Revenue Growth
Total revenues of $403.4M in fiscal Q2 FY2026, up from $357.8M in prior-year quarter, an increase of approximately 12.7% YoY driven by more home games and higher per-game revenues across categories.
Madison Square Garden Sports
· MSGS
February 5th, 2026
Summary
- Earnings Call Date:
- 2026-02-05
- Change Since:
- +33.77%
- Next Earnings Date:
- 2026-08-13
Earnings Call Sentiment
PositiveThe call presented a solid operational and financial quarter with meaningful top-line growth (total revenue +12.7%, event revenues +20%, suites & sponsorship +24%) and a sizable AOI increase (~46%). Management highlighted strong fan engagement (94% season-ticket renewals), record single-game merchandise sales, successful partnership and suite initiatives, and improved financing terms. Key risks include a 4% decline in media rights due to amended local deals, rising team personnel and luxury tax costs, a timing benefit that will reverse in H2, RSN industry uncertainty, and modest cash vs. debt. Overall, positive operational momentum and strategic actions outweigh the identified headwinds.
Company Guidance
Management reiterated confidence in ongoing momentum and long‑term value creation while providing several concrete metrics: Q2 revenues were $403.4M (vs. $357.8M a year ago) with adjusted operating income of $29.7M (up $9.4M), driven by 39 pre/regular‑season home games (vs. 35), a ~94% combined Knicks/Rangers season‑ticket renewal rate, and per‑game increases across ticketing, suites, sponsorship and food/beverage/merchandise (event‑related revenues $167.2M, +20% YoY; suites & sponsorship $98.5M, +24% YoY; national/local media rights $122.3M, -4% YoY). AOI included $9.9M of noncash arena lease costs (vs. $9.3M), while direct operating expenses rose due to higher team compensation, luxury tax and revenue‑sharing; single‑game merchandise sales were among the highest in each team’s history and per‑cap spend was higher. Balance sheet and liquidity metrics: cash ≈ $81M, debt $291M ( $267M Knicks revolver; $24M NHL advance), Knicks revolver capacity increased $150M to $425M, and recently refinanced facilities extend maturities to Nov 2030 with lower borrowing rates. Management reiterated capital allocation priorities (maintain liquidity, strong balance sheet, be opportunistic on other uses including possible future returns of capital), noted no current minority‑sale activity but would not rule it out, and said changes to compensation tax deductibility will be assessed (effective for the year ended June 30, 2028).
Event-Related and Suite/Sponsorship Strength
Event-related revenues (ticket, food, beverage, merchandise) were $167.2M, up 20% YoY; suites and sponsorship revenues were $98.5M, up 24% YoY, reflecting strong corporate demand, renewals and new multiyear deals.
Adjusted Operating Income Improvement
Adjusted operating income rose by $9.4M to $29.7M (prior quarter ~$20.3M), an increase of ~46% YoY, primarily driven by higher revenues partially offset by higher direct operating expenses.
Per-Game Revenue and Fan Engagement
Per-game revenues across ticketing, suites, sponsorship, and food/beverage/merchandise increased YoY; single‑game merchandise sales were among the highest in each team's history for product launches, and per-cap F&B & merchandise spending rose.
High Season Ticket Renewal Rate
Knicks and Rangers combined season ticket renewal rate of approximately 94%, indicating strong recurring fan and revenue stability.
Strategic Partnerships and Sponsorship Wins
Signed or renewed multiple multiyear partnerships (Game Seven jersey patch, PwC, Polymarket; renewals with Anheuser-Busch and Infosys), unlocking premium inventory and sponsorship revenue growth.
Premium Hospitality Upgrades and Demand
Strong suite renewals and new sales following renovation of several Lexus level suites; renovations are generating incremental revenue this season after a record fiscal 2025 for suite revenue.
Positive Balance Sheet Actions
Refinanced Knicks and Rangers senior secured revolvers, extended maturities to Nov 2030, lowered borrowing and commitment rates, and increased Knicks revolver capacity by $150M to $425M; cash balance of ~$81M and total debt of $291M at quarter end.
Operator
Good morning. Thank you for standing by, and welcome to the Madison Square Garden Sports Corp. Fiscal 2026 Second Quarter Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' remarks, there will be a question and answer session. I would now like to turn the call over to Ari Daines, Investor Relations. Please go ahead.
Ari Danes
Thank you. Good morning, and welcome to Madison Square Garden Sports Corp. Fiscal 2026 Second Quarter Earnings Conference Call. Our Chief Operating Officer, Jamaal T. Lesane, will begin this morning's call with an update on the company's strategy and operations. This will be followed by a review of our financial results with Victoria M. Mink, our EVP, Chief Financial Officer, and Treasurer. After our prepared remarks, we will open up the call for questions.
If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website. Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On Pages four and five of today's earnings ...
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