Madison Square Garden Reports Strong Q2 Earnings

Increased revenue and adjusted operating income driven by higher in-arena activity and new partnerships

Feb. 6, 2026 at 8:47pm

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Madison Square Garden Sports Corp. (NYSE:MSGS) reported fiscal 2026 second-quarter results that management said reflected strong consumer and corporate demand across its core revenue streams, even as local media rights fees moved lower under amended agreements with MSG Networks. The company saw increases in revenue and adjusted operating income, driven by higher in-arena activity, new marketing partnerships, and premium hospitality offerings.

Why it matters

Madison Square Garden Sports' strong quarterly performance highlights the continued demand for live sports and entertainment experiences in the New York market, as well as the company's ability to drive revenue growth through innovative partnerships and premium offerings. The results also demonstrate the impact of the company's amended media rights agreements, which reduced local fees but were offset by higher national media rights revenue.

The details

For the fiscal second quarter, MSG Sports generated revenue of approximately $403 million and adjusted operating income (AOI) of about $30 million. Total revenue was $403.4 million, up from $357.8 million in the prior-year period, and AOI increased $9.4 million to $29.7 million. The company attributed the year-over-year improvement to increased in-arena activity, with 39 pre- and regular-season home games across the Knicks and Rangers during the quarter, compared with 35 games last year. Per-game revenues increased across all in-game categories, including ticketing, suites, sponsorship, and food, beverage, and merchandise. The company also highlighted new marketing partnerships, including a multi-year agreement with Game 7 that made the brand the Rangers' first-ever jersey patch partner, as well as renewed deals with Anheuser-Busch and Infosys. On the media rights front, national fees increased due to the NBA's new national agreements, but local media rights fees declined under amended agreements with MSG Networks.

  • The fiscal second quarter ended on December 31, 2025.
  • The company's new media rights agreements with MSG Networks, which included 28% and 18% reductions in annual rights fees for the Knicks and Rangers, respectively, became effective on January 1, 2025.

The players

Madison Square Garden Sports Corp.

A leading sports and entertainment holding company that owns and operates professional sports franchises, including the NBA's New York Knicks, the NHL's New York Rangers, and the WNBA's New York Liberty.

Jamaal Lesane

Chief Operating Officer of Madison Square Garden Sports Corp.

Victoria Mink

Chief Financial Officer of Madison Square Garden Sports Corp.

MSG Networks

A regional cable network that broadcasts live sporting events, news, and original programming, and is partially owned by Madison Square Garden Sports Corp.

Game 7

A multi-platform sports and entertainment brand that became the Rangers' first-ever jersey patch partner.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The company said it continues to assess the impact of upcoming changes to the tax deductibility of compensation, which becomes effective for the company for the year ended June 30, 2028.

The takeaway

Madison Square Garden Sports' strong quarterly performance demonstrates the continued demand for live sports and entertainment experiences in the New York market, as well as the company's ability to drive revenue growth through innovative partnerships and premium offerings. The results also highlight the impact of the company's amended media rights agreements, which reduced local fees but were offset by higher national media rights revenue.