment, including Arena License Agreements with MSG Sports which generated $68.1 million in revenue in FY2025, and various services agreements, resulting in $109.8 million in revenues from related parties and $122.8 million in net operating credits in FY2025 - The Dolan Family Group controls MSG Entertainment, Sphere Entertainment, MSG Sports, and AMC Networks, leading to numerous related party transactions[574](index=574&type=chunk) - Key agreements exist with MSG Sports for arena licensing, sponsorship sales, and services, and with Sphere Entertainment for corporate services and marketing partnerships[575](index=575&type=chunk)[577](index=577&type=chunk) Summary of Related Party Transactions (Years Ended June 30) | Transaction Type | 2025 ($M) | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | :--- | | **Revenues** | **109.8** | **101.8** | **105.9** | | **Operating Credits (Expenses), Net** | | | | | Revenue sharing expenses | (21.3) | (21.6) | (19.1) | | Reimbursement under Arena License Agreements | 29.6 | 25.1 | 22.3 | | Cost reimbursement from MSG Sports | 37.2 | 37.4 | 38.5 | | Corporate reimbursement/allocations (Sphere) | 78.5 | 108.8 | 151.2 | | Other operating (expenses) credits, net | (1.2) | 0.8 | (3.9) | | **Total operating credits, net** | **122.8** | **150.5** | **189.0** |