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v3.26.1

Segment Information (Tables) | 6 Months Ended
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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
|  | Sphere |  | MSG Networks |  | Total
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 income |  |  |  |  |  | 4,786 |
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 expense |  | 17,043 |  |  | 679 |  |  | 17,722 |
Depreciation and amortization |  | 82,286 |  |  | 2,022 |  |  | 84,308 |
Restructuring charges |  | 323 |  |  | — |  |  | 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 liabilities |  | 228 |  |  | — |  |  | 228 |
Adjusted operating income |  | $ | 39,909 |  |  | $ | 11,015 |  |  | $ | 50,924 |
|  | Three Months Ended
|  | June 30, 2025
|  | Sphere |  | MSG Networks |  | Total
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 debt |  |  |  |  |  | 346,092 |
Interest income |  |  |  |  |  | 4,084 |
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 amortization |  | 81,707 |  |  | 2,200 |  |  | 83,907 |
Restructuring charges |  | 947 |  |  | — |  |  | 947 |
Impairment and other losses, net |  | 3,641 |  |  | — |  |  | 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 liabilities |  | 219 |  |  | — |  |  | 219 |
Adjusted operating income |  | $ | 24,949 |  |  | $ | 36,517 |  |  | $ | 61,466 |
|  | Six Months Ended
|  | June 30, 2026
|  | Sphere |  | MSG Networks |  | Total
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 income |  |  |  |  |  | 8,737 |
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 amortization |  | 164,560 |  |  | 4,115 |  |  | 168,675 |
Restructuring charges |  | 2,996 |  |  | 741 |  |  | 3,737 |
Impairment and other losses, net |  | 79 |  |  | — |  |  | 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 liabilities |  | 228 |  |  | — |  |  | 228 |
Adjusted operating income |  | $ | 114,199 |  |  | $ | 46,701 |  |  | $ | 160,900 |
|  | Six Months Ended
|  | June 30, 2025
|  | Sphere |  | MSG Networks |  | Total
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 debt |  |  |  |  |  | 346,092 |
Interest income |  |  |  |  |  | 7,962 |
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 amortization |  | 163,712 |  |  | 4,424 |  |  | 168,136 |
Restructuring charges |  | 2,788 |  |  | — |  |  | 2,788 |
Impairment and other losses, net |  | 4,162 |  |  | — |  |  | 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 liabilities |  | 240 |  |  | — |  |  | 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 A |  | 9 | % |  | 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 Ended |  | Six Months Ended
|  | June 30, |  | June 30,
|  | 2026 |  | 2025 |  | 2026 |  | 2025
Customer 1 |  | 8 | % |  | 11 | % |  | 8 | % |  | 11 | %
Customer 2 |  | 6 | % |  | 9 | % |  | 6 | % |  | 6 | %
Customer 3 |  | 6 | % |  | 8 | % |  | 6 | % |  | 8 | %

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