Executive Summary
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.
Key Performance Indicators
QoQ: 70.05% | YoY:-10.69%
QoQ: 142.90% | YoY:-59.44%
QoQ: 4 111.25% | YoY:23.52%
QoQ: -1 300.00% | YoY:-137.97%
Key Insights
Revenue: $424.20M (+YoY -1.34%, QoQ +18.57%). Gross Profit: $139.45M; Gross Margin: 32.87%.
Operating Income: $32.34M; Operating Margin: 7.62%.
EBITDA: $18.43M; EBITDARatio: 0.0435; EBITDA Margin: 4.35%.
Net Income: $46.79M; Net Margin: 11.03%. EPS (diluted): -$0.60 (reported); Weighted Avg Shares: 24.084M.
Cash Flow: Operating cash flow $6.26M; Capex $0.89M; Free cash flow $7.16M.
Liquidity & Leverage: Cash end of period ~$105.04M; Total debt ~$1.167B; Net debt ~$1.167B; Total stockholders...
Financial Highlights
Revenue: $424.20M (+YoY -1.34%, QoQ +18.57%). Gross Profit: $139.45M; Gross Margin: 32.87%.
Operating Income: $32.34M; Operating Margin: 7.62%.
EBITDA: $18.43M; EBITDARatio: 0.0435; EBITDA Margin: 4.35%.
Net Income: $46.79M; Net Margin: 11.03%. EPS (diluted): -$0.60 (reported); Weighted Avg Shares: 24.084M.
Cash Flow: Operating cash flow $6.26M; Capex $0.89M; Free cash flow $7.16M.
Liquidity & Leverage: Cash end of period ~$105.04M; Total debt ~$1.167B; Net debt ~$1.167B; Total stockholders’ equity negative (~$-283M).
Balance Sheet Signals: Current ratio ~0.52; Quick ratio ~0.52; Cash ratio ~0.16; Debt-to-capitalization and equity dynamics imply material leverage with negative book equity.
Dividends/Shareholder Returns: Payout ratio (reported) ~1.01%; Dividends paid in quarter $0.60M.
Key YoY/QoQ Trends (from income metrics): Revenue YoY -1.34%; Revenue QoQ +18.57%; Gross Profit YoY -10.69%; Gross Margin QoQ +70.05%; Operating Income YoY -59.44%; Operating Income QoQ +142.90%; Net Income YoY +23.52%; Net Income QoQ +4111.25%; EPS YoY -137.97%; EPS QoQ -1300.00%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
424.20M |
-1.34% |
18.57% |
| Gross Profit |
139.45M |
-10.69% |
70.05% |
| Operating Income |
32.34M |
-59.44% |
142.90% |
| Net Income |
46.79M |
23.52% |
4 111.25% |
| EPS |
-0.60 |
-137.97% |
-1 300.00% |
Key Financial Ratios
operatingProfitMargin
7.62%
operatingCashFlowPerShare
$0.26
freeCashFlowPerShare
$0.3
dividendPayoutRatio
1.01%
Management Commentary
No earnings transcript data was provided in the input. As a result, no management quotes or verbatim themes from an earnings call are available to summarize. Inference-based commentary is limited to the disclosed financials and the general industry backdrop.
Forward Guidance
No explicit formal guidance is included in the provided data for QQ3 2025. The quarter’s QoQ rebound in revenue suggests seasonal strength as live events resume, supported by a modest EBITDA contribution and a tax benefit that boosted net income. Industry tailwinds (media rights renewals, sponsorship inflation, and attendance recovery) could support MSGS in the near term if rights cycles and stadium partnerships monetize at favorable rates. However, the high leverage and negative equity present a meaningful hurdle to sustaining growth without further debt refinancing, equity issuance, or improved free cash flow generation.