Madison Square Garden Sports (MSGS) - 2026 Q2 - Quarterly Results

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]