Madison Square Garden Sports (MSGS) - 2026 Q1 - Quarterly Results

Financial Performance - For the fiscal 2026 first quarter, the company generated revenues of $39.5 million, a decrease of $13.9 million, or 26%, compared to the prior year period[2][3][6]. - The company reported an operating loss of $27.4 million, an increase of $19.2 million, and an adjusted operating loss of $20.8 million, an increase of $18.5 million, both compared to the prior year period[2][9]. - Revenues from league distributions decreased by $11.4 million, primarily due to a decrease in certain league distributions unrelated to national media rights fees[6]. - Local media rights fees decreased by $2.3 million compared to the prior year period, mainly due to amendments to local media rights agreements[6]. - Selling, general and administrative expenses increased by $5.2 million, or 10%, compared to the prior year period, driven by higher costs related to services agreements and employee compensation[8]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $48.6 million from $144.6 million as of June 30, 2025[21]. - Net cash used in operating activities improved to $(26,158) thousand for the three months ended September 30, 2025, compared to $(84,954) thousand for the same period in 2024, indicating a significant reduction in cash outflow[25]. - Cash, cash equivalents, and restricted cash decreased to $57,276 thousand at the end of the period, down from $153,188 thousand at the beginning of the period, marking a net decrease of $95,912 thousand[25]. - Net cash used in investing activities was $(1,848) thousand for the three months ended September 30, 2025, compared to $(1,163) thousand for the same period in 2024, reflecting an increase in investment outflows[25]. - Net cash used in financing activities was $(9,110) thousand for the three months ended September 30, 2025, slightly improved from $(9,502) thousand in the same period of 2024[25]. - The total decrease in cash, cash equivalents, and restricted cash for the quarter was $95,912 thousand, compared to a decrease of $36,823 thousand in the same quarter of the previous year[25]. Balance Sheet and Liabilities - Total current liabilities increased to $637,324 thousand as of September 30, 2025, up from $563,523 thousand as of June 30, 2025, representing a 13.1% increase[23]. - Total liabilities rose to $1,811,580 thousand as of September 30, 2025, compared to $1,754,413 thousand as of June 30, 2025, reflecting a 3.3% increase[23]. - Total equity showed a decline to $(294,178) thousand as of September 30, 2025, compared to $(281,439) thousand as of June 30, 2025, indicating a worsening financial position[23]. - Deferred revenue increased significantly to $330,587 thousand as of September 30, 2025, compared to $164,178 thousand as of June 30, 2025, representing a 101.5% increase[23]. - Employee-related costs accrued decreased to $56,551 thousand as of September 30, 2025, down from $98,924 thousand as of June 30, 2025, indicating a reduction of 42.8%[23]. Business Operations and Initiatives - The combined average season ticket renewal rate for the Knicks and Rangers is approximately 94% for the 2025-26 seasons[5]. - The company announced a new multi-year marketing partnership with GAME 7, naming it the first-ever jersey patch partner of the Rangers[5]. - The suites business continues to benefit from strong renewals and new sales activity, including for recently renovated Lexus-level suites at The Garden[5]. - The Rangers began a year-long campaign to celebrate the team's 100th anniversary season, with special offerings and initiatives planned[5].