Madison Square Garden Entertainment
Madison Square Garden Entertainment's revenue rose 12.5% to $1.1 billion in fiscal 2026. Its operating margin was 13.3%, up from 12.9% a year earlier. It paid out $25 million in dividends and buybacks. The diluted share count fell 0.7%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What Madison Square Garden Entertainment does
MSG Entertainment runs live entertainment venues and shows. Its venues are Madison Square Garden, the Infosys Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre. It also produces the Christmas Spectacular Starring the Radio City Rockettes.
It reports one segment. Its business has two parts: its own production, the Christmas Spectacular, and a bookings business that brings concerts, family shows, special events and sporting events to its venues each year, drawing millions of guests. It says it is helped by its presence in New York and its ties to performers and event organizers.
The company was set up in 2022 as a unit of Sphere Entertainment, then separated in April 2023 when Sphere Entertainment gave most of its shares to its own stockholders. Sphere Entertainment has since sold the rest of its stake. In June 2025 the company changed its legal home from Delaware to Nevada. Its fiscal year ends on June 30.
Its biggest risks, as it describes them
- Strong competition for audiences, performers and events.
- Relying on the continued popularity of the Christmas Spectacular and on the events booked at its venues.
- Needing licenses from third parties to perform music at its venues, and losing them or renewing on worse terms.
- Losing or changing a New York City real estate tax exemption for the Madison Square Garden complex.
- Leasing some of its venues, and being hit by a downturn in the economy.
Income statement
From fiscal 2023 to 2026, earnings per share fell 2.1% a year and net income 4.7% a year, while buybacks cut the share count by 8%.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | 58 | 76 | 33 | 43 | 294 |
| Debt incl. finance leases | 655 | 630 | 599 | 569 | 540 |
| Net debt (negative means net cash) | 597 | 554 | 566 | 526 | 247 |
| Net debt to EBITDA | 9.3x | 3.4x | 3.4x | 2.9x | 1.2x |
| Debt to equity | — | — | — | — | — |
| Interest coverage | −0.1x | 2.0x | 1.9x | 2.4x | 3.5x |
| Current ratio | 0.6x | 0.6x | 0.4x | 0.5x | 0.7x |
| Quick ratio | 0.6x | 0.5x | 0.4x | 0.5x | 0.7x |
Cash flow
Free cash flow is cash from operations minus capital expenditure. The SEC's structured data for Madison Square Garden Entertainment's filings doesn't give both for any year, so free cash flow is left out.
Projections
Project Madison Square Garden Entertainment's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
Insider trades
No officer, director or 10% owner of Madison Square Garden Entertainment reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY24 | FY25 | FY26 |
|---|---|---|---|
| Piotroski F-score | 6 of 8 | 6 of 8 | 8 of 8 |
| Rule of 40 | — | — | — |
| Altman Z'' | −0.50 | −0.26 | 0.12 |
| Accruals ratio | 2.2% | −4.8% | −15.8% |
The nine F-score tests
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Fail | Pass |
| Cash from operations exceeds net income | Fail | Pass | Pass |
| Debt fell relative to assets | Pass | Pass | Pass |
| Current ratio rose | Fail | Pass | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Pass | Fail | Pass |
| F-score | 6 of 8 | 6 of 8 | 8 of 8 |
Compare
Put Madison Square Garden Entertainment side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Madison Square Garden Entertainment | FY26 | 12.5% | 13.3% | — | 21.8% | 1.2x | 8 | |
| Madison Square Garden Sports | FY26 | 11.0% | 2.5% | 5.3% | — | 2.9x | 7 | Compare |
| Sphere Entertainment | FY25 | 18.8% | −18.8% | — | −4.8% | 1.6x | 7 | Compare |
| Marcus | FY25 | 3.1% | 2.2% | 0.1% | 2.8% | 1.7x | 6 | Compare |
| Atlanta Braves Holdings | FY25 | 10.5% | −1.9% | −9.3% | −0.9% | 12.0x | 4 | Compare |
6 years of figures
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Income statement | ||||||
| Revenue | 82 | 654 | 852 | 959 | 943 | 1,061 |
| Revenue growth | — | 698.8% | 30.3% | 12.7% | −1.7% | 12.5% |
| Gross profit | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — |
| Operating income | −237 | −6 | 105 | 112 | 122 | 142 |
| Net income | −219 | −133 | 77 | 144 | 37 | 66 |
| Diluted EPS (US$) | −4.22 | −2.58 | 1.47 | 2.97 | 0.77 | 1.38 |
| Diluted shares (millions) | 52 | 52 | 52 | 49 | 48 | 48 |
| Cash flow | ||||||
| Cash from operations | −148 | 95 | 136 | 111 | 115 | 351 |
| Capital expenditure | — | — | — | — | — | — |
| Free cash flow | — | — | — | — | — | — |
| Dividends paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share buybacks | 0 | 0 | 25 | 51 | 40 | 25 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-based compensation | 41 | 39 | 32 | 31 | 28 | 32 |
| Balance sheet at fiscal year end | ||||||
| Cash and short-term investments | 318 | 58 | 76 | 33 | 43 | 294 |
| Debt incl. finance leases | — | 655 | 630 | 599 | 569 | 540 |
| Total assets | — | 1,527 | 1,401 | 1,553 | 1,670 | 1,935 |
| Total liabilities | — | 1,528 | 1,471 | 1,576 | 1,683 | 1,890 |
| Shareholders' equity | 499 | −2 | −70 | −23 | −13 | 46 |
| Margins and ratios | ||||||
| Gross margin | — | — | — | — | — | — |
| Operating margin | −290.0% | −0.9% | 12.3% | 11.7% | 12.9% | 13.3% |
| Net margin | −267.2% | −20.4% | 9.0% | 15.0% | 4.0% | 6.2% |
| Free cash flow margin | — | — | — | — | — | — |
| Rule of 40 (growth + FCF margin) | — | — | — | — | — | — |
| Return on capital | — | — | 19.0% | 21.8% | 13.2% | 21.8% |
| Return on equity | — | — | — | — | — | — |
| Return on assets | — | — | 5.2% | 9.8% | 2.3% | 3.7% |
| Net debt to EBITDA | — | 9.3x | 3.4x | 3.4x | 2.9x | 1.2x |