What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-06 compared with 2025-02-06 · 167 added, 185 removed, 578 unchanged (38% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

December 31, June 30,

March 31, June 30,

Current Assets:

13 unchanged sentences

Total assets $ 1,739,412 $ 1,552,707

LIABILITIES AND DEFICIT

LIABILITIES AND EQUITY

Current Liabilities:

15 unchanged sentences

Additional paid-in-capital 40,184 33,481

Treasury stock at cost ( 5,047 and 4,365 shares outstanding as of December 31, 2024 and June 30, 2024, respectively)

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

( 180,204 ) ( 140,512 )

3 unchanged sentences

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

Total liabilities and equity (deficit) $ 1,588,438 $ 1,552,707

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

_________________

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

46,007 and 45,556 shares issued as of December 31, 2024 and June 30, 2024, respectively.

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

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

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

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

See accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands, except per share data)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

14 unchanged sentences

Depreciation and amortization ( 14,372 ) ( 13,182 ) ( 42,336 ) ( 39,972 )

Restructuring credits (charges)

30 ( 888 ) 70 ( 12,441 )

Impairment of long-lived assets ( 9,700 ) — ( 9,700 ) —

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

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

19 unchanged sentences

(in thousands)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

3 unchanged sentences

542 450 1,626 1,350

Other comprehensive income, before income taxes 543 662 1,084 899

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

6 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

OPERATING ACTIVITIES:

2 unchanged sentences

Depreciation and amortization 42,336 39,972

Impairment of long-lived assets 9,700 —

Share-based compensation expense 21,834 26,186

2 unchanged sentences

Related party paid in kind interest — ( 512 )

Net unrealized and realized losses on equity investments with readily determinable fair value 38 758

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

Other non-cash adjustments 730 158

2 unchanged sentences

Related party receivables and payables, net

Prepaid expenses and other current and non-current assets ( 13,114 ) 1,479

Accounts payable, accrued and other current, and non-current liabilities

16,916 39,091

Prepaid expenses and other current and non-current assets ( 40,561 ) ( 41,434 )

Accounts payable ( 5,816 ) 7,870

Accrued and other current, and non-current liabilities ( 44,514 ) ( 26,557 )

Deferred revenue 22,698 25,415

38 unchanged sentences

Total Equity (Deficit)

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

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

Net income — — — 8,036 — 8,036

3 unchanged sentences

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

Repurchases of Class A common stock, inclusive of tax

— — ( 25,000 ) — — ( 25,000 )

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 )

Balance as of September 30, 2023 $ 523 $ 17,980 $ ( 140,512 ) $ ( 79,368 ) $ ( 33,824 ) $ ( 235,201 )

Net income — — — 2,795 — 2,795

1 unchanged sentence

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

Tax withholding associated with shares issues for share-based compensation 1 ( 414 ) — — — ( 413 )

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

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 )

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

4 unchanged sentences

Tax withholding associated with shares issued for share-based compensation 4 ( 15,081 ) — — — ( 15,077 )

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

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

Balance as of June 30, 2023 $ 519 $ 17,727 $ ( 25,000 ) $ ( 28,697 ) $ ( 34,021 ) $ ( 69,472 )

3 unchanged sentences

Tax withholding associated with shares issued for share-based compensation 5 ( 13,383 ) — — — ( 13,378 )

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

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

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 )

See accompanying notes to the unaudited condensed consolidated financial statements.

10 unchanged sentences

Madison Square Garden (“The Garden”), The 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 ”).

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.

10 unchanged sentences

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 December 31, 2024 and its results of operations for the three and six months ended December 31, 2024 and 2023 and cash flows for the six months ended December 31, 2024 and 2023.

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.

The condensed consolidated balance sheet as of June 30, 2024 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.

As a result of the production of the Christmas Spectacular , 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.

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.

The accompanying unaudited condensed consolidated financial information for the three and six months ended December 31, 2023 has been revised to change the presentation of the Company’s revenue and direct operating expenses from an aggregated to a disaggregated basis and other related disclosures.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

2 unchanged sentences

Principles of Consolidation

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

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

Use of Estimates

21 unchanged sentences

• Event production costs including direct personnel expenses;

• Venue operations and infrastructure costs (a)

• Venue operations and infrastructure costs;

• Venue rental costs for venues not owned by the Company;

7 unchanged sentences

• 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.

(together with its subsidiaries, as applicable, “MSG Sports”) at The Garden

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

(together with its subsidiaries, as applicable, “MSG Sports”) at The Garden.

Lease revenue, presented as “Arena license fees and other leasing revenue”, includes:

18 unchanged sentences

The performance obligations included in each sponsorship agreement vary and may include advertising and other benefits such as, but not limited to, signage at The Garden and the Company’s other venues, digital advertising, event or property-specific advertising, as well as non-advertising benefits such as suite licenses and event tickets.

Further, these arrangements may require the Company to purchase the customers’ goods or services.

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.

17 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 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 recorded within Accounts payable, accrued and other current liabilities on the accompanying 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.

13 unchanged sentences

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.

The Company continues to evaluate the impact of the additional disclosure requirements on the Company’s consolidated 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.

2 unchanged sentences

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 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

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)

Fiscal Year Ending June 30, 2029.

Early adoption of Update 2024-03 is permitted.

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 consolidated financial statements.

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

Revenue Recognition

2 unchanged sentences

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by major source based upon the timing of satisfaction of the Company’s performance obligations to the customer for the three and six months ended December 31, 2024 and 2023:

Three Months Ended Six Months Ended

December 31, December 31,

2024 2023 2024 2023

Event-related offerings (a)

$ 290,294 $ 297,106 $ 379,476 $ 392,096

Sponsorship, signage, and suite licenses (b)

78,387 69,890 117,325 109,705

8,916 10,041 14,852 15,002

Total revenues from contracts with customers

377,597 377,037 511,653 516,803

Arena license fees and other leasing revenue 29,820 25,629 34,478 28,075

Total revenues

$ 407,417 $ 402,666 $ 546,131 $ 544,878

_________________

(a) Event-related offerings revenues are recognized at a point in time.

(b) See Note 2.

Summary of Significant Accounting Policies and Note 4.

Revenue Recognition, included in the Company’s Audited Consolidated and Combined Annual Financial Statements for further details on the pattern of recognition of sponsorship, signage, and suite license revenues.

In addition to the disaggregation of the Company’s revenue as disclosed above, the following table disaggregates the Company’s revenues by revenue category , for the three and six months ended December 31, 2024 and 2023.

The following table disaggregates the Company’s revenues by revenue category for the three and nine months ended March 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

Six Months Ended

December 31, December 31,

Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

1 unchanged sentence

$ 78,497 $ 74,502 $ 379,677 $ 384,586

Sponsorship and signage, suite, and advertising commission revenues

Sponsorship and signage, suite license, and advertising commission revenues (b)

80,848 71,374 209,430 192,438

Food, beverage, and merchandise revenues

869 345 4,464 4,001

Other 1,610 2,203 3,595 3,643

Total revenues from entertainment offerings 160,214 146,221 593,571 581,025

Food, beverage, and merchandise revenues (d)

45,808 45,380 124,104 127,379

Total revenues from contracts with customers

5 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.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

Contract Balances

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

2025 June 30,

6 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 condensed consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers.

As of December 31, 2024 and June 30, 2024, the Company’s receivables from contracts with customers above included $ 8,630 and $ 2,432 , respectively, related to various related parties.

(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.

Related Party Transactions for further details on related party arrangements.

(b) Contract assets, current, which are reported as Prepaid expenses and other current assets in the Company’s condensed consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date.

(b) Contract assets, current, which are reported in Prepaid expenses and other current assets in the Company’s accompanying condensed consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to customers, for which the Company does not have an unconditional right to bill as of the reporting date.

Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.

1 unchanged sentence

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 six months ended December 31, 2024 relating to the Deferred revenue balance as of June 30, 2024 was $ 155,698 and $ 241,174 , respectively.

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.

Transaction Price Allocated to the Remaining Performance Obligations

As of December 31, 2024, the Company’s remaining performance obligations under contracts were approximately $ 593,132 , of which 49 % is expected to be recognized over the next two years and an additional 51 % of the balance is expected to be recognized thereafter.

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.

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 Credits (Charges)

During the three and six months ended December 31, 2024, the Company recorded reductions in its restructuring liabilities of $ 30 and $ 70 , respectively, related to adjustments for previously accrued termination benefits for certain corporate executives and employees, shown in Accounts payable, accrued and other current liabilities on the condensed consolidated balance sheets.

During the three and six months ended December 31, 2023, the Company recorded restructuring charges of $ 888 and $ 12,441 , respectively, inclusive of $ 0 and $ 6,788 of share-based compensation expenses, respectively, shown in Accounts payable, accrued and other current liabilities and Additional paid-in-capital on the condensed consolidated balance sheets.

Changes to the Company’s restructuring liability through December 31, 2024 were as follows:

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 credits

December 31, 2024 $ 30

As of December 31, 2024, the Company held an investment in Townsquare Media, Inc.

Restructuring charges 14

March 31, 2025 $ —

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

(“Townsquare”).

3 unchanged sentences

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

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of December 31, 2024, the Company also held other equity investments held in trust under the Company’s Executive Deferred Compensation Plan.

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

Refer to Note 10.

1 unchanged sentence

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.

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 December 31, 2024 and June 30, 2024, is as follows:

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:

2025 June 30,

6 unchanged sentences

(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 gain (loss) on equity investments with readily determinable fair value, which is reported in Other (expense) income, net for the three and six months ended December 31, 2024 and 2023:

Three Months Ended Six Months Ended

December 31, December 31,

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

5 unchanged sentences

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

$ ( 162 ) $ 3,486 $ ( 38 ) $ ( 560 )

Supplemental information on realized gain:

5 unchanged sentences

Property and Equipment, Net

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

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

2025 June 30,

10 unchanged sentences

Property and equipment, net $ 626,982 $ 633,533

The Company recorded depreciation and amortization expense on property and equipment of $ 14,183 and $ 27,964 for the three and six months ended December 31, 2024, respectively, and $ 13,205 and $ 26,789 for the three and six months ended December 31, 2023, respectively, which is recognized in Depreciation and amortization in the condensed consolidated statements of operations.

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.

1 unchanged sentence

Goodwill and Intangible Assets

As of December 31, 2024 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 December 31, 2024 and June 30, 2024 were as follows:

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:

2025 June 30,

6 unchanged sentences

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

During the six months ended December 31, 2024, the Company did not have any material changes in its non-cancelable contractual obligations (other than activities in the ordinary course of business).

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).

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

2 unchanged sentences

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 to the Company’s Audited Consolidated and Combined Annual Financial Statements for more information regarding the DDTL Facility.

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.

9 unchanged sentences

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 agreements as of December 31, 2024 and June 30, 2024:

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:

2025 June 30,

4 unchanged sentences

$ 28,438 $ 16,250

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

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

5 unchanged sentences

Long-term debt, net of deferred financing costs $ 585,000 $ ( 7,591 ) $ 577,409 $ 609,375 $ ( 10,127 ) $ 599,248

$ 593,125 $ ( 8,424 ) $ 584,701 $ 609,375 $ ( 10,127 ) $ 599,248

National Properties Facilities

1 unchanged sentence

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

As of December 31, 2024, outstanding letters of credit were $ 18,826 and the remaining balance available under the National Properties Revolving Credit Facility was $ 131,174 .

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 .

Interest Rates.

2 unchanged sentences

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 December 31, 2024 was 6.94 %.

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

Principal Repayments .

11 unchanged sentences

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 December 31, 2024, MSG National Properties and its restricted subsidiaries were in compliance with the covenants of the National Properties Credit Agreement.

As of March 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.

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 and the Beacon Theatre.

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

Six Months Ended Six Months Ended

December 31, December 31,

Nine Months Ended Nine Months Ended

March 31, March 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:

December 31, 2024 June 30, 2024

March 31, 2025 June 30, 2024

National Properties Facilities

1 unchanged sentence

________________

(a) The total carrying value of the Company’s debt as of December 31, 2024 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 $ 8,424 and $ 10,127 , respectively.

(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.

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

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 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”).

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 six months ended December 31, 2024 and 2023.

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, net.

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

December 31, December 31,

March 31, March 31,

2025 2024 2025 2024

6 unchanged sentences

Pension Plans Postretirement Plan

Six Months Ended Six Months Ended

December 31, December 31,

Nine Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

5 unchanged sentences

Contributions for Qualified Defined Benefit Pension Plans

During the three and six months ended December 31, 2024, the Company contributed $ 0 and $ 3,300 , respectively, to a non-contributory, qualified cash balance retirement plan covering the Company’s non-union employees.

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 six months ended December 31, 2024 and 2023, 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 Six Months Ended

December 31, December 31,

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

1 unchanged sentence

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

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 $ 26 for the three months ended December 31, 2024 and compensation expense of $ 194 for the six months ended December 31, 2024 and compensation expense of $ 343 and $ 198 , respectively, for the three and six months ended December 31, 2023, in 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 $ 26 for the three months ended December 31, 2024 and a gain of $ 194 for the six months ended December 31, 2024 and gains of $ 343 and $ 198 , respectively, for the three and six months ended December 31, 2023, within Other (expense) income, net to reflect remeasurement of the fair value of assets under the Deferred Compensation Plan.

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

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,

9 unchanged sentences

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

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

4 unchanged sentences

________________

(a) The expense shown excludes $ 6,788 for the six months ended December 31, 2023, which was reclassified to Restructuring charges in the condensed consolidated statements of operations a s detailed in Note 4.

Restructuring Credits (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 $ 1,561 and $ 14,369 , and $ 412 and $ 12,229 , respectively, were retained by the Company during the three and six months ended December 31, 2024 and 2023, respectively.

For the three and six months ended December 31, 2024, weighted-average shares used in the calculation for diluted earnings per share (“EPS”) consisted of 48,611 and 48,543 weighted-average shares of Class A Common Stock, respectively, for basic EPS and the dilutive effect of 275 and 267 shares of Class A Common Stock, respectively, issuable under share-based compensation plans.

For the three and six months ended December 31, 2024, weighted-average anti-dilutive shares primarily consisted of approximately 855 and 728 RSUs and stock options, respectively, and were excluded in the calculation of diluted EPS because their effect would have been anti-dilutive.

As of December 31, 2024, there was $ 46,798 of unrecognized compensation cost related to unvested RSUs and PSUs held by the Company’s direct employees.

(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.

The cost is expected to be recognized over a weighted-average period of approximately 2.0 years.

Award Activity

During the six months ended December 31, 2024 and 2023 , 481 and 620 RSUs were granted, respectively, and 509 and 624 RSUs vested, respectively.

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the six months ended December 31, 2024 and 2023, 386 and 506 PSUs were granted, respectively, and 391 and 273 PSUs vested, respectively.

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.

Related Party Transactions

As of December 31, 2024 , members of the Dolan family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, and 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 4.1 % of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of December 31, 2024) .

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.

Such shares of Class A Common Stock and Class B Common Stock, collectively, represent approximately 64.1 % 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 except as described below.

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 $ 1,009 and $ 1,503 , and $ 0 and $ 0 for the three and six months ended December 31, 2024 and 2023, respectively.

As of December 31, 2024 and June 30, 2024, prepaid expenses associated with this arrangement were $ 7,312 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 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.

5 unchanged sentences

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 six months ended December 31, 2023, respectively.

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.

5 unchanged sentences

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 six months ended December 31, 2024 and 2023:

Three Months Six Months Ended

December 31, December 31,

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

Revenues $ 47,709 $ 46,396 $ 94,470 $ 85,185

Operating (expenses) credits:

Operating credits (expenses):

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

3 unchanged sentences

16,350 27,494 62,336 84,171

Other operating credits (expenses), net

4,562 ( 2,142 ) 5,679 ( 2,695 )

Total operating (expense) credits, net (a)

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

Total operating credits (expenses), net (a)

$ 28,158 $ 38,149 $ 90,150 $ 112,200

_________________

(a) Of the total operating credits (expenses), net, $ 96 and $( 1,148 ) for the three and six months ended December 31, 2024 and $( 1,246 ) and $( 2,556 ) for the three and six months ended December 31, 2023 , respectively, are included in direct operating expenses in the accompanying condensed consolidated statements of operations, and $ 30,476 and $ 63,140 for the three and six months ended December 31, 2024 and $ 36,535 and $ 76,766 for the three and six months ended December 31, 2023 , respectively , are included in selling, general, and administrative expenses.

(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 .

MADISON SQUARE GARDEN ENTERTAINMENT CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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, during the three and six months ended December 31, 2024, the Company’s revenues from related parties primarily reflected sponsorship sales and service representation agreements of $ 5,914 and $ 8,665 , respectively , and merchandise sharing revenues of $ 2,724 and $ 2,971 , respectively, with MSG Sports.

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

The Company recorded $ 24,529 and $ 25,853 of revenues under the Arena License Agreements for the three and six months ended December 31, 2023, respectively .

In addition, during the three and six months ended December 31, 2023, the Company recorded revenues under sponsorship sales and service representation agreements of $ 5,506 and $ 8,269 , and merchandise sharing revenues of $ 2,102 and $ 2,298 , respectively, with MSG Sports.

The Company also earned sublease revenue from related parties of $ 738 and $ 1,497 during the three and six months ended December 31, 2023, respectively .

Additional Financial Information

5 unchanged sentences

$ 89,474 $ 33,555

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

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

The Company has deposited cash in an interest-bearing escrow account related to credit support, debt facilities, and general liability insurance obligations.

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.

Prepaid expenses and other current assets consisted of the following:

22 unchanged sentences

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:

5 unchanged sentences

Total accounts payable, accrued and other current liabilities $ 175,470 $ 203,750

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.

Stock Repurchase Program

On March 29, 2023, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $ 250,000 of the Company’s Class A Common Stock (the “Stock Repurchase Program”).

Pursuant to the Stock Repurchase Program, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine in accordance with applicable insider trading and other securities laws and regulations.

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 Six Months Ended

December 31, December 31,

2024 2023 2024 2023

Gains from shares sold — DraftKings $ — $ — $ — $ 1,548

Gains from shares sold - TSQ

Net unrealized loss on equity investments with readily determinable fair value

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Net periodic benefit costs (excluding service costs) $ ( 857 ) $ ( 853 ) $ ( 2,575 ) $ ( 2,556 )

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 six months ended December 31, 2024 and December 31, 2023, the Company made income tax payments of $ 480 and $ 58 , respectively.

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 %.

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 will become a federal taxpayer.

Income tax expense for the three and six months ended December 31, 2023 of $ 1,054 and $ 395 , respectively, reflects an effective tax rate of 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 taxes.

Stock Repurchase Program

On March 29, 2023, the Company’s Board of Directors authorized a share repurchase program to repurchase up to $ 250,000 of the Company’s Class A Common Stock (the “Stock Repurchase Program”).

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

For the three and six months ended December 31, 2024, the Company repurchased 682 shares of Class A Common Stock for approximately $ 25,000 .

As of December 31, 2024, the Company had approximately $ 85,000 remaining available for repurchases.

Concentration of Risk

Accounts receivable, net on the accompanying consolidated balance sheets as of December 31, 2024 and June 30, 2024 included amounts due from the following individual customers, which accounted for the noted percentages of the gross balance:

December 31, 2024 June 30, 2024

Customer A 13 % N/A

Customer B 11 % N/A

Customer C N/A 12 %

For the six months ended December 31, 2024, the Company had no customers that made up 10% of total revenues.

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.

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