Company Overview - Madison Square Garden Sports Corp. is a leading owner and operator of major professional sports franchises, including the New York Knicks and New York Rangers, leveraging its iconic brands to drive revenue from media, sponsorship, and merchandising [6][8] - The company has a market capitalization of $6.73 billion and reported a revenue of $1.07 billion for the trailing twelve months (TTM), with a net income of -$16.56 million [4] Recent Developments - On February 10, 2026, Reinhart Partners disclosed a new position in Madison Square Garden Sports Corp., acquiring 214,891 shares valued at approximately $55.59 million based on quarterly average pricing [1][2] - This acquisition represents 1.66% of Reinhart Partners' 13F reportable assets under management [3] Stock Performance - As of February 10, 2026, shares of MSGS were priced at $279.76, reflecting a 34.3% increase over the past year, outperforming the S&P 500 by 19.92 percentage points [3] - Over the last five years, MSGS stock has advanced by 63%, with significant gains occurring in the last year [10]

Core Viewpoint - Morgan Stanley analyst Benjamin Swinburne has raised the price target for MSG Sports (MSGS) to $295 from $220 while maintaining an Equal Weight rating on the shares, indicating a positive outlook on the stock's performance [1]. Financial Performance - Q2 results for MSG Sports were in-line with expectations, showcasing strong per game spending at Madison Square Garden [1]. Market Sentiment - The firm perceives a balanced risk-reward scenario for MSG Sports shares, which have appreciated over 35% in the last six months [1].

Financial Performance - Revenues for the three months ended December 31, 2025, increased by $45,665,000, or 13%, to $403,424,000 compared to $357,759,000 for the same period in 2024[157] - Operating income for the three months ended December 31, 2025, improved by $8,865,000, or 67%, reaching $22,180,000 compared to $13,315,000 in the same period of 2024[157] - Net income for the three months ended December 31, 2025, was $8,243,000, an increase of $7,132,000 compared to a net income of $1,111,000 in the prior year[157] - Revenues increased by $45,665, or 13%, to $403,424 for the three months ended December 31, 2025, and by $31,812, or 8%, to $442,878 for the six months ended December 31, 2025 compared to the prior year period[158] - Adjusted operating income for the three months ended December 31, 2025, increased by $9,435, or 47%, to $29,674 compared to the prior year period, primarily due to higher revenues[188] Operating Expenses - Direct operating expenses for the three months ended December 31, 2025, rose by $35,636,000, or 13%, totaling $311,389,000 compared to $275,753,000 in the prior year[157] - Selling, general and administrative expenses for the three months ended December 31, 2025 increased by $1,165, or 2%, to $69,065 compared to the prior year period[173] - Direct operating expenses increased by $35,636, or 13%, to $311,389 for the three months ended December 31, 2025, and by $35,704, or 13%, for the six months ended December 31, 2025 compared to the prior year period[165] - For the six months ended December 31, 2025, adjusted operating income decreased by $9,114, or 51%, to $8,867 compared to the prior year period, mainly due to higher direct operating expenses[189] Cash Flow and Financing - Net cash used in operating activities for the six months ended December 31, 2025, was $52,509, compared to net cash provided by operating activities of $35,621 in the prior year period[199] - The company reported a net loss of $555 for the six months ended December 31, 2025, compared to a net loss of $6,431 in the prior year[198] - Net cash used in investing activities for the six months ended December 31, 2025, was $2,743, an increase of $441 compared to the prior year period due to higher capital expenditures[200] - Net cash used in financing activities for the six months ended December 31, 2025, was $16,634, an increase of $4,261 compared to the prior year period primarily due to payments for financing costs[201] - As of December 31, 2025, the company had $81,302 in cash and cash equivalents and $408,000 of additional available borrowing capacity under existing credit facilities[194] Media Rights and Revenue Impact - Media rights fees revenues for the three and six months ended December 31, 2025, were recorded at reduced rates due to amendments in media rights agreements, including a 28% reduction for the Knicks and an 18% reduction for the Rangers effective January 1, 2025[155] - The decrease in revenues from local media rights fees was primarily due to amendments to the Knicks' and Rangers' local media rights agreements, resulting in stated annual local media rights fees of $139,237 for the fiscal year ending June 30, 2026, down from $162,939 for the prior fiscal year[164] - The increase in revenues from league distributions was primarily due to increased rights fees under the NBA's new national media rights agreements, which began with the 2025-26 NBA regular season[159] Miscellaneous Income and Economic Conditions - The Company recorded a miscellaneous income of $13,579,000 for the six months ended December 31, 2025, compared to a loss of $7,735,000 in the prior year, reflecting a significant improvement[157] - The Company anticipates that general economic conditions in the New York City metropolitan area will continue to affect demand for suite licenses and tickets, impacting overall revenues[151] - The Company expects to continue to incur significant expenses related to player salaries and other personnel costs, which may impact future operating results[150] Game Attendance - The Knicks played 20 home games at The Garden during the three months ended December 31, 2025, compared to 17 games in the same period of 2024, while the Rangers played 19 games in 2025 versus 18 games in 2024[154] Debt and Obligations - The company had $267 million of borrowings outstanding under its credit facilities as of December 31, 2025, with a potential interest expense increase of approximately $2.7 million from a hypothetical 100 basis point increase in floating interest rates[213] - The company's deferred revenue obligations as of December 31, 2025, were $205,141, primarily related to tickets and suites[192] Impairment Testing - The company performed its most recent annual impairment test of goodwill and identifiable indefinite-lived intangible assets during the first quarter of fiscal year 2026, with no impairments identified[206][210]

Financial Data and Key Metrics Changes - For the fiscal 2026 second quarter, MSG Sports generated revenues of approximately $403 million, an increase from $357.8 million in the prior year period, reflecting a year-over-year growth of approximately 12.5% [12] - Adjusted Operating Income for the quarter was approximately $30 million, up from $20.3 million, indicating a significant increase in profitability [4][14] - Event-related revenues increased by 20% year-over-year to $167.2 million, while suites and sponsorship revenues rose by 24% to $98.5 million [13] Business Line Data and Key Metrics Changes - Per-game revenues across all in-game categories, including ticketing, suites, sponsorship, and food, beverage, and merchandise, showed positive momentum compared to the fiscal 2025 second quarter [4] - The Knicks' and Rangers' combined season ticket renewal rate was approximately 94%, indicating strong fan engagement [5] - The company introduced new merchandise collections, which contributed to higher per-cap spending on food, beverage, and merchandise during the quarter [7] Market Data and Key Metrics Changes - National media rights fees decreased by 4% year-over-year to $122.3 million, primarily due to amended local media rights agreements, partially offset by higher national media rights fees from new deals [13][9] - The company is focused on maintaining strong relationships with local media partners, which is crucial for fan engagement in the New York market [28] Company Strategy and Development Direction - MSG Sports is focused on driving long-term value for shareholders through strategic investments in its teams and optimizing pricing and sales strategies [4][11] - The company is enhancing its marketing partnerships, having signed new multi-year agreements with several brands, which is expected to contribute to revenue growth [8][39] - The company is also investing in premium hospitality offerings, with strong demand for suite renewals and new sales [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strong fundamentals and the ongoing consumer and corporate demand for its offerings [11] - The company is optimistic about the upcoming Olympic Winter Games and the continued momentum from the Knicks' playoff run [10] - Management acknowledged the evolving landscape of regional sports networks (RSN) and remains focused on delivering tailored local content to fans [28] Other Important Information - The company refinanced its senior secured revolving credit facilities, improving borrowing rates and extending maturity to November 2030 [16] - As of the end of the quarter, the company had a cash balance of approximately $81 million and a debt balance of $291 million [16] Q&A Session Summary Question: Update on potential capital returns given current cash and debt balances - Management stated that capital allocation decisions consider various factors, with a focus on maintaining liquidity and a strong balance sheet, while not ruling out future capital return programs [18][20] Question: Potential for a minority interest sale - Management confirmed no current plans for a minority interest sale but acknowledged the value of their teams and the possibility in the future [22][23] Question: Impact of upcoming changes to tax deductibility of compensation - Management is assessing the impact of changes in tax regulations but has no further updates at this time [24] Question: Outlook on the evolving RSN and local media rights landscape - Management believes in the value of local media coverage and is focused on maintaining strong relationships with MSG Networks [27][28] Question: Financial impact of the Rangers' performance on future results - Management noted strong growth in all in-game revenue categories and emphasized the importance of playoff runs for additional revenue opportunities [32][34] Question: Opportunities for sponsorship growth and suite upgrades - Management highlighted positive momentum in marketing partnerships and premium hospitality, with strong demand for suite renewals and new sales [38][39]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, MSG Sports generated revenues of approximately $403 million, an increase from $357.8 million in the prior year period, reflecting a year-over-year growth of about 12.5% [12][4] - Adjusted Operating Income (AOI) for the quarter was approximately $30 million, up from $20.3 million, indicating a significant increase in profitability [4][14] - Event-related revenues increased by 20% year-over-year to $167.2 million, while suites and sponsorship revenues rose by 24% to $98.5 million [13][12] - National and local media rights fees decreased by 4% year-over-year to $122.3 million, primarily due to amended local media rights agreements [13][9] Business Line Data and Key Metrics Changes - Per-game revenues across all in-game categories, including ticketing, suites, sponsorship, and food, beverage, and merchandise, showed positive momentum compared to the previous fiscal year [4][5] - The Knicks' and Rangers' combined season ticket renewal rate was approximately 94%, reflecting strong fan engagement [5] - The company introduced new merchandise collections, which contributed to higher per-cap spending on food, beverage, and merchandise during the quarter [7][8] Market Data and Key Metrics Changes - The company is benefiting from higher national media rights fees due to the NBA's new national media deals, which began this season [9][4] - The Knicks' preseason games included international exposure with games held in Abu Dhabi, enhancing global fan engagement [10] Company Strategy and Development Direction - MSG Sports is focused on optimizing pricing and sales mix to maximize revenues for each game, alongside celebrating the Rangers' centennial season to enhance fan engagement [5][6] - The company is committed to maintaining strong marketing partnerships, having signed new multi-year agreements with brands like Game 7, PwC, and Polymarket [8][39] - MSG Sports aims to drive long-term value for shareholders through strategic capital allocation and maintaining a strong balance sheet [20][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strong fundamentals and robust consumer demand, despite challenges in the sports landscape [11][4] - The company is monitoring the evolving RSN and local media rights landscape, emphasizing the importance of local media coverage in driving fan engagement [28][27] - Management remains optimistic about the potential for playoff runs to enhance financial performance, particularly through incremental home games [33][34] Other Important Information - The company refinanced its senior secured revolving credit facilities, improving borrowing rates and extending maturity to November 2030 [16][15] - As of the end of the quarter, MSG Sports had a cash balance of approximately $81 million and a debt balance of $291 million [16] Q&A Session Summary Question: Update on potential capital returns given current cash and debt balances - Management stated that capital allocation decisions consider various factors, with a focus on maintaining liquidity and a strong balance sheet, while not ruling out future capital return programs [18][20] Question: Is a minority interest sale a potential option? - Management indicated no current news on a minority interest sale but acknowledged the value of their teams and the potential for such a sale in the future [22][23] Question: Impact of upcoming changes to tax deductibility of compensation - Management is assessing the impact of changes in tax regulations but has no further information to share at this time [24][24] Question: Outlook on the evolving RSN and local media rights landscape - Management emphasized the importance of local media coverage and their confidence in the value of their media rights agreements, which run through the end of the 2028-2029 seasons [27][28] Question: Potential impact of Rangers' performance on financials - Management noted that the business remains strong despite performance concerns, with growth in all in-game revenue categories and a focus on maximizing the current season's success [32][33] Question: Opportunities for sponsorship growth and suite upgrades - Management highlighted strong momentum in marketing partnerships and premium hospitality, with ongoing renovations and new deals contributing to revenue growth [38][39]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, MSG Sports generated revenues of approximately $403 million, an increase from $357.8 million in the prior year period, reflecting a year-over-year growth of about 12.3% [4][11] - Adjusted Operating Income (AOI) for the quarter was approximately $30 million, up from $20.6 million, marking an increase of $9.4 million year-over-year [4][12] - Event-related revenues increased by 20% year-over-year to $167.2 million, while suites and sponsorship revenues rose by 24% to $98.5 million [12] Business Line Data and Key Metrics Changes - Per-game revenues across all in-game categories, including ticketing, suites, sponsorship, and food, beverage, and merchandise, saw increases compared to Q2 fiscal 2025 [4] - The Knicks' and Rangers' combined season ticket renewal rate was approximately 94%, indicating strong fan engagement [5] - Merchandise sales during the quarter reached some of the highest levels in each team's history, driven by new product launches and partnerships [6] Market Data and Key Metrics Changes - National and local media rights fees totaled $122.3 million, a decrease of 4% year-over-year, primarily due to amended local media rights agreements with MSG Networks [12] - The company is benefiting from higher national media rights fees due to the NBA's new national media deals, which began this season [8] Company Strategy and Development Direction - The company remains focused on driving long-term value for shareholders through strategic investments in its teams and optimizing pricing and sales mix [4] - MSG Sports is enhancing its marketing partnerships, having signed new multi-year agreements with brands like Game 7, PwC, and Polymarket, while renewing contracts with Anheuser-Busch and Infosys [7][38] - The company is also investing in premium hospitality, with strong sales and renewals for suites at The Garden, supported by recent renovations [7][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's strong fundamentals and robust consumer and corporate demand, despite the Rangers' performance on the ice [10][32] - The company is monitoring playoff standings closely, as postseason participation can significantly impact financial performance through additional home games and ticket pricing strategies [32] - Management is optimistic about the upcoming Olympic Winter Games, where several Rangers players will compete, and the Knicks' continued momentum from last season's playoff run [9] Other Important Information - The company refinanced its senior secured revolving credit facilities, improving borrowing rates and extending maturity to November 2030 [14] - As of the end of the quarter, MSG Sports had a cash balance of approximately $81 million and a debt balance of $291 million [14] Q&A Session Summary Question: Update on potential capital returns given current cash and debt balances - Management stated that capital allocation decisions consider various factors, maintaining liquidity for operations and investments, with no immediate changes to outstanding borrowings [16][17] Question: Is a minority interest sale a potential option? - Management confirmed no current news on a minority interest sale but acknowledged the value of their teams and the potential for such a sale in the future [20] Question: Impact of upcoming changes to tax deductibility of compensation - Management is assessing the impact of changes in tax regulations, effective for the year ending June 30, 2028, but has no further updates at this time [22] Question: Outlook on the evolving RSN and local media rights landscape - Management believes in the value of local media coverage and is confident in their partnership with MSG Networks, which runs through the end of the 2028-2029 seasons [26][27] Question: Financial impact of the Rangers' performance and potential playoff misses - Management noted strong business performance despite the Rangers' on-ice results, with growth in all in-game revenue categories and a focus on maximizing the current season's success [30][32] Question: Opportunities for sponsorship growth and suite upgrades - Management highlighted positive momentum in marketing partnerships and premium hospitality, with strong demand and new deals contributing to growth [36][38]

分组1 - Madison Square Garden (MSGS) reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.66 per share, representing an earnings surprise of -48.09% [1] - The company posted revenues of $403.42 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.62%, compared to year-ago revenues of $357.76 million [2] - Over the last four quarters, Madison Square Garden has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has gained approximately 11.1% since the beginning of the year, outperforming the S&P 500's gain of 0.5% [3] - The current consensus EPS estimate for the coming quarter is $0.67 on revenues of $424.55 million, and for the current fiscal year, it is -$0.64 on revenues of $996.41 million [7] - The Leisure and Recreation Services industry, to which Madison Square Garden belongs, is currently in the bottom 28% of the Zacks industries, indicating potential challenges ahead [8]

Financial Performance - For the fiscal 2026 second quarter, the company generated revenues of $403.4 million, an increase of $45.7 million, or 13%, compared to the prior year period[4] - Operating income for the fiscal 2026 second quarter was $22.2 million, an increase of $8.9 million, or 67%, compared to the prior year period[4] - Adjusted operating income for the fiscal 2026 second quarter was $29.7 million, an increase of $9.4 million, or 47%, compared to the prior year period[4] - Pre/regular season ticket-related revenues increased by $25.6 million, primarily due to additional games played at The Garden[8] - Revenues from league distributions increased by $18.6 million, driven by higher national media rights fees from new NBA agreements[9] - Suite revenues increased by $11.8 million, attributed to higher net sales of suite products and additional games played[9] - Sponsorship and signage revenues rose by $7.2 million, due to higher net sales of existing inventory and additional games played[10] Expenses and Liabilities - Direct operating expenses increased by $35.6 million, or 13%, primarily due to higher team personnel compensation and league revenue sharing expenses[13] - Local media rights fees decreased by $21.9 million, primarily due to amendments to local media rights agreements[12] - Total current liabilities rose to $641,609 thousand as of December 31, 2025, compared to $563,523 thousand as of June 30, 2025, reflecting an increase of approximately 13.9%[28] - Total liabilities amounted to $1,826,820 thousand as of December 31, 2025, an increase from $1,754,413 thousand as of June 30, 2025, which is an increase of about 4.1%[28] Assets and Equity - Total current assets increased to $299,560 thousand as of December 31, 2025, compared to $251,095 thousand as of June 30, 2025, representing a growth of approximately 19.3%[26] - Total assets reached $1,544,740 thousand as of December 31, 2025, up from $1,472,974 thousand as of June 30, 2025, indicating an increase of about 4.9%[26] - The accumulated deficit stood at $(138,175) thousand as of December 31, 2025, compared to $(137,596) thousand as of June 30, 2025, indicating a slight increase in the deficit[28] - The company reported a total equity of $(282,080) thousand as of December 31, 2025, compared to $(281,439) thousand as of June 30, 2025[28] - The company had a total of 19,540 shares of Class A Common Stock outstanding as of December 31, 2025, slightly up from 19,488 shares as of June 30, 2025[28] Cash Flow - Net cash used in operating activities was $(52,509) thousand for the six months ended December 31, 2025, compared to $35,621 thousand for the same period in 2024[30] - Cash, cash equivalents, and restricted cash decreased to $81,302 thousand at the end of the period from $153,188 thousand at the beginning, marking a decline of approximately 47.1%[30] - Net cash used in investing activities was $(2,743) thousand for the six months ended December 31, 2025, compared to $(2,302) thousand for the same period in 2024[30] Outlook - The company remains well-positioned to drive long-term shareholder value, supported by strong consumer and corporate demand[4]

Core Insights - Madison Square Garden Sports Corp. has announced a new partnership with Polymarket, designating it as the Official Prediction Market Partner of the New York Rangers [1] - Polymarket will be the exclusive prediction markets partner for the Rangers, featuring prominently during games at Madison Square Garden [1] Partnership Details - The partnership will include various activations such as LED signage, on-ice contests, concourse activations, and digitally-enhanced dasherboard signage during local games [1]

Core Insights - Sports investing is experiencing unprecedented growth, with record prices being paid for professional sports teams [1] - Madison Square Garden Sports, which owns the New York Knicks and New York Rangers, is not participating in this trend [1] Company Summary - Madison Square Garden Sports is highlighted as an outlier in the current sports investment landscape [1] - The company owns two major sports franchises, the New York Knicks (NBA) and the New York Rangers (NHL) [1]