Operating margins remain thin at 0.7% as of 2026Q3, reflecting the high fixed-cost burden of player compensation and league-mandated obligations that frequently distort profitability.
| Metric | TTM | 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 | 1.08B | 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 % | 1.55% | 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 | 832.2M | 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 | - | 72.97% | 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 | 246.83M | 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 % | 22.88% | 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 % | - | -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 | 271.44M | 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 | - | 25.6% | 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 | 271.44M | 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 | - | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -24.61M | 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 % | -2.28% | 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 % | - | -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 | -21.4M | 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 % | -1.98% | 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 % | -123.04% | -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) | 3.21M | 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 | -9.52M | 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 | -18.39M | -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 | 3.24M | 4.03M | 2.79M | 2.39M | 313K | 32K | 700K | 1.19M | 901K | 11.84M | 6.78M | 3.06M | 1.55M | 595K |
| Interest Expense | 21.63M | 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 | -18.19M | -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 | -42.81M | -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 % | -3.97% | -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 | -20.49M | 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 % | 47.86% | -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 | -22.32M | -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 % | -2.07% | -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 % | -561.78% | -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) | -22.32M | -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) | -0.92 | -0.93 | 2.44 | 1.89 | 2.10 | -0.58 | -4.96 | -0.13 | 5.94 | -3.05 | -3.12 | -1.63 | -4.69 | -2.27 |
| EPS Growth % | -554.18% | -138.11% | 29.1% | -10% | 462.07% | 88.31% | -3715.38% | -102.19% | 294.75% | 2.24% | -91.41% | 65.25% | -106.61% | - |
| EPS (Basic) | - | -0.93 | 2.45 | 1.90 | 2.11 | -0.58 | -4.96 | -0.13 | 5.99 | -3.05 | -3.12 | -1.63 | -4.69 | -2.27 |
| Diluted Shares Outstanding | 24.15M | 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% | - | - | - | - | - | - | - | - | - | - |
Linear media revenue decay
As reported in financial statements, MSGS exhibits extreme quarterly revenue volatility, with figures swinging from $39.5M in off-season periods to $432.2M during peak play, suggesting that year-over-year growth metrics are heavily distorted by the timing of league schedules rather than fundamental shifts in core business demand.
The revenue trajectory appears highly dependent on the overlapping NBA and NHL calendars, making standard period-over-period comparisons less meaningful for assessing long-term growth. Investors should monitor whether the underlying sponsorship and ticket yield growth can offset the structural decline in regional sports network contributions.
Based on recent income statement data, gross margins have fluctuated significantly, dropping to 17.8% in 2026Q3 from historical peaks above 50%, which indicates that the company's profitability is highly sensitive to the high fixed-cost nature of player compensation and league-mandated revenue sharing obligations.
The compression in gross margins suggests that the company lacks the pricing power to fully pass through rising labor costs to consumers. This volatility in margin performance implies that the business model is inherently susceptible to fluctuations in team performance and the resulting impact on gate-related revenue.
According to recent SEC filings, operating income has struggled to scale, with the company reporting a thin 0.7% operating margin in 2026Q3, demonstrating that administrative and facility-related overhead costs remain a significant drag on the profitability generated by the core sports franchises during the active season.
The inability to maintain consistent operating leverage suggests that the company's cost structure is largely rigid, leaving little room for margin expansion during periods of revenue growth. This lack of scalability warrants further investigation into whether management can optimize SG&A expenses without compromising the premium brand positioning.
As indicated by the reported net margin of -2.16% and inconsistent EPS performance, the market's tendency to value MSGS as a trophy asset rather than a cash-flow-generating entity may be unsustainable if the linear media ecosystem continues to deteriorate at the current observed pace.
Short-sellers may focus on the disconnect between the company's thin operating margins and its premium market valuation. If the anticipated transition to a direct-to-consumer model fails to replicate the stability of legacy media rights, the current valuation floor may face significant downward pressure.
Quick answers to the most common questions about buying MSGS stock.
For fiscal year 2025, Madison Square Garden Sports Corp. (MSGS) reported total revenue of $1.04B. This represents a 43.7% increase compared to $722.9M in 2013.
Madison Square Garden Sports Corp. (MSGS) reported a net loss of $22.4M for the fiscal year ending 2025.
Madison Square Garden Sports Corp. (MSGS) reported an operating income of $14.8M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Madison Square Garden Sports Corp. (MSGS) generated $280.9M in gross profit for the year, representing a gross profit margin of 27.0%. This demonstrates the company's core pricing power and production efficiency.