MSG Entertainment's Fourth-Quarter Revenue Growth Reaccelerates

The Tip Desk · August 12, 2026 · 3 min read

Fourth-quarter revenue reached $196.3 million, up 27% from a year earlier, after 2% growth in the third quarter.

Madison Square Garden Entertainment Corp. (MSGE) reported fourth-quarter fiscal 2026 revenue of $196.3 million, up 27% from a year earlier, a sharp reacceleration after 2% growth in the third quarter and 13% in the second.

The live-entertainment operator reported demand across concerts, special events, family shows and marquee sports, including the New York Knicks’ and New York Rangers’ regular seasons and the Knicks’ championship run.

Entertainment offerings, the largest revenue line, were $152.7 million in the three months ended June 30, 2026, up $34.0 million, or 29%, versus the year-ago quarter. Concert revenues increased $22.7 million, driven by more concerts at Madison Square Garden Arena and higher per-concert revenue, partially offset by fewer concerts at its theaters. Revenues shared with Madison Square Garden Sports Corp. under the Arena License Agreements rose $5.8 million on higher merchandise commissions and higher suite license fees not retained by the company. Other live entertainment and sporting events added $2.3 million on higher per-event revenue, partly offset by fewer events. Venue-related sponsorship, signage and suite license fees rose $2.2 million.

Food, beverage and merchandise revenues were $32.2 million, up $5.8 million, or 22%. The increase came primarily from higher food and beverage sales at concerts of $3.7 million, reflecting more concerts at the arena and partly offset by fewer theater concerts and lower per-concert revenue, and from $1.6 million of higher sales at Knicks and Rangers games on higher per-game revenue. Arena license fees and other leasing revenues were $11.5 million, up $2.5 million, or 27%, due to higher other leasing revenues.

Direct operating expenses for entertainment offerings, arena license fees and other leasing were $100.2 million. Concert expenses rose $14.9 million on higher per-concert costs and more arena concerts, partly offset by fewer theater concerts. Food, beverage and merchandise direct operating expenses were $20.2 million. Selling, general and administrative expenses were $67.2 million, up $7.3 million, or 12%, primarily on higher employee compensation and related benefits.

The operating loss narrowed to $8.6 million from a $25.8 million loss a year earlier. Adjusted operating income was $18.6 million versus an adjusted operating loss of $1.3 million in the year-ago quarter. The improvement was primarily due to higher revenues, partly offset by higher direct operating expenses and selling, general and administrative expenses.

For the full fiscal year ended June 30, 2026, revenues were $1,060.8 million, up $118.1 million, or 13%. Operating income was $141.5 million, up $19.4 million, or 16%. Adjusted operating income was $262.2 million, up $39.7 million, or 18%. The company welcomed approximately 6.4 million guests at nearly 960 events. The Christmas Spectacular sold over 1.2 million tickets across 215 paid performances and achieved another year of record-setting revenues in its 92nd holiday season.

Cash, cash equivalents and restricted cash were $294.2 million at June 30, 2026. Net cash provided by operating activities was $351.4 million for the twelve months ended June 30, 2026.

On June 8, 2026, in connection with the proposed redevelopment of Penn Station, the company, through a wholly-owned subsidiary, entered a non-binding memorandum of understanding with the Master Developer acknowledging that Madison Square Garden Arena must remain fully operational at all times during the redevelopment and contemplating the transfer of the Infosys Theater at Madison Square Garden, subject to further negotiation and definitive documentation.

Executive Chairman and CEO James L. Dolan said the company is well positioned to drive solid growth in adjusted operating income in fiscal 2027 and remains confident in its ability to deliver long-term shareholder value.