Revenue Growth - Total revenues for the three months ended December 31, 2025, increased by 13% to $459,940,000 compared to $407,417,000 for the same period in 2024[125] - Revenues from entertainment offerings rose by 13% to $360,453,000, up from $318,276,000 year-over-year[125] - Food, beverage, and merchandise revenues increased by 8% to $64,324,000, compared to $59,321,000 in the prior year[125] - Arena license fees and other leasing revenue grew by 18% to $35,163,000 from $29,820,000[125] - Total revenues for the six months ended December 31, 2025, increased by $72,071, or 13%, compared to the prior year period, reaching $618,202[129] - Revenues from entertainment offerings for the six months ended December 31, 2025, increased by $58,406, or 13%, primarily driven by higher revenues from the Christmas Spectacular production and other live events[134] Income and Expenses - Operating income for the three months ended December 31, 2025, was $163,815,000, an increase of 18% from $139,001,000 in 2024[125] - Net income for the three months ended December 31, 2025, was $92,715,000, reflecting a 22% increase from $75,893,000 in the same period last year[125] - Direct operating expenses for entertainment offerings increased by 7% to $176,062,000, up from $164,294,000[125] - Selling, general, and administrative expenses rose by 20% to $68,359,000 compared to $57,189,000 in the prior year[125] - Net income for the six months ended December 31, 2025, was $71,061, reflecting an increase of $14,489, or 26%, compared to the prior year[129] - Direct operating expenses for the six months ended December 31, 2025, increased by $20,243, or 7%, totaling $315,026[143] - Selling, general, and administrative expenses for the six months ended December 31, 2025, rose by $22,009, or 21%, primarily due to increased employee compensation and benefits[148] Interest and Financing - Interest income surged by 123% to $813,000, compared to $365,000 in the previous year[125] - Interest expense decreased by 20% to $10,423,000 from $12,955,000 year-over-year[125] - Interest income for the six months ended December 31, 2025, increased by $596, or 81%, due to higher average balances in cash and cash equivalents[152] - Interest expense decreased by $2,532 for the three months and $5,547 for the six months ended December 31, 2025, compared to the prior year periods due to lower average borrowing rates[153] - A hypothetical 200 basis point increase in floating interest rates as of December 31, 2025 would increase the Company's interest expense on outstanding amounts under credit facilities by $11,883[185] Cash Flow and Assets - Cash flow from operating activities for the six months ended December 31, 2025, was $184,194, compared to $85,499 in the prior year[176] - The company had a net increase in cash, cash equivalents, and restricted cash of $114,039 for the six months ended December 31, 2025, compared to $21,664 in the prior year[176] - As of December 31, 2025, the company's unrestricted cash and cash equivalents were $157,056, with total debt outstanding at $594,141 and available borrowing capacity of $132,573[166] - Net cash provided by operating activities for the six months ended December 31, 2025 increased by $98,695 compared to the prior year period, driven by higher net income adjusted for non-cash items of $15,236 and an increase in cash flows from changes in working capital of $83,459[177] - Net cash used in investing activities for the six months ended December 31, 2025 decreased by $992 to $15,290 compared to the prior year period, primarily due to a reduction in capital expenditures[179] - Net cash used in financing activities for the six months ended December 31, 2025 increased by $7,312 to $54,865 compared to the prior year period, mainly due to a decrease in proceeds from the National Properties Revolving Credit Facility[180] Performance Metrics - Adjusted operating income (AOI) for the three months ended December 31, 2025, was $190,430, an increase of $26,418 or 16% compared to $164,012 in the prior year[160] - AOI for the six months ended December 31, 2025, was $197,511, reflecting an increase of $31,590 or 19% from $165,921 in the prior year[162] - The Company earns a disproportionate share of its revenues and operating income in the second and third quarters of the fiscal year, with the first and fourth quarters being disproportionately lower[181] Asset Impairment - Impairment of long-lived assets for the six months ended December 31, 2025, increased by $13,782, primarily due to losses recognized on right-of-use lease assets[149] Performance Highlights - The company had 215 Christmas Spectacular performances during the holiday season, selling over 1.2 million tickets, compared to approximately 1.1 million tickets sold in the prior year[131] - Arena license fees and other leasing revenue for the six months ended December 31, 2025, increased by $4,800, driven by higher fees from MSG Sports due to more games played[141] - Other expense, net decreased by $372 for the three months and $969 for the six months ended December 31, 2025, primarily due to lower net periodic benefit costs and an increase in unrealized gains[154] - The National Properties Credit Agreement requires a minimum debt service coverage ratio of 2.50:1 and a maximum leverage ratio of 3.50:1, with compliance as of December 31, 2025[172] - The company has $44,796 remaining under its share repurchase program as of December 31, 2025[165]

Core Insights - The article emphasizes a fundamental, valuation-driven investment approach focused on identifying businesses with potential for long-term growth and significant terminal value [1] Investment Philosophy - The investment strategy is centered around understanding core business economics, including competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The goal is to translate these factors into long-term free cash flow generation and shareholder value creation [1] Sector Focus - The analysis highlights a preference for sectors that exhibit strong secular tailwinds, indicating a focus on industries likely to experience sustained growth [1] Professional Background - The individual has 10 years of self-educated investment experience and currently manages personal funds sourced from friends and family [1] - The motivation for sharing insights on Seeking Alpha is to provide valuable investment analysis and receive feedback from the investment community [1] Analytical Approach - The article advocates for analysis that is both analytical and accessible, aiming to assist readers in identifying high-quality, long-term investment opportunities [1]

Financial Data and Key Metrics Changes - The company reported revenues of $460 million and adjusted operating income of $190 million for the fiscal second quarter, both representing double-digit percentage increases year-over-year [4][10] - Adjusted operating income increased by 16% compared to the prior year quarter, primarily reflecting the increase in revenues, partially offset by higher direct operating SG&A expenses [12] Business Line Data and Key Metrics Changes - The Christmas Spectacular generated approximately $195 million in total revenue this season, with 215 paid performances, an increase from 200 shows last year [5][10] - Per-show revenue increased by a mid-single-digit percentage compared to fiscal 2025, driven by higher ticket yields and record levels of per caps on food, beverage, and merchandise [6][10] - The number of events across venues increased year-over-year, driven by growth in concerts, family shows, and marquee sporting events, although concerts at The Garden were down due to timing [7][10] Market Data and Key Metrics Changes - Approximately 2.9 million guests attended over 475 events during the quarter, with a significant contribution from the Christmas Spectacular [5] - The company saw higher per-game revenues from the Knicks and Rangers, with a combined four more home games played during the fiscal second quarter compared to the prior year [11] Company Strategy and Development Direction - The company is focused on optimizing its schedule, pricing, and marketing for productions like the Christmas Spectacular, indicating a strategy for continued growth in ticket sales and attendance [17][19] - There is a strong emphasis on expanding marketing partnerships, with recent multiyear renewals and expansions, including a partnership with Anheuser-Busch and Infosys [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering robust growth in revenue and adjusted operating income for fiscal 2026, supported by strong consumer demand and successful events [4][14] - The company noted that consumer demand remains strong, with exceptional demand for the Christmas Spectacular and sold-out concerts across venues [43] Other Important Information - The company had $157 million of unrestricted cash as of December 31, up from $30 million as of September 30, reflecting strong cash flow generation [13] - The company repurchased approximately 623,000 shares of Class A common stock for $25 million fiscal year to date, with $45 million remaining under the current buyback authorization [13] Q&A Session Summary Question: Insights on Christmas Spectacular performance and future growth - Management noted strong ticket demand and pricing, with opportunities to increase show count and ticket pricing in future years [17][19] Question: Update on concert bookings trends - Concert bookings are pacing strongly for the fiscal third and fourth quarters, with visibility into fiscal 2027 showing strong early indicators [24][26] Question: Incremental revenue from Harry Styles residency - The 30-night residency is expected to be a meaningful contributor to concert growth, with strong presales indicating high demand [31][32] Question: Consumer demand trends and capital returns - Management reported strong consumer demand across events, with a focus on maintaining a strong balance sheet and opportunistically returning capital to shareholders [43][45] Question: Updates on Penn Station redevelopment - The timeline for selecting a master developer remains on track for May 2026, with the company committed to collaborating with stakeholders [51][52] Question: SG&A expenses and future outlook - SG&A expenses were elevated due to nonrecurring items and higher labor costs, with expectations for normalization by the June quarter [56][57]

Financial Data and Key Metrics Changes - The company reported revenues of $460 million and adjusted operating income of $190 million for the fiscal second quarter, both representing double-digit percentage increases year-over-year [4][10][13] - Adjusted operating income increased by 16% compared to the prior year quarter, primarily reflecting the increase in revenues, partially offset by higher direct operating SG&A expenses [13] Business Line Data and Key Metrics Changes - The Christmas Spectacular generated approximately $195 million in total revenue this season, with 215 paid performances, an increase from 200 performances last year [5][10] - Per-show revenue increased by a mid-single-digit percentage compared to fiscal 2025, driven by higher ticket-related revenues and record levels of per caps on food, beverage, and merchandise [6][10] - The number of concerts at The Garden decreased compared to the prior year quarter, but the overall number of events across venues increased, driven by growth in concerts at the company's theaters and family shows [7][10] Market Data and Key Metrics Changes - The company welcomed approximately 2.9 million guests at over 475 events during the quarter, with strong demand leading to sold-out performances across the majority of concerts [5][45] - The Knicks and Rangers played a combined four more home games during the fiscal second quarter compared to the prior year quarter, contributing to increased revenues from these teams [11] Company Strategy and Development Direction - The company is focused on optimizing its schedule, pricing, and marketing for productions like the Christmas Spectacular, with plans to potentially increase show counts and ticket pricing in the future [19][20] - The company is actively booking concerts for the remainder of fiscal 2026 and has exceeded its concert bookings goal for The Garden, indicating strong growth prospects [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering robust growth in revenue and adjusted operating income for fiscal 2026, supported by strong consumer demand and successful events [4][15] - The company noted that consumer demand remains strong, with exceptional demand for the Christmas Spectacular and sold-out concerts, indicating positive trends for the upcoming quarters [44] Other Important Information - The company had $157 million of unrestricted cash as of December 31, up from $30 million as of September 30, reflecting strong cash flow generation [14] - The company repurchased approximately 623,000 shares of its Class A common stock for $25 million fiscal year to date, with $45 million remaining under its current buyback authorization [14] Q&A Session Summary Question: Insights on Christmas Spectacular performance and future growth - Management noted strong ticket demand and pricing, with opportunities to increase show counts and average ticket yields based on this year's performance [18][20] Question: Update on concert bookings trends - Management indicated a successful first half of the year with increased bookings, and strong visibility into concert bookings for the first half of fiscal 2027, including notable acts [25][28] Question: Incremental revenue from Harry Styles residency - Management expects the Harry Styles residency to be a meaningful contributor to concert growth, with strong presales indicating high demand [33][34] Question: Consumer demand trends and capital returns - Management reported strong consumer demand across events, with plans to continue returning capital to shareholders while maintaining a strong balance sheet [44][46] Question: Updates on Penn Station redevelopment - Management confirmed that the selection of a master developer is expected by May 2026, and reiterated the company's commitment to improving the area [51][52] Question: SG&A expenses and future outlook - Management explained that elevated SG&A expenses included nonrecurring items and higher labor costs, with expectations for normalization in the coming quarters [56][57]

Financial Data and Key Metrics Changes - For the fiscal second quarter, the company reported revenues of $460 million and adjusted operating income of $190 million, both reflecting double-digit percentage increases year-over-year [4][11] - Adjusted operating income increased by 16% compared to the prior year quarter, primarily due to increased revenues, partially offset by higher direct operating SG&A expenses [13] Business Line Data and Key Metrics Changes - The Christmas Spectacular generated approximately $195 million in total revenue this season, with 215 paid performances, an increase from 200 performances last year [5][11] - Per-show revenue increased by a mid-single-digit percentage compared to fiscal 2025, driven by higher ticket yields and record levels of per caps on food, beverage, and merchandise [6][11] - The number of events across venues increased year-over-year, driven by growth in concerts, family shows, and marquee sporting events, although concerts at The Garden were down due to timing [7][12] Market Data and Key Metrics Changes - Approximately 2.9 million guests attended over 475 events during the quarter, with a significant contribution from the Christmas Spectacular [5] - The company saw higher per-game revenues from the Knicks and Rangers, with a combined four more home games compared to the prior year quarter [12] Company Strategy and Development Direction - The company is focused on optimizing its schedule, pricing, and marketing for productions like the Christmas Spectacular, indicating potential for future growth in show count and ticket pricing [20][21] - The company is actively booking a wide array of events, including concerts and marquee sporting events, to maintain momentum into the next fiscal year [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering robust growth in revenue and adjusted operating income for fiscal 2026, supported by strong consumer demand and successful events [4][15] - The company noted strong consumer demand trends, with exceptional performance in the Christmas Spectacular and sold-out concerts, indicating a positive outlook for the upcoming quarters [45] Other Important Information - The company had $157 million of unrestricted cash as of December 31, up from $30 million as of September 30, reflecting strong cash flow generation [14] - The company repurchased approximately 623,000 shares of Class A common stock for $25 million fiscal year to date, with $45 million remaining under the current buyback authorization [14] Q&A Session Summary Question: Insights on Christmas Spectacular performance and future growth - Management highlighted strong ticket demand and pricing, with room for increased show count and ticket pricing in future years [19][21] Question: Update on concert bookings trends - Management reported a successful first half of the year with increased bookings, particularly at The Garden, and strong visibility into fiscal 2027 [26][29] Question: Incremental revenue from Harry Styles residency - Management indicated that while not all 30 nights of the residency will be incremental, it will significantly contribute to concert growth [34] Question: Consumer demand trends and capital returns - Management noted strong consumer demand across events and indicated a focus on maintaining a strong balance sheet while exploring capital return opportunities [45][48] Question: Updates on Penn Station redevelopment - Management confirmed that the selection of a master developer is still on track for May 2026, with ongoing commitment to improving the area [51][53] Question: SG&A expenses and future outlook - Management explained elevated SG&A expenses due to nonrecurring items and higher labor costs, with expectations for normalization in the June quarter [58][59]

Madison Square Garden Entertainment (MSGE) reported $459.94 million in revenue for the quarter ended December 2025, representing a year-over-year increase of 12.9%. EPS of $1.94 for the same period compares to $1.56 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $450.19 million, representing a surprise of +2.17%. The company delivered an EPS surprise of -17.45%, with the consensus EPS estimate being $2.35.While investors scrutinize revenue and earnings changes year-over-year and ...

FEBRUARY 2026 FORWARD LOOKING STATEMENTS AND MARKET DATA Madison Square Garden Entertainment Corp. (the "Company" or "MSG Entertainment") has filed with the Securities and Exchange Commission an Annual Report on Form 10-K for the year ended June 30, 2025 (the "Annual Report") and Quarterly Reports (the "Quarterly Reports") on Form 10-Q for the quarters ended September 30, 2025 and December 31, 2025. The Annual Report and the Quarterly Reports contain extensive disclosure about the Company and its business, ...

Madison Square Garden Entertainment (MSGE) came out with quarterly earnings of $1.94 per share, missing the Zacks Consensus Estimate of $2.35 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -17.45%. A quarter ago, it was expected that this live entertainment company would post a loss of $0.59 per share when it actually produced a loss of $0.46, delivering a surprise of +22.03%.Over ...

Financial Performance - For the fiscal 2026 second quarter, Madison Square Garden Entertainment reported revenues of $459.9 million, an increase of $52.5 million, or 13%, compared to the prior year quarter[2]. - The operating income for the fiscal 2026 second quarter was $163.8 million, reflecting an increase of $24.8 million, or 18%, year-over-year[12]. - Adjusted operating income for the same period was $190.4 million, up $26.4 million, or 16%, compared to the prior year quarter[12]. - Total revenues for the three months ended December 31, 2025, increased to $459.94 million, up 12.9% from $407.42 million in the same period of 2024[19]. - Net income for the three months ended December 31, 2025, was $92.72 million, representing a 22.2% increase compared to $75.89 million in the prior year[19]. - Adjusted operating income for the three months ended December 31, 2025, was $190.43 million, up 16.1% from $164.01 million in the same period of 2024[22]. - Basic earnings per share for the three months ended December 31, 2025, was $1.96, up from $1.57 in the same period of 2024[19]. Revenue Sources - Revenues from entertainment offerings reached $360.5 million, an increase of $42.2 million, or 13%, year-over-year[5]. - The company reported a total of $360.45 million in revenues from entertainment offerings for the three months ended December 31, 2025, a 13.2% increase from $318.28 million in 2024[19]. - Arena license fees and other leasing revenues increased to $35.2 million, up $5.3 million, or 18%, due to more games played at The Garden[6]. - Food, beverage, and merchandise revenues rose to $64.3 million, an increase of $5.0 million, or 8%, compared to the prior year period[8]. - The Christmas Spectacular production achieved record revenues, with over 1.2 million tickets sold, marking the highest attendance in 25 years[2]. Expenses and Charges - Selling, general, and administrative expenses increased to $68.4 million, reflecting an increase of $11.2 million, or 20%, primarily due to higher employee compensation[10]. - The company incurred $1.13 million in restructuring charges for the three months ended December 31, 2025, compared to a credit of $0.03 million in the same period of 2024[22]. Cash and Assets - Cash, cash equivalents, and restricted cash at the end of the period increased to $157.58 million, compared to $55.22 million at the end of the same period in 2024[27]. - Net cash provided by operating activities for the six months ended December 31, 2025, was $184.19 million, significantly higher than $85.50 million in the prior year[27]. - Total assets as of December 31, 2025, were $1.82 billion, an increase from $1.67 billion as of June 30, 2025[25]. - Total liabilities as of December 31, 2025, were $1.79 billion, compared to $1.68 billion as of June 30, 2025[25]. Future Outlook - Looking ahead, the company remains on track to drive robust growth in both revenue and adjusted operating income for the fiscal year[2]. - The company hosted a busy schedule of events, contributing to growth in bookings compared to the prior year quarter[2].

NEW YORK--(BUSINESS WIRE)--Madison Square Garden Entertainment Corp. (NYSE: MSGE) ("MSG Entertainment†or the "Company†) today reported financial results for the fiscal second quarter ended December 31, 2025. The fiscal 2026 second quarter was highlighted by the Christmas Spectacular production's record-setting run. During its 92nd holiday season, which ended in January, over 1.2 million tickets were sold across 215 paid performances, marking the highest level of attendance in 25 years and comp. ...