Madison Square Garden Sports (MSGS) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 featured the Knicks winning the NBA championship, driving record fan engagement and robust demand for Knicks and Rangers events.

• A proposed spin-off of the Rangers business is underway, aiming to create two distinct public companies for strategic and financial flexibility, with completion targeted by end of October 2026.

• Robust consumer and corporate demand was seen throughout the year, with significant operational milestones during the Knicks' postseason run.

Financial highlights

• Fiscal 2026 full-year revenues reached $1,153.8 million, up 11% year-over-year; Q4 revenues were $278.7 million, up 37%.

• Adjusted operating income for the year was $58.7 million, up 54%; Q4 adjusted operating income was $39.6 million.

• Net income for Q4 was $28.3 million, compared to a loss of $1.8 million in the prior year quarter.

• Suites, sponsorship, and signage revenues increased 23% year-over-year to $39.1 million.

• Playoff revenues for Q4 were $182 million, up from $115.2 million year-over-year, with average per-game revenues of $20.2 million.

Outlook and guidance

• Expectation of revenue growth across all in-arena categories for fiscal 2027, driven by increased fan enthusiasm and operational momentum.

• Anticipated higher team compensation, luxury tax, and revenue sharing expenses in fiscal 2027 due to increased salary caps and new NHL CBA.

• Season ticket renewal rates projected above 90% for both teams, with Knicks ticket prices raised and Rangers prices held steady.

• Management expects to complete the Rangers spin-off by October 2026, subject to board approval and other conditions.

• Forward-looking statements caution about risks related to the spin-off and market conditions.