Revenue growth is currently strong, with Q4 2026 revenue of $278.7M representing a 36.7% year-over-year increase, but operating margin has compressed from 23.0% in Q4 2024 to 11.1% in Q4 2026, indicating cost growth is outpacing revenue gains.
Madison Square Garden Sports Corp. (MSGS) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 1.15B | 1.04B | 1.03B | 887.45M | 821.35M | 415.72M | 603.32M | 729.4M | 1.56B | 1.32B | 1.12B | 1.07B | 913.62M | 722.94M |
| Revenue Growth % | 11.03% | 1.18% | 15.74% | 8.05% | 97.57% | -31.09% | -17.29% | -53.22% | 18.25% | 18.21% | 4.08% | 17.29% | 26.37% | - |
| Cost of Goods Sold | 833.7M | 758.34M | 619.68M | 552.39M | 505.61M | 287.46M | 377.51M | 460.16M | 1.07B | 968.77M | 840.34M | 833.64M | 806.53M | 605.83M |
| COGS % of Revenue | 72.26% | 72.97% | 60.33% | 62.24% | 61.56% | 69.15% | 62.57% | 63.09% | 68.42% | 73.48% | 75.35% | 77.8% | 88.28% | 83.8% |
| Gross Profit | 320.12M | 280.88M | 407.47M | 335.06M | 315.75M | 128.26M | 225.81M | 269.25M | 492.33M | 349.68M | 274.97M | 237.91M | 107.08M | 117.11M |
| Gross Margin % | 27.74% | 27.03% | 39.67% | 37.76% | 38.44% | 30.85% | 37.43% | 36.91% | 31.58% | 26.52% | 24.65% | 22.2% | 11.72% | 16.2% |
| Gross Profit Growth % | 13.97% | -31.07% | 21.61% | 6.12% | 146.18% | -43.2% | -16.13% | -45.31% | 40.79% | 27.17% | 15.58% | 122.18% | -8.56% | - |
| Operating Expenses | 291.25M | 266.08M | 261.43M | 249.88M | 229.67M | 206.56M | 318.07M | 327.44M | 469.28M | 402.89M | 326.7M | 238.32M | 221.11M | 176.14M |
| OpEx % of Revenue | 25.24% | 25.6% | 25.45% | 28.16% | 27.96% | 49.69% | 52.72% | 44.89% | 30.1% | 30.56% | 29.29% | 22.24% | 24.2% | 24.36% |
| Selling, General & Admin | 286M | 266.08M | 261.43M | 249.88M | 229.67M | 206.56M | 318.07M | 327.44M | 469.28M | 402.89M | 326.7M | 238.32M | 221.11M | 176.14M |
| SG&A % of Revenue | 24.79% | 25.6% | 25.45% | 28.16% | 27.96% | 49.69% | 52.72% | 44.89% | 30.1% | 30.56% | 29.29% | 22.24% | 24.2% | 24.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 5.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 28.87M | 14.81M | 146.04M | 85.17M | 86.08M | -78.31M | -92.26M | -58.2M | 23.06M | -53.2M | -51.73M | -406K | -114.03M | -59.03M |
| Operating Margin % | 2.5% | 1.42% | 14.22% | 9.6% | 10.48% | -18.84% | -15.29% | -7.98% | 1.48% | -4.04% | -4.64% | -0.04% | -12.48% | -8.17% |
| Operating Income Growth % | 94.95% | -89.86% | 71.46% | -1.05% | 209.93% | 15.13% | -58.54% | -352.4% | 143.34% | -2.85% | -12641.63% | 99.64% | -93.17% | - |
| EBITDA | 32.05M | 18.03M | 149.2M | 88.75M | 91.12M | -72.73M | -74.72M | -38.12M | 145.54M | 54.19M | 50.75M | 108.35M | -22.32M | 13.52M |
| EBITDA Margin % | 2.78% | 1.73% | 14.53% | 10% | 11.09% | -17.5% | -12.39% | -5.23% | 9.34% | 4.11% | 4.55% | 10.11% | -2.44% | 1.87% |
| EBITDA Growth % | 77.78% | -87.92% | 68.11% | -2.6% | 225.28% | 2.66% | -96.03% | -126.19% | 168.6% | 6.77% | -53.16% | 585.47% | -265.06% | - |
| D&A (Non-Cash Add-back) | 3.18M | 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 |
| EBIT | 39.07M | 4.38M | 133.26M | 112.81M | 85.67M | -78.76M | -93.59M | -55.67M | 32.99M | -77M | -76.99M | -40.25M | -115.24M | -57.14M |
| Net Interest Income | -18.15M | -17.62M | -24.8M | -20.49M | -11.42M | -10.53M | -3.76M | -3.78M | -2.59M | 7.65M | 4.75M | 558K | 20K | -1.61M |
| Interest Income | 2.94M | 4.03M | 2.79M | 2.39M | 313K | 32K | 700K | 1.19M | 901K | 11.84M | 6.78M | 3.06M | 1.55M | 595K |
| Interest Expense | 21.09M | 21.65M | 27.59M | 22.88M | 11.73M | 10.56M | 4.46M | 4.97M | 3.49M | 4.19M | 2.03M | 2.5M | 1.53M | 2.2M |
| Other Income/Expense | -10.88M | -32.08M | -40.37M | 4.75M | -12.15M | -11.01M | -5.79M | -2.45M | -5.48M | -27.99M | -25.26M | -39.84M | -1.21M | 1.89M |
| Pretax Income | 17.98M | -17.27M | 105.67M | 89.92M | 73.93M | -89.32M | -98.05M | -60.64M | 17.58M | -81.19M | -76.99M | -40.25M | -115.24M | -57.14M |
| Pretax Margin % | 1.56% | -1.66% | 10.29% | 10.13% | 9% | -21.49% | -16.25% | -8.31% | 1.13% | -6.16% | -6.9% | -3.76% | -12.61% | -7.9% |
| Income Tax | 10.22M | 5.17M | 46.9M | 44.29M | 25.05M | -73.42M | 20.59M | -12.62M | -116.87M | -4.4M | 297K | 436K | 1.7M | 1.13M |
| Effective Tax Rate % | 56.85% | -29.91% | 44.38% | 49.26% | 33.89% | 82.2% | -21% | 20.81% | -664.95% | 5.42% | -0.39% | -1.08% | -1.47% | -1.98% |
| Net Income | 7.76M | -22.44M | 58.77M | 47.79M | 51.13M | -13.95M | -182.39M | 11.43M | 141.59M | -72.72M | -77.29M | -40.68M | -116.93M | -58.27M |
| Net Margin % | 0.67% | -2.16% | 5.72% | 5.39% | 6.23% | -3.36% | -30.23% | 1.57% | 9.08% | -5.52% | -6.93% | -3.8% | -12.8% | -8.06% |
| Net Income Growth % | 134.58% | -138.18% | 22.97% | -6.53% | 466.43% | 92.35% | -1696.11% | -91.93% | 294.7% | 5.91% | -89.98% | 65.21% | -100.66% | - |
| Net Income (Continuing) | 7.76M | -22.44M | 58.77M | 45.63M | 48.88M | -15.9M | -118.64M | -48.02M | 134.45M | -76.79M | -77.29M | -40.68M | -116.93M | -58.27M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -90.22M | 44.91M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 1.71M | 2.44M | 3.55M | 85.89M | 94.24M | 92.33M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.32 | -0.93 | 2.44 | 1.89 | 2.10 | -0.58 | -7.62 | 0.48 | 5.94 | -3.05 | -3.12 | -1.63 | -4.69 | -2.27 |
| EPS Growth % | 134.41% | -138.11% | 29.1% | -10% | 462.07% | 92.39% | -1687.5% | -91.92% | 294.75% | 2.24% | -91.41% | 65.25% | -106.61% | - |
| EPS (Basic) | 0.32 | -0.93 | 2.45 | 1.90 | 2.11 | -0.58 | -7.62 | 0.48 | 5.99 | -3.05 | -3.12 | -1.63 | -4.69 | -2.27 |
| Diluted Shares Outstanding | 24.25M | 24.09M | 24.1M | 24.19M | 24.41M | 24.13M | 23.94M | 23.9M | 23.85M | 23.85M | 24.75M | 24.91M | 24.93M | 25.71M |
| Basic Shares Outstanding | 24.15M | 24.09M | 24.01M | 24.09M | 24.25M | 24.13M | 23.94M | 23.77M | 23.64M | 23.84M | 24.75M | 24.91M | 24.93M | 25.71M |
| Dividend Payout Ratio | - | - | 1.19% | 357.63% | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying MSGS stock.
For fiscal year 2026, Madison Square Garden Sports Corp. (MSGS) reported total revenue of $1.15B. This represents a 59.6% increase compared to $722.9M in 2013.
Madison Square Garden Sports Corp. (MSGS) is profitable, generating $7.8M in net income for the fiscal year ending 2026 with a net profit margin of 0.7%.
Madison Square Garden Sports Corp. (MSGS) reported an operating income of $28.9M, resulting in an operating profit margin of 2.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Madison Square Garden Sports Corp. (MSGS) generated $320.1M in gross profit for the year, representing a gross profit margin of 27.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Thin margins vulnerable to player costs
Metrics are mathematically derived from official filings.
Revenue Growth Driven by Championship Cycle
Full-year revenue of $1,153.8M reflects strong top-line momentum, with Q4 2026 revenue surging 36.7% year-over-year to $278.7M, suggesting the Knicks' championship win provided a significant, likely non-recurring, boost to merchandise and premium seating demand.
The revenue trajectory is heavily influenced by the postseason success of the Knicks, as evidenced by the sharp acceleration in Q4 2026 growth. This pattern indicates that core demand remains robust but is highly sensitive to on-court performance, making the growth rate potentially unsustainable without another deep playoff run. The significant quarter-to-quarter volatility, from -26.0% in Q1 2026 to +36.7% in Q4 2026, underscores the business's inherent seasonality and event-driven nature.
Gross Margin Volatility Masks Fixed Cost Burden
Gross margin swung dramatically from 77.0% in Q1 2026 to 17.8% in Q3 2026, highlighting the extreme impact of player salary obligations and league revenue sharing, which are the primary structural drivers of profitability.
The wide range in gross margins, from a high of 83.1% to a low of 17.8%, is not indicative of pricing power but rather the timing of revenue recognition against the relatively fixed cost of player contracts. The Q3 2026 margin of 17.8% appears to represent the normalized cost structure during the core season, suggesting that the business operates with minimal buffer against cost inflation. This volatility makes it difficult to assess underlying operational efficiency.
Operating Leverage Eroded by High Fixed SG&A
Despite a 36.7% revenue increase in Q4 2026, SG&A expenses rose to $85.4M, indicating limited operating leverage as overhead costs appear to scale with revenue rather than remaining fixed.
The company's operating margin of 11.1% in Q4 2026, while positive, is significantly below the 23.0% achieved in Q4 2024, suggesting that the cost base has expanded. The persistent high SG&A, which averaged over $70M per quarter, acts as a drag on profitability and limits the conversion of gross profit into operating income. This implies that management has not yet achieved meaningful efficiency gains as the business scales.
Net Income Distorted by Non-Operating Items
Reported net income of $28.3M in Q4 2026 contrasts with a net loss of $20.0M in Q3 2026, a swing that appears driven by non-operating factors rather than core business performance, warranting scrutiny of the underlying earnings quality.
The erratic net income pattern, including a $37.9M profit in Q4 2024 followed by a $1.8M loss in Q4 2025, suggests significant influence from items below the operating line, such as taxes, interest, or one-time charges. The absence of stock-based compensation in recent quarters is a positive for earnings quality, but the volatility in net margin from -22.3% to +10.2% indicates that reported EPS is not a reliable indicator of recurring profitability.
Player Costs Dominate the Cost Structure
Cost of goods sold consistently consumes 56% to 82% of revenue, with the Q3 2026 figure of $355.3M representing the core player salary and league obligation burden that defines the company's financial profile.
The cost structure is overwhelmingly dominated by player-related expenses, which are largely non-discretionary and governed by league CBAs. This leaves SG&A as the primary lever for margin improvement, but its relative stability suggests limited near-term opportunity. The high fixed-cost nature of the business means that profitability is highly sensitive to revenue volume, particularly from high-margin sources like playoff games and premium sponsorships.
Championship Boost Masks Structural Margin Pressure
The strong Q4 2026 results may obscure a concerning trend: operating margin has compressed from 23.0% in Q4 2024 to 11.1% in Q4 2026, suggesting that cost growth is outpacing revenue gains even in a favorable period.
A short-seller would focus on the year-over-year margin erosion despite strong revenue growth, which implies that the business is becoming less efficient. The negative net income in three of the last four quarters, even with championship-level performance, raises questions about the long-term sustainability of profitability. Furthermore, the continued absence of forward guidance from management could be interpreted as a lack of visibility into the post-championship revenue cycle and its impact on the cost base.