MADISON SQUARE GARDEN SPORTS CORP. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to _____________ Commission File Number: 1-36900 (Exact name of registrant as specified in its charter) | Nevada | 47-33 ...

Madison Square Garden Sports Corp. (NYSE:MSGS) Q4 2025 Earnings Conference August 12, 2025 10:00 AM ET Company Participants Ari Danes - Senior Vice President of Investor Relations & Treasury Jamaal T. Lesane - Chief Operating Officer Victoria M. Mink - Executive VP, CFO & Treasurer Conference Call Participants Brandon A Ross - LightShed Partners, LLC David Carl Joyce - Seaport Research Partners Joseph Robert Stauff - Susquehanna Financial Group, LLLP, Research Division Peter Lawler Supino - Wolfe Research, ...

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenues exceeding $1 billion and adjusted operating income of $38 million, driven by strong demand for the Knicks and Rangers [6][15] - The fourth quarter revenues were $204 million, a decrease from $227.3 million in the prior year, with event-related revenues down 8% year over year [16][18] - Adjusted operating income for the fourth quarter decreased to an operating loss of $16.8 million, primarily due to higher direct operating expenses [17][18] Business Line Data and Key Metrics Changes - Ticketing revenue increased due to higher average ticket yield and attendance, with a combined average season ticket renewal rate of approximately 90% [8][15] - Merchandise revenues, including online sales, did not reach last year's levels, attributed to the absence of New Jersey launches for the Rangers [9] - Suite revenues reached record levels, benefiting from expanded event-level club space and renovated suites [13] Market Data and Key Metrics Changes - The Knicks' playoff run to the Eastern Conference finals generated the highest per game gate revenues in team history [7] - The company expects an increase in overall media rights revenue in fiscal 2026, despite a $24 million decrease in local media rights fees due to amended agreements [40] Company Strategy and Development Direction - The company aims to drive long-term value for shareholders through its marquee assets and strong business fundamentals [6][14] - There is a focus on enhancing fan engagement through tailored local content and marketing partnerships, with several new partnerships established [12][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of owning two iconic sports franchises and noted that recent franchise transactions indicate strong market valuations [14][28] - The company anticipates revenue growth across all in-arena categories in fiscal 2026, supported by new national media deals and continued investment in teams [18][40] Other Important Information - The company ended the fiscal year with approximately $145 million in cash and $291 million in debt, indicating a strong liquidity position [18][24] - The NBA's new national media deals are expected to positively impact revenues starting in the upcoming season [11][40] Q&A Session Summary Question: Impact of MSG Networks media rights on capital returns - Management indicated a strong liquidity position and potential for future capital returns, but no immediate plans were disclosed [23][26] Question: Potential for minority stake sales in Knicks or Rangers - Management acknowledged the value of the teams but stated there are no current plans for minority stake sales [27][28] Question: Participation in NBA's national RSN possibilities - Management is monitoring changes in media rights but did not comment on hypothetical scenarios [31][32] Question: Financial impact of Knicks playoff games - Playoff runs significantly increase demand for tickets and corporate partnerships, with a notable increase in social media engagement [42][43] Question: Outlook on operating expenses and team compensation - Higher team operating expenses are expected due to increased personnel compensation and luxury tax, with the NBA salary cap also rising [50][51] Question: Sponsorship growth outlook - Management is optimistic about marketing partnerships and expects continued growth following a successful fiscal year [52][53]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenues exceeding $1 billion and adjusted operating income of $38 million, driven by strong demand for the Knicks and Rangers [5][15] - The fourth quarter revenues were $204 million, a decrease from $227.3 million in the prior year, primarily due to fewer home games [15][16] - Adjusted operating income for the fourth quarter decreased to an operating loss of $16.8 million, down from a profit of $56.5 million in the prior year [16][17] Business Line Data and Key Metrics Changes - Ticketing revenue increased due to higher average ticket yield and attendance, with a combined average season ticket renewal rate of approximately 90% [7][15] - Event-related revenues, including ticket, food, beverage, and merchandise, decreased by 8% year-over-year to $140.3 million [15][16] - Merchandise revenues did not reach last year's levels, impacted by the absence of new product launches compared to the previous year [8][15] Market Data and Key Metrics Changes - The Knicks' playoff run generated the highest per game gate revenues in team history, contributing to increased fan engagement and merchandise sales during the playoffs [6][9][45] - The company anticipates an increase in overall media rights revenue in fiscal 2026, despite a $24 million decrease in local media rights fees due to amended agreements [39][40] Company Strategy and Development Direction - The company is focused on leveraging its marquee assets and strong business fundamentals to drive long-term shareholder value [5][14] - Plans for fiscal 2026 include continued investment in teams and optimizing pricing strategies for ticket sales and hospitality offerings [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for their teams and the potential for revenue growth across all in-arena categories in fiscal 2026 [17][18] - The company is monitoring changes in the media rights landscape and believes local media coverage remains valuable for fan engagement [31][32] Other Important Information - The company ended the fiscal year with approximately $145 million in cash and $291 million in debt, indicating a strong liquidity position [17][23] - New marketing partnerships were established, including deals with Abu Dhabi's Department of Culture and Tourism and Lenovo, alongside renewals with existing partners [12][51] Q&A Session Summary Question: Impact of MSG Networks media rights rework on capital returns - Management indicated a strong liquidity position and potential for future capital return programs, but no immediate plans were disclosed [22][25] Question: Potential for minority stake sales in Knicks or Rangers - Management acknowledged the value of their teams but stated there are no current plans for minority stake sales [26][27] Question: Participation in NBA's national RSN possibilities - Management is monitoring changes in media rights but did not commit to any specific actions regarding future participation [30][31] Question: Financial impact of Knicks playoff games - Playoff runs significantly increase demand for tickets and merchandise, with the Knicks' playoff performance leading to record revenues [42][45] Question: Outlook on operating expenses and team compensation - Higher team operating expenses are expected due to increased personnel compensation and luxury tax, with the NBA salary cap also rising [49][50] Question: Sponsorship growth outlook - Management is optimistic about marketing partnerships and expects continued growth in fiscal 2026 following a successful prior year [51][52]

MADISON SQUARE GARDEN SPORTS CORP. REPORTS FISCAL 2025 FOURTH QUARTER AND FULL-YEAR RESULTS The fiscal 2025 fourth quarter was highlighted by the New York Knicks' (the "Knicks") participation in the NBA playoffs, which included nine home playoff games at the Madison Square Garden Arena ("The Garden") and culminated with the team's appearance in the Eastern Conference Finals. This compared to fifteen combined home playoff games for the Knicks and the New York Rangers (the "Rangers") in the prior year quarter ...

Industry Overview - The Leisure and Recreation Services industry is experiencing growth due to optimized business processes, consistent partnerships, and digital initiatives [1] - Strong demand for concerts, easing trade tensions, and robust bookings for cruise operators are supporting the industry [1][2] Cruise Industry - The cruise industry is benefiting from strong demand and increasing booking volumes, with solid pricing and onboard spending contributing positively [3] - Carnival Corporation & plc (CCL) is raising its full-year 2025 guidance due to sustained demand strength and operational efficiency [5][6] - CCL has an expected revenue growth rate of 5.4% and earnings growth rate of 38% for the current year [6] Theme Park Industry - The theme park industry is also seeing robust demand, with operators benefiting from improved visitation [3] Company Highlights - **Carnival Corporation & plc (CCL)**: Zacks Rank 2, benefiting from increased booking volumes and onboard revenues, with a P/E ratio of 15.1X compared to the industry average of 21.7X [5][7] - **Manchester United plc (MANU)**: Zacks Rank 1, expected revenue growth of 9.6% and earnings growth of 56.6% for the current year, with a potential upside of 50.1% from current brokerage targets [10][12][13] - **The Marcus Corporation (MCS)**: Zacks Rank 2, engaged in lodging and entertainment, with expected revenue growth of 5.2% and earnings growth of over 100% for the current year [14][15] - **Madison Square Garden Sports Corp. (MSGS)**: Zacks Rank 2, expected revenue growth of 6.5% and earnings growth of over 100% for the current year, with a potential price target increase of 24.8% [18][20] - **Pursuit Attractions and Hospitality Inc. (PRSU)**: Zacks Rank 1, expected revenue growth of 6.2% and earnings growth of 11% for the next year, with a potential price target increase of 44.4% [22][23][24]

Core Insights - Madison Square Garden (MSGS) reported a revenue of $424.2 million for the quarter ended March 2025, reflecting a decrease of 1.3% year-over-year [1] - The company's earnings per share (EPS) was -$0.59, a significant decline from $1.57 in the same quarter last year, indicating a surprise of -139.86% compared to the consensus EPS estimate of $1.48 [1] Revenue Breakdown - Event-related revenues amounted to $176.76 million, surpassing the average estimate of $174.04 million from three analysts [4] - League distributions and other revenues were reported at $10.20 million, falling short of the estimated $12.33 million [4] - Sponsorship, signage, and suite licenses generated $113.70 million, exceeding the average estimate of $105.05 million [4] - Media rights revenues were $123.54 million, below the expected $136.07 million [4] Stock Performance - Over the past month, Madison Square Garden's shares returned -0.3%, slightly better than the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Revenue Performance - Revenues decreased by $5,757, or 1%, to $424,197 for the three months ended March 31, 2025, while increasing by $35,365, or 4%, to $835,263 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - The company anticipates a continued impact on revenues from local media rights fees due to the proposed amendments to the media rights agreements with MSG Networks [159]. - Revenues from league distributions rose primarily due to increased national media rights fees, contributing to the overall revenue growth for the nine months ended March 31, 2025 [164]. Operating Income and Expenses - Operating income for the three months ended March 31, 2025 was $32,342, a decrease of $47,400 or 59%, and for the nine months ended March 31, 2025 was $37,384, a decrease of $56,351 or 60% compared to the prior year periods [158]. - Direct operating expenses increased by $43,309, or 16%, to $316,335 for the three months ended March 31, 2025, and by $91,528, or 18%, to $600,299 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Selling, general and administrative expenses decreased by $1,701, or 2%, to $74,697 for the three months ended March 31, 2025, while increasing by $164 to $195,184 for the nine months ended March 31, 2025 [174][175]. Net Income and Loss - The company recorded a net loss of $14,227 for the three months ended March 31, 2025, compared to a net income of $37,877 in the prior year period, representing a decrease of $52,104 [158]. - The company reported a net loss of $20,658 for the nine months ended March 31, 2025, compared to a net income of $33,280 for the same period in 2024 [197]. Cash Flow and Financial Position - As of March 31, 2025, the company had $96,536 in cash and cash equivalents and $258,000 of additional available borrowing capacity under existing credit facilities [194]. - Net cash provided by operating activities for the nine months ended March 31, 2025, improved by $58,104 to $41,884 compared to the prior year period, driven by changes in working capital assets and liabilities [198]. - The company experienced a net increase in cash, cash equivalents, and restricted cash of $10,129 for the nine months ended March 31, 2025 [197]. Interest Income and Expense - Interest income increased by $574, or NM, to $1,051 for the three months ended March 31, 2025, and by $1,056, or 68%, to $2,605 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Interest expense decreased by $1,901, or 27%, to $5,020 for the three months ended March 31, 2025, and by $4,607, or 22%, to $16,662 for the nine months ended March 31, 2025 [178][179]. Impairment and Intangible Assets - The company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year 2025, concluding there was no impairment [206]. - Identifiable indefinite-lived intangible assets amounted to $103,644 as of March 31, 2025, with no impairments identified during the latest annual impairment test [207]. Media Rights and Sponsorship - The New York Knicks' annual rights fee was reduced by 28%, while the New York Rangers' annual rights fee was reduced by 18% as part of the proposed amendments to media rights agreements [156]. - Sponsorship and signage revenues increased by $8,898 for the three months ended March 31, 2025, and by $11,602 for the nine months ended March 31, 2025 compared to the prior year periods [159]. - Suite revenues increased due to higher net sales of suite products, with a notable increase for the nine months ended March 31, 2025, attributed to one additional home game played [163].

Company Performance - Madison Square Garden (MSGS) reported a quarterly loss of $0.59 per share, significantly missing the Zacks Consensus Estimate of $1.48, and down from earnings of $1.57 per share a year ago, representing an earnings surprise of -139.86% [1] - The company posted revenues of $424.2 million for the quarter ended March 2025, which was 0.77% below the Zacks Consensus Estimate and a decrease from $429.95 million in the same quarter last year [2] - Over the last four quarters, Madison Square Garden has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - Madison Square Garden shares have declined approximately 14.6% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.97 on revenues of $122.84 million, and for the current fiscal year, it is $0.32 on revenues of $961.41 million [7] - The estimate revisions trend for Madison Square Garden is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Madison Square Garden belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5]

Core Viewpoint - Madison Square Garden Sports Corp. reported a decrease in revenues and operating income for the fiscal third quarter ended March 31, 2025, primarily due to lower local media rights fees and fewer games played compared to the previous year [4][7][15]. Financial Performance - For the fiscal 2025 third quarter, the company generated revenues of $424.2 million, a decrease of $5.8 million, or 1%, compared to the prior year period [4][7]. - Operating income was reported at $32.3 million, a decrease of $47.4 million, or 59%, while adjusted operating income was $36.9 million, down $51.8 million, or 58% [4][15]. - The nine-month period ended March 31, 2025, saw revenues increase to $835.3 million, up $35.4 million, or 4%, compared to the same period in the previous year [5]. Revenue Breakdown - Local media rights fees decreased by $18.6 million due to proposed amendments to the Knicks' and Rangers' local media rights agreements [8]. - Food, beverage, and merchandise sales fell by $2.5 million, attributed to lower average per-game revenue and fewer games played [9]. - Sponsorship and signage revenues increased by $8.9 million, driven by higher net sales of existing inventory [10]. - Suite revenues rose by $3.4 million, and revenues from league distributions increased by $2.4 million due to higher national media rights fees [11]. Expense Analysis - Direct operating expenses increased by $43.3 million, or 16%, primarily due to higher league revenue sharing expenses and team personnel compensation [13]. - Selling, general, and administrative expenses decreased by $1.7 million, or 2%, mainly due to lower employee compensation [14]. Other Developments - The company launched its 2025-26 Knicks and Rangers season ticket renewal initiative, which has seen strong demand [3]. - A Transaction Support Agreement was entered into to support proposed transactions aimed at reducing MSG Networks' debt, which includes amendments to local media rights agreements [16].