Cash flow generation is highly volatile and seasonally dependent, with operating cash flow often diverging from net income due to massive working capital swings, such as the $86.1M inflow in Q4 2025 versus the $59.5M outflow in Q1 2026.
Madison Square Garden Sports Corp. (MSGS) cash flow statement — 14-year operating, investing & financing cash flows
| Metric | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 |
|---|
| Cash from Operations | 62.66M | 91.61M | 92.13M | 152.47M | 178.06M | -35.33M | 3.57M | 161.25M | 217.63M | 223.53M | 125.78M | 69.35M | 137.06M | 58.14M |
| Operating CF Margin % | 5.43% | 8.82% | 8.97% | 17.18% | 21.68% | -8.5% | 0.59% | 22.11% | 13.96% | 16.95% | 11.28% | 6.47% | 15% | 8.04% |
| Operating CF Growth % | -31.6% | -0.57% | -39.58% | -14.37% | 604.04% | -1090.08% | -97.79% | -25.9% | -2.64% | 77.71% | 81.37% | -49.4% | 135.75% | - |
| Net Income | 0 | -22.44M | 58.77M | 47.79M | 51.13M | -13.95M | -78.33M | 11.43M | 141.59M | -72.72M | -77.29M | -40.68M | -116.93M | -58.27M |
| Depreciation & Amortization | 0 | 3.22M | 3.16M | 3.58M | 5.04M | 5.57M | 17.54M | 20.08M | 122.49M | 107.39M | 102.48M | 108.76M | 91.71M | 72.55M |
| Stock-Based Compensation | 0 | 17.93M | 21.29M | 25.2M | 24.25M | 30.44M | 57M | 59.47M | 47.56M | 41.13M | 24.48M | 10.31M | 13.7M | 8.51M |
| Deferred Taxes | 0 | -51.77M | -7.13M | 15.02M | 24.48M | -73.66M | -8.03M | 150K | -117.31M | -4.4M | 299K | 436K | 1.7M | 1.13M |
| Other Non-Cash Items | 62.66M | 17.07M | 17.86M | -25.4M | -418K | -1.03M | 67.23M | 90.08M | 5.21M | 77.42M | 65.03M | 40.65M | 1.3M | 1.87M |
| Working Capital Changes | 0 | 127.59M | -1.81M | 86.27M | 73.58M | 17.32M | -51.83M | -19.95M | 18.08M | 74.72M | 10.79M | -50.11M | 145.59M | 32.35M |
| Change in Receivables | 0 | 36.6M | -9.93M | 17.51M | 5.87M | -72.9M | -38.37M | 1.82M | 4.58M | -17.54M | -30.15M | 258K | -9.53M | -12.18M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | -2.49M | 1.85M | -16.01M | 11.45M | -938K | 16.93M | 1.61M | 1.17M | 4.35M | 22.78M | -4.73M | 3.53M | 2.83M |
| Cash from Investing | -2.21M | -6.92M | -8.9M | -17.76M | -2.93M | -466K | -514.86M | -232.9M | -182.36M | -264.3M | -115.69M | -102.66M | -520.67M | -183.65M |
| Capital Expenditures | 0 | -3.62M | -1.45M | -1.18M | -932K | -466K | -363.48M | -188.83M | -197.91M | -44.22M | -73.72M | -67.08M | -306.37M | -217.79M |
| CapEx % of Revenue | 0.12% | 0.35% | 0.14% | 0.13% | 0.11% | 0.11% | 60.25% | 25.89% | 12.69% | 3.35% | 6.61% | 6.26% | 33.53% | 30.13% |
| Acquisitions | 0 | 0 | 0 | -3.02M | 0 | 0 | 17.93M | 73.04M | -4.29M | -200.33M | 0 | 4.32M | -226.51M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.21M | 100K | 0 | 0 | -2M | 0 | 42.04M | -77.45M | 19.84M | 3.48M | -5.56M | 0 | 12.2M | -10M |
| Cash from Financing | -49.13M | -26.41M | -28.79M | -185.27M | -156.14M | 17.16M | -520.59M | -71.75M | -51.1M | -158.53M | 1.42B | 41.37M | 387.48M | 124.81M |
| Debt Issued (Net) | 0 | -14M | -20M | 75M | -135M | 30.44M | 330M | -55.8M | -688K | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | -11.77M | -8.08M | -75.06M | -18.31M | 808K | -26.78M | -19.52M | -11.83M | -147.96M | -105.74M | 0 | 0 | 0 |
| Dividends Paid | 0 | -633K | -701K | -170.92M | 0 | 0 | -827.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | -11.77M | -8.08M | -75.06M | -18.31M | 0 | -26.78M | -19.52M | -11.83M | -147.97M | -105.74M | 0 | 0 | 0 |
| Other Financing | -49.13M | 0 | 0 | -14.29M | -2.84M | -14.09M | 3.27M | 3.58M | -38.58M | -10.56M | 1.53B | 41.37M | 387.48M | 124.81M |
| Net Change in Cash | 11.32M | 58.28M | 54.45M | -50.56M | 18.98M | -18.64M | -1.03B | -138.72M | -12.48M | -206.2M | 1.43B | 8.07M | 3.87M | -710K |
| Free Cash Flow | 61.26M | 87.99M | 90.68M | 151.29M | 177.12M | -35.79M | -358.91M | -27.58M | 19.71M | 178.31M | 54.07M | 5.27M | -167.8M | -159.65M |
| FCF Margin % | 5.31% | 8.47% | 8.83% | 17.05% | 21.56% | -8.61% | -59.49% | -3.78% | 1.26% | 13.52% | 4.85% | 0.49% | -18.37% | -22.08% |
| FCF Growth % | -30.38% | -2.97% | -40.06% | -14.58% | 594.87% | 90.03% | -1201.28% | -239.9% | -88.94% | 229.78% | 926.17% | 103.14% | -5.11% | - |
| FCF per Share | 2.53 | 3.65 | 3.76 | 6.25 | 7.26 | -1.48 | -14.99 | -1.15 | 0.83 | 7.48 | 2.18 | 0.21 | -6.73 | -6.21 |
| FCF Conversion (FCF/Net Income) | 8.08x | -4.08x | 1.57x | 3.19x | 3.48x | 2.53x | -0.02x | 14.11x | 1.54x | -3.07x | -1.63x | -1.70x | -1.17x | -1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying MSGS stock.
Madison Square Garden Sports Corp. (MSGS) generated $62.7M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Madison Square Garden Sports Corp. (MSGS) generated $61.3M in free cash flow in 2026. 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 Sports Corp. (MSGS) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Thin margins vulnerable to player costs
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital
The relationship between net income and operating cash flow is highly volatile, with operating cash flow often diverging sharply from reported earnings due to massive swings in working capital, suggesting the underlying cash generation is less predictable than headline profitability.
The OCF/NI ratio swings from -27.93 in Q4 2025 to 55.61 in Q2 2025, indicating that working capital movements, not core earnings, are the primary driver of quarterly cash flow. This pattern suggests that accrual-based net income is a poor proxy for near-term liquidity, as seen in Q3 2026 where a $20.0M net loss was accompanied by $59.1M of operating cash flow. Investors should monitor the sustainability of this conversion, as the reliance on favorable working capital timing may not persist.
FCF Volatility Driven by Seasonal Cash Cycles
Free cash flow exhibits extreme quarterly volatility, ranging from a negative $85.3M in Q1 2026 to a positive $108.0M in Q4 2024, with FCF margins swinging from -49.7% to 47.5%, reflecting the highly seasonal and lumpy nature of the sports business cash cycle.
The FCF trajectory is not linear but follows a pronounced seasonal pattern tied to the NBA and NHL seasons, with Q1 typically representing a cash outflow period. The recent quarters show a recovery from the Q1 2026 trough, but the FCF margin in Q3 2026 of 13.6% remains well below the 24.2% achieved in Q4 2025, suggesting that the championship-driven revenue boost may not fully translate to proportional free cash flow generation after accounting for player-related costs.
Working Capital Swings Dominate Cash Flow
Working capital changes are the dominant driver of operating cash flow volatility, with swings from a $86.1M inflow in Q4 2025 to a $59.5M outflow in Q1 2026, indicating that the timing of ticket sales, sponsorships, and player payments creates significant quarterly liquidity mismatches.
The massive working capital inflow in Q4 2025 ($86.1M) and Q4 2024 ($72.1M) likely reflects the upfront collection of season ticket revenue and sponsorship payments for the upcoming season, which is then consumed in subsequent quarters. This pattern suggests that the company's cash position is highly dependent on the timing of these inflows, and any disruption to season ticket sales or sponsorship renewals could create acute liquidity pressure, particularly in the cash-burning Q1 periods.
Cash Flow Obscured by Non-Cash Items
The cash flow statement may obscure the true economic cost of player compensation through non-cash adjustments like stock-based compensation and depreciation, which totaled $7.0M and $0.8M respectively in Q4 2026, potentially overstating the cash generation from core operations.
While SBC is relatively modest at $6.2M in Q2 2026, its inclusion in operating cash flow adjustments means that the reported OCF figure is not purely cash-based. More significantly, the depreciation and amortization of approximately $0.8M per quarter is likely understating the true economic depreciation of the franchise assets, which are appreciating in value but not reflected on the balance sheet. This accounting treatment means that the reported net income and operating cash flow do not capture the full economic reality of the business.