A Business at a Glance
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Item 1. Business Madison Square Garden Entertainment Corp. is a Nevada corporation with its principal executive offices at Two Pennsylvania Plaza, New York, NY, 10121. Unless the context otherwise requires, all references to “we,” “us,” “our,” “MSG Entertainment” or the “Company” refer collectively to Madison Square Garden Entertainment Corp., a holding company, and its direct and indirect subsidiaries. We conduct substantially all of our business activities discussed in this Annual Report on Form 10-K through MSG Entertainment Holdings, LLC and its direct and indirect subsidiaries. The Company was originally incorporated in the state of Delaware on September 15, 2022 as a direct, wholly-owned subsidiary of Sphere Entertainment Co. (“Sphere Entertainment”), formerly known as Madison Square Garden Entertainment Corp.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Ticketing and venue license fee revenues | $8M | $274M | $396M | $463M | $453M | 53% |
Sponsorship and signage, suite, and advertising commission revenues | $43M | $219M | $262M | $254M | $253M | 29% |
Food, beverage, and merchandise revenues | — | $99M | $136M | $162M | $151M | 17% |
Other | $28M | $43M | $38M | $32M | $6M | 1% |
Sponsorship, signage and suite licenses | $16M | $166M | $210M | $229M | — | — |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|
| Revenue | 1.0B | 943M | 959M | 851M | 653M |
| Net Income | 52M | 37M | 144M | 77M | -133M |
| EPS | $1.09 | $0.77 | $2.97 | $1.47 | $-2.58 |
| Free Cash Flow | 212M | 92M | 77M | 121M | 94M |
| ROIC | 16.5% | 8.4% | 10.9% | 13.4% | -20.4% |
| Gross Margin | 45.2% | 43.2% | 40.7% | 41.3% | 36.1% |
| Debt/Equity | 17.09 | -92.58 | -46.90 | -13.23 | -654.61 |
| Dividends/Share | $0.00 | - | - | - | - |
| Operating Income | 136M | 122M | 112M | 105M | -80M |
| Operating Margin | 13.4% | 13.0% | 11.7% | 12.3% | -12.3% |
| ROE | 144.2% | - | - | - | - |
| Shares Outstanding | 40M | 49M | 49M | 52M | 52M |
| Metric | 2022 | 2023 | |||
|---|---|---|---|---|---|
| Income Statement | |||||
| Revenue | 653M | 851M | 959M | 943M | 1.0B |
| Gross Margin | 36.1% | 41.3% | 40.7% | 43.2% | 45.2% |
| R&D | N/A | N/A | N/A | N/A | N/A |
| SG&A | 167M | 180M | 207M | 215M | 237M |
| EBIT | -80M | 105M | 112M | 122M | 136M |
| Op. Margin | -12.3% | 12.3% | 11.7% | 13.0% | 13.4% |
| Net Income | -133M | 77M | 144M | 37M | 52M |
| Net Margin | -20.4% | 9.0% | 15.0% | 4.0% | 5.1% |
| Non-Recurring | 5.2M | 15M | 18M | 12M | 28M |
| Returns on Capital | |||||
| ROIC | -20.4% | 13.4% | 10.9% | 8.4% | 16.5% |
| ROE | N/A | N/A | N/A | N/A | 144.2% |
| ROA | -8.7% | 5.5% | 9.3% | 2.3% | 2.8% |
| Cash Flow | |||||
| Op. Cash Flow | 95M | 136M | 111M | 115M | 214M |
| Free Cash Flow | 94M | 121M | 77M | 92M | 212M |
| Owner Earnings | -14M | 43M | 26M | 30M | 127M |
| CapEx | 1.6M | 15M | 35M | 24M | 1.8M |
| Maint. CapEx | 70M | 60M | 54M | 58M | 58M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 |
| D&A | 70M | 60M | 54M | 58M | 58M |
| CapEx/OCF | N/A | 0.6% | 31.2% | 20.5% | 0.8% |
| Capital Allocation | |||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 25M | 51M | 40M | 40M |
| Buyback Yield | N/A | 1.4% | 3.1% | 2.0% | 1.6% |
| Stock-Based Comp | 39M | 32M | 31M | 28M | 29M |
| Debt Repayment | 13M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||
| Net Debt | 903M | 835M | 1.1B | 1.2B | 458M |
| Cash & Equiv. | 63M | 84M | 34M | 44M | 158M |
| Long-Term Debt | 655M | 630M | 599M | 569M | 555M |
| Debt/Equity | -654.61 | -13.23 | -46.90 | -92.58 | 17.09 |
| Interest Coverage | -1.5 | 2.0 | 1.9 | 2.4 | 3.0 |
| Equity | -1.5M | -69M | -23M | -13M | 36M |
| Total Assets | 1.5B | 1.4B | 1.6B | 1.7B | 1.8B |
| Total Liabilities | 1.5B | 1.5B | 1.6B | 1.7B | 1.8B |
| Intangibles | 65M | 64M | 64M | 64M | 64M |
| Retained Earnings | 0 | -29M | 116M | 153M | 224M |
| Working Capital | -204M | -245M | -287M | -265M | -198M |
| Current Assets | 341M | 295M | 219M | 237M | 420M |
| Current Liabilities | 545M | 541M | 506M | 502M | 618M |
| Per Share Data | |||||
| EPS | -2.58 | 1.47 | 2.97 | 0.77 | 1.09 |
| Owner EPS | -0.26 | 0.83 | 0.54 | 0.61 | 3.14 |
| Book Value | -0.03 | -1.33 | -0.48 | -0.27 | 0.89 |
| Cash Flow/Share | 1.85 | 2.60 | 2.29 | 2.37 | 2.72 |
| Dividends/Share | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 51.7M | 52.1M | 48.6M | 48.6M | 40.4M |
| Valuation | |||||
| P/E Ratio | N/A | 22.9 | 11.5 | 52.6 | 55.8 |
| P/FCF | N/A | 14.5 | 21.7 | 21.5 | 11.6 |
| EV/EBIT | N/A | 22.0 | 20.1 | 20.7 | 21.5 |
| Price/Book | N/A | N/A | N/A | N/A | 68.2 |
| Price/Sales | N/A | 2.3 | 1.9 | 2.1 | 2.4 |
| FCF Yield | N/A | 6.9% | 4.6% | 4.7% | 8.6% |
| Market Cap | N/A | 1.8B | 1.7B | 2.0B | 2.5B |
| Avg. Price | N/A | 34.31 | 34.17 | 36.99 | 60.79 |
| Year-End Price | N/A | 33.64 | 34.23 | 40.50 | 60.79 |
Madison Square Garden Entertainment Corp. passes 1 of 9 quality checks, indicating weak fundamentals.
Madison Square Garden Entertainment Corp. trades at 55.8x trailing earnings, compared to its 15-year median P/E of 22.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 11.6x vs a median of 21.5x. The company's 5-year average ROIC is 3.1% with a gross margin of 40.3%. Total shareholder yield (buybacks) is 1.6%. At current prices, the estimated annualized return to fair value is -9.0%.
Madison Square Garden Entertainment Corp. (MSGE) has a current P/E ratio of 55.8, compared to its historical median P/E of 22.9. The stock is currently considered Expensive based on its historical valuation range.
Madison Square Garden Entertainment Corp. (MSGE) has a 5-year average return on invested capital (ROIC) of 3.1%. This is below average and may indicate limited pricing power.
Madison Square Garden Entertainment Corp. (MSGE) has a market capitalization of $2.5B. It is classified as a mid-cap stock.
Madison Square Garden Entertainment Corp. (MSGE) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.62%.
Based on historical P/E analysis, Madison Square Garden Entertainment Corp. (MSGE) appears expensive. The current P/E of 55.8 is 144% above its historical median of 22.9. The estimated fair value CAGR (P/E method) is 2.5%.
Madison Square Garden Entertainment Corp. (MSGE) operates in the Services-Miscellaneous Amusement & Recreation industry, within the Consumer Cyclical sector.
Madison Square Garden Entertainment Corp. (MSGE) reported annual revenue of $943 million in its most recent fiscal year, based on SEC EDGAR filings.
Madison Square Garden Entertainment Corp. (MSGE) has a net profit margin of 4.0%. This is a modest margin.
Madison Square Garden Entertainment Corp. (MSGE) generated $92 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Madison Square Garden Entertainment Corp. (MSGE) reported earnings per share (EPS) of $0.77 in its most recent fiscal year.
Madison Square Garden Entertainment Corp. (MSGE) has a 5-year average gross margin of 40.3%. This indicates decent pricing power.
The Ledger Terminal provides 4 years of financial data for Madison Square Garden Entertainment Corp. (MSGE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Madison Square Garden Entertainment Corp. (MSGE) has a book value per share of $-0.27, based on its most recent annual SEC filing.