v3.26.1
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Information, by Segment
Information as to the operations of the Company’s reportable segments is set forth below.
Three Months Ended
June 30, 2026
SphereMSG NetworksTotal
Revenues$226,353 $87,286 $313,639 
Operating expenses:
Event-related expenses (a)
84,180 — 84,180 
Rights fee expense— 48,541 48,541 
Network programming and production costs— 14,792 14,792 
Other direct operating expenses (a)
3,550 — 3,550 
Overhead expenses(b)
125,590 13,617 139,207 
Other segment expenses(c)
82,609 2,022 84,631 
Operating (loss) income$(69,576)$8,314 $(61,262)
Other income (expense):
Interest income4,786 
Interest expense(8,273)
Other expense, net(504)
Loss from operations before income taxes$(65,253)
Reconciliation of operating (loss) income to adjusted operating income:
Operating (loss) income$(69,576)$8,314 $(61,262)
Adjustments:
Share-based compensation expense17,043 679 17,722 
Depreciation and amortization82,286 2,022 84,308 
Restructuring charges323 — 323 
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
8,206 — 8,206 
Amortization for capitalized cloud computing arrangement costs
1,399 — 1,399 
Remeasurement of deferred compensation plan liabilities228 — 228 
Adjusted operating income$39,909 $11,015 $50,924 
Three Months Ended
June 30, 2025
SphereMSG NetworksTotal
Revenues$175,587 $107,090 $282,677 
Operating expenses:
Event-related expenses (a)
68,349 — 68,349 
Rights fee expense— 39,303 39,303 
Network programming and production costs— 15,664 15,664 
Other direct operating expenses (a)
8,002 — 8,002 
Overhead expenses(b)
96,389 16,634 113,023 
Other segment expenses(c)
86,295 2,200 88,495 
Operating (loss) income$(83,448)$33,289 $(50,159)
Other income (expense):
Gain on extinguishment of debt346,092 
Interest income4,084 
Interest expense(25,862)
Other expense, net(400)
Income from operations before income taxes$273,755 
Reconciliation of operating (loss) income to adjusted operating income:
Operating (loss) income$(83,448)$33,289 $(50,159)
Adjustments:
Share-based compensation expense
17,953 897 18,850 
Depreciation and amortization81,707 2,200 83,907 
Restructuring charges947 — 947 
Impairment and other losses, net3,641 — 3,641 
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
2,351 131 2,482 
Amortization for capitalized cloud computing arrangement costs
1,579 — 1,579 
Remeasurement of deferred compensation plan liabilities219 — 219 
Adjusted operating income$24,949 $36,517 $61,466 
Six Months Ended
June 30, 2026
SphereMSG NetworksTotal
Revenues$492,318 $207,733 $700,051 
Operating expenses:
Event-related expenses (a)
178,606 — 178,606 
Rights fee expense— 99,187 99,187 
Network programming and production costs— 34,567 34,567 
Other direct operating expenses (a)
8,350 — 8,350 
Overhead expenses(b)
232,186 28,724 260,910 
Other segment expenses(c)
167,635 4,856 172,491 
Operating (loss) income$(94,459)$40,399 $(54,060)
Other income (expense):
Loss on extinguishment of debt(2,071)
Interest income8,737 
Interest expense(16,312)
Other expense, net(1,928)
Loss from operations before income taxes$(65,634)
Reconciliation of operating (loss) income to adjusted operating income:
Operating (loss) income$(94,459)$40,399 $(54,060)
Adjustments:
Share-based compensation expense
30,186 1,446 31,632 
Depreciation and amortization164,560 4,115 168,675 
Restructuring charges2,996 741 3,737 
Impairment and other losses, net79 — 79 
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
8,293 — 8,293 
Amortization for capitalized cloud computing arrangement costs
2,316 — 2,316 
Remeasurement of deferred compensation plan liabilities228 — 228 
Adjusted operating income$114,199 $46,701 $160,900 
Six Months Ended
June 30, 2025
SphereMSG NetworksTotal
Revenues$333,132 $230,119 $563,251 
Operating expenses:
Event-related expenses (a)
130,846 — 130,846 
Rights fee expense— 106,449 106,449 
Network programming and production costs— 36,305 36,305 
Other direct operating expenses (a)
16,041 — 16,041 
Overhead expenses(b)
192,793 34,499 227,292 
Other segment expenses(c)
170,662 4,424 175,086 
Operating (loss) income$(177,210)$48,442 $(128,768)
Other income (expense):
Gain on extinguishment of debt346,092 
Interest income7,962 
Interest expense(52,068)
Other expense, net(1,740)
Income from operations before income taxes$171,478 
Reconciliation of operating (loss) income to adjusted operating income:
Operating (loss) income$(177,210)$48,442 $(128,768)
Adjustments:
Share-based compensation expense
37,907 2,538 40,445 
Depreciation and amortization163,712 4,424 168,136 
Restructuring charges2,788 — 2,788 
Impairment and other losses, net4,162 — 4,162 
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
3,339 3,934 7,273 
Amortization for capitalized cloud computing arrangement costs
3,158 — 3,158 
Remeasurement of deferred compensation plan liabilities240 — 240 
Adjusted operating income$38,096 $59,338 $97,434 
_______________
(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 June 30, 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
June 30,
2026		December 31,
2025
Customer A9 %9 %
Customer B
8 %11 %
Customer C
8 %8 %
Revenues in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 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 EndedSix Months Ended
June 30,June 30,
2026202520262025
Customer 18 %11 %8 %11 %
Customer 2
6 %9 %6 %6 %
Customer 3
6 %8 %6 %8 %