Manchester United PLC (NYSE:MANU) Reports Mixed Q1 2026 Results with Revenue Beat and Net Loss

Manchester United PLC (NYSE:MANU) reported financial results for its fiscal first quarter of 2026, delivering a mixed performance that saw the club beat analyst expectations on the top and bottom lines but post a net loss for the period. The market reaction in pre-market trading was negative, with shares down approximately 3.1%.

Earnings and Revenue Versus Estimates

The club’s reported figures for the quarter ended September 30, 2025, came in ahead of Wall Street forecasts.

• Revenue: The company reported total revenue of £140.3 million (approximately $141.4 million). This surpassed the analyst consensus estimate of £137.7 million.
• Earnings Per Share (EPS): Manchester United reported an adjusted basic loss per share of 1.48 pence (approximately -$0.015). This result was significantly better than the estimated loss of 6.12 pence per share (-$0.0612).

Despite outperforming estimates, the company still recorded a net loss of £6.6 million for the quarter, a reversal from the £1.4 million profit in the same period last year. This bottom-line loss was primarily driven by substantial net finance costs related to foreign exchange movements on its U.S. dollar-denominated debt.

Market Reaction and Price Action

The immediate market response to the earnings release was negative. Shares fell around 3% in pre-market trading following the announcement. This reaction suggests investor focus may be on several underlying concerns within the otherwise positive headline beat:

• The reported net loss, despite the EPS beat on an adjusted basis.
• A year-over-year decline in total revenue of 2.0%.
• A significant reduction in cash and cash equivalents, which fell to £80.5 million from £149.6 million a year ago, partly due to heavy investment in player registrations and facility upgrades.
• Increased reliance on short-term borrowing, with current borrowings rising to £268.0 million.

This pre-market drop contrasts with a relatively stable share price performance over the past month, which saw a decline of about 3%.

Key Takeaways from the Q1 Report

The earnings release highlighted a period of transition and investment for the historic club.

• Operational Efficiency: CEO Omar Berrada pointed to "difficult decisions" that have created a "sustainably lower cost base." This was evidenced by a 13.5% year-over-year increase in Adjusted EBITDA to £26.9 million and a swing to an operating profit of £13.0 million from a loss last year.
• Revenue Mix Shifts: Total revenue dipped slightly, with declines across commercial, broadcasting, and matchday segments. A 9.3% drop in sponsorship revenue was offset by an 11.0% gain in retail and merchandising. Broadcasting revenue fell due to the men's team not participating in UEFA competitions this quarter.
• Significant Investment & Debt: The quarter was marked by high capital expenditure, including £99.7 million net on player registrations and £17.0 million on property and equipment, notably for the redeveloped training facility at Carrington. The club also drew down £105 million on its revolving credit facility.
• Reiterated Full-Year Guidance: Management reaffirmed its fiscal 2026 outlook, expecting revenue between £640 million and £660 million and Adjusted EBITDA in the range of £180 million to £200 million. The company stated it remains in compliance with all relevant financial regulations.

Looking Ahead

The company’s reiterated guidance aligns broadly with the current analyst consensus for full-year sales, which stands at approximately £667.6 million. For the upcoming second quarter, analysts are projecting revenue of about £191.8 million; Manchester United did not provide specific quarterly guidance.

For a detailed breakdown of future earnings estimates and past performance, you can view more on the MANU earnings and estimates page.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The analysis is based on publicly available data and earnings reports. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.