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NYSE:MSGE
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Madison Square Garden Entertainment Corp.

NYSE-listed operator of premier live entertainment venues including Madison Square Garden, generating revenue through tickets, hospitality, and corporate events.

■ Key Metrics

Revenue
$942.7M
Net Income
$37.4M
Gross Profit
$942.7M
Operating Cash Flow
$115.3M
Total Assets
$1.67B
Shareholders' Equity
$-13.3M
Long-Term Debt
$568.8M
Cash & Equiv
$43.0M

⚖ Investment Thesis

Bull Case

Despite recent profit volatility, the company maintains strong operating cash flow generation which could support a path toward deleveraging if event attendance rebounds. The iconic MSG brand commands premium pricing power and global fan loyalty that protects revenue streams during industry downturns. As a real estate-heavy business with minimal inventory risk, MSGE offers a unique defensive characteristic within the entertainment sector.

Bear Case

The company's negative shareholders' equity of -$13.3M signals deep structural leverage that could be dangerous if interest rates remain elevated or revenue misses occur. Recent cash flow from financing activities shows massive outflows exceeding $800M, raising concerns about the ability to service its long-term debt without further dilution. Profitability instability with a 74% drop in net income year-over-year makes valuation difficult and suggests underlying operational inefficiencies.

◉ About Madison Square Garden Entertainment Corp.

Madison Square Garden Entertainment Corp. is a leading live entertainment, sports, and events venue operator based in New York City, serving global fans through iconic properties like MSG and the Hulu Theater. The company generates revenue primarily from ticket sales, hospitality services, concessions, and corporate events across its diverse portfolio of arenas and theaters. With a strong focus on experiential entertainment, MSGE bridges the gap between sports, music concerts, and private events to deliver high-margin returns.

⚙ Analysis

Management Discussion

Recent financial performance shows a notable contraction in net income from $144.3M in 2024 to $37.4M in the latest period, despite revenue remaining relatively stable at $942.7M. Operating cash flow remains robust at $115.3M, but significant cash outflows for financing activities of $81.6M and investing activities of $23.7M indicate ongoing capital pressure. The decline in profitability suggests potential margin compression or one-time charges impacting the bottom line.

Industry Overview

The live entertainment venue industry is recovering from pandemic-era disruptions but faces headwinds from high ticket prices and rising interest rates impacting consumer discretionary spending. Consolidation among arena operators continues as smaller venues struggle to compete with the scale and brand recognition of major players like MSGE. Technology integration for contactless payments and dynamic pricing remains a key growth driver for margin expansion across the sector.

☰ Financial Statements

Income Statement
Balance Sheet
Cash Flow
Metric202320242025
Revenue$851.5M$959.3M$942.7M
Cost of Revenue$0$0$0
Gross Profit$851.5M$959.3M$942.7M
Operating Expenses$746.5M$847.3M$820.6M
Operating Income$105.0M$111.9M$122.1M
G&A$180.2M$207.0M$215.0M
Stock-Based Comp$31.8M$31.2M$27.7M
D&A$60.5M$53.9M$57.8M
Amortization$754.0K$0$0
Other OpEx$566.3M$640.4M$605.7M
Non-Operating Income$0$0$0
Interest Expense$51.9M——
Interest Income$7.2M$3.0M$2.3M
Pre-Tax Income$105.0M$111.9M$122.1M
Income Tax$1.7M$-92.0M$28.1M
Continuing Ops$103.3M$203.9M$94.0M
Discontinued Ops$0$0$0
Net Income$76.0M$144.3M$37.4M
Minority Interest$0$0$0
Net to Common$76.0M$144.3M$37.4M
Metric202320242025
Current Assets$295.3M$219.1M$237.1M
Cash & Equivalents$76.1M$33.3M$43.0M
Accounts Receivable$63.9M$77.3M$66.8M
Inventory$2.6M$3.9M$3.8M
Prepaid Expenses$77.6M$90.8M$104.3M
Other Current Assets$75.2M$13.9M$19.3M
Long-Term Assets$1.11B$1.33B$1.43B
PP&E (Net)$628.9M$633.5M$621.1M
Intangibles$63.8M——
Goodwill$69.0M$69.0M$69.0M
Operating Leases$235.8M$388.7M$484.5M
Other LT Assets$108.4M$242.4M$258.1M
Total Assets$1.40B$1.55B$1.67B
Current Liabilities$540.6M$505.8M$502.4M
Accounts Payable$15.6M$26.6M$12.1M
Current Debt$16.2M$16.2M$30.5M
Current Leases$36.5M$27.7M$35.1M
Deferred Revenue$225.9M$215.6M$228.6M
Other Current Liab$202.4M$181.3M$154.6M
Long-Term Liabilities$930.0M$1.07B$1.18B
Long-Term Debt$630.2M$599.2M$568.8M
LT Operating Leases$220.0M$427.0M$566.5M
Other LT Liab$79.8M$43.8M$45.5M
Total Liabilities$1.47B$1.58B$1.68B
Shareholders' Equity$-69.5M$-23.2M$-13.3M
Retained Earnings$-28.7M$115.6M$153.0M
AOCI$-34.0M$-32.3M$-31.5M
Total L&E$1.40B$1.55B$1.67B
Metric202320242025
Net Income (CFO)$76.0M$144.3M$37.4M
Non-Cash Adjustments$4.7M$22.1M$47.6M
Working Capital Changes$54.9M$-55.1M$30.2M
Cash from Operations$135.7M$111.3M$115.3M
Cash from Investing$30.3M$-62.4M$-23.7M
Debt Issuances$304.0K$0$609.4M
Share Buybacks$25.0M$50.9M$39.7M
Cash from Financing$-144.2M$-99.7M$-81.6M
FX Effect$0$0$0
Net Change in Cash$21.8M$-50.8M$10.0M
Beginning Cash$62.6M$84.4M$33.6M
Ending Cash$84.4M$33.6M$43.5M

Frequently Asked Questions

How does Madison Square Garden Entertainment Corp. make money?

Core revenue streams include ticketing for major sporting events and music tours, concessions and non-alcoholic beverage sales within venues, hospitality services such as premium seating and food trucks, and corporate event management utilizing the company's flexible arena spaces.

What are the main risks for MSGE?

High debt load totaling over $1.6B creates significant interest rate sensitivity and refinancing risks given the current capital structure. Revenue concentration in major leagues and touring artists exposes the business to cancellations caused by injuries, strikes, or supply chain disruptions. The company faces persistent liquidity constraints evidenced by negative shareholders' equity and heavy reliance on revolver proceeds for funding operations.

What is MSGE's competitive advantage?

Ownership of historic, iconic real estate assets like Madison Square Garden creates an unreplicable brand moat with global demand. The company benefits from high operating leverage due to low inventory costs and fixed facility overheads that scale efficiently with large events. A diversified event calendar across sports, music, and private functions reduces reliance on any single performer or team.

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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.