Madison Square Garden Sports 2025 Q4 Earnings Significant Net Income Decline of 107%

Madison Square Garden Sports (MSGS) reported its fiscal 2025 Q4 earnings on August 12, 2025, revealing a sharp deterioration in financial performance. The company missed expectations with a net loss of $1.78 million, a 107.0% negative change from a net income of $25.49 million in the same period last year.

Revenue
Total revenue for the quarter fell by 10.3% to $203.96 million, compared to $227.25 million in 2024 Q4.

Earnings/Net Income
Madison Square Garden Sports swung to a loss of $0.07 per share in 2025 Q4, a stark contrast to the $1.06 per share profit in 2024 Q4. The company recorded a net loss of $-1.78 million, a 107.0% decline from the $25.49 million net income in the prior-year period. This marks the 11th consecutive year of losses during the corresponding quarter, underscoring persistent financial challenges. The EPS performance is notably poor, reflecting a substantial reversal in profitability.

Price Action
The stock price of Madison Square Garden Sports has fallen 3.50% in the latest trading day, 3.43% in the most recent full trading week, and 5.09% month-to-date.

Post Earnings Price Action Review
A strategy of purchasing Madison Square Garden Sports shares after its quarterly earnings report and selling them 30 days later has yielded poor returns over the past three years. This approach has returned -30.01%, significantly lagging behind the benchmark return of 49.43%. The excess return was -79.44%, and the compound annual growth rate was -11.63%, illustrating a clear underperformance and substantial losses over the review period.

CEO Commentary
James L. Dolan, Executive Chairman and CEO of Madison Square Garden Sports Corp., noted that fiscal 2025 featured growth in per-game revenues and a Knicks' postseason run to the Eastern Conference Finals. He highlighted the company’s ongoing investment in teams and the evolving local media landscape, emphasizing the continued strong demand for the Knicks and Rangers, as well as confidence in the value of owning two professional sports franchises.

Guidance
The company expects sustained strong demand for the Knicks and Rangers and remains optimistic about the long-term value of owning two professional sports franchises. However, no specific financial guidance or targets were provided in the report.

Additional News
Within the three weeks following the August 12, 2025 earnings report, Madison Square Garden Sports was not involved in any significant mergers and acquisitions activity. No major executive changes were announced during this period. Additionally, the company did not issue any dividend or share buyback announcements. The focus remained primarily on operational performance and commentary from leadership on the company's strategic direction, without introducing new non-earnings-related financial initiatives.