Segment Information (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Segment Information, by Segment

Information as to the operations of the Company’s reportable segments is set forth below.


	Three Months Ended
	March 31, 2026
	Sphere		MSG Networks		Total
Revenues	$	265,965	$	120,447	$	386,412
Operating expenses:
Event-related expenses (a)	94,426		—		94,426
Rights fee expense	—		50,646		50,646
Network programming and production costs	—		19,775		19,775
Other direct operating expenses (a)	4,800		—		4,800
Overhead expenses(b)	106,596		15,107		121,703
Other segment expenses(c)	85,026		2,834		87,860
Operating (loss) income	$	(24,883)	$	32,085	$	7,202
Other income (expense):
Loss on extinguishment of debt					(2,071)
Interest income					3,951
Interest expense					(8,039)
Other expense, net					(1,424)
Loss from operations before income taxes					$	(381)
Reconciliation of operating (loss) income to adjusted operating income:
Operating (loss) income	$	(24,883)	$	32,085	$	7,202
Adjustments:
Share-based compensation expense	13,143		767		13,910
Depreciation and amortization	82,274		2,093		84,367
Restructuring charges	2,673		741		3,414
Impairment and other losses, net	79		—		79
Merger, debt work-out, and acquisition related costs, net of insurance recoveries	87		—		87
Amortization for capitalized cloud computing arrangement costs	917		—		917

Adjusted operating income	$	74,290	$	35,686	$	109,976


	Three Months Ended
	March 31, 2025
	Sphere		MSG Networks		Total
Revenues	$	157,545	$	123,029	$	280,574
Operating expenses:
Event-related expenses (a)	62,497		—		62,497
Rights fee expense	—		67,146		67,146
Network programming and production costs	—		20,641		20,641
Other direct operating expenses (a)	8,039		—		8,039
Overhead expenses(b)	96,404		17,865		114,269
Other segment expenses(c)	84,367		2,224		86,591
Operating (loss) income	$	(93,762)	$	15,153	$	(78,609)
Other income (expense):

Interest income					3,878
Interest expense					(26,206)
Other expense, net					(1,340)
Loss from operations before income taxes					$	(102,277)
Reconciliation of operating (loss) income to adjusted operating income:
Operating (loss) income	$	(93,762)	$	15,153	$	(78,609)
Adjustments:
Share-based compensation expense	19,954		1,641		21,595
Depreciation and amortization	82,005		2,224		84,229
Restructuring charges	1,841		—		1,841
Impairment and other losses, net	521		—		521
Merger, debt work-out, and acquisition related costs, net of insurance recoveries	988		3,803		4,791
Amortization for capitalized cloud computing arrangement costs	1,579		—		1,579
Remeasurement of deferred compensation plan liabilities	21		—		21
Adjusted operating income	$	13,147	$	22,821	$	35,968

_______________

(a)Event-related expenses include, but are not limited to, day-of-event costs, direct operating expenses for The Sphere Experience, venue operating expenses, and other event-related direct operating expenses. Other direct operating expenses include, but are not limited to, expenses related to sponsorship, signage, Exosphere advertising, suite licenses, and other operating expenses. In total, these expenses when combined with MSG Networks rights fee expense and network programming and production costs represent the Company’s Direct operating expenses as presented on the accompanying condensed consolidated statements of operations.

(b)For each reportable segment, Overhead expenses currently include selling, general and administrative costs.

(c)For each reportable segment, Other segment expenses include all other expenses that do not meet the definition of other previously disclosed expenses, primarily depreciation and amortization, impairment and other losses, net and restructuring charges.

Schedules of Concentration of Risk, by Risk Factor

Concentration of Risk

Accounts receivable, net in the accompanying condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance:


	As of
	March 31, 2026		December 31, 2025
Customer A	11	%	11	%
Customer B	8	%	9	%
Customer C	7	%	8	%

Revenues in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025 include amounts from the following individual customers, derived from the MSG Networks segment, which accounted for the noted percentages of the total:


	Three Months Ended
	March 31,
	2026		2025
Customer 1	8	%	11	%
Customer 2	5	%	—	%
Customer 3	5	%	8	%