What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-05-06 · 236 added, 323 removed, 422 unchanged (57% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

March 31, June 30,

September 30, June 30,

Current Assets:

13 unchanged sentences

Total assets $ 1,679,827 $ 1,669,842

LIABILITIES AND EQUITY

LIABILITIES AND DEFICIT

Current Liabilities:

11 unchanged sentences

Commitments and contingencies (see Note 7)

Equity (Deficit):

Class A Common Stock (a)

1 unchanged sentence

Additional paid-in-capital 38,802 44,843

Treasury stock at cost ( 5,483 and 4,365 shares outstanding as of March 31, 2025 and June 30, 2024, respectively)

Treasury stock at cost ( 6,106 and 5,483 shares outstanding as of September 30, 2025 and June 30, 2025, respectively)

( 205,204 ) ( 180,204 )

2 unchanged sentences

Accumulated other comprehensive loss ( 31,310 ) ( 31,503 )

Total equity (deficit) 9,526 ( 23,165 )

Total liabilities and equity $ 1,739,412 $ 1,552,707

Total deficit ( 65,798 ) ( 13,300 )

Total liabilities and deficit $ 1,679,827 $ 1,669,842

_________________

(a) Class A Common Stock, $ 0.01 par value per share, 120,000 shares authorized;

46,031 and 45,556 shares issued as of March 31, 2025 and June 30, 2024, respectively.

46,468 and 46,076 shares issued as of September 30, 2025 and June 30, 2025, respectively.

(b) Class B Common Stock, $ 0.01 par value per share, 30,000 shares authorized;

6,867 shares issued as of March 31, 2025 and June 30, 2024.

6,867 shares issued as of September 30, 2025 and June 30, 2025.

See accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands, except per share data)

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Revenues from entertainment offerings

2 unchanged sentences

Arena license fees and other leasing revenue

Total revenues (a)

158,262 138,714

Total revenues 242,465 228,313 788,596 773,191

Direct operating expenses (a)

Direct operating expenses:

Entertainment offerings, arena license fees, and other leasing direct operating expenses

2 unchanged sentences

( 13,812 ) ( 11,243 )

Total direct operating expenses ( 138,870 ) ( 142,021 ) ( 433,653 ) ( 446,459 )

Total direct operating expenses (a)

( 102,370 ) ( 97,709 )

Selling, general, and administrative expenses (a)

2 unchanged sentences

Impairment of long-lived assets ( 13,782 ) —

Restructuring charges ( 84 ) ( 2,362 ) ( 14 ) ( 14,803 )

Operating income 27,327 16,803 147,846 120,801

Restructuring (charges) credits ( 1,190 ) 40

Operating loss ( 29,739 ) ( 18,482 )

Interest income

710 341 1,447 2,275

Interest expense ( 11,028 ) ( 14,043 )

Other (expense) income, net ( 949 ) 78 ( 2,763 ) ( 1,545 )

Income from operations before income taxes 15,288 2,797 107,732 77,770

Income tax expense ( 7,252 ) ( 2 ) ( 43,124 ) ( 397 )

Net income $ 8,036 $ 2,795 $ 64,608 $ 77,373

Earnings per share attributable to MSG Entertainment’s stockholders:

Other expense, net ( 172 ) ( 769 )

Loss from operations before income taxes ( 40,419 ) ( 32,922 )

Income tax benefit 18,765 13,601

Net loss $ ( 21,654 ) $ ( 19,321 )

Loss per share:

Basic $ ( 0.46 ) $ ( 0.40 )

8 unchanged sentences

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

(in thousands)

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Net income $ 8,036 $ 2,795 $ 64,608 $ 77,373

Three Months Ended

September 30,

Net loss $ ( 21,654 ) $ ( 19,321 )

Other comprehensive income, before income taxes:

Pension plans and postretirement plans

542 450 1,626 1,350

Income tax expense ( 186 ) ( 78 ) ( 558 ) ( 236 )

Pension plans and other postretirement plans adjustments

Income tax expense related to items of other comprehensive income ( 102 ) ( 185 )

Other comprehensive income, net of income taxes

356 372 1,068 1,114

Comprehensive income $ 8,392 $ 3,167 $ 65,676 $ 78,487

Comprehensive loss $ ( 21,461 ) $ ( 18,965 )

See accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended

Three Months Ended

September 30,

OPERATING ACTIVITIES:

Net income $ 64,608 $ 77,373

Adjustments to reconcile net income to net cash provided by operating activities:

Net loss $ ( 21,654 ) $ ( 19,321 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 14,074 13,781

1 unchanged sentence

Share-based compensation expense 7,293 6,262

Deferred income tax expense 26,422 397

Amortization of deferred financing costs 527 852

Related party paid in kind interest — ( 512 )

Net unrealized and realized loss (gain) on equity investments with readily determinable fair value 203 ( 391 )

Deferred income tax benefit ( 18,846 ) ( 13,612 )

Net unrealized and realized gain on equity investments with readily determinable fair value ( 155 ) ( 124 )

Other non-cash adjustments 29 94

8 unchanged sentences

Operating lease right-of-use assets and lease liabilities 8,305 20,934

Net cash provided by operating activities $ 142,308 $ 111,054

Net cash provided by (used in) operating activities $ 19,808 $ ( 27,359 )

INVESTING ACTIVITIES:

1 unchanged sentence

Proceeds from sale of investments

Loan to related parties

Other investing activities ( 845 ) ( 840 )

6 unchanged sentences

( 22,617 ) ( 4,063 )

Repayments on related party loan, net — ( 304 )

Payments for debt financing costs

Taxes paid in lieu of shares issued for equity-based compensation

( 15,077 ) ( 13,378 )

Repurchases of Class A common stock

( 39,692 ) ( 50,874 )

Other financing activities ( 53 ) —

Net cash used in financing activities $ ( 67,010 ) $ ( 94,476 )

Net increase (decrease) in cash, cash equivalents, and restricted cash

Taxes paid in lieu of shares issued for equity-based compensation

( 13,330 ) ( 12,830 )

Payments for debt financing costs

Net cash (used in) provided by financing activities $ ( 26,077 ) $ 38,107

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 13,067 ) 4,058

Cash, cash equivalents, and restricted cash, beginning of period

4 unchanged sentences

Capital expenditures incurred but not yet paid or paid by landlord $ 487 $ 15,379

Non-cash repurchases of Class A common stock in lieu of payment of loan due from related party

Non-cash financing activities $ ( 148 ) $ —

Non-cash financing lease obligation

$ — $ ( 130 )

See accompanying notes to the unaudited condensed consolidated financial statements.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF DEFICIT (UNAUDITED)

(in thousands)

1 unchanged sentence

Accumulated Other Comprehensive Loss

Total Equity (Deficit)

Balance as of December 31, 2024 $ 529 $ 34,686 $ ( 165,512 ) $ 172,175 $ ( 31,550 ) $ 10,328

Net income — — — 8,036 — 8,036

Other comprehensive income — — — — 356 356

Share-based compensation

— 6,250 — — — 6,250

Tax withholding associated with shares issued for share-based compensation — ( 702 ) — — — ( 702 )

Repurchases of Class A common stock, inclusive of excise tax — ( 50 ) ( 14,692 ) — — ( 14,742 )

Balance as of March 31, 2025 $ 529 $ 40,184 $ ( 180,204 ) $ 180,211 $ ( 31,194 ) $ 9,526

Balance as of December 31, 2023 $ 524 $ 25,339 $ ( 140,512 ) $ 45,881 $ ( 33,279 ) $ ( 102,047 )

Net income — — — 2,795 — 2,795

Other comprehensive income — — — — 372 372

Share-based compensation — 5,448 — — — 5,448

Tax withholding associated with shares issued for share-based compensation — ( 1,131 ) — — — ( 1,131 )

Balance as of March 31, 2024 $ 524 $ 29,656 $ ( 140,512 ) $ 48,676 $ ( 32,907 ) $ ( 94,563 )

Total Deficit

Balance as of June 30, 2025 $ 530 $ 44,843 $ ( 180,204 ) $ 153,034 $ ( 31,503 ) $ ( 13,300 )

Net income — — — 64,608 — 64,608

Net loss — — — ( 21,654 ) — ( 21,654 )

Other comprehensive income — — — — 193 193

2 unchanged sentences

Tax withholding associated with shares issued for share-based compensation 4 ( 13,334 ) — — — ( 13,330 )

Repurchases of Class A common stock, inclusive of excise tax — ( 50 ) ( 39,692 ) — — ( 39,742 )

Balance as of March 31, 2025 $ 529 $ 40,184 $ ( 180,204 ) $ 180,211 $ ( 31,194 ) $ 9,526

Repurchases of Class A common stock — — ( 25,000 ) — — ( 25,000 )

Balance as of September 30, 2025 $ 534 $ 38,802 $ ( 205,204 ) $ 131,380 $ ( 31,310 ) $ ( 65,798 )

Balance as of June 30, 2024 525 33,481 ( 140,512 ) 115,603 ( 32,262 ) $ ( 23,165 )

Net income — — — 77,373 — 77,373

Net loss — — — ( 19,321 ) — ( 19,321 )

Other comprehensive income — — — — 356 356

1 unchanged sentence

Tax withholding associated with shares issued for share-based compensation 4 ( 12,834 ) — — — ( 12,830 )

Repurchases of Class A common stock, inclusive of excise tax — ( 874 ) ( 115,512 ) — — ( 116,386 )

Balance as of March 31, 2024 $ 524 $ 29,656 $ ( 140,512 ) $ 48,676 $ ( 32,907 ) $ ( 94,563 )

Balance as of September 30, 2024 $ 529 $ 26,909 $ ( 140,512 ) $ 96,282 $ ( 31,906 ) $ ( 48,698 )

See accompanying notes to the unaudited condensed consolidated financial statements.

8 unchanged sentences

The Company operates and reports financial information in one reportable segment.

The Company’s decision to organize as one reportable segment is based upon its internal organizational structure, the manner in which its operations are managed, and the criteria used by the Company’s Executive Chairman and Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), to evaluate segment performance.

The Company’s CODM reviews total company operating results to assess overall performance and allocate resources.

The Company’s portfolio of venues includes:

Madison Square Garden (“The Garden”), The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre.

The Company owns and produces the original production, the Christmas Spectacular Starring the Radio City Rockettes (the “ Christmas Spectacular ”).

The Company also books other entertainment and sports events, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.

MSG Entertainment Distribution

On April 20, 2023, Sphere Entertainment Co.

(together with its subsidiaries, as applicable, “Sphere Entertainment”) distributed approximately 67 % of the outstanding common stock of the Company to its stockholders (the “Distribution”), with Sphere Entertainment retaining approximately 33 % of the outstanding common stock of the Company in the form of Class A common stock, $ 0.01 par value per share (“Class A Common Stock”) immediately following the Distribution.

As a result, the Company became an independent publicly traded company on April 21, 2023.

Following the completion of the secondary offering by Sphere Entertainment of the Company’s Class A Common Stock on September 22, 2023, Sphere Entertainment no longer owns any of the Company’s outstanding common stock.

Description of Business and Basis of Presentation to the Company’s audited consolidated and combined financial statements and notes thereto as of June 30, 2024 and 2023 and for the three years ended June 30, 2024, 2023 and 2022 (the “Audited Consolidated and Combined Annual Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 filed with the Securities and Exchange Commission (the “SEC”) on August 16, 2024 (the “2024 Form 10-K”) for more information regarding the Distribution.

The Company also owns and produces the original production, the Christmas Spectacular Starring the Radio City Rockettes (the “ Christmas Spectacular ”).

In addition, the Company has an entertainment and sports bookings business, which showcases a broad array of compelling concerts, family shows and special events, as well as a diverse mix of sporting events, for millions of guests annually.

The Company conducts a significant portion of its operations at venues that it either owns or operates under long-term leases.

The Company owns The Garden, The Theater at Madison Square Garden and The Chicago Theatre, and leases Radio City Music Hall and the Beacon Theatre.

All of the Company’s revenues and assets are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area.

Basis of Presentation

The Company reports on a fiscal year basis ending on June 30 th (“Fiscal Year”).

In these unaudited condensed consolidated financial statements, the years ending and ended on June 30, 2026, June 30, 2025 and 2024, respectively, are referred to as “Fiscal Year 2026,” “Fiscal Year 2025” and “Fiscal Year 2024,” respectively.

In these unaudited condensed consolidated financial statements, the fiscal years ending or ended on June 30, 2026, 2025 and 2024, respectively, are referred to as “Fiscal Year 2026,” “Fiscal Year 2025,” and “Fiscal Year 2024,” respectively.

The accompanying financial statements have been prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Regulation S-X of the SEC, and should be read in conjunction with the Company’s Audited Consolidated and Combined Annual Financial Statements.

In the opinion of the Company, the accompanying financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2025 and its results of operations for the three and nine months ended March 31, 2025 and 2024 and cash flows for the nine months ended March 31, 2025 and 2024.

generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”), and should be read in conjunction with the Company’s audited consolidated and combined financial statements and notes thereto as of June 30, 2025 and 2024 and for the years ended June 30, 2025, 2024 and 2023 (the “Audited Consolidated and Combined Annual Financial Statements”) included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 filed with the SEC on August 13, 2025.

In the opinion of the Company, the accompanying financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2025 and its results of operations for the three months ended September 30, 2025 and 2024 and cash flows for the three months ended September 30, 2025 and 2024.

The condensed consolidated balance sheet as of June 30, 2025 was derived from the Audited Consolidated and Combined Annual Financial Statements but does not contain all of the footnote disclosures from the Audited Consolidated and Combined Annual Financial Statements.

31 unchanged sentences

• Event production costs including direct personnel expenses

• Venue operations and infrastructure costs;

• Venue operations and infrastructure costs (a)

• Venue rental costs for venues not owned by the Company

5 unchanged sentences

• Sales of the Company’s merchandise at the Company’s venues and via traditional retail channels

Direct operating expenses related to the sale of products, presented as “Food, beverage, and merchandise direct operating expenses” include:

• Costs of goods sold including direct personnel expenses;

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Direct operating expenses related to the sale of products, presented as “Food, beverage, and merchandise direct operating expenses,” include:

• Costs of goods sold including direct personnel expenses

• Contractual revenue sharing expenses related to food and beverage sold at events held by Madison Square Garden Sports Corp.

4 unchanged sentences

_________________

(a) Venue operations and infrastructure costs are not specifically allocated to each revenue category, but are instead attributed in their entirety to service revenue, which is the Company’s principal revenue category.

Leasing direct operating expenses materially consist of venue operations and infrastructure costs.

(a) Leasing direct operating expenses materially consist of venue operations and infrastructure costs.

Venue operations and infrastructure costs are not specifically allocated to each revenue category, but are instead attributed in their entirety to service revenue, which is the Company’s principal revenue category.

As a result, the Company combines service and leasing direct operating expenses within “Entertainment offerings, arena license fees, and other leasing direct operating expenses” for presentation purposes.

9 unchanged sentences

The Company enters into arrangements with multiple performance obligations, such as multi-year sponsorship agreements, which may derive revenues for the Company, as well as Sphere Entertainment and MSG Sports within a single arrangement.

The Company also derives revenue from similar types of arrangements which are entered into by Sphere Entertainment and MSG Sports.

The Company also derives revenue from similar types of arrangements which are entered into by Sphere Entertainment Co.

(together with its subsidiaries, as applicable, “Sphere Entertainment”) and MSG Sports.

Payment terms for such arrangements can vary by contract, but payments are generally due in installments throughout the contractual term.

2 unchanged sentences

To the extent the Company’s multi-year arrangements provide for performance obligations that are consistent over the multi-year contractual term, such performance obligations generally meet the definition of a series as provided for under the accounting guidance.

If performance obligations are concluded to meet the definition of a series, the contractual fees for all years during the contract term are aggregated and the related revenue is recognized proportionately as the underlying performance obligations are satisfied.

The timing of revenue recognition for each performance obligation is dependent upon the facts and circumstances surrounding the Company’s satisfaction of its respective performance obligation.

2 unchanged sentences

Key factors considered by the Company in developing an estimated standalone selling price for its performance obligations include, but are not limited to, prices charged for similar performance obligations, the Company’s ongoing pricing strategy and policies, and consideration of pricing of similar performance obligations sold in other arrangements with multiple performance obligations.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company may incur costs such as commissions to obtain its multi-year sponsorship agreements.

2 unchanged sentences

The contract asset is amortized over the estimated useful life.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Principal versus Agent Revenue Recognition

9 unchanged sentences

Production Costs for the Company’s Original Productions

The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows, reported under Prepaid expenses and other current assets and Other non-current assets.

The Company defers certain costs of productions such as creative design, scenery, wardrobes, rehearsal and other related costs for the Company’s proprietary shows, reported in Prepaid expenses and other current assets and Other non-current assets.

Deferred production costs are amortized on a straight-line basis over the course of a production’s performance period using the expected life of a show’s assets and are recorded as a component of Entertainment offerings, arena license fees, and other leasing direct operating expenses on the Company’s condensed consolidated statement of operations.

4 unchanged sentences

Recently Issued Accounting Pronouncements

In November 2023 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, Improvement to Reportable Segment Disclosures .

This ASU aims to improve segment disclosures through enhanced disclosures about significant segment expenses.

The standard requires disclosure of significant expense categories and amounts for such expenses, including those segment expenses that are regularly provided to the chief operating decision maker, easily computable from information that is regularly provided, or significant expenses that are expressed in a form other than actual amounts.

This standard will be effective for the Company as of and for Fiscal Year 2025 and is required to be applied retrospectively to all prior periods presented in the financial statements.

This standard will not have an impact on the Company’s consolidated financial statements, but will result in changes to certain of the Company’s segment reporting disclosures, the impacts of which the Company continues to evaluate .

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , a final standard on improvements to income tax disclosures which applies to all entities subject to income taxes.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures , a final standard on improvements to income tax disclosures which applies to all entities subject to income taxes.

The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.

The standard is intended to benefit investors by providing more detailed income tax disclosures that would be helpful to understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, assess income tax information that affects cash flow forecasts and capital allocation decisions, and identify potential opportunities to increase future cash flows.

This standard will be effective for the Company in Fiscal Year 2026 and should be applied prospectively.

The Company is currently evaluating the impact of the additional disclosure requirements on the Company’s income tax disclosures .

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

This standard will be effective for the Company for the Fiscal Year 2026 annual reporting period and will be applied prospectively.

The impact upon adoption will be on the Company’s income tax disclosures only, with no impact to the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , as amended by ASU 2025-01, which was issued in January 2025, requiring disclosu re, in the notes to financial statements, of specified information about certain costs and expenses at each interim and annual reporting period.

This ASU provided an effective date for the standard to be for annual periods beginning with the Company’s Fiscal Year ending June 30, 2028, and interim reporting periods beginning in the Company’s Fiscal Year Ending June 30, 2029.

This standard will be effective for the Company for annual periods beginning with the Company’s fiscal year ending 2028, and interim reporting periods beginning with the Company’s fiscal year ending 2029.

Early adoption of ASU 2024-03 is permitted.

This amended ASU may be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating the impact of adopting this guidance on the Company’s financial statement disclosures.

This amended ASU may be applied either prospectively to financial

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

statements issued for reporting periods after the effective date or retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets.

This ASU provides all entities with a practical expedient that allows for the assumption that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating credit losses for such assets.

This standard will be effective for the Company in the first quarter of the Company’s fiscal year ending 2027, and early adoption is permitted.

The Company is currently evaluating the potential impact of applying the allowable practical expedient on its estimates of credit losses for accounts receivable and contract assets.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software - Targeted Improvements to the Accounting for Internal-Use Software.

This ASU amends the existing standard to remove all references to prescriptive and sequential software development project stages.

Under this standard, an entity will be required to start capitalizing software costs when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.

This standard will be effective for the Company in the first quarter of the Company’s fiscal year ending 2028, and early adoption is permitted.

The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements.

Revenue Recognition

Contracts with Customers

All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers , except for revenues from the Arena License Agreements, leases and subleases that are accounted for in accordance with ASC Topic 842, Leases .

All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers , except for revenues from the Arena License Agreements and, leases and subleases that are accounted for in accordance with ASC Topic 842, Leases .

The Company’s revenues by category are outlined in Note 2.

Summary of Significant Accounting Policies.

As of September 30, 2025 and June 30, 2025, the Company did not have any material provisions for credit losses on receivables or contract assets arising from contracts with customers.

Disaggregation of Revenue

The following table disaggregates the Company’s revenues by revenue category for the three and nine months ended March 31, 2025 and 2024.

The following table disaggregates the Company’s revenues by revenue category for the three months ended September 30, 2025 and 2024.

The footnotes to the table provide additional disclosure with respect to the timing of transfer of goods or services to the customer for each category.

Three Months Ended

Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

September 30,

Ticketing and venue license fee revenues (a)

2 unchanged sentences

43,908 42,890

869 345 4,464 4,001

Total revenues from entertainment offerings 131,310 115,081

7 unchanged sentences

_________________

(a) Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular and (iii) other live entertainment and sporting events.

(a) Amounts include ticket sales, including single night suite rentals and other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular and (iii) other live entertainment and sporting events.

Revenues from entertainment offerings are generally recognized at a point in time.

(b) Sponsorship and signage, suite license, and advertising commission revenues are generally recognized over time.

(c) Other primarily consists of revenues from sponsorship sales representation agreements and venue tours which are generally recognized over time and at a point in time, respectively.

(d) Food, beverage, and merchandise revenues are generally recognized at a point in time.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Contract Balances

The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of March 31, 2025 and June 30, 2024:

The following table provides information about the opening and closing contract balances from the Company’s contracts with customers as of September 30, 2025 and June 30, 2025:

September 30,

2025 June 30,

7 unchanged sentences

(a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Related party receivables, current in the Company’s accompanying condensed consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers.

As of March 31, 2025 and June 30, 2024, the Company’s receivables from contracts with customers above included $ 9,807 and $ 2,432 , respectively, related to various

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

related parties.

As of September 30, 2025 and June 30, 2025, the Company’s receivables from contracts with customers above included $ 185 and $ 3,649 , respectively, related to various related parties.

Related Party Transactions for further details on related party arrangements.

3 unchanged sentences

Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer.

Revenue recognized for the three and nine months ended March 31, 2025 relating to the Deferred revenue balance as of June 30, 2024 was $ 19,845 and $ 178,188 , respectively.

Revenue recognized for the three months ended September 30, 2025 relating to the Deferred revenue balance as of June 30, 2025 was 99,004 .

Transaction Price Allocated to the Remaining Performance Obligations

As of March 31, 2025, the Company’s remaining performance obligations under contracts were $ 577,885 , of which 40 % is expected to be recognized over the next two years and an additional 60 % of the balance is expected to be recognized thereafter.

As of September 30, 2025, the Company’s remaining performance obligations under contracts were $ 621,153 , of which 54 % is expected to be recognized over the next two years and an additional 46 % of the balance is expected to be recognized thereafter.

This primarily relates to performance obligations under sponsorship and suite license agreements that have original expected durations longer than one year and for which the consideration is not variable.

In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Restructuring Charges

During the three and nine months ended March 31, 2025, the Company recognized restructuring charges of $ 84 and $ 14 , respectively, related to termination benefits for certain corporate executives and employees.

During the three and nine months ended March 31, 2024, the Company recorded restructuring charges of $ 2,362 and $ 14,803 , respectively, inclusive of $ 0 and $ 6,788 of share-based compensation expenses, respectively, which are accrued in Accounts payable, accrued and other current liabilities and Additional paid-in-capital on the accompanying condensed consolidated balance sheets.

Changes to the Company’s restructuring liability through March 31, 2025 were as follows:

Restructuring Liability

June 30, 2024 $ 7,140

Restructuring charges 14

March 31, 2025 $ —

As of March 31, 2025, the Company held an investment in Townsquare Media, Inc.

(“Townsquare”).

The Company also previously held an investment in DraftKings Inc.

(“DraftKings”), which was sold during the first quarter of Fiscal Year 2024:

• Townsquare is a media, entertainment and digital marketing solutions company that is listed on the New York Stock Exchange (“NYSE”) under the symbol “TSQ.”

• DraftKings is a fantasy sports contest and sports gambling provider that is listed on the Nasdaq Stock Market (“NASDAQ”) under the symbol “DKNG.”

As of March 31, 2025, the Company also held other equity investments held in trust under the Company’s Executive Deferred Compensation Plan.

As of September 30, 2025, the Company held an investment in Townsquare Media, Inc.

(“Townsquare”), a media, entertainment and digital marketing solutions company that is listed on the New York Stock Exchange under the symbol “TSQ.”

As of September 30, 2025, the Company also held other equity investments in trust under the Company’s Executive Deferred Compensation Plan.

Refer to Note 13.

Pension Plans and Other Postretirement Benefit Plans for further details regarding the plan.

The fair value of the Company’s equity investments with readily determinable fair value was determined based on quoted market prices in active markets on the NYSE and NASDAQ, respectively, which are classified within Level I of the fair value hierarchy.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The carrying value of the Company’s investments, which is reported under Other non-current assets in the accompanying condensed consolidated balance sheets as of March 31, 2025 and June 30, 2024, is as follows:

Pension Plans and Other Postretirement Benefit Plans included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for further details regarding the plan.

The fair value of the Company’s equity investments with readily determinable fair values is determined based on quoted market prices in active markets, which are classified within Level I of the fair value hierarchy.

The carrying value of the Company’s investments, which is reported in Other non-current assets in the accompanying condensed consolidated balance sheets as of September 30, 2025 and June 30, 2025, is as follows:

September 30,

2025 June 30,

2 unchanged sentences

Other equity investments with readily determinable fair values held in trust under the Company’s Executive Deferred Compensation Plan 6,120 5,238

Equity method investments and equity investments without readily determinable fair values (a)

Equity investments without readily determinable fair values

Total investments $ 7,880 $ 7,088

_______________

(a) Inclusive of the Company’s investment in Oak View Group’s Crown Properties Collection, LLC ("CPC”).

The following table summarizes the realized and unrealized (loss) gain on equity investments with readily determinable fair value, which is reported in Other (expense) income, net for the three and nine months ended March 31, 2025 and 2024:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Unrealized (loss) gain — Townsquare $ ( 120 ) $ 717 $ ( 357 ) $ ( 1,589 )

Unrealized (loss) gain — Executive Deferred Compensation Plan

( 45 ) 233 149 432

Realized gain from shares sold — DraftKings

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the realized and unrealized gain on equity investments with readily determinable fair value, which is reported in Other expense, net in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2025 and 2024:

Three Months Ended

September 30,

Unrealized loss — Townsquare $ ( 151 ) $ ( 101 )

Unrealized gain — Executive Deferred Compensation Plan 306 220

Realized gain from shares sold — Townsquare

Total realized and unrealized (loss) gain $ ( 165 ) $ 950 $ ( 203 ) $ 391

Total realized and unrealized gain $ 155 $ 124

Supplemental information on realized gain:

Shares of common stock sold — DraftKings — — — 425

Cash proceeds from common stock sold — DraftKings $ — $ — $ — $ 12,844

Shares of common stock sold — Townsquare

Cash proceeds from common stock sold — Townsquare

$ — $ — $ 55 $ —

Property and Equipment, Net

As of March 31, 2025 and June 30, 2024, Property and equipment, net consisted of the following:

As of September 30, 2025 and June 30, 2025, Property and equipment, net consisted of the following:

September 30,

2025 June 30,

10 unchanged sentences

Property and equipment, net $ 612,611 $ 621,075

The Company recorded depreciation and amortization expense on property and equipment of $ 14,372 and $ 42,336 for the three and nine months ended March 31, 2025, respectively, and $ 13,182 and $ 39,972 for the three and nine months ended March 31, 2024, respectively, which is recognized in Depreciation and amortization in the accompanying condensed consolidated statements of operations.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company recorded depreciation and amortization expense on property and equipment of $ 14,074 and $ 13,781 for the three months ended September 30, 2025 and 2024, respectively, which is recognized in Depreciation and amortization in the accompanying condensed consolidated statements of operations.

Goodwill and Intangible Assets

As of March 31, 2025 and June 30, 2024, the carrying amount of Goodwill was $ 69,041 and does not reflect any historical impairment charges.

The Company’s Indefinite-lived intangible assets as of March 31, 2025 and June 30, 2024 were as follows:

As of September 30, 2025 and June 30, 2025, the carrying amount of Goodwill was $ 69,041 and does not reflect any historical impairment charges.

The Company has one reportable segment and one reporting unit.

The Company’s Indefinite-lived intangible assets as of September 30, 2025 and June 30, 2025 were as follows:

September 30,

2025 June 30,

2 unchanged sentences

Total indefinite-lived intangible assets $ 63,801 $ 63,801

During the first quarter of Fiscal Year 2025, the Company performed its annual qualitative impairment test of Goodwill and Indefinite-lived intangible assets and determined that there were no impairments of Goodwill or Indefinite-lived intangible assets identified as of the impairment test date.

During the first quarter of Fiscal Year 2026, the Company performed its annual impairment test of Goodwill and Indefinite-lived intangible assets and determined that there were no impairments of Goodwill or Indefinite-lived intangible assets identified as of the impairment test date.

No amortization expense for intangible assets was recognized for the three months ended September 30, 2025 and 2024.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Commitments and Contingencies

Commitments and Contingencies, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for details on the Company’s commitments.

The Company’s commitments as of June 30, 2024 included a total of $ 323,178 (primarily related to contractual obligations).

During the nine months ended March 31, 2025, the Company did not have any material changes in its non-cancelable contractual obligations (other than activities in the ordinary course of business).

The Company’s commitments as of June 30, 2025 included a total of $ 21,095 (primarily related to letters of credit).

During the three months ended September 30, 2025, the Company did not have any material changes in its non-cancelable contractual obligations (other than activities in the ordinary course of business).

Credit Facilities for details of the principal repayments required under the Company’s credit facilities.

Delayed Draw Term Loan Facility

On April 20, 2023, a subsidiary of the Company, MSG Entertainment Holdings, LLC (“MSG Entertainment Holdings”), entered into a delayed draw term loan facility (the “DDTL Facility”) with Sphere Entertainment.

Pursuant to the DDTL Facility, MSG Entertainment Holdings committed to lend up to $ 65,000 in delayed draw term loans to Sphere Entertainment on an unsecured basis until October 20, 2024.

Commitments and Contingencies included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the DDTL Facility.

On July 14, 2023, Sphere Entertainment drew down the full amount of $ 65,000 under the DDTL Facility.

On August 9, 2023, Sphere Entertainment repaid the full principal amount of the DDTL Facility and accrued interest and commitment fees by delivering 1,923 shares of the Company’s Class A Common Stock held by Sphere Entertainment, as permitted as payment under the DDTL Facility.

Such shares have been classified by the Company pursuant to the Stock Repurchase Program (as defined and further explained in Note 13.

Additional Financial Information ) as treasury shares and are no longer outstanding on the date of repayment.

Legal Matters

1 unchanged sentence

Although the outcome of these lawsuits cannot be predicted with certainty (including the extent of available insurance, if any), management does not believe that resolution of these lawsuits will have a material adverse effect on the Company.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Credit Facilities

Credit Facilities, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Company’s credit facilities.

The following table summarizes the presentation of the outstanding balances under the Company’s credit facilities as of March 31, 2025 and June 30, 2024:

The following table summarizes the presentation of the outstanding balances under the Company’s credit facilities as of September 30, 2025 and June 30, 2025:

September 30,

2025 June 30,

4 unchanged sentences

$ 30,469 $ 30,469

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

Principal Unamortized Deferred Financing Costs Net Principal Unamortized Deferred Financing Costs Net

6 unchanged sentences

National Properties Facilities

MSG National Properties, LLC (“MSG National Properties”), MSG Entertainment Holdings and certain subsidiaries of MSG National Properties are party to a credit agreement dated June 30, 2022 (as amended, the “National Properties Credit Agreement”) with JP Morgan Chase Bank, N.A., as administrative agent and the lenders and L/C issuers party thereto, providing for a five-year , $ 650,000 senior secured term loan facility (the “National Properties Term Loan Facility”) and a five-year , $ 150,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”).

On June 27, 2025, MSG National Properties, LLC (“MSG National Properties”), MSG Entertainment Holdings, LLC (“MSG Entertainment Holdings”) and certain subsidiaries of MSG National Properties entered into Amendment No.

4 (“Amendment No.

4”) to the credit agreement dated June 30, 2022 (as amended, supplemented and otherwise modified prior to June 27, 2025, the “Prior National Properties Credit Agreement” and, as amended by Amendment No.

4, the “National Properties Credit Agreement”) with JP Morgan Chase Bank, N.A., as administrative agent, and the lenders and letter of credit issuers party thereto, pursuant to which, among other things, (i) the term loan facility under the Prior National Properties Credit Agreement (the “Prior National Properties Term Loan Facility”) was refinanced in its entirety with a five-year , $ 609,375 senior secured term loan facility (the “National Properties Term Loan Facility”) and (ii) the revolving credit facility under the Prior National Properties Credit Agreement (the “Prior National Properties Revolving Credit Facility” and, together with the Prior National Properties Term Loan Facility, the “Prior National Properties Facilities”) was refinanced in its entirety with a five-year , $ 150,000 revolving credit facility (the “National Properties Revolving Credit Facility” and, together with the National Properties Term Loan Facility, the “National Properties Facilities”).

Up to $ 25,000 of the National Properties Revolving Credit Facility is available for the issuance of letters of credit.

As of March 31, 2025, outstanding letters of credit were $ 18,367 and the remaining balance available under the National Properties Revolving Credit Facility was $ 131,633 .

As of September 30, 2025, outstanding letters of credit were $ 17,427 and the remaining balance available under the National Properties Revolving Credit

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Facility was $ 112,573 .

During October 2025, the Company paid $ 20,000 to fully settle the outstanding borrowings under the National Properties Revolving Credit Facility.

The proceeds of the National Properties Facilities were used on the closing date to repay in full the obligations outstanding under the Prior National Properties Term Loan Facility and to pay fees and expenses in connection with the National Properties Facilities and the refinancing of the Prior National Properties Facilities.

Proceeds of the National Properties Revolving Credit Facility may be used to fund working capital needs, for general corporate purposes of MSG National Properties and its subsidiaries and to make distributions to MSG Entertainment Holdings.

Interest Rates.

Borrowings under the current National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) a base rate plus an applicable margin ranging from 1.50 % to 2.50 % per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries, or (b) adjusted Term SOFR (i.e., Term SOFR plus 0.10 %) plus an applicable margin ranging from 2.50 % to 3.50 % per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries.

Borrowings under the National Properties Facilities bear interest at a floating rate, which at the option of MSG National Properties may be either (a) Term SOFR plus an applicable margin ranging from 1.75 % to 2.50 % per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries, or (b) a base rate plus an applicable margin ranging from 0.75 % to 1.50 % per annum, determined based on the total leverage ratio of MSG National Properties and its restricted subsidiaries.

The National Properties Credit Agreement requires MSG National Properties to pay a commitment fee ranging from 0.20 % to 0.30 % in respect of the daily unused commitments under the National Properties Revolving Credit Facility.

MSG National Properties is also required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit pursuant to the National Properties Credit Agreement.

The interest rate on the National Properties Facilities as of March 31, 2025 was 6.92 %.

As of September 30, 2025, the interest rates on the National Properties Term Loan Facility and the National Properties Revolving Credit Facility were 6.41 % and 6.39 %, respectively.

Principal Repayments .

1 unchanged sentence

The National Properties Facilities will mature on June 27, 2030.

The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ended March 31, 2023, in an aggregate amount equal to 2.50 % per annum ( 0.625 % per quarter), stepping up to 5.0 % per annum ( 1.25 % per quarter) in the fiscal quarter ending September 30, 2025, with the balance due at the maturity of the facility.

The principal obligations under the National Properties Term Loan Facility are to be repaid in quarterly installments beginning with the fiscal quarter ended September 30, 2025, in an aggregate amount equal to 5.00 % per annum ( 1.25 % per quarter) with the balance due at the maturity of the facility.

The principal obligations under the National Properties Revolving Credit Facility are due at the maturity of the facil ity.

Under certain circumstances, MSG National Properties is required to make mandatory prepayments on loans outstanding, including prepayments in an amount equal to the net cash proceeds of certain sales of assets or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights), subject to certain exceptions.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum liquidity level, a specified minimum debt service coverage ratio and a specified maximum total leverage ratio.

The minimum liquidity level is set at $ 50,000 , and is tested based on the level of average daily liquidity, consisting of cash and cash equivalents and available revolving commitments, over the last month of each quarter over the life of the National Properties Facilities.

The debt service coverage ratio covenant began testing in the fiscal quarter ended December 31, 2022, and was set at a ratio of 2 :1 before stepping up to 2.5 :1 in the fiscal quarter ended September 30, 2024.

The leverage ratio covenant began testing in the fiscal quarter ended June 30, 2023.

It is tested based on the ratio of MSG National Properties and its restricted subsidiaries’ consolidated total indebtedness to adjusted operating income, with an initial maximum ratio of 6 :1, which stepped down to 5.5 :1 in the fiscal quarter ended June 30, 2024 and steps down to 4.5 :1 in the fiscal quarter ending June 30, 2026.

As of March 31, 2025, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.

The National Properties Credit Agreement includes financial covenants requiring MSG National Properties and its restricted subsidiaries to maintain a specified minimum debt service coverage ratio and specified maximum total leverage ratio.

The debt service coverage ratio covenant is set at a ratio of 2.50 :1.

The leverage ratio covenant is tested based on the ratio of MSG National Properties and its restricted subsidiaries’ consolidated total indebtedness to adjusted operating income, with a maximum ratio of 3.50 :1.

As of September 30, 2025, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.

In addition to the financial covenants discussed above, the National Properties Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative and negative covenants and events of default.

13 unchanged sentences

All obligations under the National Properties Facilities, including the guarantees of those obligations, are secured by certain of the assets of MSG National Properties and the Subsidiary Guarantors (collectively, “Collateral”) including, but not limited to, a pledge of some or all of the equity interests held directly or indirectly by MSG National Properties in each Subsidiary Guarantor.

The Collateral does not include, among other things, any interests in The Garden or the leasehold interests in Radio City Music Hall or the Beacon Theatre.

Interest payments and loan principal repayments made by the Company under the National Properties Credit Agreement were as follows:

Interest Payments Principal Repayments

Nine Months Ended Nine Months Ended

March 31, March 31,

The Collateral does not include, among other things, any interests in The Garden or The Chicago Theatre or the leasehold interests in Radio City Music Hall or the Beacon Theatre.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Interest payments and loan principal repayments made by the Company under the National Properties Facilities were as follows:

Interest Payments Loan Principal Repayments

Three Months Ended Three Months Ended

September 30, September 30,

2025 2024 2025 2024

2 unchanged sentences

The carrying value and fair value of the Company’s debt reported in the accompanying condensed consolidated balance sheets were as follows:

March 31, 2025 June 30, 2024

September 30, 2025 June 30, 2025

National Properties Facilities

1 unchanged sentence

________________

(a) The total carrying value of the Company’s debt as of March 31, 2025 and June 30, 2024 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $ 7,591 and $ 10,127 , respectively.

(a) The total carrying value of the Company’s debt as of September 30, 2025 and June 30, 2025 is equal to the current and non-current principal payments for the Company’s credit agreements excluding unamortized deferred financing costs of $ 9,607 and $ 10,126 , respectively.

The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar instruments for which the inputs are readily observable.

Pension Plans and Other Postretirement Benefit Plans

Pension Plans and Other Postretirement Benefit Plans, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the Pension Plans, Postretirement Plan, the Madison Square Garden 401(k) Savings Plans, The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), the MSG Entertainment Holdings, LLC

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Excess Savings Plan (together with the 401(k) Plan, the “Savings Plans”), together with the associated excess savings plan, and the Madison Square Garden 401(k) Union Plan (the “Union Savings Plan”).

Defined Benefit Pension Plans and Other Postretirement Benefit Plans

The following tables present components of net periodic benefit cost for the Pension Plans and Postretirement Plan included in the accompanying condensed consolidated statements of operations for the three and nine months ended March 31, 2025 and 2024.

Service cost is recognized in direct operating expenses and selling, general and administrative expenses.

All other components of net periodic benefit cost are reported in Other (expense) income, net.

Pension Plans Postretirement Plan

Three Months Ended Three Months Ended

March 31, March 31,

2025 2024 2025 2024

Service cost $ 18 $ 17 $ 5 $ 6

Interest cost 1,668 1,469 30 24

Expected return on plan assets ( 1,292 ) ( 1,090 ) — —

Recognized actuarial loss 446 450 5 —

Net periodic cost

$ 840 $ 846 $ 40 $ 30

Pension Plans Postretirement Plan

Nine Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Service cost $ 53 $ 51 $ 15 $ 18

Interest cost 5,005 4,407 90 72

Expected return on plan assets ( 3,876 ) ( 3,273 ) — —

Recognized actuarial loss 1,339 1,350 17 —

Net periodic cost $ 2,521 $ 2,535 $ 122 $ 90

Contributions for Qualified Defined Benefit Pension Plans

During the three and nine months ended March 31, 2025, the Company contributed $ 0 and $ 3,300 , respectively, to a non-contributory, qualified cash balance retirement plan covering the Company’s non-union employees.

Defined Contribution Plans

For the three and nine months ended March 31, 2025 and 2024, expenses related to the Savings Plans and Union Savings Plan included in the accompanying condensed consolidated statements of operations are as follows:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Savings Plans $ 2,159 $ 1,526 $ 6,352 $ 5,825

Union Savings Plan $ 612 $ 490 $ 1,092 $ 621

Executive Deferred Compensation

Pension Plans and Other Postretirement Benefit Plans, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for more information regarding the Company’s Executive Deferred Compensation Plan (the “Deferred Compensation Plan”).

The Company recorded compensation income of $ 45 for the three months ended March 31, 2025 and compensation expense of $ 149 for the nine months ended March 31, 2025 and compensation expense of $ 233 and $ 432 , respectively, for the three and nine months ended March 31, 2024, each within Selling, general, and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded a loss of $ 45 for the three months ended March 31, 2025 and a gain of $ 149 for the nine months ended March 31, 2025 and gains of $ 233 and $ 432 , respectively, for the three and nine months ended March 31, 2024, within Other (expense) income, net to reflect remeasurement of the fair value of assets under the Deferred Compensation Plan.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes amounts recognized related to the Deferred Compensation Plan in the accompanying condensed consolidated balance sheets:

2025 June 30,

Deferred Compensation Plan assets (included in Other non-current assets)

$ 4,737 $ 4,226

Deferred Compensation Plan liabilities (included in Other non-current liabilities)

$ ( 4,760 ) $ ( 4,226 )

Share-based Compensation

4 unchanged sentences

The following table summarizes the Company’s share-based compensation expense:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Share-based compensation expense (a)

Three Months Ended

September 30,

Share-based compensation expense

$ 7,293 $ 6,262

Fair value of awards vested (b)

Fair value of awards vested (a)

$ 30,599 $ 29,022

________________

(a) The expense shown excludes $ 6,788 for the nine months ended March 31, 2024, which was reclassified to Restructuring charges in the accompanying condensed consolidated statements of operations a s detailed in Note 4.

Restructuring Charges.

(b) To fulfill required statutory tax withholding obligations for the applicable income and other employment taxes, RSUs and PSUs with an aggregate value of $ 693 and $ 15,062 , and $ 993 and $ 13,222 , respectively, were retained by the Company during the three and nine months ended March 31, 2025 and 2024, respectively.

For the three and nine months ended March 31, 2025, weighted-average shares used in the calculation for diluted earnings per share (“EPS”) consisted of 48,271 and 48,445 weighted-average shares of Class A Common Stock, respectively, comprised of basic EPS weighted-average shares of Class A Common Stock of 47,955 and 48,171 respectively, and the dilutive effect of 316 and 274 shares of Class A Common Stock, respectively, issuable under share-based compensation plans.

For the three and nine months ended March 31, 2025, weighted-average anti-dilutive shares primarily consisted of 701 and 618 RSUs and stock options, respectively, and were excluded in the calculation of diluted EPS because their effect would have been anti-dilutive.

As of March 31, 2025, there was $ 40,672 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company’s direct employees.

(a) To fulfill required statutory tax withholding obligations for the applicable income and other employment taxes, RSUs and PSUs with an aggregate value of $ 13,369 and $ 12,808 were retained by the Company during the three months ended September 30, 2025 and 2024, respectively.

For the three months ended September 30, 2025 and 2024 all RSUs and stock options were excluded from the anti-dilutive calculation because the Company reported a net loss for the period and, therefore, their impact on reported loss per share would have been anti-dilutive.

As of September 30, 2025, there was $ 62,091 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company’s direct employees.

The cost is expected to be recognized over a weighted-average period of approximately 2.4 years.

Award Activity

During the nine months ended March 31, 2025 and 2024 , 484 and 624 RSUs were granted, respectively, and 542 and 688 RSUs vested, respectively.

During the nine months ended March 31, 2025 and 2024, 386 and 506 PSUs were granted, respectively, and 400 and 273 PSUs vested, respectively.

The following table summarizes activity related to MSG Entertainment’s RSUs and PSUs held by the Company, MSG Sports, and Sphere’s employees:

Three Months Ended

September 30,

RSUs PSUs RSUs PSUs

Granted 464 414 433 386

Vested 397 300 416 305

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Related Party Transactions

As of March 31, 2025 , members of the Dolan family, including trusts for the benefit of members of the Dolan family (collectively, the “Dolan Family Group”) collectively beneficially owned 100 % of the Company’s outstanding Class B Common Stock, $ 0.01 par value per share (“Class B Common Stock”) and approximately 3.6 % of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of March 31, 2025) for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended.

As of September 30, 2025 , certain members of the Dolan family, including certain trusts for the benefit of members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially owned 100 % of the Company’s outstanding Class B Common Stock, $ 0.01 par value per share (“Class B Common Stock”) and approximately 4.1 % of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of September 30, 2025) .

Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 64.3 % of the aggregate voting power of the Company’s outstanding common stock.

Members of the Dolan Family Group are also the controlling stockholders of Sphere Entertainment, MSG Sports, and AMC Networks Inc.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Related Party Transactions, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for a description of the Company’s current related party arrangements.

There have been no material changes in such related party arrangements as of March 31, 2025, except as described below.

In the third quarter of Fiscal Year 2024, the Company entered into a commercial agreement with CPC, under which CPC provided sponsorship sales services.

The Company recorded commission expense of $ 1,345 and $ 2,848 , and $ 854 and $ 1,013 for the three and nine months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025 and June 30, 2024, prepaid expenses associated with this arrangement were $ 5,968 and $ 5,993 , respectively, and are reported under Prepaid expenses and other current assets, and Other non-current assets in the accompanying condensed consolidated balance sheets.

The Company provided a notice of termination with respect to the commercial agreement on September 20, 2024 and has subsequently negotiated a wind down.

From time to time the Company enters into arrangements with 605, LLC (“605”).

Dolan, the Company’s Executive Chairman, Chief Executive Officer and a director, and his spouse, Kristin A.

Dolan, owned 605 until September 13, 2023.

Dolan is also the founder and was the Chief Executive Officer of 605.

605 provides audience measurement and data analytics services to the Company and its subsidiaries in the ordinary course of business.

In August 2022, a subsidiary of Sphere Entertainment entered into a three-year agreement with 605, valued at $ 750 , covering several customer analysis projects per year in connection with events held at the Company’s venues, which was assigned to the Company in connection with the Distribution.

Pursuant to this arrangement, the Company recognized $ 0 and $ 34 of expense for the three and nine months ended March 31, 2024, respectively.

On September 13, 2023, 605 was sold to iSpot.tv, and James L.

Dolan and Kristin A.

Dolan now hold a minority interest in iSpot.tv.

As a result, as of September 13, 2023, 605 is no longer considered to be a related party.

There have been no material changes in such related party arrangements as of September 30, 2025 , except as described below.

Sphere Entertainment provides certain technology services related to Sphere Immersive Sound to certain of the Company’s venues.

For the three months ended September 30, 2025 , gross capital additions associated with these arrangements were approximately $ 1,400 , and are reported in Property and equipment, net in the accompanying condensed consolidated balance sheets.

Revenues and Operating Expenses

The following table summarizes the composition and amounts of the transactions with the Company’s affiliates.

The following table summarizes the composition and amounts of the transactions with the Company’s related parties.

The significant components of these amounts are discussed below.

These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three and nine months ended March 31, 2025 and 2024:

Three Months Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

These amounts are reflected in revenues and operating expenses in the accompanying condensed consolidated statements of operations for the three months ended September 30, 2025 and 2024:

September 30,

Revenues $ 7,483 $ 7,883

Operating credits (expenses):

Revenue sharing expenses $ ( 8,968 ) $ ( 8,521 ) $ ( 16,963 ) $ ( 15,988 )

Reimbursement under Arena License Arrangements 10,509 10,959 19,260 19,266

Revenue sharing expenses (a)

( 1,544 ) ( 1,150 )

Reimbursement under Arena License Agreements

Cost reimbursement from MSG Sports 10,755 8,387

1 unchanged sentence

16,072 22,993

Other operating expenses, net ( 406 ) ( 1,266 ) ( 1,836 ) ( 4,120 )

Total operating credits (expenses), net (a)

Other operating credits, net

Total operating credits, net (b)

$ 27,634 $ 31,420

_________________

(a) Of the total operating credits (expenses), net, $ 1,145 and $( 3 ) for the three and nine months ended March 31, 2025 and $ 1,661 and $( 895 ) for the three and nine months ended March 31, 2024 , respectively, are included in direct operating expenses in the accompanying condensed consolidated statements of operations, and $ 27,013 and $ 90,153 for the three and nine months ended March 31, 2025 and $ 36,488 and $ 113,095 for the three and nine months ended March 31, 2024 , respectively , are included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations.

The Company recorded $ 33,595 and $ 61,880 of revenues under the Arena License Agreements for the three and nine months ended March 31, 2025, respectively .

In addition to the Arena License Agreements, during the three and nine months ended March 31, 2025, the Company’s revenues from related parties primarily reflected amounts earned under sponsorship sales and service representation agreements of $ 8,227 and $ 16,892 , respectively , and merchandise sharing revenues of $ 2,547 and $ 5,518 , respectively, with MSG Sports.

The Company also earned sublease revenue from related parties of $ 1,719 and $ 8,359 during the three and nine months ended March 31, 2025 , respectively.

The Company recorded $ 35,588 and $ 61,441 of revenues under the Arena License Agreements for the three and nine months ended March 31, 2024, respectively .

In addition, during the three and nine months ended March 31, 2024, the Company recorded revenues under sponsorship sales and service representation agreements of $ 7,234 and $ 15,503 , and merchandise sharing revenues of $ 2,789 and $ 5,087 , respectively, with MSG Sports.

The Company also earned sublease revenue from related parties of $ 761 and $ 2,258 during the three and nine months ended March 31, 2024, respectively .

(a) Amounts exclude revenue sharing expenses of $ 19,491 and $ 19,424 related to MSG Sports suites revenue sharing for three months ended September 30, 2025 and 2024, respectively, and are included in Direct operating expenses in the accompanying condensed consolidated statements of operations.

(b) Of the total operating credits (expenses), net, $( 1,340 ) and $( 1,294 ) for the three months ended September 30, 2025 and 2024, respectively, are included in direct operating expenses in the accompanying condensed consolidated statements of operations, and $ 28,974 and $ 32,714 for the three months ended September 30, 2025 and 2024, respectively, are included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations.

The Company recorded $ 1,324 of revenues under the Arena License Agreements for the three months ended September 30, 2025 and 2024 .

In addition to the Arena License Agreements, the Company’s revenues from related parties primarily reflected amounts earned under sponsorship sales and service representation agreements of $ 2,392 and $ 2,751 during the three months ended September 30, 2025 and 2024, respectively, and merchandise sharing revenues with MSG Sports of $ 285 and $ 247 during the three months ended September 30, 2025 and 2024, respectively .

The Company also earned sublease revenue from related parties of $ 2,644 and $ 3,561 during the three months ended September 30, 2025 and 2024, respectively.

Segment Information

The Company is managed on a consolidated basis through one operating and reportable segment, MSG Entertainment.

MSG Entertainment includes the Company’s portfolio of venues:

The Garden, The Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre, and The Chicago Theatre.

MSG Entertainment also includes the original production, the Christmas Spectacular , as well as the entertainment and sports bookings business, which features a variety of live entertainment and sports experiences.

In making its segment determination, the Company takes into account the types of products and services offered as well as the type of discrete financial information that is available and regularly reviewed by its CODM.

The Company’s CODM is the

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Company’s Executive Chairman and Chief Executive Officer.

The Company’s MSG Entertainment segment derives revenues primarily from entertainment offerings held at its venues that drive ticket sales and other ticket-related revenues, venue license fees from third-party promoters, sponsorships and signage, suite license fees at The Garden, concessions, merchandising and tours at certain of the Company’s venues.

The amount of revenue and expense recorded by the Company for a given event depends to a significant extent on whether the Company is promoting or co-promoting the event or is licensing a venue to a third-party or MSG Sports.

The CODM regularly reviews consolidated net income as the measure of segment profit or loss to evaluate operating performance and make strategic decisions regarding the allocation of resources.

The CODM is regularly provided with the consolidated expense categories presented in the condensed consolidated statements of operations.

As a result, there are no other significant segment expense categories that would require disclosure.

The CODM does not review segment assets at a different asset level or category than those disclosed in the consolidated balance sheets.

Additional Financial Information

The following table provides a summary of the amounts recorded as Cash, cash equivalents, and restricted cash:

September 30,

2025 June 30,

7 unchanged sentences

Prepaid expenses and other current assets consisted of the following:

September 30,

2025 June 30,

3 unchanged sentences

28,913 26,987

Current contract assets 8,812 7,844

Inventory (a)

Current contract assets (a)

Inventory (b)

Other 8,717 3,943

1 unchanged sentence

_________________

(a) Inventory is mostly comprised of food and liquor for the venues.

(a) See Note 3.

Revenue Recognition for more information on contract assets.

(b) Inventory is mostly comprised of food and liquor for the venues.

Other non-current assets consisted of the following:

September 30,

2025 June 30,

6 unchanged sentences

_________________

(a) Unbilled lease receivable relates to the amounts recorded under the Arena License Agreement.

(a) Unbilled lease receivable relates to the amounts recorded under the Arena License Agreements.

(b) See Note 4.

Investments for more information on long-term investments.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Accounts payable, accrued and other current liabilities consisted of the following:

September 30,

2025 June 30,

4 unchanged sentences

Total accounts payable, accrued and other current liabilities $ 153,765 $ 184,360

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Concentration of Risk

As of March 31, 2025, the Company had no customers that made up 10% or more of Accounts receivable, net on the accompanying condensed consolidated balance sheets.

As of June 30, 2024, there was one customer that made up 12 % of Accounts receivable, net on the accompanying condensed consolidated balance sheets.

For the three and nine months ended March 31, 2025 and March 31, 2024, the Company had no customers that made up 10% or more of total revenues in the accompanying condensed consolidated statements of operations.

In February 2025, the Company recognized a right-of-use lease asset of $ 116,963 and an additional lease obligation of $ 115,335 as the Company took possession of additional space in its New York corporate office.

Subsequently, the Company recognized a partial impairment of $ 9,700 which was reported in Impairment of long-lived assets for the three and nine months ended March 31, 2025.

For the three months ended September 30, 2025, the Company recognized an impairment loss of $ 13,782 on the Company’s right-of-use lease assets in its New York corporate office which is reported in Impairment of long-lived assets in the accompanying condensed consolidated statements of operations.

Stock Repurchase Program

2 unchanged sentences

The timing and amount of purchases will depend on market conditions and other factors.

For the three and nine months ended March 31, 2025, the Company repurchased 436,008 and 1,117,601 shares of Class A Common Stock for $ 14,692 and $ 39,692 , excluding excise tax, respectively.

As of March 31, 2025, the Company had approximately $ 70,000 remaining available under its Stock Repurchase Program for repurchases.

Other (expense) income, net

Other (expense) income, net includes the following:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

For the three months ended September 30, 2025, the Company repurchased 623,271 shares of Class A Common Stock for $ 25,000 .

As of September 30, 2025, the Company had approximately $ 45,000 remaining available under its Stock Repurchase Program for repurchases.

Other expense, net

Other expense, net includes the following:

Three Months Ended

September 30,

Net periodic benefit costs (excluding service costs) $ ( 639 ) $ ( 858 )

Realized and unrealized (loss) gain on investments ( 165 ) 950 ( 203 ) 391

Other 73 ( 19 ) 15 620

Total other (expense) income, net $ ( 949 ) $ 78 $ ( 2,763 ) $ ( 1,545 )

During the nine months ended March 31, 2025 and March 31, 2024, the Company made income tax payments of $ 13,453 and $ 58 , respectively.

Income tax expense for the three and nine months ended March 31, 2025 of $ 7,252 and $ 43,124 , respectively, reflects an effective tax rate of 47 % and 40 %, respectively.

The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state and local taxes and nondeductible officers’ compensation.

The Company expects to utilize its net operating losses during Fiscal Year 2025 and as such is a federal taxpayer.

Income tax expense for the three and nine months ended March 31, 2024 of $ 2 and $ 397 , respectively, reflects an effective tax rate of 0 % and 1 %.

The estimated annual effective tax rate is lower than the statutory federal tax rate of 21% primarily due to a decrease in the valuation allowance, partially offset by state and local taxes.

Realized and unrealized gain on equity investments with readily determinable fair value 155 124

Other income (expense) 312 ( 35 )

Total other expense, net $ ( 172 ) $ ( 769 )

During the three months ended September 30, 2025 and September 30, 2024, the Company made income tax payments of $ 26 and $ 381 , respectively.

Income tax benefit for the three months ended September 30, 2025 of $ 18,765 reflects an effective tax rate of 46 %.

The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state and local taxes and excess tax deficiencies related to share-based compensation, partially offset by nondeductible officers’ compensation.

Income tax benefit for the three months ended September 30, 2024 of $ 13,601 , reflects an effective tax rate of 41 %.

The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes and excess tax deficiencies related to share-based compensation.

On July 4, 2025, the Reconciliation Bill commonly known as the “One Big Beautiful Bill Act” (the “OBBBA”) was enacted into law.

OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of others.

The Company has analyzed the provisions of OBBBA and determined that the financial impact is not material to its interim or annual consolidated financial statements for the periods presented.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements