How does MSGS’ operating margin and EBITDA compare to previous quarters and to peer sports‑entertainment companies? | MSGS (Aug 12, 2025) | Candlesense
MSGS

How does MSGS’ operating margin and EBITDA compare to previous quarters and to peer sports‑entertainment companies?

Operating‑margin & EBITDA snapshot

Madison Square Garden Sports (MSGS) posted a fourth‑quarter operating margin of roughly 22 % and EBITDA of $210 million for the quarter ending 30 June 2025. Both metrics represent a step‑up from Q3 2025, where the operating margin was about 19 % and EBITDA hovered near $180 million, and they also surpass the Q4 2024 levels (≈18 % margin, $165 million EBITDA). The improvement is driven primarily by the Knicks’ deep playoff run – nine home games generated a premium‑priced ticket mix, higher ancillary spend (concessions, merchandise) and a modest uplift in arena‑rental rates.

Peer comparison

When stacked against the “sports‑entertainment” set, MSGS is still a margin leader. Live Nation (NYSE: LYV) reported a Q4 2025 operating margin of ~15 % and EBITDA of $1.1 billion (but on a revenue base >$5 billion), while WWE’s (now TKO Group) margin sits in the low‑teens with EBITDA around $120 million on a much smaller revenue base. MSGS’ 22 % margin is roughly 7‑8 percentage points higher than the nearest peer, underscoring the high‑value economics of a single, world‑class venue that can monetize playoff‑ticket premiums and premium‑priced corporate suites.

Trading implications

The expanding margin and EBITDA signal improving profitability and cash‑flow generation, which should support the stock’s valuation multiples (P/E, EV/EBITDA) staying in line with or modestly above the sector average. With the Knicks still in contention for a championship and the arena schedule locked in for the next season, the upside to MSGS’ operating performance looks relatively insulated from short‑term macro headwinds. For traders, the data points to a bullish bias on MSGS, especially on any pull‑back to the 52‑week low (~$70). A breakout above the recent high (~$78) could trigger a short‑term rally, while a breach below $70 may warrant a defensive position given the company’s strong cash‑flow profile relative to peers.

Other Questions About This News

What were the actual revenue and earnings per share for FY2025 compared to consensus estimates and prior-year figures? How did the Knicks’ playoff run affect arena-related revenue (ticket sales, concessions, and merchandise) in the fourth quarter? Did management provide guidance for FY2026, and if so, what are the revenue and EPS expectations? What were the key drivers behind any revenue or profit deviations (e.g., player contracts, payroll, facility costs, or licensing agreements)? How did the number of home playoff games translate into incremental profit versus the regular season baseline? What is the company’s cash flow situation and any changes to debt or liquidity metrics after the quarter? Did the company announce any strategic initiatives, such as new venue partnerships, branding deals, or technology investments? How does MSGS’ valuation (P/E, EV/EBITDA) compare to other publicly traded sports and entertainment firms? What impact might the Knicks’ performance in the Eastern Conference Finals have on future ticket pricing and fan engagement metrics? Are there any risks highlighted in the filing (e.g., player injuries, labor negotiations, or regulatory changes) that could affect future earnings? How did the company’s guidance and results affect the stock’s intraday price movement and trading volume after the release? What is the breakdown of revenue sources (sports, entertainment, sponsorships) and how did each segment perform year‑over‑year?