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Madison Square Garden Sports (MSGS)
NYSE:MSGS
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Madison Square Garden Sports
(NYSE:MSGS)
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Rating:54Neutral
Price Target:
$349.00
▲(8.54% Upside)
Action:ReiteratedDate:02/19/26
The score is held back primarily by financial risk: negative equity with meaningful leverage and a sharp TTM cash flow reversal alongside losses. Offsetting this, the earnings call indicates solid current operating momentum and improved financing flexibility, and the technical picture remains bullish but overbought, while valuation is weak due to negative earnings and no stated dividend support.
Positive Factors
Sustained Revenue Growth
Multi-year top-line expansion to roughly $1.04B demonstrates sustained demand for live events, sponsorships and merchandise. That scale supports negotiating power with partners, spreads fixed arena costs over higher volumes, and underpins durable revenue diversification across tickets, suites, media and licensing.
High Fan Retention & Per-Game Revenues
A ~94% season-ticket renewal rate and rising per-game spend signal sticky, recurring revenue and strong fan engagement. Predictable renewals support forward visibility for ticketing and suite sales, boost sponsorship monetization, and reduce revenue volatility tied to single-season performance swings.
Improved Liquidity & Financing Flexibility
Extending maturities and increasing revolver capacity materially reduces near-term refinancing risk and raises available liquidity. That structural improvement gives management flexibility for roster investment, facility upgrades, or strategic actions (including a potential spin-off) without immediate funding pressure.
Negative Factors
Negative Equity & High Leverage
Consistent negative equity and large absolute debt leave the capital structure strained, limiting financial flexibility. Persistent negative book equity heightens creditor and refinancing risk, constrains capital allocation choices, and can impede long-term investment or returns to shareholders.
TTM Cash Flow Deterioration
A sharp TTM reversal to negative operating cash flow undermines the company's ability to self-fund operations and service debt. Reduced cash conversion increases reliance on revolvers or capital markets and weakens resilience to slower seasons or increased roster/salary expenses over the medium term.
Media/RSN Revenue Uncertainty
Structural shifts in regional sports networks and reduced local rights create long-term revenue risk for media distribution. Declines or renegotiations in local media fees can erode a key high-margin revenue stream and make future media monetization less predictable for team economics.
Madison Square Garden Sports (MSGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.56B
Dividend YieldN/A
Average Volume (3M)252.46K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-1.16%
EPS Growth-133.74%
CountryUS
Employees533
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.34
Shares Outstanding19,539,816
10 Day Avg. Volume305,340
30 Day Avg. Volume252,457
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)-17.88
Price to Sales (P/S)4.84
P/FCF Ratio57.21
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue8.91
Enterprise Value/Gross Profit34.47
Enterprise Value/Ebitda525.31
Forecast
1Y Price Target
$348.60Price Target Upside8.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$998.36M
Madison Square Garden Sports Business Overview & Revenue Model
Company DescriptionMadison Square Garden Sports Corp. operates as a professional sports company. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National Basketball Association (NBA) and the New York Rangers of the National Hockey League. Its other professional franchises include two development league teams, the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. It also owns Knicks Gaming, an esports franchise that competes in the NBA 2K League, as well as a controlling interest in Counter Logic Gaming, a North American esports organization. In addition, the company operates two professional sports team performance centers, the Madison Square Garden Training Center in Greenburgh and the CLG Performance Center in Los Angeles. The company was formerly known as The Madison Square Garden Company. Madison Square Garden Sports Corp. was incorporated in 2015 and is based in New York, New York.
How the Company Makes MoneyMadison Square Garden Sports generates revenue through multiple streams, primarily from ticket sales, media rights, sponsorships, and merchandise sales. Ticket sales from home games and events at Madison Square Garden are a significant source of income, bolstered by the high demand for events featuring its sports teams. Media rights deals with networks and streaming platforms provide substantial revenue, enabling MSGS to broadcast games and events to a wider audience. Additionally, the company earns income from corporate sponsorships and partnerships, which allow brands to connect with fans and gain visibility through MSGS's events and properties. Merchandise sales, including team apparel and memorabilia, further contribute to the company's financial performance. Furthermore, MSGS benefits from its strategic partnerships and collaborations within the sports and entertainment ecosystem, which enhance its market presence and revenue opportunities.
Madison Square Garden Sports Key Performance Indicators (KPIs)
Madison Square Garden Sports Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a solid operational and financial quarter with meaningful top-line growth (total revenue +12.7%, event revenues +20%, suites & sponsorship +24%) and a sizable AOI increase (~46%). Management highlighted strong fan engagement (94% season-ticket renewals), record single-game merchandise sales, successful partnership and suite initiatives, and improved financing terms. Key risks include a 4% decline in media rights due to amended local deals, rising team personnel and luxury tax costs, a timing benefit that will reverse in H2, RSN industry uncertainty, and modest cash vs. debt. Overall, positive operational momentum and strategic actions outweigh the identified headwinds.Q2-2026 Updates
Positive Updates
Revenue Growth
Total revenues of $403.4M in fiscal Q2 FY2026, up from $357.8M in prior-year quarter, an increase of approximately 12.7% YoY driven by more home games and higher per-game revenues across categories.
Event-Related and Suite/Sponsorship Strength
Event-related revenues (ticket, food, beverage, merchandise) were $167.2M, up 20% YoY; suites and sponsorship revenues were $98.5M, up 24% YoY, reflecting strong corporate demand, renewals and new multiyear deals.
Adjusted Operating Income Improvement
Adjusted operating income rose by $9.4M to $29.7M (prior quarter ~$20.3M), an increase of ~46% YoY, primarily driven by higher revenues partially offset by higher direct operating expenses.
Per-Game Revenue and Fan Engagement
Per-game revenues across ticketing, suites, sponsorship, and food/beverage/merchandise increased YoY; single‑game merchandise sales were among the highest in each team's history for product launches, and per-cap F&B & merchandise spending rose.
High Season Ticket Renewal Rate
Knicks and Rangers combined season ticket renewal rate of approximately 94%, indicating strong recurring fan and revenue stability.
Strategic Partnerships and Sponsorship Wins
Signed or renewed multiple multiyear partnerships (Game Seven jersey patch, PwC, Polymarket; renewals with Anheuser-Busch and Infosys), unlocking premium inventory and sponsorship revenue growth.
Premium Hospitality Upgrades and Demand
Strong suite renewals and new sales following renovation of several Lexus level suites; renovations are generating incremental revenue this season after a record fiscal 2025 for suite revenue.
Positive Balance Sheet Actions
Refinanced Knicks and Rangers senior secured revolvers, extended maturities to Nov 2030, lowered borrowing and commitment rates, and increased Knicks revolver capacity by $150M to $425M; cash balance of ~$81M and total debt of $291M at quarter end.
Negative Updates
Local Media Rights Reduction
National and local media rights fees were $122.3M, down 4% YoY, primarily due to amended local media rights agreements with MSG Networks that included 18% reductions in annual rights fees (effective Jan 1, 2025) and eliminated escalators.
Higher Direct Operating Expenses
Direct operating expenses increased, driven by higher team personnel compensation and related luxury tax, higher revenue sharing expenses (net of escrow), and other cost increases, which partially offset revenue gains.
Timing Benefit Will Reverse
The quarter benefited from hosting 39 pre/regular season games vs 35 in the prior-year quarter (a timing benefit); management noted this benefit will reverse in the second half of the fiscal year, creating near-term comparability headwinds.
On-Ice Performance Risk for Rangers
Management acknowledged disappointing on-ice results for the Rangers (missed expectations), noting potential negative financial impact from fewer postseason home games and lost incremental playoff revenue if performance does not improve.
Leverage and Cash Position
Cash of ~$81M versus total debt of $291M (comprised of $267M revolver borrowings and $24M advanced from the NHL); while refinancings improved flexibility, leverage and modest cash remain factors to monitor for capital allocation.
RSN and Media Landscape Uncertainty
Management flagged ongoing evolution and uncertainty in the regional sports network (RSN) landscape; while they remain confident in local rights value, long-term RSN changes present execution and revenue risk.
No Immediate Capital Return or Minority Sale
No announcement of a capital return program or a pending minority interest sale; management said they would not rule out options but have nothing to report, leaving investors without near-term liquidity returns.
Company Guidance
Management reiterated confidence in ongoing momentum and long‑term value creation while providing several concrete metrics: Q2 revenues were $403.4M (vs. $357.8M a year ago) with adjusted operating income of $29.7M (up $9.4M), driven by 39 pre/regular‑season home games (vs. 35), a ~94% combined Knicks/Rangers season‑ticket renewal rate, and per‑game increases across ticketing, suites, sponsorship and food/beverage/merchandise (event‑related revenues $167.2M, +20% YoY; suites & sponsorship $98.5M, +24% YoY; national/local media rights $122.3M, -4% YoY). AOI included $9.9M of noncash arena lease costs (vs. $9.3M), while direct operating expenses rose due to higher team compensation, luxury tax and revenue‑sharing; single‑game merchandise sales were among the highest in each team’s history and per‑cap spend was higher. Balance sheet and liquidity metrics: cash ≈ $81M, debt $291M ( $267M Knicks revolver; $24M NHL advance), Knicks revolver capacity increased $150M to $425M, and recently refinanced facilities extend maturities to Nov 2030 with lower borrowing rates. Management reiterated capital allocation priorities (maintain liquidity, strong balance sheet, be opportunistic on other uses including possible future returns of capital), noted no current minority‑sale activity but would not rule it out, and said changes to compensation tax deductibility will be assessed (effective for the year ended June 30, 2028).Madison Square Garden Sports Financial Statement Overview
Summary
Strong multi-year revenue growth and prior-year profitability are outweighed by a strained balance sheet (persistent negative equity with high debt) and a sharp TTM deterioration in cash flow (negative operating cash flow) alongside renewed losses and margin compression.Income Statement
Revenue has expanded strongly over the past several years (from $416M in 2021 to $1.04B in 2025 annual), with 2024 showing solid profitability (about 5.7% net margin). However, profitability has deteriorated meaningfully since then: 2025 annual and TTM (Trailing-Twelve-Months) both show net losses and sharply lower gross margin versus 2023–2024, with TTM operating profit only modestly positive and margins thin. Overall: good top-line scale and growth, but recent margin compression and losses weigh on the score.46
Neutral
Balance Sheet
Leverage is high with total debt consistently around $1.0B–$1.2B, while stockholders’ equity is negative in every period shown (roughly -$266M to -$337M in recent years and -$282M TTM). This leaves the capital structure looking stretched and reduces financial flexibility, even though total assets are sizeable (~$1.5B TTM). Overall: meaningful balance sheet risk driven by high debt and negative equity.24
Negative
Cash Flow
Cash generation was solid in recent annual periods (operating cash flow ~$92M in 2024 and ~$92M in 2025 annual, with free cash flow near ~$88–$91M). However, TTM (Trailing-Twelve-Months) shows a sharp reversal with negative operating cash flow (-$81M) and free cash flow collapsing to ~$4M (down ~88% versus the prior period’s growth figure). Overall: historically decent cash conversion, but the latest TTM cash flow deterioration is a key concern.38
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.07B | 1.04B | 1.03B | 887.45M | 821.35M | 415.72M |
| Gross Profit | 276.96M | 280.88M | 407.47M | 335.06M | 315.75M | 128.26M |
| EBITDA | 18.17M | 7.60M | 136.42M | 116.38M | 90.71M | -73.18M |
| Net Income | -16.56M | -22.44M | 58.77M | 47.79M | 51.13M | -13.95M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.58B | 1.44B | 1.40B | 1.40B | 1.42B |
| Cash, Cash Equivalents and Short-Term Investments | 81.30M | 153.19M | 94.91M | 40.46M | 91.02M | 72.04M |
| Total Debt | 2.03B | 1.18B | 1.11B | 1.12B | 993.29M | 1.12B |
| Total Liabilities | 1.83B | 1.86B | 1.71B | 1.74B | 1.55B | 1.62B |
| Stockholders Equity | -282.08M | -281.44M | -266.31M | -337.23M | -147.09M | -204.31M |
Cash Flow | ||||||
| Free Cash Flow | 2.77M | 87.99M | 90.68M | 151.29M | 177.12M | -35.79M |
| Operating Cash Flow | 3.48M | 91.61M | 92.13M | 152.47M | 178.06M | -35.33M |
| Investing Cash Flow | -7.36M | -6.92M | -8.90M | -17.76M | -2.93M | -466.00K |
| Financing Cash Flow | -30.67M | -26.41M | -28.79M | -185.27M | -156.14M | 17.16M |
Madison Square Garden Sports Technical Analysis
Positive
321.53
Price Trends
276.43
Positive
249.18
Positive
225.42
Positive
Market Momentum
12.63
Negative
63.35
Neutral
55.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSGS, the sentiment is Positive. The current price of 321.53 is above the 20-day moving average (MA) of 295.31, above the 50-day MA of 276.43, and above the 200-day MA of 225.42, indicating a bullish trend. The MACD of 12.63 indicates Negative momentum. The RSI at 63.35 is Neutral, neither overbought nor oversold. The STOCH value of 55.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSGS.
Madison Square Garden Sports Risk Analysis
Madison Square Garden Sports disclosed 32 risk factors in its most recent earnings report. Madison Square Garden Sports reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Madison Square Garden Sports Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.90B | 55.86 | 224.08% | ― | 0.68% | -80.73% | |
62 Neutral | $40.85B | 83.68 | 4.99% | 1.07% | 56.31% | ― | |
61 Neutral | $4.02B | -382.87 | 1.44% | ― | 24.54% | -119.75% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $2.72B | -1,832.71 | -4.45% | ― | 6.62% | 97.35% | |
54 Neutral | $7.56B | -457.83 | ― | ― | -1.16% | -133.74% | |
44 Neutral | $3.06B | -55.69 | -23.63% | ― | 5.69% | 52.32% |
* Communication Services Sector Average
MSGS
Madison Square Garden Sports
321.53
120.21
59.71%
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MSGE
Madison Square Garden Entertainment Corp.
61.73
27.53
80.50%
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48.76
5.53
12.79%
Madison Square Garden Sports Corporate Events
Business Operations and StrategyExecutive/Board Changes
MSG Sports Explores Spin-Off of Knicks and Rangers
Neutral
Feb 18, 2026
On February 17, 2026, Madison Square Garden Sports Corp. announced that Executive Vice President, Chief Financial Officer and Treasurer Victoria Mink will leave the company, though she will remain in her role for a period to support a potential spin-off and ensure an orderly transition. Her departure, which will include severance under her existing agreement, was not due to any dispute over accounting principles, financial disclosures or internal controls.
The board also unanimously approved a plan to explore separating the New York Knicks and New York Rangers into two independent publicly traded companies via a potential tax-free spin-off to existing shareholders. While there is no assurance the transaction will be completed, any separation would depend on league approvals, a favorable tax opinion and final board authorization, and could reshape the company’s structure and investor exposure to each franchise.
The most recent analyst rating on (MSGS) stock is a Buy with a $337.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Madison Square Garden Sports Stockholders Meeting Results
Neutral
Dec 9, 2025
On December 8, 2025, Madison Square Garden Sports Corp. held its annual meeting of stockholders, where Class A and Class B stockholders voted on several proposals. The election of directors saw four directors elected by Class A stockholders and eleven by Class B stockholders, with James L. Dolan and other Dolan family members receiving unanimous votes from Class B shares. Additionally, stockholders ratified the appointment of the independent registered public accounting firm for the 2026 fiscal year and approved, on a non-binding basis, the compensation of the company’s named executive officers.
The most recent analyst rating on (MSGS) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.
Executive/Board Changes
Madison Square Garden Sports Announces Leadership Change
Neutral
Nov 21, 2025
On November 19, 2025, Alexander Shvartsman resigned from his role at Madison Square Garden Sports Corp., effective November 24, 2025, to join Madison Square Garden Entertainment Corp. as Senior Vice President, Controller & Principal Accounting Officer. Subsequently, Christopher Ripp was appointed to fill Shvartsman’s position, bringing experience from his previous roles within the company and PricewaterhouseCoopers LLP. The employment agreement with Ripp includes a base salary, bonus eligibility, and long-term incentives, with provisions for severance benefits under certain conditions.
The most recent analyst rating on (MSGS) stock is a Hold with a $220.00 price target. To see the full list of analyst forecasts on Madison Square Garden Sports stock, see the MSGS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.