Cash conversion efficiency is highly irregular, as evidenced by an operating cash flow to net income ratio of 35.98 in 2026Q3, which suggests that reported earnings are often decoupled from actual cash generation.
| Cash from Operations | 341.04M | 115.3M | 111.27M | 135.69M | 95.35M | -148.12M | 31.53M | 91.72M | 144.38M |
| Operating CF Margin % | - | 12.23% | 11.6% | 15.94% | 14.59% | -181.05% | 5.39% | 8.74% | 14.6% |
| Operating CF Growth % | -12399.34% | 3.62% | -18% | 42.31% | 164.38% | -569.8% | -65.63% | -36.47% | - |
| Net Income | 48.99M | 37.43M | 144.3M | 76.04M | -136.2M | -219.31M | 170.66M | -30.14M | 1.89M |
| Depreciation & Amortization | 58.08M | 57.77M | 53.88M | 60.46M | 69.53M | 71.58M | 88.13M | 109.34M | 112.06M |
| Stock-Based Compensation | 23.19M | 27.69M | 31.17M | 31.81M | 39.36M | 40.66M | 26.11M | 35.4M | 27.29M |
| Deferred Taxes | 6M | 14.84M | -92.2M | 720K | 225K | 566K | 17.43M | -371K | -31.27M |
| Other Non-Cash Items | 19.26M | 21.44M | 5.64M | -7.49M | 88.84M | -46.85M | -129.81M | 4.82M | 6.38M |
| Working Capital Changes | 185.51M | -43.87M | -31.52M | -25.86M | 33.6M | 5.24M | -140.99M | -27.33M | 28.04M |
| Change in Receivables | -5.79M | 9.59M | -13.94M | 38.84M | -34.86M | -18.82M | 8.4M | -345K | -4.07M |
| Change in Inventory | 0 | 0 | 0 | -45.22M | 0 | 0 | 0 | -26.45M | 6.63M |
| Change in Payables | 4.95M | -14.49M | -55.73M | -696K | 87.56M | -9.52M | -9.3M | -4.31M | 5.31M |
| Cash from Investing | -29.77M | -23.69M | -62.37M | 30.3M | 45.44M | -10.34M | 276.39M | -228.06M | -169.62M |
| Capital Expenditures | -28.31M | -22.22M | -24.18M | -15.19M | -15.8M | -10.31M | -29.64M | -184M | -187.36M |
| CapEx % of Revenue | 2.78% | 2.36% | 2.52% | 1.78% | 2.42% | 12.61% | 5.07% | 17.54% | 18.94% |
| Acquisitions | 0 | 0 | 0 | 27.9M | 0 | 0 | 0 | 73.04M | -17.36M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.46M | -1.53M | -66.66M | -163.55M | 61.24M | -24K | 306.03M | -188.41M | 35.1M |
| Cash from Financing | -77.09M | -81.62M | -99.69M | -144.22M | -396.29M | 473.49M | -315.38M | -8.62M | 15.36M |
| Debt Issued (Net) | -26.91M | -16.25M | -33.65M | -19.82M | 16.29M | 627.25M | 0 | 0 | 0 |
| Equity Issued (Net) | -26.2M | -39.69M | -50.87M | -25M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -26.2M | -39.69M | -50.87M | -25M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -23.98M | -25.68M | -15.17M | -99.39M | -412.58M | -153.76M | -315.38M | -8.62M | 15.36M |
| Net Change in Cash | 234.18M | 9.98M | -50.8M | 21.78M | -255.5M | 315.03M | -7.46M | -140.29M | -9.55M |
| Free Cash Flow | 327.01M | 93.08M | 87.08M | 120.51M | 79.55M | -158.43M | 1.88M | -92.28M | -42.98M |
| FCF Margin % | 32.1% | 9.87% | 9.08% | 14.15% | 12.17% | -193.66% | 0.32% | -8.8% | -4.35% |
| FCF Growth % | 172.9% | 6.88% | -27.73% | 51.48% | 150.21% | -8509.39% | 102.04% | -114.71% | - |
| FCF per Share | 9.11 | 1.93 | 1.79 | 2.36 | 1.77 | -6.55 | 0.08 | -3.85 | -1.79 |
| FCF Conversion (FCF/Net Income) | 6.67x | 3.08x | 0.77x | 1.77x | -0.72x | 0.68x | 0.18x | -5.13x | 20.93x |
| Interest Paid | 10.83M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Extreme seasonal revenue volatility
According to recent financial filings, MSGE's operating cash flow to net income ratio has exhibited extreme volatility, reaching a high of 35.98 in 2026Q3, which suggests that reported net income is a poor proxy for the company's actual ability to generate cash from its core operations.
The massive divergence between net income and operating cash flow indicates that non-cash items and working capital swings are the primary drivers of reported earnings. Investors should monitor this disconnect, as it implies that the company's profitability is heavily dependent on accounting timing rather than consistent cash generation.
As reported in financial statements, MSGE's free cash flow trajectory remains highly erratic, swinging from a peak of $173.9M in 2026Q3 to a deficit of $33.3M in 2025Q1, highlighting the company's vulnerability to the seasonal nature of its proprietary entertainment productions and venue event schedules.
The inability to maintain positive free cash flow across all quarters suggests that the business model is structurally challenged by its high fixed-cost base during off-peak periods. This pattern warrants further investigation into whether the company can achieve sustainable cash flow growth without relying on specific high-margin seasonal events.
Based on MSGE's reported figures, working capital changes have become the dominant influence on quarterly cash flow, with a significant $162.9M inflow in 2026Q3 contrasting sharply with the $43.7M outflow observed in 2024Q2, indicating that timing of collections and payments is highly irregular.
These large swings suggest that the company's cash position is heavily influenced by the timing of event-related receipts and vendor payments. Such volatility may indicate that the company is managing its liquidity through aggressive working capital adjustments rather than organic operational efficiency.
As indicated by recent SEC filings, MSGE maintains a disciplined approach to capital expenditure, with CapEx as a percentage of revenue consistently remaining in the low single digits, peaking at 4.3% in 2025Q1, which suggests that the company is not currently engaged in heavy asset reinvestment.
While the low capital intensity may support near-term cash flow, it raises questions regarding the long-term maintenance requirements of aging venues like the Beacon Theatre. Analysts should monitor whether this level of spending is sufficient to keep the company's physical assets competitive against modern regional rivals.
Quick answers to the most common questions about buying MSGE stock.
Madison Square Garden Entertainment Corp. (MSGE) generated $115.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Madison Square Garden Entertainment Corp. (MSGE) generated $93.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Madison Square Garden Entertainment Corp. (MSGE) spent $22.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Madison Square Garden Entertainment Corp. (MSGE) spent $39.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.