Near-term Growth Headwinds Persist for Madison Square Garden Sports (MSGS)

Representing 0.26% of Bill Gates’s stock portfolio, Madison Square Garden Sports Corp. (NYSE:MSGS) is one of his top 15 stock picks.

Madison Square Garden Sports (MSGS) Reports $39.5 Million In Revenue for Q1 2025

Madison Square Garden Sports Corp. (NYSE:MSGS) announced results for Q1 fiscal 2026 on October 31, 2025.

Off to a challenging start to fiscal 2026, Madison Square Garden Sports Corp. (NYSE:MSGS) reported $39.5 million in revenue, a 26% year-over-year decrease. The decline was led by an $11.4 million drop in league distributions, alongside a $2.3 million decrease in local media rights fees following amendments to the Knicks’ and Rangers’ agreements with MSG Networks, a regional cable and satellite television network.

Weaker top-line results and higher administrative expenses resulted in an adjusted operating loss of $20.8 million, which was $18.5 million worse than the loss reported in the same period last year. Driven by increased lease, employee, and service-related expenses, Madison Square Garden Sports Corp. (NYSE:MSGS)’s selling, general, and administrative costs increased by 10% to $57.8 million. The company reported diluted loss per common share of $0.37.

While acknowledging short-term financial pressures, Madison Square Garden Sports Corp. (NYSE:MSGS)’s CEO James L. Dolan emphasized the continued strong demand for the Knicks and Rangers. His commentary also reflected confidence in the long-term value of MSG Sports’ premier franchises and its potential to create value for shareholders in the long term.

Madison Square Garden Sports Corp. (NYSE:MSGS) is focused on owning and operating professional sports franchises, including the New York Knicks (NBA) and the New York Rangers (NHL). It also owns and operates development league teams, alongside training facilities.

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