Madison Square Garden Entertainment Corp. (NYSE:MSGE) Reports Mixed Q4 Earnings, Stock Drops 4.8% in Pre-Market

Madison Square Garden Entertainment Corp. (NYSE:MSGE) reported fiscal fourth-quarter and full-year 2025 results, delivering mixed performance relative to analyst expectations. The company’s revenue and earnings per share (EPS) fell short of estimates, contributing to a negative pre-market reaction.

Key Earnings Metrics vs. Estimates

• Q4 Revenue: Reported at $154.1 million, down 17% year-over-year and slightly below the consensus estimate of $155.3 million.
• Q4 EPS: Posted a loss of -$0.57 per share, worse than the anticipated -$0.38 per share.
• Full-Year Revenue: Declined 2% to $942.7 million, while adjusted operating income rose 5% to $222.5 million.

Market Reaction

The stock was down ~4.8% in pre-market trading, reflecting investor disappointment with the weaker-than-expected Q4 results. Over the past month, shares had been relatively flat (+1.6%), suggesting muted expectations ahead of earnings.

Operational Highlights

• Entertainment Demand: The company hosted nearly 6 million guests across 975+ events, including concerts, sports, and the Christmas Spectacular, which set a revenue record.
• Cost Management: Direct operating expenses decreased 14% YoY in Q4, partially offsetting revenue declines.
• Stock Buybacks: Repurchased $40 million of Class A common stock during fiscal 2025.

Segment Performance

• Entertainment Offerings: Revenue fell 17% YoY to $118.7 million, driven by fewer concerts at Madison Square Garden Arena.
• Food & Beverage: Sales dropped 24% YoY to $26.4 million, impacted by fewer Knicks and Rangers games.
• Arena Leasing: Revenue edged up 6% to $9.0 million.

Outlook vs. Analyst Expectations

CEO James Dolan expressed confidence in "solid revenue and adjusted operating income growth" for fiscal 2026. Analysts currently project:

• FY 2026 Revenue: $1.02 billion (vs. $942.7 million in FY 2025).
• Q1 2026 EPS Estimate: -$0.57, with revenue expected at $149.1 million.

Conclusion

While cost controls and strong event demand provided some resilience, the Q4 revenue and EPS miss weighed on investor sentiment. The company’s ability to capitalize on its entertainment portfolio in fiscal 2026 will be key to reversing the post-earnings decline.

For detailed earnings estimates and historical performance, visit MSGE Earnings & Estimates.

Disclaimer: This article is not investment advice. Conduct your own research before making financial decisions.