Quarterly ResultMay 8, 2026, 07:46 AM
Madison Square Garden Sports Q3 Revenue Up 2%; Explores Spin-off
AI Summary
Madison Square Garden Sports Corp. reported fiscal third quarter 2026 financial results, with revenues increasing 2% to $432.2 million. However, operating income significantly decreased by 94% to $2.0 million, and adjusted operating income fell 72% to $10.3 million, primarily due to higher direct operating expenses. The company also announced it is exploring a potential spin-off to separate its New York Knicks and New York Rangers businesses into distinct public companies to create long-term shareholder value.
Key Highlights
- Madison Square Garden Sports is exploring a potential spin-off of its Knicks and Rangers businesses.
- Q3 2026 revenues increased 2% to $432.2 million compared to the prior year period.
- Operating income for Q3 2026 decreased 94% to $2.0 million.
- Adjusted operating income for Q3 2026 decreased 72% to $10.3 million.
- Direct operating expenses increased $38.2 million, or 12%, primarily due to higher team personnel compensation.
- League distributions increased $27.0 million due to new NBA national media rights agreements.
- Net loss for Q3 2026 was $(19.983) million, compared to $(14.227) million in prior year.