Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported full year revenues of $942.7 million and adjusted operating income (AOI) of $222.5 million, representing a 5% year-over-year increase [5] - In the fourth quarter, revenues were $154.1 million, a decrease of 17% compared to the prior year, primarily due to lower event-related revenues from concerts and food, beverage, and merchandise [12][13] - Fourth quarter adjusted operating income decreased by $14.4 million to a loss of $1.3 million compared to the prior year quarter [13] Business Line Data and Key Metrics Changes - The company hosted nearly 6 million guests at over 975 live events during fiscal year 2025, with modest growth in the number of events held at venues compared to the prior year [6] - The Christmas Spectacular production sold approximately 1.1 million tickets across 200 performances, generating over $170 million in revenue, a new record for the production [8] - The number of concerts at theaters increased, while the number of concerts at The Garden decreased year-over-year due to the end of Billy Joel's residency [7] Market Data and Key Metrics Changes - The Knicks and Rangers played a combined 97 home games at The Garden, down from 103 games in the prior year, impacting shared revenue streams [9] - The company expects cash component of Arena license fees to be approximately $45 million in fiscal year 2026, growing 3% each year through fiscal year 2055 [9] Company Strategy and Development Direction - The company aims to increase the number of events at venues, drive growth in per event profitability, and expand sponsorship and premium hospitality businesses [5] - The strategic decision to bring sponsorship sales in-house is expected to capitalize on upcoming opportunities in fiscal year 2026 [10] - The company is focused on organic growth and remains confident in delivering long-term shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive solid growth in revenue and adjusted operating income in fiscal year 2026, supported by strong consumer and corporate demand [5] - The company anticipates another year of substantial free cash flow generation and plans to explore ways to opportunistically return capital to shareholders [14][40] Other Important Information - The company repurchased approximately $40 million of Class A common stock during fiscal year 2025, with $70 million remaining under the current share repurchase authorization [15][40] - The company is in the late planning stages for a new residency at The Garden, which is expected to create potential for concert growth in fiscal year 2027 [35] Q&A Session Summary Question: Update on ticket sales for the Christmas Spectacular - Management noted that advanced ticket revenue is pacing well ahead of last year, with higher individual and group ticket sales [18][19] Question: Forward bookings trends for fiscal year 2026 - Management indicated that they expect to increase the number of booking events, including concerts, and are currently pacing ahead in bookings [25][27] Question: Progress on utilization at The Garden - Management reported an effective utilization of a little over 65% for The Garden and is looking to increase event growth in fiscal year 2026 [32] Question: Capital returns strategy for fiscal year 2026 - Management stated that they will continue to explore ways to opportunistically return capital to shareholders while maintaining a strong balance sheet [38][40] Question: Outlook for sponsorship and consumer demand - Management expressed optimism about sponsorship opportunities and noted strong consumer demand, with advanced ticket sales pacing well [51][53]

Core Insights - Madison Square Garden Entertainment (MSGE) reported a revenue of $154.14 million for the quarter ended June 2025, reflecting a year-over-year decline of 17.2% and an EPS of -$0.50 compared to $1.41 a year ago [1] - The revenue reported was a surprise of -0.27% against the Zacks Consensus Estimate of $154.56 million, while the EPS surprise was -6.38% against the consensus estimate of -$0.47 [1] Revenue Breakdown - Arena license fees and other leasing revenue amounted to $9.01 million, exceeding the average estimate of $6.07 million by three analysts, representing a year-over-year increase of 6.2% [4] - Revenues from entertainment offerings were reported at $118.72 million, below the average estimate of $125.18 million from three analysts [4] - Food, beverage, and merchandise revenues totaled $26.4 million, surpassing the average estimate of $23.31 million, but showing a year-over-year decline of 23.9% [4] Stock Performance - Shares of MSG Entertainment have returned +1.6% over the past month, compared to a +3.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Overview and Performance - MSG Entertainment's spin-off from Sphere Entertainment Co was completed on April 20, 2023[10] - In fiscal year 2025, the company hosted over 975 live events[14] and welcomed nearly 6 million guests[15] - The company reported total revenue of $942.7 million in fiscal year 2025[52] - Operating income for fiscal year 2025 was $122.1 million[52], while adjusted operating income (AOI) reached $222.5 million[52] Key Assets and Agreements - The company has 35-year deals to host home games for the New York Knicks & Rangers[15] - Madison Square Garden is the 2 grossing venue of its size in the world[16, 17] - Radio City Music Hall is the 1 grossing venue of its size in the world[18, 19] - The company has valuable long-term arena license agreements with MSG Sports, including 3% annual escalators[40, 41] Financial Position and Strategy - As of June 30, 2025, total debt outstanding was $609 million, with unrestricted cash and cash equivalents of $43 million, resulting in net debt of $566 million[56] - Net debt leverage is 2.5x, calculated using fiscal 2025 AOI of $222.5 million[56, 57] - The company repurchased $180 million of Class A shares since April 2023 and has $70 million remaining under share repurchase authorization[58]

Group 1: Earnings Performance - Madison Square Garden Entertainment (MSGE) reported a quarterly loss of $0.5 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.47, and a significant decline from earnings of $1.41 per share a year ago [1] - The company posted revenues of $154.14 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.27% and down from $186.07 million year-over-year [2] - Over the last four quarters, MSGE has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - MSGE shares have increased approximately 13% since the beginning of the year, outperforming the S&P 500's gain of 9.6% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at -$0.38 for the coming quarter and $1.81 for the current fiscal year on revenues of $146 million and $997.06 million, respectively [7] - The Zacks Rank for MSGE is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Media Conglomerates industry, to which MSGE belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

[Fiscal 2025 Fourth Quarter and Full Year Results](index=1&type=section&id=Fiscal%202025%20Fourth%20Quarter%20and%20Full%20Year%20Results) [Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) Fiscal 2025 revenue decreased 2% to **$942.7 million**, while operating income rose 9% to **$122.1 million**, despite a Q4 revenue decline and operating loss Overall Financial Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change | FY 2025 | FY 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $154.1M | $186.1M | -17% | $942.7M | $959.3M | -2% | | **Operating (Loss) Income** | $(25.8)M | $(8.9)M | -191% | $122.1M | $111.9M | +9% | | **Adjusted Operating (Loss) Income** | $(1.3)M | $13.1M | NM | $222.5M | $211.5M | +5% | - Hosted nearly **6 million guests** at more than **975 events** during fiscal 2025, including concerts, special events, and sports[2](index=2&type=chunk) - The *Christmas Spectacular* production sold approximately **1.1 million tickets** across **200 shows**, achieving another year of record-setting revenues[2](index=2&type=chunk) - The company repurchased approximately **$40 million** of its Class A common stock during fiscal 2025[2](index=2&type=chunk) - Executive Chairman and CEO James L. Dolan stated, "We see this momentum continuing in fiscal 2026, and believe we are well positioned to drive solid revenue and adjusted operating income growth in the year ahead"[3](index=3&type=chunk) [Segment Performance Analysis (Q4 FY2025)](index=2&type=section&id=Segment%20Performance%20Analysis%20(Q4%20FY2025)) [Entertainment Offerings, Arena License Fees and Other Leasing](index=2&type=section&id=Entertainment%20Offerings%2C%20Arena%20License%20Fees%20and%20Other%20Leasing) Q4 FY2025 entertainment offerings revenue decreased 17% to **$118.7 million** due to lower event-related revenues, partially offset by a 6% increase in arena license fees, with direct operating expenses falling 14% - Entertainment offerings revenues decreased by **$24.1 million** (17%) compared to the prior year quarter, driven by lower event-related revenues and decreased revenue sharing with MSG Sports[6](index=6&type=chunk) - Event-related revenues fell by **$21.6 million**, mainly from a decrease in the number of concerts at Madison Square Garden Arena and a shift in event mix from promoted events to rentals[13](index=13&type=chunk) - Arena license fees and other leasing revenues increased by **$0.5 million** (6%), primarily due to higher other leasing revenues[7](index=7&type=chunk) - Direct operating expenses for this segment decreased by **$14.2 million** (14%), mainly due to lower event-related expenses[8](index=8&type=chunk) [Food, Beverage and Merchandise](index=2&type=section&id=Food%2C%20Beverage%20and%20Merchandise) Q4 FY2025 food, beverage, and merchandise revenues declined 24% to **$26.4 million** due to fewer events, with direct operating expenses decreasing 27% to **$16.5 million** Food, Beverage and Merchandise Performance | Metric | Q4 FY2025 | Change vs Q4 FY2024 | Reason | | :--- | :--- | :--- | :--- | | **Revenues** | $26.4M | -$8.3M (-24%) | Fewer games and concerts at The Garden | | **Direct Operating Expenses** | $16.5M | -$6.2M (-27%) | Lower costs in line with reduced sales volume | [Selling, General and Administrative Expenses](index=2&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) Q4 FY2025 selling, general and administrative expenses increased 7% to **$59.9 million**, primarily driven by higher employee compensation and benefits - Q4 SG&A expenses increased by **$4.1 million**, or 7%, to **$59.9 million**[11](index=11&type=chunk) - The primary driver for the increase was higher employee compensation and related benefits, which was partially offset by lower rent expense[11](index=11&type=chunk) [Operating Loss and Adjusted Operating (Loss) Income](index=2&type=section&id=Operating%20Loss%20and%20Adjusted%20Operating%20(Loss)%20Income) Q4 FY2025 operating loss widened by **$16.9 million** to **$25.8 million**, and adjusted operating income swung to a **$1.3 million** loss, driven by lower revenues and higher SG&A expenses Operating and Adjusted Operating Income | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Operating Loss** | $(25.8)M | $(8.9)M | +$16.9M | | **Adjusted Operating (Loss)/Income** | $(1.3)M | $13.1M | -$14.4M | - The decline in operating results was primarily due to lower revenues and, to a lesser extent, higher selling, general and administrative expenses, partially offset by lower direct operating expenses[12](index=12&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Fiscal year 2025 consolidated operations show total revenues of **$942.7 million** and operating income of **$122.1 million**, but net income significantly dropped to **$37.4 million** due to tax changes Fiscal Year Ended June 30 | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Total revenues** | $942,734 | $959,265 | | **Operating income** | $122,092 | $111,941 | | **Net income** | $37,431 | $144,300 | | **Diluted EPS** | $0.77 | $2.97 | Three Months Ended June 30 | Metric (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Total revenues** | $154,138 | $186,074 | | **Operating loss** | $(25,754) | $(8,860) | | **Net (loss) income** | $(27,177) | $66,927 | | **Diluted (Loss) EPS** | $(0.57) | $1.41 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.67 billion** and total liabilities to **$1.68 billion**, with cash rising to **$43.5 million** and the total deficit narrowing Consolidated Balance Sheets Summary | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $237,132 | $219,084 | | **Total assets** | $1,669,842 | $1,552,707 | | **Total current liabilities** | $502,401 | $505,823 | | **Total liabilities** | $1,683,142 | $1,575,872 | | **Total deficit** | $(13,300) | $(23,165) | - Cash, cash equivalents and restricted cash increased to **$43.5 million** from **$33.6 million** in the prior year[28](index=28&type=chunk) - Long-term debt, net of deferred financing costs, decreased to **$568.8 million** from **$599.2 million**[28](index=28&type=chunk) [Selected Cash Flow Information](index=7&type=section&id=Selected%20Cash%20Flow%20Information) For FY2025, net cash from operating activities increased to **$115.3 million**, while investing activities used **$23.7 million** and financing activities used **$81.6 million**, resulting in a **$10.0 million** net cash increase Selected Cash Flow Summary | Metric (in thousands) | FY 2025 | FY 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $115,297 | $111,266 | | **Net cash used in investing activities** | $(23,693) | $(62,371) | | **Net cash used in financing activities** | $(81,621) | $(99,695) | | **Net increase (decrease) in cash** | $9,983 | $(50,800) | [Appendix](index=3&type=section&id=Appendix) [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles GAAP operating income to adjusted operating income, showing how **$122.1 million** operating income was adjusted to **$222.5 million** for FY2025, a key internal performance indicator - Adjusted operating income is defined as operating income excluding items such as depreciation, amortization, share-based compensation, restructuring charges, and merger/spin-off costs[16](index=16&type=chunk) Reconciliation to Adjusted Operating Income (FY 2025) | Description | Amount (in thousands) | | :--- | :--- | | **Operating income** | **$122,092** | | Depreciation and amortization | $57,768 | | Impairment of long-lived assets | $11,202 | | Share-based compensation | $27,694 | | Restructuring charges | $1,055 | | Other adjustments | $2,695 | | **Adjusted operating income** | **$222,506** | - The company uses revenues and adjusted operating income as its most important internal indicators of business performance and management effectiveness[17](index=17&type=chunk) [Company Overview and Other Information](index=3&type=section&id=Company%20Overview%20and%20Other%20Information) Madison Square Garden Entertainment Corp. is a prominent live entertainment company operating renowned venues and producing the *Christmas Spectacular*, with the report including standard forward-looking statement disclaimers - The company's portfolio includes world-renowned venues in New York and Chicago, such as Madison Square Garden and The Chicago Theatre[15](index=15&type=chunk) - Features the original production, the *Christmas Spectacular Starring the Radio City Rockettes*, a holiday tradition for over 90 years[15](index=15&type=chunk) - The press release includes a forward-looking statements disclaimer, cautioning investors about risks and uncertainties that could affect future performance[18](index=18&type=chunk)

Core Insights - The upcoming earnings report for Madison Square Garden Entertainment (MSGE) is projected to show a quarterly loss of -$0.63 per share, reflecting a significant decline of 144.7% year-over-year [1] - Analysts forecast total revenues of $155.01 million, indicating a year-over-year decrease of 16.7% [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 2.7% in the last 30 days, indicating a reassessment by covering analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Revenue Projections - Analysts expect total revenues from contracts with customers to be approximately $149.94 million, representing a year-over-year decline of 15.6% [5] - Food, beverage, and merchandise revenues are estimated to reach $25.09 million, indicating a significant year-over-year drop of 27.7% [5] - The consensus estimate for arena license fees and other leasing revenue stands at $5.04 million, reflecting a year-over-year change of -40.6% [6] Market Performance - Over the past month, MSG Entertainment shares have declined by 2.8%, contrasting with the Zacks S&P 500 composite's increase of 1.9% [6] - MSGE holds a Zacks Rank of 4 (Sell), suggesting it is likely to underperform the overall market in the near term [6]

Core Insights - The Las Vegas Sphere will host an immersive screening of "The Wizard of Oz," marking its first film experience [1][4] - The venue features a 160,000-square-foot wraparound screen and will present the film in 16k resolution with advanced audio and haptic technology [2][5] Company and Industry Summary - Sphere Entertainment has partnered with Google Cloud to utilize AI "outpainting" technology, enhancing the original film frames for the immersive experience [2] - The Sphere's CEO, James Dolan, emphasized that the goal was to maintain the film's integrity while creating an immersive environment [3] - Glenn Derry, an executive at MSG Ventures, is overseeing the implementation of 4D effects, including motion, wind, water, and scent, to enhance audience immersion [4] - The Las Vegas Sphere, which opened in September 2023, has a capacity of approximately 20,000, with 10,000 seats equipped with haptic technology [5]

Industry Overview - The Zacks Media Conglomerates industry is thriving due to the consumer shift towards over-the-top (OTT) content, with major players like Disney, Atlanta Braves Holdings, and Madison Square Garden Entertainment investing heavily in original content to attract Gen Z and millennial subscribers [1][2] - The industry's growth is supported by cost-effective alternative packages, such as skinny bundles, which offer lower prices compared to traditional offerings [1] - Challenges include declining broadcast television ratings, reduced demand for home entertainment sales, and advertisers' cautious spending amid inflation and high interest rates [1][2] Trends Impacting the Industry - Original content is driving growth as media companies adapt to consumer preferences for subscription services over traditional pay-TV, leading to increased opportunities for targeted advertising [3] - The demand for high-speed internet is a key catalyst, enhancing the consumption of high-quality videos and binge-watching trends, particularly in international markets with a growing broadband ecosystem [4] - The industry faces difficulties from cord-cutting trends and the maturation of the pay-TV sector, which has led to increased competition from streaming services [5] Industry Performance - The Zacks Media Conglomerates industry ranks 44 within the broader Zacks Consumer Discretionary sector, placing it in the top 18% of over 245 Zacks industries, indicating positive earnings outlook [6][8] - Despite this ranking, the industry has underperformed compared to the broader sector and the S&P 500, returning 4.9% over the past year versus 15.8% for the sector and 10% for the S&P 500 [9] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-sales (P/S) ratio of 1.51X, significantly lower than the S&P 500's 5.33X and the sector's 2.28X, suggesting potential undervaluation [12] Company Highlights - **Atlanta Braves Holdings**: Reported a 27% year-over-year revenue growth to $47 million, with baseball revenues up 30% to $29 million. The company has a strong cash position of $244.7 million and access to $275 million in liquidity [15][17] - **Disney**: Achieved profitability for Disney+ and Hulu with a combined subscription base of 180.7 million. The company is trading at a discounted P/E ratio of 19.25, with projected 16% EPS growth for fiscal 2025 [20][22] - **Madison Square Garden Entertainment**: Revenues increased by 6% to $242.5 million, with adjusted operating income surging 50% to $57.9 million. The company is well-positioned for continued growth with diverse revenue streams and strong advance sales for upcoming events [25][27]

Financial Performance - For the quarter ended March 2025, Madison Square Garden Entertainment (MSGE) reported revenue of $242.47 million, reflecting a 6.2% increase year-over-year [1] - EPS for the quarter was $0.33, a significant rise from $0.06 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $231.04 million by 4.94%, while the EPS surpassed the consensus estimate of $0.25 by 32.00% [1] Key Metrics - Arena license fees and other leasing revenue amounted to $36.44 million, slightly above the average estimate of $35.24 million, representing a year-over-year decline of 0.7% [4] - Food, beverage, and merchandise revenues were reported at $45.81 million, below the average estimate of $53.65 million, showing a year-over-year increase of 0.9% [4] - Total revenues from contracts with customers reached $206.02 million, exceeding the two-analyst average estimate of $196.69 million, with a year-over-year growth of 7.5% [4] Stock Performance - Shares of MSG Entertainment have returned +23.2% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

PART I. FINANCIAL INFORMATION This section presents MSG Entertainment's unaudited condensed consolidated financial statements, including balance sheets, income, cash flow, and equity, with detailed accounting notes [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section provides the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, cash flows, and equity, along with their accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------- | | Total Assets | $1,739,412 | $1,552,707 | | Total Liabilities | $1,729,886 | $1,575,872 | | Total Equity (Deficit) | $9,526 | $(23,165) | | Cash, cash equivalents, and restricted cash | $89,474 | $33,555 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, including revenues, expenses, and net income Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total Revenues | $242,465 | $228,313 | $788,596 | $773,191 | | Net Income | $8,036 | $2,795 | $64,608 | $77,373 | | Basic Earnings per share | $0.17 | $0.06 | $1.34 | $1.59 | | Diluted Earnings per share | $0.17 | $0.06 | $1.33 | $1.58 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's total comprehensive income, encompassing net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net income | $8,036 | $2,795 | $64,608 | $77,373 | | Other comprehensive income, net of income taxes | $356 | $372 | $1,068 | $1,114 | | Comprehensive income | $8,392 | $3,167 | $65,676 | $78,487 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Net cash provided by operating activities | $142,308 | $111,054 | | Net cash used in investing activities | $(19,379) | $(72,625) | | Net cash used in financing activities | $(67,010) | $(94,476) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $55,919 | $(56,047) | | Cash, cash equivalents, and restricted cash, end of period | $89,474 | $28,308 | [Condensed Consolidated Statements of Equity (Deficit)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20%28Deficit%29) This section presents changes in the company's equity, including retained earnings and treasury stock, over specific periods Condensed Consolidated Statements of Equity (Deficit) (in thousands) | Metric | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :--------------------------- | | Total Equity (Deficit) | $9,526 | $(23,165) | | Retained earnings | $180,211 | $115,603 | | Treasury stock at cost | $(180,204) | $(140,512) | - Repurchases of Class A common stock, inclusive of excise tax, for the nine months ended March 31, 2025, totaled **$(39,742) thousand** compared to **$(116,386) thousand** for the same period in 2024[18](index=18&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the significant accounting policies, estimates, and other financial disclosures underlying the consolidated financial statements [Note 1. Description of Business and Basis of Presentation](index=8&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) MSG Entertainment operates iconic live entertainment venues and produces marquee content, with its fiscal year ending June 30 and revenues concentrated in Q2 and Q3 - MSG Entertainment is a live entertainment company comprised of iconic venues and marquee entertainment content, operating in one reportable segment[20](index=20&type=chunk) - The company's portfolio of venues includes Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre[21](index=21&type=chunk) - MSG Entertainment became an independent publicly traded company on April 21, 2023, following a distribution from Sphere Entertainment Co., which no longer owns any of the company's common stock[22](index=22&type=chunk) - The company generally earns a disproportionate share of its annual revenues in the second and third fiscal quarters due to the Christmas Spectacular and arena license fees from the New York Knicks and Rangers[25](index=25&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note details MSG Entertainment's key accounting policies, including consolidation, estimates, revenue recognition across various offerings, and the impact of recently issued accounting pronouncements - The company's revenue is categorized into 'Revenues from entertainment offerings' (service revenue), 'Food, beverage, and merchandise revenues' (product revenue), and 'Arena license fees and other leasing revenue' (lease revenue)[30](index=30&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk) - Revenue from entertainment offerings includes ticket sales, venue license fees, sponsorship, suite licenses, and advertising commissions[32](index=32&type=chunk) - Revenue from arena license fees and other leasing includes rental fees from agreements with MSG Sports for the Knicks and Rangers, and sublease income[39](index=39&type=chunk) - ASU 2023-07 (Improvement to Reportable Segment Disclosures) will be effective for Fiscal Year 2025, leading to changes in segment reporting disclosures[44](index=44&type=chunk) - ASU 2023-09 (Improvements to Income Tax Disclosures) will be effective for Fiscal Year 2026, requiring more detailed income tax disclosures[45](index=45&type=chunk) [Note 3. Revenue Recognition](index=16&type=section&id=Note%203.%20Revenue%20Recognition) This section disaggregates revenues by category, details contract balances like receivables and deferred revenue, and outlines remaining performance obligations from long-term agreements Revenue by Category (in thousands) | Revenue Category | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :------------------------------------------------ | :----------------------------------------------- | :---------------------------------------------- | | Total revenues from entertainment offerings | $160,214 | $593,571 | | Food, beverage, and merchandise revenues | $45,808 | $124,104 | | Arena license fees and other leasing revenue | $36,443 | $70,921 | | **Total revenues** | **$242,465** | **$788,596** | Contract Balances (in thousands) | Contract Balance | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Receivables from contracts with customers, net | $93,877 | $74,113 | | Contract assets, current | $8,812 | $7,844 | | Deferred revenue, including non-current portion | $238,293 | $215,581 | - As of March 31, 2025, remaining performance obligations under contracts totaled **$577,885 thousand**, with **40%** expected to be recognized over the next two years and **60%** thereafter, primarily from sponsorship and suite license agreements[54](index=54&type=chunk) [Note 4. Restructuring Charges](index=18&type=section&id=Note%204.%20Restructuring%20Charges) The company recognized minimal restructuring charges for termination benefits in the current fiscal year, a significant decrease from the prior year's substantial workforce reduction expenses Restructuring Charges (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :-------------------- | :----------------------------------------------- | :---------------------------------------------- | | Restructuring charges | $84 | $14 | | Restructuring charges (prior year) | $2,362 | $14,803 | - The restructuring liability was reduced to **$0** as of March 31, 2025, from **$7,140 thousand** as of June 30, 2024[55](index=55&type=chunk) [Note 5. Investments](index=18&type=section&id=Note%205.%20Investments) This note details the company's equity investments, primarily in Townsquare Media and Executive Deferred Compensation Plan trusts, summarizing realized and unrealized gains and losses Investment Portfolio (in thousands) | Investment Type | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------------------------------------------------------------ | :---------------------------------- | :--------------------------------- | | Townsquare Class A common stock | $1,031 | $1,438 | | Other equity investments with readily determinable fair values held in trust | $4,737 | $4,226 | | Equity method investments and equity investments without readily determinable fair values | $783 | $656 | | **Total investments** | **$6,551** | **$6,320** | Realized and Unrealized (Loss) Gain (in thousands) | Realized/Unrealized (Loss) Gain | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :---------------------------------------------- | | Unrealized (loss) gain — Townsquare | $(120) | $(357) | | Unrealized (loss) gain — Executive Deferred Compensation Plan | $(45) | $149 | | Realized gain from shares sold — Townsquare | $0 | $5 | | **Total realized and unrealized (loss) gain** | **$(165)** | **$(203)** | - In the nine months ended March 31, 2024, the company recognized a realized gain of **$1,548 thousand** from the sale of DraftKings shares, with cash proceeds of **$12,844 thousand**[61](index=61&type=chunk) [Note 6. Property and Equipment, Net](index=19&type=section&id=Note%206.%20Property%20and%20Equipment%2C%20Net) This note breaks down the company's net property and equipment, including land, buildings, and leasehold improvements, and reports associated depreciation and amortization expenses Property and Equipment, Net (in thousands) | Asset Category | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Land | $62,768 | $62,768 | | Buildings | $1,015,673 | $1,011,308 | | Equipment, furniture, and fixtures | $358,211 | $348,075 | | Leasehold improvements | $164,178 | $133,267 | | Construction in progress | $567 | $10,193 | | Total Property and equipment | $1,601,397 | $1,565,611 | | Less: accumulated depreciation and amortization | $(974,415) | $(932,078) | | **Property and equipment, net** | **$626,982** | **$633,533** | Depreciation and Amortization Expense (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :---------------------------------------------- | | Depreciation and amortization expense | $14,372 | $42,336 | | Depreciation and amortization expense (prior year) | $13,182 | $39,972 | [Note 7. Goodwill and Intangible Assets](index=20&type=section&id=Note%207.%20Goodwill%20and%20Intangible%20Assets) This note reports the carrying amounts of goodwill and indefinite-lived intangible assets, confirming no impairment charges were identified in Fiscal Year 2025 Goodwill and Indefinite-Lived Intangible Assets (in thousands) | Asset Category | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Goodwill | $69,041 | $69,041 | | Trademarks | $61,881 | $61,881 | | Photographic related rights | $1,920 | $1,920 | | **Total indefinite-lived intangible assets** | **$63,801** | **$63,801** | - No impairments of Goodwill or Indefinite-lived intangible assets were identified during the annual qualitative impairment test in the first quarter of Fiscal Year 2025[63](index=63&type=chunk) [Note 8. Commitments and Contingencies](index=20&type=section&id=Note%208.%20Commitments%20and%20Contingencies) This note discusses contractual obligations and legal matters, confirming no material changes to non-cancelable obligations and full repayment of a related party loan, with no anticipated material adverse effect from lawsuits - No material changes in non-cancelable contractual obligations occurred during the nine months ended March 31, 2025, beyond ordinary course activities[65](index=65&type=chunk) - The **$65,000 thousand** Delayed Draw Term Loan Facility with Sphere Entertainment was fully drawn and repaid in Fiscal Year 2024[66](index=66&type=chunk) - Management does not believe that the resolution of current lawsuits will have a material adverse effect on the company[67](index=67&type=chunk) [Note 9. Credit Facilities](index=21&type=section&id=Note%209.%20Credit%20Facilities) This note details the National Properties Facilities, including a $650 million term loan and $150 million revolving credit facility, outlining balances, interest rates, and compliance with financial covenants Debt Carrying Value (in thousands) | Metric | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Current portion of long-term debt | $28,438 | $16,250 | | Long-term debt, net of deferred financing costs | $577,409 | $599,248 | | **Total carrying value of debt** | **$613,438** | **$625,625** | - The National Properties Facilities consist of a **$650,000 thousand** senior secured term loan facility and a **$150,000 thousand** revolving credit facility, maturing on June 30, 2027[69](index=69&type=chunk)[71](index=71&type=chunk) - As of March 31, 2025, the company had **$131,633 thousand** of available borrowing capacity under the National Properties Revolving Credit Facility, and the interest rate on the facilities was **6.92%**[69](index=69&type=chunk)[70](index=70&type=chunk) - MSG National Properties and its restricted subsidiaries were in compliance with all financial covenants (minimum liquidity, debt service coverage ratio, maximum total leverage ratio) as of March 31, 2025[72](index=72&type=chunk) [Note 10. Pension Plans and Other Postretirement Benefit Plans](index=22&type=section&id=Note%2010.%20Pension%20Plans%20and%20Other%20Postretirement%20Benefit%20Plans) This note details net periodic benefit costs for pension and postretirement plans, contributions to qualified plans, defined contribution expenses, and Executive Deferred Compensation Plan assets and liabilities Net Periodic Benefit Costs and Expenses (in thousands) | Metric | Nine Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net periodic cost for Pension Plans | $2,521 | $2,535 | | Net periodic cost for Postretirement Plan | $122 | $90 | | Savings Plans expenses | $6,352 | $5,825 | | Union Savings Plan expenses | $1,092 | $621 | - The company contributed **$3,300 thousand** to a non-contributory, qualified cash balance retirement plan for non-union employees during the nine months ended March 31, 2025[82](index=82&type=chunk) Deferred Compensation Plan (in thousands) | Deferred Compensation Plan | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Assets (included in Other non-current assets) | $4,737 | $4,226 | | Liabilities (included in Other non-current liabilities) | $(4,760) | $(4,226) | [Note 11. Share-based Compensation](index=25&type=section&id=Note%2011.%20Share-based%20Compensation) This note summarizes share-based compensation expense for RSUs and PSUs, fair value of vested awards, unrecognized compensation cost, and details on grants and vesting during the period Share-based Compensation Metrics (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :---------------------------------------------- | | Share-based compensation expense | $6,250 | $21,834 | | Share-based compensation expense (prior year) | $5,611 | $19,561 | | Fair value of awards vested | $1,130 | $37,028 | | Fair value of awards vested (prior year) | $2,004 | $31,155 | - As of March 31, 2025, there was **$40,672 thousand** of unrecognized compensation cost related to unvested RSUs and PSUs, expected to be recognized over approximately **2.0 years**[90](index=90&type=chunk) - During the nine months ended March 31, 2025, **484 RSUs** and **386 PSUs** were granted, while **542 RSUs** and **400 PSUs** vested[91](index=91&type=chunk) [Note 12. Related Party Transactions](index=27&type=section&id=Note%2012.%20Related%20Party%20Transactions) This note details transactions with related parties, including the Dolan Family Group, Sphere Entertainment, and MSG Sports, summarizing revenues and expenses, and noting changes in commercial agreements and related party status - The Dolan Family Group collectively beneficially owns **100%** of the company's Class B Common Stock and approximately **3.6%** of Class A Common Stock, representing about **64.1%** of the aggregate voting power[92](index=92&type=chunk) Related Party Revenues and Operating Credits (Expenses) (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Nine Months Ended March 31, 2025 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :---------------------------------------------- | | Revenues from related parties | $47,709 | $94,470 | | Total operating credits (expenses), net | $28,158 | $90,150 | - The commercial agreement with CPC for sponsorship sales services is being wound down following a termination notice on September 20, 2024[94](index=94&type=chunk) - 605, LLC is no longer considered a related party as of September 13, 2023, following its sale to iSpot.tv[95](index=95&type=chunk) [Note 13. Additional Financial Information](index=28&type=section&id=Note%2013.%20Additional%20Financial%20Information) This note provides supplementary financial details, including cash composition, prepaid expenses, other assets/liabilities, risk concentration, lease activities, stock repurchase program status, and income tax expenses Selected Financial Information (in thousands) | Metric | As of March 31, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :---------------------------------- | :--------------------------------- | | Cash, cash equivalents, and restricted cash | $89,474 | $33,555 | | Total prepaid expenses and other current assets | $101,756 | $90,801 | | Total other non-current assets | $140,910 | $110,283 | | Total accounts payable, accrued and other current liabilities | $175,470 | $203,750 | - In February 2025, the company recognized a right-of-use lease asset of **$116,963 thousand** and an additional lease obligation of **$115,335 thousand** for new office space, followed by a **$9,700 thousand** impairment[105](index=105&type=chunk) - The company repurchased **1,117,601 shares** of Class A Common Stock for **$39,692 thousand** (excluding excise tax) during the nine months ended March 31, 2025, with approximately **$70,000 thousand** remaining available under the Stock Repurchase Program[106](index=106&type=chunk)[202](index=202&type=chunk) - Income tax expense for the nine months ended March 31, 2025, was **$43,124 thousand** (effective tax rate of **40%**), significantly higher than **$397 thousand** (effective tax rate of **1%**) in the prior year, primarily due to state and local taxes, nondeductible officers' compensation, and the utilization of net operating losses[109](index=109&type=chunk)[110](index=110&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes MSG Entertainment's financial condition and results for the three and nine months ended March 31, 2025, covering business overview, factors affecting results, revenue/expense analysis, adjusted operating income, liquidity, capital resources, and seasonality [Introduction](index=31&type=section&id=Introduction) This introduction highlights that the MD&A contains forward-looking statements and specifies the company's fiscal year-end - The MD&A contains forward-looking statements that involve risks and uncertainties, and actual results may differ materially[111](index=111&type=chunk) - The company reports on a fiscal year basis ending on June 30th[114](index=114&type=chunk) [Business Overview](index=32&type=section&id=Business%20Overview) This section provides an overview of MSG Entertainment as a live entertainment company, its iconic venues, marquee content, and its status as an independent publicly traded entity - MSG Entertainment is a live entertainment company with iconic venues and marquee content, operating as a single reportable segment[119](index=119&type=chunk)[120](index=120&type=chunk) - The company's venues include The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre, and it produces the Christmas Spectacular[120](index=120&type=chunk) - The company became an independent publicly traded entity on April 21, 2023, following a distribution from Sphere Entertainment Co[122](index=122&type=chunk) [Factors Affecting Results of Operations](index=33&type=section&id=Factors%20Affecting%20Results%20of%20Operations) This section discusses key factors influencing operating results, including event attraction, MSG Sports agreements, Christmas Spectacular popularity, and potential impacts of economic conditions - Operating results are largely dependent on the ability to attract concerts and other events, revenues from agreements with MSG Sports, and the continuing popularity of the Christmas Spectacular[123](index=123&type=chunk) - Weak economic conditions, particularly in the New York City and Chicago metropolitan areas, could negatively affect demand for suite licenses, tickets, concessions, merchandise, sponsorship, and the number of events[124](index=124&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's revenues, expenses, operating income, and net income for the current and prior periods Results of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Change YoY (%) | Nine Months Ended March 31, 2025 (in thousands) | Change YoY (%) | | :------------------------------------------------------------------------------------------------ | :----------------------------------------------- | :------------- | :---------------------------------------------- | :------------- | | Total Revenues | $242,465 | 6% | $788,596 | 2% | | Revenues from entertainment offerings | $160,214 | 10% | $593,571 | 2% | | Food, beverage, and merchandise revenues | $45,808 | 1% | $124,104 | (3)% | | Arena license fees and other leasing revenue | $36,443 | (1)% | $70,921 | 9% | | Total Direct operating expenses | $(138,870) | 2% | $(433,653) | 3% | | Selling, general, and administrative expenses | $(52,112) | 3% | $(155,047) | (3)% | | Depreciation and amortization | $(14,372) | (9)% | $(42,336) | (6)% | | Impairment of long-lived assets | $(9,700) | NM | $(9,700) | NM | | Restructuring charges | $(84) | 96% | $(14) | 100% | | Operating income | $27,327 | 63% | $147,846 | 22% | | Net income | $8,036 | 188% | $64,608 | (16)% | - The increase in revenues from entertainment offerings for the three months was driven by higher revenues subject to sharing with MSG Sports (**$6,250 thousand**), Christmas Spectacular production (**$4,907 thousand**), and venue-related sponsorship/signage/suite fees (**$4,628 thousand**), partially offset by lower event-related revenues (**$3,601 thousand**)[130](index=130&type=chunk) - The decrease in food, beverage, and merchandise revenues for the nine months was primarily due to lower sales at concerts, partially offset by higher sales at other live entertainment/sporting events, Christmas Spectacular, and Knicks/Rangers games[142](index=142&type=chunk) - Operating income increased by **$10,524 thousand** for the three months and **$27,045 thousand** for the nine months, primarily due to increased revenues, decreased direct operating expenses, and lower restructuring charges, partially offset by increased impairment of long-lived assets[161](index=161&type=chunk) - Interest expense decreased by **$2,625 thousand** for the three months and **$4,963 thousand** for the nine months, mainly due to lower average borrowings and lower interest rates under the National Properties Facilities[163](index=163&type=chunk) - Income tax expense for the nine months ended March 31, 2025, was **$43,124 thousand** (**40%** effective rate), compared to **$397 thousand** (**1%** effective rate) in the prior year, reflecting state/local taxes, nondeductible officer compensation, and utilization of net operating losses[168](index=168&type=chunk)[169](index=169&type=chunk) [Adjusted Operating Income (Loss) ("AOI")](index=40&type=section&id=Adjusted%20operating%20income%20%28loss%29%20%28%22AOI%22%29) This section defines and reconciles Adjusted Operating Income (AOI), a non-GAAP measure used to evaluate the company's core operating performance - Adjusted Operating Income (AOI) is a non-GAAP financial measure used to evaluate the company's operating performance, excluding items such as depreciation, amortization, impairments, share-based compensation, and restructuring charges[171](index=171&type=chunk)[173](index=173&type=chunk) Adjusted Operating Income (in thousands) | Metric | Three Months Ended March 31, 2025 (in thousands) | Change YoY (%) | Nine Months Ended March 31, 2025 (in thousands) | Change YoY (%) | | :-------------------------------- | :----------------------------------------------- | :------------- | :---------------------------------------------- | :------------- | | Operating income | $27,327 | 63% | $147,846 | 22% | | Adjusted operating income | $57,871 | 50% | $223,792 | 13% | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's primary sources of liquidity, including cash, operating cash flows, and credit facilities, and analyzes changes in cash flows from operating, investing, and financing activities - Primary sources of liquidity include cash and cash equivalents, cash flows from operations, and available borrowing capacity under the National Properties Revolving Credit Facility[178](index=178&type=chunk) - As of March 31, 2025, the company had **$88,953 thousand** in unrestricted cash and cash equivalents, **$613,438 thousand** in total debt outstanding, and **$131,633 thousand** in available borrowing capacity under the National Properties Revolving Credit Facility[179](index=179&type=chunk) - Net cash provided by operating activities increased by **$31,254 thousand** for the nine months ended March 31, 2025, primarily due to an increase in net income (adjusted for non-cash items) and improved working capital[189](index=189&type=chunk) - Net cash used in investing activities decreased by **$53,246 thousand** to **$19,379 thousand**, primarily due to the absence of a loan to a related party under the delayed draw term loan facility[191](index=191&type=chunk) - Net cash used in financing activities decreased by **$27,466 thousand** to **$67,010 thousand**, mainly due to decreased principal debt repayments and stock repurchases[192](index=192&type=chunk) [Seasonality of Our Business](index=44&type=section&id=Seasonality%20of%20Our%20Business) This section explains the seasonal nature of the company's business, with a disproportionate share of revenues and operating income earned in the second and third fiscal quarters - The company generally earns a disproportionate share of its revenues and operating income in the second and third fiscal quarters[193](index=193&type=chunk) - This seasonality is driven by the Christmas Spectacular production and arena license fees from MSG Sports for the Knicks' and Rangers' home games at The Garden[193](index=193&type=chunk) [Recently Issued Accounting Pronouncements and Critical Accounting Estimates](index=44&type=section&id=Recently%20Issued%20Accounting%20Pronouncements%20and%20Critical%20Accounting%20Estimates) This section refers to Note 2 for recently issued accounting pronouncements and confirms no material changes to critical accounting estimates from the prior fiscal year - Recently issued accounting pronouncements are discussed in Note 2 to the financial statements[194](index=194&type=chunk) - There have been no material changes to the company's critical accounting estimates from those set forth in the 2024 Form 10-K[195](index=195&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to market risk disclosures from the 2024 Form 10-K and quantifies the impact of hypothetical interest rate increases on interest expense - There were no material changes to the disclosures regarding market risks in connection with the company's pension and postretirement plans from the 2024 Form 10-K[196](index=196&type=chunk) - A hypothetical **200 basis point** increase in floating interest rates as of March 31, 2025, would increase the company's interest expense on outstanding credit facilities by **$12,269 thousand** annually[197](index=197&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[198](index=198&type=chunk) - There were no material changes in the company's internal control over financial reporting during the fiscal quarter ended March 31, 2025[199](index=199&type=chunk) PART II - OTHER INFORMATION This section provides additional information beyond the financial statements, covering legal proceedings, equity security sales, and required exhibits [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits, but management does not anticipate a material adverse effect on its financial position from their resolution - The company is a defendant in various lawsuits[201](index=201&type=chunk) - Management does not believe that the resolution of these lawsuits will have a material adverse effect on the company[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section updates the share repurchase program, detailing Class A Common Stock repurchases during the period and the remaining authorization - The Board of Directors authorized a share repurchase program of up to **$250 million** of Class A Common Stock on March 29, 2023[202](index=202&type=chunk) - During the nine months ended March 31, 2025, the company repurchased **1,117,601 shares** of Class A Common Stock for approximately **$40 million**[202](index=202&type=chunk) - As of March 31, 2025, approximately **$70 million** remained available for repurchases under the Stock Repurchase Program[202](index=202&type=chunk) - In March 2025, **436,008 shares** were repurchased at an average price of **$33.70 per share**[203](index=203&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications, an employment agreement, and iXBRL-formatted financial statements - The exhibits include certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[206](index=206&type=chunk) - An Employment Agreement dated April 7, 2025, between Madison Square Garden Entertainment Corp. and David Collins is included as Exhibit 10.1[206](index=206&type=chunk) - The condensed consolidated financial statements are formatted in Inline Extensible Business Reporting Language (iXBRL)[206](index=206&type=chunk)