Revenue Performance - Total revenues for the three months ended September 30, 2025, increased by $19,548, reaching $158,262, a 14% increase compared to the same period in 2024[121] - Revenues from entertainment offerings rose by $16,229 to $131,310, driven by higher concert revenues of $8,263 and increased revenues from other live events of $6,806[124] - Food, beverage, and merchandise revenues increased by $3,862 to $22,837, primarily due to higher sales at concerts and other events[125] Operating Loss and Expenses - The net loss for the three months ended September 30, 2025, was $21,654, a 12% increase from the net loss of $19,321 in the same period last year[121] - The operating loss for the period was $29,739, which is a 61% increase compared to the operating loss of $18,482 in the prior year[121] - Direct operating expenses increased by $4,661 to $102,370, reflecting a 5% rise compared to the prior year[129] - For the three months ended September 30, 2025, operating loss increased by $11,257, or 61%, compared to the prior year period, primarily due to higher impairment of long-lived assets and increased selling, general, and administrative expenses[136] - Selling, general, and administrative expenses increased by $10,839 for the three months ended September 30, 2025, mainly due to higher employee compensation and benefits[132] Impairment and Depreciation - The company experienced an impairment of long-lived assets amounting to $13,782, which was not present in the previous year[121] - Impairment of long-lived assets rose by $13,782 for the three months ended September 30, 2025, compared to the prior year, reflecting significant losses recognized on right-of-use lease assets[134] - Depreciation and amortization expenses increased by $293, or 2%, for the three months ended September 30, 2025, primarily due to fixed asset additions[133] Cash Flow and Debt - As of September 30, 2025, the company's unrestricted cash and cash equivalents balance was $29,950, with total debt outstanding at $621,758[149] - The company had $112,573 of available borrowing capacity under the National Properties Revolving Credit Facility as of September 30, 2025[149] - Net cash provided by operating activities for the three months ended September 30, 2025 was $19,808, a significant increase of $47,167 compared to the prior year period[160] - Net cash used in investing activities increased by $108 to $6,798 compared to the prior year period, primarily due to the absence of proceeds from the sale of investments[161] - Net cash used in financing activities increased by $64,184 to $26,077 compared to the prior year period, driven by increased stock repurchases and decreased proceeds from the National Properties Revolving Credit Facility[162] Interest Income and Expense - Interest income increased by 40% to $520, while interest expense decreased by 21% to $11,028[121] - Interest income increased by $148 for the three months ended September 30, 2025, due to higher average balances in cash and cash equivalents[137] - Interest expense decreased by $3,015 for the three months ended September 30, 2025, primarily due to lower average borrowing rates[138] Tax and Seasonality - The effective tax rate for the three months ended September 30, 2025, was 46%, resulting in an income tax benefit of $18,765, up from $13,601 in the prior year[141] - The Company experiences seasonality in revenues, with a disproportionate share earned in the second and third quarters due to events like the Christmas Spectacular and arena license fees[163] Hypothetical Scenarios - A hypothetical 200 basis point increase in floating interest rates would increase the Company's interest expense by $12,435 on outstanding amounts under credit facilities[167]

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, the company reported revenues of $158.3 million, an increase of 14% compared to the prior year quarter, driven by growth in entertainment offerings and higher food, beverage, and merchandise revenues [10][11] - Adjusted operating income for the first quarter was $7.1 million, an increase of $5.2 million year-over-year, despite higher SG&A and direct operating expenses [11] - The company had $30 million of unrestricted cash and a total debt balance of $622 million as of September 30 [11][12] Business Line Data and Key Metrics Changes - The company welcomed over 900,000 guests across 140 events in the quarter, setting a record for the number of concerts at the Garden [4][5] - Food and beverage per caps at concerts increased, while per caps at theaters decreased compared to the prior year, attributed to the mix of events [5] - The Christmas Spectacular is set to have 215 shows this year, up from 200 last year, with advanced ticket sales pacing ahead of the previous year [7][9] Market Data and Key Metrics Changes - The company is seeing strong demand for the Christmas Spectacular, expecting to host over 1 million guests this holiday season [17] - Advanced ticket revenues for the Christmas Spectacular are pacing up double digits compared to last year, driven by higher individual and group ticket sales [17] - Concert bookings are on track to exceed last year's total, with nearly 85% of the concert booking goal achieved for the year [21][22] Company Strategy and Development Direction - The company is focused on capital allocation priorities, including maintaining a strong balance sheet, pursuing compelling opportunities, and returning capital to shareholders [26][28] - The internal sales team for sponsorships is largely in place, aiming to capitalize on upcoming opportunities in fiscal 2026 and beyond [34] - The company is exploring ways to enhance the Christmas Spectacular and improve per-show revenues through strategic pricing and partnerships [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for fiscal 2026, citing positive momentum across the business [13] - The company is closely monitoring the macro environment but continues to see strong consumer demand, particularly for concerts and events [39] - Management is optimistic about the upcoming holiday season and the potential for growth in various business segments [43] Other Important Information - The company repurchased approximately $25 million of Class A common stock during the quarter, with $45 million remaining under the current buyback authorization [12][28] - A non-cash impairment charge of $13.8 million related to an operating lease was included in the first quarter results [11] Q&A Session Summary Question: Thoughts on the Christmas Spectacular's sell-through and pricing - Management noted strong demand for the Christmas Spectacular, expecting over 1 million guests and advanced ticket revenues pacing up double digits compared to last year [17] Question: Updates on concert bookings for the Garden - Management confirmed robust bookings, with more concerts booked for fiscal 2026 than held last year, and expressed confidence in increasing event numbers [21][22] Question: Progress on major residency acts for fiscal 2027 - Management indicated progress in finalizing a residency for next year, which could significantly contribute to concert growth [26] Question: Transitioning sponsorship business back in-house - Management confirmed the internal sales team is in place and highlighted recent partnerships as evidence of progress in the sponsorship business [34] Question: Updates on Penn Station redevelopment - Management provided a timeline for redevelopment, emphasizing commitment to improving the area surrounding Penn Station [42] Question: Bookings growth by event type - Management expects growth primarily driven by concerts, with modest growth in family shows and sports events anticipated [43]

Core Insights - Madison Square Garden Entertainment (MSGE) reported revenue of $158.26 million for the quarter ended September 2025, reflecting a 14.1% increase year-over-year [1] - The earnings per share (EPS) was -$0.46, slightly worse than the -$0.40 reported in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $153.03 million by 3.42%, while the EPS surprised positively by 22.03% compared to the consensus estimate of -$0.59 [1] Revenue Breakdown - Arena license fees and other leasing revenue amounted to $4.12 million, falling short of the $4.58 million average estimate, representing an 11.7% decline year-over-year [4] - Revenue from entertainment offerings reached $131.31 million, surpassing the estimated $128.17 million [4] - Food, beverage, and merchandise revenues were reported at $22.84 million, exceeding the $22.08 million estimate and showing a significant 20.4% increase compared to the previous year [4] Stock Performance - MSG Entertainment shares have returned 4.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a 1.3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Overview - MSG Entertainment was spun-off from Sphere Entertainment Co on April 20, 2023[10] - In fiscal year 2025, the company hosted over 975 live events[14] and welcomed nearly 6 million guests[15] - The company's fiscal year 2025 revenue was $942.7 million[52] Financial Performance - The company's operating income for fiscal year 2025 was $122.1 million[52] - The adjusted operating income (AOI) for fiscal year 2025 was $222.5 million[52] - As of September 30, 2025, the company's total debt outstanding was $622 million[56] and unrestricted cash was $30 million[56], resulting in net debt of $592 million[56] Key Assets - The company has valuable real estate holdings in New York City and Chicago[22] - The company has 35-year deals to host home games for the New York Knicks & Rangers[15] - The Christmas Spectacular Starring the Radio City Rockettes has been a New York holiday tradition for over 90 years[15, 21] Capital Allocation - The company repurchased $205 million of Class A shares since April 2023[58] - The company has $45 million remaining under share repurchase authorization[58]

Core Insights - Madison Square Garden Entertainment (MSGE) reported a quarterly loss of $0.46 per share, better than the Zacks Consensus Estimate of a loss of $0.59, and compared to a loss of $0.4 per share a year ago, indicating an earnings surprise of +22.03% [1] - The company achieved revenues of $158.26 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.42%, and showing an increase from year-ago revenues of $138.71 million [2] - MSG Entertainment shares have increased by approximately 25.1% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of MSG Entertainment's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $2.59 on revenues of $437.28 million, and for the current fiscal year, it is $1.73 on revenues of $1 billion [7] Industry Context - The Media Conglomerates industry, to which MSG Entertainment belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact MSG Entertainment's stock performance [5][6]

Financial Performance - For the fiscal 2026 first quarter, the company reported revenues of $158.3 million, an increase of $19.5 million, or 14%, compared to the prior year quarter [3]. - The company experienced an operating loss of $29.7 million, an increase of $11.3 million, or 61%, compared to the prior year quarter [4]. - Adjusted operating income for the fiscal 2026 first quarter was $7.1 million, an increase of $5.2 million compared to the prior year quarter [4]. - Revenues from entertainment offerings were $131.3 million, up $16.2 million, or 14%, compared to the prior year period [6]. - Food, beverage, and merchandise revenues increased by $3.9 million, or 20%, to $22.8 million compared to the prior year period [8]. - Selling, general, and administrative expenses rose by $10.8 million, or 24%, to $56.6 million compared to the prior year quarter [10]. - The company anticipates solid growth in both revenue and adjusted operating income for fiscal 2026, driven by strong momentum in bookings [3]. Stock and Shareholder Activities - The company repurchased approximately $25 million of its Class A common stock during the fiscal 2026 first quarter, totaling approximately $205 million since the spin-off from Sphere Entertainment Co. in 2023 [12][13]. Asset and Liability Management - Total current assets increased to $264,217,000 as of September 30, 2025, up from $237,132,000 on June 30, 2025, representing an increase of approximately 11.5% [28]. - Total liabilities rose to $1,745,625,000 as of September 30, 2025, compared to $1,683,142,000 on June 30, 2025, indicating an increase of about 3.7% [28]. - Deferred revenue increased to $285,681,000 as of September 30, 2025, up from $228,642,000 on June 30, 2025, reflecting a growth of about 25% [28]. - The company reported a total deficit of $65,798,000 as of September 30, 2025, compared to a deficit of $13,300,000 on June 30, 2025, indicating a significant increase in the deficit [28]. - Accounts receivable increased to $81,184,000 as of September 30, 2025, from $66,781,000 on June 30, 2025, representing an increase of approximately 21.5% [28]. - Operating lease liabilities, current, decreased to $32,310,000 as of September 30, 2025, from $35,100,000 on June 30, 2025, showing a reduction of about 8% [28]. - The company’s retained earnings decreased to $131,380,000 as of September 30, 2025, down from $153,034,000 on June 30, 2025, reflecting a decline of approximately 14.1% [28]. Cash Flow Analysis - Net cash provided by operating activities was $19,808,000 for the three months ended September 30, 2025, compared to a net cash used of $27,359,000 in the same period of 2024 [30]. - Net cash used in financing activities was $26,077,000 for the three months ended September 30, 2025, compared to net cash provided of $38,107,000 in the same period of 2024 [30]. Operational Highlights - The Christmas Spectacular production is set to have 215 performances in the 2025 holiday season, an increase from 200 performances in fiscal 2025 [2]. - Direct operating expenses associated with entertainment offerings increased by $2.1 million, or 2%, to $88.6 million compared to the prior year quarter [7].

Group 1 - Madison Square Garden Entertainment Corp. will host a conference call to discuss its fiscal first quarter results for the period ending September 30, 2025 [1] - The conference call is scheduled for Thursday, November 6, 2025, at 10:00 a.m. Eastern Time [1] - A press release reporting the company's results will be issued prior to the market opening [1] Group 2 - Participants can join the call by dialing 888-660-6386 and using the conference ID number 8020251 approximately 10 minutes before the call [1] - The call will also be available for listening [1]

Group 1: Music Stocks Overview - Seven music stocks to watch include Tencent Music Entertainment Group, NetEase, Warner Music Group, Dolby Laboratories, Madison Square Garden Entertainment, Zeta Network Group, and LiveOne, identified by MarketBeat's stock screener tool [2] - Music stocks represent publicly traded companies primarily engaged in the music industry, including record labels, streaming platforms, and live-event companies, providing exposure to revenue streams like streaming subscriptions, licensing, royalties, and live ticket sales [2] Group 2: Tencent Music Entertainment Group (TME) - Tencent Music Entertainment Group operates online music entertainment platforms in China, offering services such as music streaming, online karaoke, and live streaming [3] - The company provides QQ Music, Kugou Music, Kuwo Music, and WeSing, enabling personalized music discovery and sharing of karaoke performances [3] Group 3: NetEase (NTES) - NetEase, Inc. is involved in online games, music streaming, online intelligent learning services, and internet content services, operating through various segments including Games and Related Value-Added Services, Youdao, Cloud Music, and others [4] Group 4: Warner Music Group (WMG) - Warner Music Group Corp. operates as a music entertainment company with segments in Recorded Music and Music Publishing, focusing on artist discovery, marketing, promotion, and licensing of music [4] Group 5: Dolby Laboratories (DLB) - Dolby Laboratories, Inc. develops audio and imaging technologies for various entertainment platforms, including cinema and mobile devices, and licenses technologies like AAC, AVC, and Dolby Atmos [5] Group 6: Other Companies - Madison Square Garden Entertainment (MSGE) is mentioned but lacks specific details in the provided content [6] - Zeta Network Group (ZNB) offers online entertainment performances and music education services, operating an online platform that includes various curricula [7] - LiveOne, Inc. focuses on live music acquisition, distribution, and monetization, operating platforms like LiveXLive and PodcastOne [7]

Core Insights - Dove has partnered with Madison Square Garden Entertainment Corp. to become an Official Partner of the Rockettes, coinciding with their 100th anniversary and the 2025 Christmas Spectacular [1][4] - The partnership will feature Dove's Holiday Treats Limited-Edition Collection, which includes six festive fragrances and a new Body Mist format, available nationwide [1][6] Product Offerings - The Holiday Treats Limited-Edition Collection includes Body Wash, Beauty Bar, Scrubs, Deodorant, Liquid Hand Wash, and new Body Mist formats [1][4] - The collection features six seasonal scents: Sugar Cookie Sprinkle, Peppermint Bark, Spiced Chai Latte, Frosted Plum Berry, Gingerbread Delight, and Hot Cocoa Swirl, with some being exclusive to specific retailers [7][5] Marketing and Activations - Multiple activations will take place at Radio City Music Hall, including a photobooth, product integration in lounges, and product gifting for audience members after select shows [3] - The collection will be prominently featured in a Times Square billboard during the Christmas Spectacular, which attracts over one million guests during its eight-week run [3] Availability and Pricing - The Dove Holiday Treats Limited-Edition Collection is available in stores and online from $3.99 to $7.99 each, and will be sold through January 2026, while supplies last [6]

Core Insights - PensionBee has announced a partnership with Madison Square Garden Entertainment to become an official College Hoops Partner, aiming to enhance financial education among college basketball fans [1][2] Company Overview - PensionBee is a leading retirement savings provider managing over $9 billion in assets and serving approximately 300,000 customers globally, focusing on simplicity, transparency, and accessibility [4] - The company offers various types of IRAs, including Traditional, Roth, SEP, and Safe Harbor IRAs, utilizing portfolios powered by high-quality ETFs from State Street Investment Management [4] Partnership Details - As part of the partnership, PensionBee will receive prominent digital signage placement in the arena during key college basketball games, targeting the issue of over a trillion dollars in orphaned 401(k) assets left by Americans when changing jobs [2][3] - The collaboration aims to support individuals at different stages of their financial journey, from recent graduates to seasoned professionals managing multiple retirement accounts [3]