Madison Square Garden Entertainment (NYSE:MSGE) reported fiscal 2026 revenue of more than $1 billion and adjusted operating income of $262 million, representing year-over-year increases of 13% and 18%, respectively, as the company cited growth across its live entertainment, holiday production, sponsorship and premium hospitality businesses.
David Collins, executive vice president and chief financial officer, said the company hosted about 6.4 million guests at nearly 960 live events during the fiscal year. He said the fiscal fourth quarter included more than twice as many concerts at Madison Square Garden as in the prior-year period, aided by efforts to increase utilization during the NBA playoff window. The majority of concerts were sold out during the quarter, according to Collins.
Fourth-Quarter Results Improve
Adjusted operating income was $18.6 million in the quarter, compared with an adjusted operating loss of $1.3 million a year earlier. The improvement was driven by revenue growth, partially offset by higher direct operating and selling, general and administrative expenses.
The company ended the fiscal year on June 30 with $294 million of unrestricted cash and approximately $579 million of debt. Collins noted that the cash balance includes a significant amount due to promoters, reflecting a robust schedule of upcoming concerts, particularly at Madison Square Garden.
For fiscal 2027, MSG Entertainment expects to generate significant underlying free cash flow, supported by adjusted operating income growth. Factors offsetting cash generation include net interest payments, capital expenditures related to technology investments and suite renovations, taxes, and working-capital timing.
Christmas Spectacular Sets Attendance Record
The Christmas Spectacular featuring the Radio City Rockettes generated approximately $195 million in fiscal 2026 revenue. Across 215 paid performances, the production sold more than 1.2 million tickets, its highest attendance level in 25 years, Collins said.
The company has put 230 performances on sale for the 2026 holiday season, a new annual high and a mid-single-digit percentage increase from the prior year’s show count. Management expects ticketing revenue to increase, reflecting both additional performances and higher average ticket yields.
This year’s production will include a new Rockettes scene and new immersive technology intended to provide audiences with different perspectives of the show. Collins said the company continues to view the production as a premium entertainment offering that remains priced below average ticket prices for comparable New York City entertainment options.
Fiscal 2027 Calendar Includes Harry Styles Residency
MSG Entertainment expects to increase events across its venues in fiscal 2027, with growth led primarily by concerts and, to a lesser extent, special events and marquee sports.
The company’s schedule includes Harry Styles’ 30-date Madison Square Garden residency from August through October, as well as the NCAA Men’s Basketball East Regional, scheduled to return to the arena in March. Collins said the company is nearly 90% toward its booking goal for Madison Square Garden and about 60% toward its goal for its theaters.
During the fiscal first quarter, the company expects to set a record for the number of concerts held in a quarter at Madison Square Garden, including the effect of the Harry Styles residency. Theater bookings were pacing behind for the September quarter, though Collins said theater bookings generally occur only months in advance and management is working to close the gap.
Other residencies and extended engagements cited by management included Bon Jovi and Phish at Madison Square Garden, Joe Hisaishi at Radio City Music Hall, and extended Beacon Theatre residencies involving Seth Meyers and John Oliver as well as Jerry Seinfeld.
- Concert growth is expected at Madison Square Garden and across the company’s theaters.
- Special events are expected to increase, alongside improved per-event economics.
- Marquee sports events are projected to rise modestly, including the NCAA East Regional.
- Family-show comparisons will be difficult following Cirque du Soleil holiday runs at the Infosys Theater and Chicago Theatre, though the company expects other family and performing arts attractions to largely offset that impact.
Sports, Sponsorship and Premium Hospitality
Collins said MSG Entertainment benefited from the New York Knicks’ championship postseason run through its agreements with MSG Sports. The company hosted nine Knicks playoff games and recorded a $7.4 million year-over-year increase in fourth-quarter revenue related to its MSG Sports agreements, including the impact of the championship run.
MSG Entertainment operates food and beverage services during team events and shares 50% of net profits with the Knicks and Rangers. It also operates team merchandise sales at Madison Square Garden, retaining 30% of net revenue, and earns commissions on single-night suite sales during Knicks and Rangers games.
Management said per-game growth in shared revenue streams included suites, food and beverage, and merchandise. The cash component of arena license fees is expected to be about $47 million in fiscal 2027 and is set to increase 3% annually through fiscal 2055.
The company also announced new and renewed multiyear marketing agreements during fiscal 2026, including a new deal with Calci and renewals with Lexus, Anheuser-Busch and Infosys. It reported strong suite sales and renewals, and plans to renovate additional Lexus-level suites during fiscal 2027 to support incremental revenue.
Infosys Theater Transfer Remains Under Negotiation
In June, MSG Entertainment announced a non-binding memorandum of understanding with Penn Transformation Partners regarding a potential transfer of the Infosys Theater at Madison Square Garden as part of the Penn Station redevelopment project. Penn Transformation Partners, led by Halmar International and Skanska, was selected by Amtrak as master developer for the project.
Collins said definitive documents are being negotiated and that the arena is expected to remain fully operational during redevelopment. He said the company is evaluating opportunities to shift events from the Infosys Theater to other New York venues and to use other live-entertainment assets for sponsorship and signage if the transaction is completed.
No decisions have been made on the use of potential transfer proceeds. Collins said reinvesting proceeds in another venue could help minimize potential tax leakage, while any capital-allocation decision would be guided by maintaining a strong balance sheet, preserving flexibility for opportunities and opportunistically returning capital to shareholders.
During fiscal 2026, the company repurchased approximately 623,000 Class A shares for $25 million. Since its 2023 spinoff, it has repurchased about 6.1 million shares for $205 million.
About Madison Square Garden Entertainment (NYSE:MSGE)
Madison Square Garden Entertainment Corp. (NYSE: MSGE) is a premier live entertainment company focused on producing and hosting a wide range of events across North America. Established as a separate publicly traded entity in April 2020 through a spin-off from Madison Square Garden Company, MSGE owns and operates iconic venues such as Madison Square Garden in New York City, Radio City Music Hall, The Chicago Theatre and Sphere in Las Vegas. These facilities serve as flagship stages for concerts, sports events, family shows and cultural performances.
The company’s core business activities center on venue management, event promotion and production services.
