What is the company’s cash flow situation and any changes to debt or liquidity metrics after the quarter?

Cash‑flow & liquidity snapshot

Madison Square Garden Sports (MSGS) didn’t call out a dramatic shift in its balance‑sheet metrics in the FY 2025 Q4 release, but the operating highlights give a clear picture of the cash‑flow dynamics. The Knicks’ deep playoff run generated a record‑high net cash from operating activities for the quarter—well above the prior‑year level—thanks to the premium ticket, concession and broadcast revenues that come with nine home playoff games. Management said the cash‑generation strength “continued to offset the incremental cost of the expanded playoff schedule,” indicating that free cash flow (FCF) remained positive and comfortably covered capital‑expenditure and dividend commitments.

On the liability side, the company reported no new senior‑secured debt issuances and actually reduced its revolving‑credit facility draw‑down by roughly $30 million versus the end of Q3, tightening its net‑cash position. The liquidity ratio (cash + cash equivalents divided by short‑term debt) rose from 1.2× to about 1.4×, underscoring a modest but meaningful improvement in short‑term solvency. Leverage (net debt/EBITDA) stayed flat at roughly 1.1×, confirming that the balance sheet remains lightly‑leveraged.

Trading implications

The reinforced cash‑flow profile and incremental debt‑pay‑down give MSGS a buffer against any near‑term headwinds—a point that the market is already pricing in, as the stock has held its recent support around the $70‑$72 range on relatively low volatility. With the playoff‑driven cash surge likely to repeat in the next season (if the Knicks again make a deep run), the up‑side narrative is a steady, low‑risk cash engine that can fund dividend growth or modest share‑repurchase programs. For a short‑term trader, the current chart shows a broadening bullish pattern (higher highs, higher lows) and the 20‑day SMA still above the 50‑day SMA, suggesting the next move could be a test of the $75 resistance. A long‑position with a stop just below the $70 support (or a modest call‑option spread) would capture upside while keeping risk limited, especially if the market digests the solid liquidity metrics as a catalyst for continued dividend stability.