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David Collins, EVP & CFO, confirmed that the company expects to increase total events in fiscal 2026, with concert bookings pacing ahead of the prior year. He noted they are 80% to their bookings goal at The Garden. While special events face a tough comparison due to the prior year's SNL 50th anniversary, overall growth will be driven by concerts, family shows (like the return of Cirque du Soleil), and marquee sports.

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Executive Ari Danes addressed the tax exemption, emphasizing the Garden's economic importance, the prevalence of subsidies for other major NY sports venues, and the fact that any repeal requires state legislative action. On Penn Station, Interim CFO Lee Weinberg stated that MSGE is committed to improving the area and is in close collaboration with stakeholders, but had no further updates.

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Michael Grau, EVP and CFO, clarified that the year-over-year decline in per caps was not due to consumer weakness but was a direct result of a difficult comparison against the prior year, which featured high-spending acts like Phish and Dave Chappelle. He noted that Q1 per caps were actually up versus the full-year fiscal '24 average and that sell-through rates and Christmas Spectacular demand remain very strong.

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President & CEO Michael Rapino clarified that there is no new specific strategy for festival naming rights, as festivals have always been a key asset for sponsorship. President & CFO Joe Berchtold stated that capital will continue to be deployed into high-return venue investments and projected the OCESA deal would reduce NCI by about $50 million in 2026, freeing up cash for reinvestment.

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President and CEO Michael Rapino clarified that there is no new strategy and that festivals and venues have always been key assets for sponsorship. President and CFO Joe Berchtold stated that capital deployment remains focused on venues and projected the OCESA transaction would reduce NCI by about $50 million on a P&L basis in 2026, freeing up cash for reinvestment.

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President and CFO Joe Berchtold attributed the per-fan growth to the scale of activity relative to the cost structure. President and CEO Michael Rapino noted that venue mix will likely continue to fluctuate due to factors like the World Cup or Olympics impacting stadium availability, but that overall global demand for stadium shows remains very strong.

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President and CEO Michael Rapino emphasized consistency in strategy, citing global expansion into untapped markets as the key long-term driver. President and CFO Joe Berchtold linked the increased CapEx directly to this growth, stating the company sees attractive, high-ROI opportunities in global venues, especially international arenas. He noted that while project timelines vary, this spending is fundamental to expanding the fan base and delivering future AOI growth.

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President and CEO Michael Rapino clarified that sponsorship growth is primarily from expanding relationships with the existing customer base. President and CFO Joe Berchtold explained the CapEx increase was a bookkeeping change from formalizing a venue partnership, with most capital coming from the partner. He also noted 14 new or refurbished venues are expected by the end of 2025.

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CEO Stan Chia acknowledged the evolution of consumer discovery, noting the company is paying close attention and partnering with Google to adapt its platform for AI-driven search. CFO Lawrence Fey clarified that the $25 million is a full-year annualized figure to be fully actioned by year-end, meaning it will layer in over the coming months and be fully realized in 2026 results.

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CEO Stan Chia reported that early signs from international expansion are positive, with the current focus on building scale across supply, demand, and infrastructure. He noted that while performance marketing remains a proportionally large channel, the company is actively investing in diversifying its marketing mix and building platform features like Game Center to drive long-term customer stickiness.

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CFO Larry Fey attributed the wide guidance to uncertainties in competitive intensity and the consumer outlook, providing flexibility to respond. For SkyBox Drive, Fey estimated a total addressable market of roughly $10 million in annual revenue if all current SkyBox users adopted the tool, noting that since costs are largely already in the P&L, new revenue would have a strong contribution margin.

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CFO Lawrence Fey clarified that headwinds were category-specific (softness in concerts vs. strength in sports) rather than seller-type specific. He also highlighted the performance marketing channel as being tougher due to competitor aggressiveness. CEO Stanley Chia noted the Oasis issue was U.K.-specific and reiterated Vivid Seats' commitment to consumer confidence through its buyer guarantee and customer service.

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CEO Jennifer Witz discussed using AI in customer service (Sierra) and for ad creation through a deal with Narrative to scale campaigns using approved talent voices. EVP & COO Wayne Thorsen added that AI is also used in search, marketing targeting, and content tagging. CFO Tom Barry reiterated that the capital allocation priorities are unchanged: reinvesting in the business, maintaining the dividend, deleveraging, and then share buybacks. He noted the recent buyback was opportunistic but the overall deleveraging focus remains.

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CEO Jennifer Witz stated the goal remains an 'every other year' cadence, but they will continue to evaluate and may raise prices on specific packages more frequently. She stressed the importance of offering a broad range of price points. CFO Thomas Barry addressed CapEx, confirming that satellite infrastructure is U.S.-sourced and non-satellite components have very limited tariff exposure, having been stress-tested by the team.

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CEO Jennifer Witz clarified that while the underlying subscriber business is expected to perform slightly better year-over-year, onetime impacts in the first half from initiatives like 'click to cancel' will result in a net decline. CFO Thomas Barry explained the EBITDA forecast is primarily driven by the projected revenue decline, which is only partially offset by cost savings initiatives and some cost increases like higher subscriber acquisition costs (SAC).

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CEO Jennifer Witz confirmed that the company remains on an 'every other year' trajectory for rate increases and is considering a price action for early next year, supported by recent value-adds to packages. CFO Tom Barry addressed sales and marketing, stating that analysis of campaign effectiveness is yielding efficiencies. He anticipates further improvements as the new tech platform provides more data for targeted and effective spending.

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