Executive Summary

Q1 FY26 revenue was $39.5M, down 26% YoY on lower league distributions (-$11.4M) and reduced local media fees post-MSG Networks amendments; operating loss widened to $(27.4)M; AOI loss was $(20.8)M .
Versus S&P Global consensus, MSGS slightly missed on revenue ($39.5M vs $41.4M estimate) but delivered a sizable EPS beat (($(0.37)) vs ($(0.92)) estimate), aided by positive “Miscellaneous income (expense), net” and controlled direct opex; estimates context below. Values marked with * from S&P Global.
Management highlighted robust demand indicators into the season: combined Knicks/Rangers season-ticket renewal ~94% and new Rangers jersey patch deal with GAME 7; suite renewals/sales remain strong .
Strategic backdrop from prior quarters persists: local media rights fee reductions executed in Q4 FY25 (Knicks −28%, Rangers −18%) and removal of escalators, partially offset by warrants for 19.9% of MSG Networks—an ongoing overhang/adjustment to the model .
Near-term catalysts: continued per-game revenue strength, Rangers centennial fan engagement, and sponsorship activations (e.g., Insomnia Cookies partnership), with seasonal deferred revenue build supporting cash flows .

What Went Well and What Went Wrong

What Went Well
- Season demand remained strong: ~94% combined renewal rate for Knicks and Rangers for 2025–26 .
- Commercial momentum: first-ever Rangers jersey patch partnership with GAME 7; suites renewals and new sales remain healthy .
- Management tone: “We remain confident in the value of owning these two marquee professional sports franchises and our ability to generate long-term shareholder value.” — James L. Dolan, Executive Chairman and CEO .
What Went Wrong
- Top-line pressure: revenue fell 26% YoY to $39.5M, primarily from an $11.4M decline in league distributions and $2.3M lower local media fees tied to amended MSG Networks agreements .
- Expense growth: SG&A rose $5.2M (+10%) driven by higher services agreement costs, operating leases, and compensation, widening operating loss to $(27.4)M .
- Cash usage: net cash used in operating activities was $(85.0)M in the quarter, reflecting seasonality and working capital dynamics early in the sports calendar .

Financial Results

P&L snapshot (oldest → newest)

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($M)	$424.2	$204.0	$39.5
Diluted EPS ($)	$(0.59)	$(0.07)	$(0.37)
Operating Income (EBIT) ($M)	$32.3	$(22.6)	$(27.4)
Net Income ($M)	$(14.2)	$(1.8)	$(8.8)
Adjusted Operating Income (Loss), AOI ($M)	$36.9	$(16.8)	$(20.8)
EBIT Margin %	7.6% (calc from )	−11.1% (calc from )	−69.4% (calc from )
Net Income Margin %	−3.4% (calc from )	−0.9% (calc from )	−22.3% (calc from )

Notes: Margins are computed from reported figures (citations reference base data).

Q1 FY26 YoY/Sequential comps

Metric	Q1 2025	Q4 2025	Q1 2026
Revenue ($M)	$53.3	$204.0	$39.5
YoY Change			−26%
QoQ Change			−80.6% (calc from )
Operating Loss ($M)	$(8.3)	$(22.6)	$(27.4)
AOI (Loss) ($M)	$(2.3)	$(16.8)	$(20.8)

Non-GAAP bridge (Q1 FY26)

Adjustment ($M)	Q1 2026
Operating Loss	$(27.4)
+ Depreciation & Amortization	$0.8
+ Share-based Compensation	$4.8
+ Deferred Comp Plan Liabilities Remeasurement	$1.0
= Adjusted Operating Loss (AOI)	$(20.8)

Balance sheet & liquidity snapshot

Metric	Jun 30, 2025	Sep 30, 2025
Cash & Cash Equivalents ($M)	$144.6	$48.6
Debt – Current ($M)	$24.0	$24.0
Debt – Long-Term ($M)	$267.0	$267.0
Deferred Revenue – Current ($M)	$164.2	$330.6
Total Assets ($M)	$1,473.0	$1,517.4

Segment breakdown: Not disclosed in Q1 FY26 press release/8-K; MSG Sports reports consolidated results .

KPIs

KPI	Q1 2026
Combined Knicks/Rangers Season Ticket Renewal Rate	~94%
Rangers Jersey Patch Partner	GAME 7 (multi-year)
Suites Activity	Strong renewals and new sales (Lexus-level renovations)

Guidance Changes

The company did not provide formal quantitative guidance for revenue, margins, OpEx, or other line items in Q1 FY26 materials; no updates were included in the 8-K/press release .

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance	FY26/Q2	N/A	No formal guidance provided	N/A

Earnings Call Themes & Trends

Note: No MSG Sports Q1 FY26 earnings call transcript was located. The only Q1 FY26 transcripts retrieved reference MSG Entertainment’s venues/productions (e.g., Christmas Spectacular) and are not applicable to MSG Sports; therefore, call themes/Q&A are excluded .

Quarterly narrative themes (from prior two quarters’ earnings materials and Q1 FY26 release)

Topic	Q3 2025 (Prev-2)	Q4 2025 (Prev-1)	Q1 2026 (Current)	Trend
Local media rights fees	Proposed amendments reduced expected fees; discussed as driver of lower local media revenue	Amendments executed: Knicks −28%, Rangers −18%; escalators removed; expiration reset to 2028–29; warrants for 19.9% of MSG Networks	Continued YoY pressure from local media (−$2.3M)	Negative carryover, now lapping
League distributions	Higher national media rights fees offset other items	Decreased YoY due to absence of ~$7M NHL territorial fee; partially offset by higher national media	Down $11.4M YoY (unrelated to national media rights fees)	Volatile, YoY headwind
Per-game revenues	Growth in average per-game revenue; sponsorship/premium hospitality strength	Per-game revenue growth continued despite fewer games	Season-ticket renewal ~94%; suites activity strong	Healthy demand indicators
Cost structure	Higher revenue sharing/luxury tax pressured opex	Direct opex up on personnel, revenue sharing/luxury tax	SG&A +$5.2M YoY; services agreement, leases, comp	Persistent cost pressure
Playoff exposure	Teams played 2 fewer reg-season games; Knicks in playoffs	9 Knicks home playoff games; Rangers did not qualify in quarter	Early season quarter; no playoffs	Seasonal cadence
Sponsorship/signage	Up YoY in Q3	Notable partnerships continued	Rangers jersey patch; Insomnia Cookies; Piece of Cake	Expanding inventory/partners

Management Commentary

“With the new seasons underway, we are seeing strong ongoing demand for the Knicks and Rangers to start the fiscal year. We remain confident in the value of owning these two marquee professional sports franchises and our ability to generate long-term shareholder value.” — James L. Dolan, Executive Chairman & CEO .
“We are looking forward to the celebration of the Rangers Centennial season – one that will be truly unforgettable for our fans and honors the Rangers’ storied history.” — James L. Dolan (Rangers centennial announcement) .
“We are always looking for ways to elevate our hospitality offerings for our fans, and this partnership reflects that priority,” — Jamaal Lesane, COO, on Insomnia Cookies partnership .

Q&A Highlights

Not available for MSG Sports Q1 FY26. The only Q1 FY26 transcripts retrieved pertain to MSG Entertainment (venues/productions) and are not applicable to MSG Sports; therefore, we exclude Q&A highlights for accuracy .

Estimates Context

Actuals vs S&P Global consensus

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue – Actual ($M)	$424.2	$204.0	$39.5
Revenue – Consensus ($M)	$427.4*	$162.9*	$41.4*
EPS (Diluted) – Actual ($)	$(0.59)	$(0.07)	$(0.37)
EPS – Consensus ($)	$1.48*	$(0.34)*	$(0.92)*
Rev Surprise ($M)	−$3.2 (miss)*	+$41.0 (beat)*	−$1.9 (miss)*
EPS Surprise ($)	−$2.07 (miss)*	+$0.27 (beat)*	+$0.55 (beat)*

Values with * retrieved from S&P Global.

Implications:

Q1 FY26: Small revenue miss but a notable EPS beat vs consensus, likely reflecting lower net costs in non-operating lines (Misc. income $15.1M) and controlled direct opex; SG&A inflation partially offset the benefit .
Prior quarters underscore volatility: large EPS miss in Q3 FY25 amid higher revenue sharing/luxury tax; large top-line beat in Q4 FY25 due to playoff cadence and mix .

Key Takeaways for Investors

Demand remains robust entering the season: ~94% season-ticket renewal and suite strength support per-game economics despite media and league distribution headwinds .
Media rights reset is now embedded: expect continued YoY pressure from local media fees versus FY24, partially offset over time by warrants in MSG Networks and sponsorship expansion .
Revenue visibility is seasonal and variable: league distributions can swing materially (−$11.4M YoY this quarter), and playoff cadence drives back-half volatility—position sizing should reflect this .
Expense vigilance needed: SG&A rose 10% YoY; watch services agreement/lease escalators and revenue sharing/luxury tax as key margin swing factors .
Sponsorship monetization is a bright spot: new Rangers jersey patch, food/merch partnerships (Insomnia, Piece of Cake) and centennial activations should bolster in-arena spend and partner revenue .
Near-term setup: modest fundamental beat/miss mix (Q1 EPS beat, slight revenue miss) with solid fan demand could support sentiment; monitor subsequent quarters for normalization of league distributions and any updates around national media dynamics .

Madison Square Garden Sports Corp. (MSGS)·Q1 2026 Earnings Summary