Madison Square Garden Sports (MSGS) reported a solid QoQ revenue uptick in QQ3 2025, with revenue of $424.2 million up 18.6% QoQ from $357.8 million in QQ2 2025, reflecting seasonality and stronger event-driven activity. Despite a modest YoY revenue decline of 1.3%, the quarter delivered a positive net income of $46.8 million and an annualized EBITDA of $18.4 million, underscoring operational leverage as live events resume post-pandemic normalization. The reported net income margin stood at ~11.0%, while operating margin was ~7.6%, with EBITDA margin near 4.3%. Notably, MSGS booked a tax benefit of approximately $36.9 million, which contributed to the bottom-line strength for the quarter. On the balance sheet, MSGS carries meaningful leverage with total debt around $1.167 billion and negative stockholders’ equity (~$-283 million), resulting in a leveraged balance sheet and a liquidity profile that warrants close monitoring. Free cash flow was positive at about $7.16 million, while cash on hand ended at ~$105.0 million, supporting near-term liquidity needs but not eliminating balance-sheet risk. Management commentary in the earnings materials (where disclosed) highlighted ongoing value creation through rights economics, venue partnerships, and esports initiatives, though explicit QQ3 2025 guidance was not provided in the data available. Investors should weigh the near-term upside from live events and media rights against the medium-term challenge of debt servicing and equity deterioration.