Executive Summary
Madison Square Garden Sports Corp (MSGS) reported a notably weak QQ1 2026 quarter, with revenue of $39.454 million and a net loss of $8.798 million, accompanied by negative EBITDA of $22.133 million. The quarter highlights aggressive fixed-cost leverage, with selling, general, and administrative expenses totaling $57.789 million against revenue of $39.454 million, creating a substantial operating loss and a -0.561 EBITDA ratio. Cash flow was deeply negative, as operating activities consumed $84.954 million and free cash flow was negative $85.325 million, driving a harsh liquidity backdrop despite a closing cash position of $57.276 million. On the balance sheet, total liabilities stood at roughly $1.811 billion with negative stockholders’ equity of about $294.178 million and net debt of $1.150 billion, underscoring meaningful financial risk and leverage amid an environment where top-line growth is elusive for this quarter.
The results underscore the company’s exposure to cyclicality in professional sports and venue/entertainment monetization, along with significant fixed-cost gravity. Absent a material uplift in franchise revenues (Knicks, Rangers) or a favorable shift in media rights and sponsorship tranches, the near-term cash burn and leverage profile create a high hurdle for equity holders. The data imply that any near-term improvement will hinge on (1) stabilization or acceleration of franchise-related cash flows, (2) optimization of SG&A and operating cost structure, and (3) potential liquidity initiatives or debt optimization.
Note: The earnings transcript was not provided in the data set, so management commentary and direct quotes could not be incorporated. Where relevant, quantitative results and qualitative implications have been synthesized from the disclosed QQ1 2026 figures and four-quarter historical context to deliver an investor-focused view.
Key Performance Indicators
QoQ: -90.70% | YoY:-82.64%
QoQ: -118.80% | YoY:-134.51%
Key Insights
Revenue: 39.454 million in QQ1 2026, YoY decline of 82.6% and QoQ decline of 90.7% (per incomeMetrics.revenue).
Profitability: EBITDA of -22.133 million in QQ1 2026 with an EBITDA margin of -0.56; Net income of -8.798 million for the quarter with a net income margin of -22.3%.
Cost structure: Selling and administrative expenses of 57.789 million, driving operating expenses of 57.789 million against revenue of 39.454 million.
Cash flow and liquidity: Net cash provided by operating activities o...
Financial Highlights
Revenue: 39.454 million in QQ1 2026, YoY decline of 82.6% and QoQ decline of 90.7% (per incomeMetrics.revenue).
Profitability: EBITDA of -22.133 million in QQ1 2026 with an EBITDA margin of -0.56; Net income of -8.798 million for the quarter with a net income margin of -22.3%.
Cost structure: Selling and administrative expenses of 57.789 million, driving operating expenses of 57.789 million against revenue of 39.454 million.
Cash flow and liquidity: Net cash provided by operating activities of -84.954 million; free cash flow of -85.325 million; cash at end of period 57.276 million; cash burn driven by operating activities and significant working capital movements (accounts receivable -16.763 million; accounts payable -4.19 million; other non-cash items -73.363 million).
Balance sheet health: Total liabilities ~1.811 billion; long-term debt ~1.096 billion; short-term debt ~54.233 million; total debt ~1.150 billion; stockholders’ equity negative at approximately -$294.178 million; net debt ~1.150 billion. These dynamics indicate meaningful leverage and liquidity risk despite a non-zero cash balance.
Per-share and efficiency: No reported earnings per share (EPS) for QQ1 2026 in the provided data; weighted-average shares outstanding not disclosed; limited ability to assess operating efficiency without segment or franchise-level detail.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
39.45M |
-82.64% |
-90.70% |
| Net Income |
-8.80M |
-134.51% |
-118.80% |
Management Commentary
Transcript data not provided in the input. Consequently, no management quotes or thematic synthesis from an earnings call could be incorporated. If you can supply the QQ1 2026 earnings call transcript, I can generate a detailed transcriptHighlights section with themes (strategy, operations, market conditions) and context-specific quotes.
Forward Guidance
No explicit forward guidance for QQ1 2026 was provided in the supplied data. Therefore, the forward-looking analysis relies on qualitative interpretation of the quarter’s leverage, cash flow trajectory, and earnings dynamics.
Key considerations for future outlook:
- Revenue trajectory: The quarter shows a severe YoY/QoQ revenue decline; investors should monitor any stabilization or growth in Knicks/Rangers-related revenues, venue-related monetization, and potential media-rights timing or sponsorship deals that could meaningfully lift top-line in subsequent periods.
- Cost management: With SG&A running at $57.8 million against revenue, cost optimization or scaling initiatives would be crucial to transitioning to positive operating leverage if revenue improves.
- Liquidity and debt management: The substantial total liabilities and negative equity, coupled with negative operating cash flow, suggest that liquidity management and potential debt refinancing or restructurings are critical to sustain operations and preserve optionality for strategic initiatives.
- Franchise value and monetization catalysts: Any favorable extension or expansion of media rights, exclusive sponsorships, or strategized asset monetization (e.g., venue assets or non-core businesses) could alter the risk-reward profile meaningfully.
- Monitoring indicators: Revenue normalization pace, SG&A as a percentage of revenue, free cash flow trajectory, debt maturities and interest coverage, and any covenant-related developments will be key factors for investors.