Madison Square Garden Beats Q4 Revenue

Key Points

• Revenue (GAAP) for Q4 FY2025 surpassed expectations, reaching $154.1 million compared to the analyst estimate of $150.3 million.

• Adjusted operating loss (non-GAAP) was wider than projected at ($1.3 million), missing analyst expectations.

• Quarterly earnings dropped significantly compared to the prior-year period, mainly due to fewer premium events and team games at key venues.

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Madison Square Garden Entertainment (NYSE:MSGE), the owner and operator of iconic live entertainment venues, released its Q4 FY2025 earnings on August 13, 2025. The main headlines from the release were higher-than-expected revenue of $154.1 million (GAAP), but a disappointing adjusted operating loss of ($1.3 million) that missed analyst expectations. EPS (GAAP, basic) came in at ($0.57), also a sharp drop from the prior year. These results showcase volatility in the company's event-driven revenue model, with an overall assessment pointing to a mixed quarter following a year of operating income growth but lower overall revenue.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Strategic Focus

Madison Square Garden Entertainment (NYSE:MSGE) operates a portfolio of premier live entertainment venues. Its properties include Madison Square Garden itself, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre. These venues host a range of high-profile events such as concerts, sports games, and family entertainment, attracting millions of guests each year.

The company's success depends on demand for these unique spaces, the mix of events they can secure, and strong relationships with sports teams like the New York Knicks and Rangers. Another core strength is its intellectual property, such as the Christmas Spectacular with the Rockettes, which continues to deliver robust ticket sales. Recent business priorities have centered on enhancing customer experience, maximizing profitability from premium hospitality, and leveraging event and sponsorship partnerships to drive revenue.

Key Developments in the Quarter

Revenue (GAAP) exceeded analyst forecasts, reaching $154.1 million compared with a consensus estimate of $150.3 million. However, this was a 17% drop from the prior-year quarter figure of $186.1 million. The decrease primarily reflected fewer events at Madison Square Garden and a drop in high-value concerts and playoff games. Suite license fee revenue declined due to fewer Knicks and Rangers home games played at the venue, while total arena license fees and other leasing revenues increased compared to the prior year.

Food, beverage, and merchandise revenue declined by 24% compared with Q4 FY2024, mainly because there were fewer games and concerts at the core venues. While some offset came from higher per-event revenues, the lower quantity of large-scale events weighed on the top line. The company’s direct operating expenses decreased 14%, primarily due to lower event-related expenses and, to a lesser extent, lower expenses related to the sharing of economics with MSG Sports, partially offset by increased Christmas Spectacular and other costs.

The Christmas Spectacular, featuring the Rockettes, was a standout in the broader year. This proprietary live entertainment production once again set a new revenue record in FY2025, with approximately 1.1 million tickets sold across 200 performances. According to management, early ticket sales for the 2025 season are more than 60% ahead in gross revenue, suggesting continued demand for exclusive shows.

Premium hospitality offerings, such as event-level club spaces, experienced solid demand, with certain products sold out for the current period. The company also renewed key sponsorships, including a fresh multi-year deal with Pepsi. Together, these moves reinforce the importance of corporate partners and premium customers in providing a revenue foundation.

Looking Ahead

For fiscal 2026, management expressed confidence, stating: We see this momentum continuing in FY2026 and believe we are well positioned to drive solid revenue and adjusted operating income (non-GAAP) growth in the year ahead. They cited a strong bookings pipeline for concerts and confirmed substantial visibility into the September quarter, anticipating a potential record for concerts hosted at the Garden in Q1 FY2026.

The preview for the next Christmas Spectacular is also strong. Current ticket sales for the Christmas Spectacular production are notably higher in both volume and average price for the upcoming season, according to management’s commentary. The company’s focus heading into the new year will likely hinge on optimizing its mix of exclusive live events, sustaining strong demand in premium hospitality areas, and maintaining cost discipline in the face of potential swings in event scheduling and partner team performance.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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