Madison Square Garden Entertainment Corp. Reports Fiscal 2026 Second Quarter Results

About this update from Madison Square Garden Entertainment Corp.

Christmas Spectacular Production Achieves Record-Setting Revenues in 92 nd Holiday Season Over 1.2 Million Tickets Sold, Marking the Production’s Highest Level of Attendance in 25 Years NEW YORK, February 03, 2026 --( 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 92 nd 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 compares to approximately 1.1 million tickets sold across 200 shows last season. During the quarter, the Company also hosted a busy schedule of events, with growth in the number of bookings events as compared to the prior year quarter, as well as the start of the New York Knicks ("Knicks") and the New York Rangers ("Rangers") 2025-26 regular seasons at the Madison Square Garden Arena ("The Garden"). For the fiscal 2026 second quarter, the Company reported revenues of $459.9 million, an increase of $52.5 million, or 13%, as compared to the prior year quarter. In addition, the Company reported operating income of $163.8 million, an increase of $24.8 million, or 18%, and adjusted operating income of $190.4 million, an increase of $26.4 million, or 16%, both as compared to the prior year quarter. (1) Executive Chairman and CEO James L. Dolan said, "We have seen strong momentum across our business in fiscal ‘26, including for the Christmas Spectacular production and bookings. Looking ahead, we remain on track to drive robust growth in both revenue and adjusted operating income this fiscal year." Results for the Three and Six Months Ended December 31, 2025 and 2024: Entertainment Offerings, Arena License Fees and Other Leasing Fiscal 2026 second quarter revenues from entertainment offerings of $360.5 million increased $42.2 million, or 13%, as compared to the prior year quarter. Fiscal 2026 second quarter arena license fees and other leasing revenues of $35.2 million increased $5.3 million, or 18%, as compared to the prior year quarter, due to a combined four more Knicks and Rangers games played at The Garden in the current year quarter and higher other leasing revenues. Fiscal 2026 second quarter direct operating expenses associated with entertainment offerings, arena license fees and other leasing of $176.1 million increased $11.8 million, or 7%, as compared to the prior year quarter. Food, Beverage and Merchandise Fiscal 2026 second quarter food, beverage and merchandise revenues of $64.3 million increased $5.0 million, or 8%, as compared to the prior year period. The increase primarily reflected (i) higher food and beverage sales at Knicks and Rangers games of $3.3 million, due to the impact of a combined four more Knicks and Rangers games played at The Garden and higher per-game revenue, (ii) higher food, beverage and merchandise sales related to the Christmas Spectacular production of $2.7 million, due to higher per-show revenue and, to a lesser extent, 14 additional performances, and (iii) higher food and beverage sales at other live entertainment and sporting events of $2.3 million, primarily due to an increase in the number of events at The Garden and, to a lesser extent, higher per-event revenue, partially offset by (iv) lower food and beverage sales at concerts held at the Company's venues of $3.3 million, primarily due to a decrease in the number of concerts at The Garden. Fiscal 2026 second quarter food, beverage and merchandise direct operating expenses of $36.6 million increased $3.8 million, or 12%, as compared to the prior year period. The increase was primarily due to the related increase in food, beverage and merchandise sales at the Company's venues as compared to the prior year period. Selling, General and Administrative Expenses Fiscal 2026 second quarter selling, general and administrative expenses of $68.4 million increased $11.2 million, or 20%, as compared to the prior year quarter. This increase was primarily due to an increase in employee compensation and benefits, which includes the impact of $4.0 million of executive management transition costs in the current year period as compared to $4.5 million of executive management transition costs in the prior year period. Operating Income and Adjusted Operating Income Fiscal 2026 second quarter operating income of $163.8 million increased $24.8 million, or 18%, as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by the increase in direct operating expenses and higher selling, general and administrative expenses. Fiscal 2026 second quarter adjusted operating income of $190.4 million increased $26.4 million, or 16%, as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by higher direct operating expenses and higher selling, general and administrative expenses. About Madison Square Garden Entertainment Corp. Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The Company’s portfolio includes a collection of world-renowned venues – New York’s Madison Square Garden, Infosys Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre – that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes , which has been a holiday tradition for more than 90 years. More information is available at www.msgentertainment.com . Non-GAAP Financial Measures We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) excluding (i) depreciation, amortization and impairments of property and equipment, goodwill and other long-lived assets, including right of use assets and related lease costs, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, (iv) merger, spin-off, and acquisition-related costs, including merger-related litigation expenses, (v) gains or losses on sales or dispositions of businesses and associated settlements, (vi) the impact of purchase accounting adjustments related to business acquisitions, (vii) amortization for capitalized cloud computing arrangement costs and (viii) gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, spin-off, and acquisition-related transaction costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles, gains and losses related to the remeasurement of liabilities under the executive deferred compensation plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the executive deferred compensation plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in other income (expense), net, which is not reflected in operating income (loss). We exclude impairments of long-lived assets, including right-of-use assets and related lease costs, as these expenses do not represent core business operating results of the Company. We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of the Company on a consolidated and combined basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 6 of this earnings release. Forward-Looking Statements This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein. Conference Call Information: The conference call will be webcast live today at 10:00a.m. ET at investor.msgentertainment.com Conference call dial-in number is 888-660-6386 / Conference ID Number 8020251 Conference call replay number is 800-770-2030 / Conference ID Number 8020251 until February 10, 2026 Investor presentation available at investor.msgentertainment.com/events-and-presentations MADISON SQUARE GARDEN ENTERTAINMENT CORP. ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (in thousands) (Unaudited) The following is a description of the adjustments to operating income in arriving at adjusted operating income as described in this earnings release:   View source version on businesswire.com: https://www.businesswire.com/news/home/20260203742653/en/ Contacts Ari Danes, CFA Senior Vice President, Investor Relations & Treasury Madison Square Garden Entertainment Corp. (212) 465-6072 Grace Kaminer Vice President, Investor Relations & Treasury Madison Square Garden Entertainment Corp. (212) 631-5076 Sarah Rothschild Senior Director, Investor Relations & Treasury Madison Square Garden Entertainment Corp. (212) 631-5345

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