What changed in this filing

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Item 1. Financial Statements

2026-02-06 compared with 2025-11-06 · 205 added, 182 removed, 476 unchanged (45% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30, June 30,

December 31, June 30,

Current Assets:

13 unchanged sentences

Total assets $ 1,823,385 $ 1,669,842

LIABILITIES AND DEFICIT

LIABILITIES AND EQUITY (DEFICIT)

Current Liabilities:

11 unchanged sentences

Commitments and contingencies (see Note 6)

Equity (deficit):

Class A Common Stock (a)

1 unchanged sentence

Additional paid-in-capital 47,705 44,843

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

Treasury stock at cost ( 6,106 and 5,483 shares as of December 31, 2025 and June 30, 2025, respectively)

( 205,204 ) ( 180,204 )

2 unchanged sentences

Accumulated other comprehensive loss ( 31,117 ) ( 31,503 )

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

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

Total equity (deficit) 36,013 ( 13,300 )

Total liabilities and equity (deficit) $ 1,823,385 $ 1,669,842

_________________

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

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

46,513 and 46,076 shares issued as of December 31, 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 September 30, 2025 and June 30, 2025.

6,867 shares issued as of December 31, 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

September 30,

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Revenues from entertainment offerings

2 unchanged sentences

Arena license fees and other leasing revenue

35,163 29,820 39,278 34,478

Total revenues (a)

12 unchanged sentences

Restructuring (charges) credits ( 1,126 ) 30 ( 2,316 ) 70

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

Operating income 163,815 139,001 134,076 120,519

Interest income

813 365 1,333 737

Interest expense ( 10,423 ) ( 12,955 ) ( 21,451 ) ( 26,998 )

Other expense, net ( 673 ) ( 1,045 ) ( 845 ) ( 1,814 )

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:

Income from operations before income taxes 153,532 125,366 113,113 92,444

Income tax expense ( 60,817 ) ( 49,473 ) ( 42,052 ) ( 35,872 )

Net income $ 92,715 $ 75,893 $ 71,061 $ 56,572

Earnings per share:

Basic $ 1.96 $ 1.57 $ 1.50 $ 1.17

8 unchanged sentences

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

Three Months Ended

September 30,

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

Other comprehensive income, before income taxes:

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Net income $ 92,715 $ 75,893 $ 71,061 $ 56,572

Other comprehensive income, net of income taxes:

Pension plans and other postretirement plans adjustments

295 543 590 1,084

Income tax expense related to items of other comprehensive income ( 102 ) ( 187 ) ( 204 ) ( 372 )

Other comprehensive income, net of income taxes

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

193 356 386 712

Comprehensive income $ 92,908 $ 76,249 $ 71,447 $ 57,284

See accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended

September 30,

Six Months Ended

OPERATING ACTIVITIES:

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

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

Net income $ 71,061 $ 56,572

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

Depreciation and amortization 28,058 27,964

2 unchanged sentences

Amortization of deferred financing costs 1,025 1,703

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

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

Deferred income tax expense 11,421 25,026

Other non-cash adjustments 176 768

2 unchanged sentences

Related party receivables and payables, net

20,327 ( 2,134 )

Prepaid expenses and other current and non-current assets ( 20,173 ) ( 13,114 )

3 unchanged sentences

Operating lease right-of-use assets and lease liabilities 21,375 31,116

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

Net cash provided by operating activities $ 184,194 $ 85,499

INVESTING ACTIVITIES:

Capital expenditures $ ( 14,282 ) $ ( 15,192 )

Proceeds from sale of investments

Other investing activities ( 1,008 ) ( 1,090 )

2 unchanged sentences

FINANCING ACTIVITIES:

Proceeds from revolving credit facility

$ 35,000 $ 55,000

Principal repayment on long-term debt

( 22,617 ) ( 4,063 )

Proceeds from revolving credit facilities $ 35,000 $ 55,000

Principal repayments on long-term debt ( 50,234 ) ( 63,125 )

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

Taxes paid in lieu of shares issued for equity-based compensation ( 14,843 ) ( 14,375 )

( 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

Other financing activities 212 ( 53 )

Net cash used in financing activities $ ( 54,865 ) $ ( 47,553 )

Net increase in cash, cash equivalents, and restricted cash 114,039 21,664

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

4 unchanged sentences

Capital expenditures incurred but not yet paid or paid by landlord $ 265 $ 22,159

Non-cash financing lease obligation

$ — $ ( 130 )

Non-cash financing activities $ — $ ( 148 )

See accompanying notes to the unaudited condensed consolidated financial statements.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED STATEMENTS OF DEFICIT (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (UNAUDITED)

(in thousands)

1 unchanged sentence

Accumulated Other Comprehensive Loss

Total Deficit

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

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

Total Equity (Deficit)

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

Net income — — — 92,715 — 92,715

Other comprehensive income — — — — 193 193

2 unchanged sentences

Tax withholding associated with shares issued for share-based compensation — ( 1,513 ) — — — ( 1,513 )

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

Stock options exercised — 379 — — — 379

Balance as of December 31, 2025 $ 534 $ 47,705 $ ( 205,204 ) $ 224,095 $ ( 31,117 ) $ 36,013

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

Net income — — — 75,893 — 75,893

Other comprehensive income — — — — 356 356

Share-based compensation — 9,322 — — — 9,322

Tax withholding associated with shares issued for share-based compensation — ( 1,545 ) — — — ( 1,545 )

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

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

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

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

Net income — — — 71,061 — 71,061

Other comprehensive income — — — — 386 386

Share-based compensation

— 17,330 — — — 17,330

Tax withholding associated with shares issued for share-based compensation 4 ( 14,847 ) — — — ( 14,843 )

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

Stock options exercised — 379 — — — 379

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

Balance as of December 31, 2025 $ 534 $ 47,705 $ ( 205,204 ) $ 224,095 $ ( 31,117 ) $ 36,013

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

Net income — — — 56,572 — 56,572

Other comprehensive income — — — — 712 712

Share-based compensation — 15,584 — — — 15,584

Tax withholding associated with shares issued for share-based compensation 4 ( 14,379 ) — — — ( 14,375 )

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

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

See accompanying notes to the unaudited condensed consolidated financial statements.

11 unchanged sentences

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.

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

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

1 unchanged sentence

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.

The Company owns The Garden, the Infosys 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.

1 unchanged sentence

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

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.

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

The accompanying condensed consolidated 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 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.

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

The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year.

The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full fiscal year.

As a result of the production of the Christmas Spectacular and arena license fees in connection with the use of The Garden by the New York Knicks (the “Knicks”) of the National Basketball Association and the New York Rangers (the “Rangers”) of the National Hockey League, the Company generally earns a disproportionate share of its annual revenues in the second and third quarters of its fiscal year.

Reclassifications

For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with GAAP.

For purposes of comparability, certain prior period amounts in the condensed consolidated statements of cash flows have been reclassified to conform to the current year presentation in accordance with GAAP.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

2 unchanged sentences

Principles of Consolidation

All intercompany accounts and balances within the Company’s consolidated businesses have been eliminated.

All intercompany transactions and balances within the Company’s consolidated businesses have been eliminated.

Use of Estimates

1 unchanged sentence

These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses.

Such estimates include the provision for credit losses, goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities.

Such estimates include the provision for credit losses, valuation of goodwill, intangible assets, other long-lived assets, deferred tax assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, and other liabilities.

In addition, estimates are used in revenue recognition, depreciation and amortization, litigation matters and other matters.

Management believes its use of estimates in the financial statements to be reasonable.

Management believes its use of estimates in the condensed consolidated financial statements to be reasonable.

Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future.

45 unchanged sentences

Arrangements with Multiple Performance Obligations

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 Co.

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

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 Co.

(together with its subsidiaries, as applicable, “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.

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

20 unchanged sentences

Amounts collected in advance of the Company’s satisfaction of its contractual performance obligations are recorded as a contract liability within Deferred revenue, and are recognized as the Company satisfies the related performance obligations.

Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are recorded within Accounts payable, accrued and other current liabilities on the accompanying consolidated balance sheets.

Amounts collected in advance of events for which the Company is not the promoter or co-promoter do not represent contract liabilities and are reported in Accounts payable, accrued and other current liabilities on the accompanying condensed consolidated balance sheets.

Amounts recognized as revenue for which the Company has a right to consideration for goods or services transferred to customers and for which the Company does not have an unconditional right to bill as of the reporting date are recorded as contract assets.

2 unchanged sentences

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.

Deferred production costs are subject to recoverability assessments whenever there is an indication of potential impairment.

Revenue Sharing Expenses

Revenue sharing expenses are determined based on contractual agreements between the Company and MSG Sports, primarily related to suite licenses, certain internal signage and in-venue food and beverage sales 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.

Recently Issued and Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

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.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):

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.

2 unchanged sentences

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.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive

Income—Expense Disaggregation Disclosures (Subtopic 220-40):

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 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

This amended ASU may be applied either prospectively to

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.

financial 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.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326):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.

1 unchanged sentence

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.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

- 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.

2 unchanged sentences

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

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements.

This ASU provides clarifications intended to improve the consistency and usability of interim disclosure requirements, including a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period.

The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application.

This standard will be effective for the Company in the first quarter of the Company’s fiscal year ending 2029, 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

2 unchanged sentences

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.

As of December 31, 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 months ended September 30, 2025 and 2024.

The following table disaggregates the Company’s revenues by revenue category for the three and six months ended December 31, 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

September 30,

Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Ticketing and venue license fee revenues (a)

2 unchanged sentences

94,989 85,692 138,897 128,582

1,947 1,610 3,501 3,595

Total revenues from entertainment offerings 360,453 318,276 491,763 433,357

8 unchanged sentences

(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.

Ticketing and venue license fee revenues are generally recognized at a point in time.

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

(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)

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

Contract Balances

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,

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

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 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.

As of December 31, 2025 and June 30, 2025, the Company’s receivables from contracts with customers above included $ 3,636 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 months ended September 30, 2025 relating to the Deferred revenue balance as of June 30, 2025 was 99,004 .

Revenue recognized for the three and six months ended December 31, 2025 relating to the Deferred revenue balance as of June 30, 2025 was $ 83,353 and $ 182,357 , respectively.

Transaction Price Allocated to the Remaining Performance Obligations

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.

As of December 31, 2025, the Company’s remaining performance obligations under contracts were $ 623,782 , of which 46 % is expected to be recognized through June 30, 2027, and an additional 54 % 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.

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.

As of December 31, 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 well as other equity investments in trust under the Company’s Executive Deferred Compensation Plan.

Refer to Note 13.

1 unchanged sentence

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,

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 December 31, 2025 and June 30, 2025, is as follows:

2025 June 30,

6 unchanged sentences

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,

The following table summarizes the realized and unrealized (loss) gain on equity investments with readily determinable fair values, which is reported in Other expense, net in the accompanying condensed consolidated statements of operations for the three and six months ended December 31, 2025 and 2024:

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Unrealized loss — Townsquare $ ( 200 ) $ ( 136 ) $ ( 351 ) $ ( 237 )

Unrealized gain — Executive Deferred Compensation Plan 306 220

Unrealized gain (loss) — Executive Deferred Compensation Plan 141 ( 26 ) 447 194

Realized gain from shares sold — Townsquare

Total realized and unrealized gain $ 155 $ 124

Total realized and unrealized (loss) gain $ ( 59 ) $ ( 162 ) $ 96 $ ( 38 )

Supplemental information on realized gain:

1 unchanged sentence

Cash proceeds from common stock sold — Townsquare $ — $ — $ — $ 55

Property and Equipment, Net

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

September 30,

2025 June 30,

Land $ 62,768 $ 62,768

Buildings 1,016,047 1,014,553

Equipment, furniture, and fixtures

343,121 340,411

Leasehold improvements

163,099 163,342

Construction in progress 7,629 6,074

Total property and equipment $ 1,592,664 $ 1,587,148

accumulated depreciation and amortization

( 980,053 ) ( 966,073 )

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

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

As of December 31, 2025 and June 30, 2025, the carrying amount of Goodwill was $ 69,041 .

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,

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

2025 June 30,

2 unchanged sentences

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

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, 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).

For the six months ended December 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).

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

2 unchanged sentences

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 September 30, 2025 and June 30, 2025:

September 30,

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

2025 June 30,

4 unchanged sentences

$ 30,469 $ 30,469

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

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

2 unchanged sentences

$ 563,672 $ ( 9,101 ) $ 554,571 $ 578,906 $ ( 10,126 ) $ 568,780

National Properties Revolving Credit Facility

20,000 — 20,000 — — —

Long-term debt, net of deferred financing costs $ 563,672 $ ( 9,101 ) $ 554,571 $ 578,906 $ ( 10,126 ) $ 568,780

5 unchanged sentences

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

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.

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

As of December 31, 2025, outstanding letters of credit were $ 17,427 and the remaining balance available under the National Properties Revolving Credit Facility was $ 132,573 .

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 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.

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 Secured Overnight Financing Rate (“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.

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.

The interest rate on the National Properties Term Loan Facility as of December 31, 2025 was 5.97 %.

Principal Repayments .

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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.

The principal obligations under the National

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

2 unchanged sentences

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.

As of December 31, 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.

14 unchanged sentences

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,

Six Months Ended Six Months Ended

December 31, December 31,

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:

September 30, 2025 June 30, 2025

December 31, 2025 June 30, 2025

National Properties Facilities

1 unchanged sentence

________________

(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.

(a) The total carrying value of the Company’s debt as of December 31, 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 $ 9,101 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.

3 unchanged sentences

Share-based Compensation, included in the Company’s Audited Consolidated and Combined Annual Financial Statements, for more information on these plans.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Share-based compensation expense for the Company’s restricted stock units (“RSUs”) and performance stock units (“PSUs”) are recognized in the condensed consolidated statements of operations as a component of direct operating expenses or selling, general, and administrative expenses.

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

Three Months Ended

September 30,

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Share-based compensation expense

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________________

(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.

(a) To fulfill required statutory tax withholding obligations for the applicable income and other employment taxes, RSUs and PSUs with an aggregate value of $ 1,513 and $ 14,882 and $ 1,561 and $ 14,369 , respectively, were retained by the Company for the three and six months ended December 31, 2025 and 2024, respectively.

The following table presents a reconciliation of weighted-average shares used in the calculations of basic and diluted earnings per share attributable to the Company’s stockholders:

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Weighted-average shares (denominator):

Weighted-average shares for basic EPS 47,413 48,336 47,447 48,276

Dilutive effect of shares issuable under share-based compensation plans 429 275 182 267

Weighted-average shares for diluted EPS 47,842 48,611 47,629 48,543

Weighted-average anti-dilutive shares 109 855 300 728

As of December 31, 2025, there was $ 51,141 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 2.2 years.

Award Activity

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,

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

Six Months Ended

RSUs PSUs RSUs PSUs

1 unchanged sentence

Vested 455 355 509 391

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Related Party Transactions

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) .

As of December 31, 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 December 31, 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.

1 unchanged sentence

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 September 30, 2025 , except as described below.

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

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company has arrangements with Sphere Entertainment pursuant to which the Company provides certain advertising sales and representation services to MSGN Holdings, L.P.

(“MSG Networks”), a wholly owned subsidiary of Sphere Entertainment, in exchange for a commission and certain cost reimbursements.

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.

For the three and six months ended December 31, 2025 , gross capital additions associated with these arrangements were approximately $ 800 and $ 2,200 , respectively, and are reported in Property and equipment, net in the accompanying condensed consolidated balance sheets.

Revenues and Operating Expenses

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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 months ended September 30, 2025 and 2024:

September 30,

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

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Revenues $ 43,915 $ 38,878 $ 51,398 $ 46,761

3 unchanged sentences

Reimbursement under Arena License Agreements

12,825 8,678 13,381 8,751

Cost reimbursement from MSG Sports 10,202 8,293 20,957 16,680

1 unchanged sentence

16,057 22,993 32,129 45,986

Other operating credits, net

Other operating (expenses) credits, net ( 844 ) ( 2,547 ) 951 ( 1,430 )

Total operating credits, net (b)

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_________________

(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.

(a) Amounts exclude revenue sharing expenses of $ 48,502 and $ 67,993 for the three and six months ended December 31, 2025 and $ 42,836 and $ 62,260 for the three and six months ended December 31, 2024 , respectively, related to MSG Sports suites revenue sharing and are included in Direct operating expenses in the accompanying condensed consolidated statements of operations.

(b) Of the total operating credits (expenses), net, $ 2,379 and $ 1,039 for the three and six months ended December 31, 2025 and $ 146 and $( 1,148 ), for the three and six months ended December 31, 2024 , respectively, are recognized in direct operating expenses in the accompanying condensed consolidated statements of operations, and $ 27,619 and $ 56,593 for the three and six months ended December 31, 2025 and $ 30,426 and $ 63,140 for the three and six months ended December 31, 2024 , respectively, are recognized in selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations.

The Company recorded $ 30,278 and $ 31,602 of revenues under the Arena License Agreements for the three and six months ended December 31, 2025, respectively .

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 $ 6,738 and $ 9,130 for the three and six months ended December 31, 2025, respectively, and merchandise sharing revenues with MSG Sports of $ 3,289 and $ 3,574 for the three and six months ended December 31, 2025, respectively .

The Company also earned sublease revenue from related parties of $ 2,604 and $ 5,248 for the three and six months ended December 31, 2025, respectively.

The Company recorded $ 26,961 and $ 28,285 of revenues under the Arena License Agreements for the three and six months ended December 31, 2024, respectively .

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 $ 5,914 and $ 8,665 for the three and six months ended December 31, 2024, respectively, and merchandise sharing revenues with MSG Sports of $ 2,724 and $ 2,971 for the three and six months ended December 31, 2024, respectively .

The Company also earned sublease revenue from related parties of $ 3,079 and $ 6,640 for the three and six months ended December 31, 2024, respectively.

Segment Information

1 unchanged sentence

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.

The Garden, the Infosys 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

In making its segment determination, the Company takes into account the types of products and services offered as well

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Company’s Executive Chairman and Chief Executive Officer.

as the type of discrete financial information that is available and regularly reviewed by its CODM.

The Company’s CODM is the 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.

3 unchanged sentences

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.

The CODM does not review segment assets at a different asset level or category than those disclosed in the condensed 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,

3 unchanged sentences

$ 157,577 $ 43,538

The Company’s Cash, cash equivalents, and restricted cash are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets.

The Company’s restricted cash includes cash deposited in escrow and operating accounts.

The Company has deposited cash in escrow and operating accounts related to general liability insurance obligations.

The Company’s c ash equivalents are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets.

The Company’s restricted cash includes cash deposited in escrow and operating accounts, primarily related to general liability insurance obligations.

Prepaid expenses and other current assets consisted of the following:

September 30,

2025 June 30,

10 unchanged sentences

Revenue Recognition for more information on contract assets.

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

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

Other non-current assets consisted of the following:

September 30,

2025 June 30,

12 unchanged sentences

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 $ 227,943 $ 184,360

Property and equipment, net

Property and Equipment, Net, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for more information about the Company’s property and equipment, net.

There have been no material changes to the Company’s property and equipment, net as of December 31, 2025.

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.

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.

For the six months ended December 31, 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 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.

For the three months ended December 31, 2025, the Company did not repurchase any shares of Class A Common Stock.

For the six months ended December 31, 2025, the Company repurchased 623,271 shares of Class A Common Stock for $ 25,000 .

As of December 31, 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,

Three Months Ended Six Months Ended

December 31, December 31,

2025 2024 2025 2024

Net periodic benefit costs (excluding service costs) $ ( 639 ) $ ( 860 ) $ ( 1,278 ) $ ( 1,718 )

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

Realized and unrealized (loss) gain on equity investments with readily determinable fair value ( 59 ) ( 162 ) 96 ( 38 )

Other income (expense) 25 ( 23 ) 337 ( 58 )

Total other expense, net $ ( 673 ) $ ( 1,045 ) $ ( 845 ) $ ( 1,814 )

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.

During the six months ended December 31, 2025 and December 31, 2024, the Company made income tax payments of $ 26 and $ 480 , respectively.

Income tax expense for the three and six months ended December 31, 2025 of $ 60,817 and $ 42,052 , respectively, reflects an effective tax rate of 40 % and 37 %, 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, partially offset by excess tax benefit related to share-based compensation.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Income tax expense for the three and six months ended December 31, 2024 of $ 49,473 and $ 35,872 , respectively, reflects an effective tax rate of 39 %.

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.

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

1 unchanged sentence

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.

Subsequent Events

In January 2026, the Company initiated a voluntary employee exit program designed to provide eligible employees with the option to separate from the Company in exchange for exit benefits.

The Company expects to incur approximately $ 8,000 in severance related expenses for this program, the majority of which we expect will be recognized during the three months ending March 31, 2026.

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