fiscal 2027 first quarter
Filed Nov 6, 2026MSG RANGERS CORP. REPORTS FISCAL 2027 FIRST QUARTER RESULTS
Revenue increased 3%, but operating loss increased $10.7 million, adjusted operating loss increased $10.9 million, and net cash used in operating activities was $ (71,188) (In thousands).
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, three months ended September 30GAAP | $14.09M | – | $0.4 million, or 3% |
| Direct operating expenses, three months ended September 30GAAP | 8.80M | – | $5.2 million |
| Selling, general and administrative expenses, three months ended September 30GAAP | 28.09M | – | $5.8 million, or 26% |
| Depreciation and amortization, three months ended September 30GAAP | 576K | – | – |
| Restructuring charges, three months ended September 30GAAP | 211K | – | – |
| Operating loss, three months ended September 30GAAP | −$23.59M | – | $10.7 million, or (84)% |
| Interest income, three months ended September 30GAAP | 6K | – | – |
| Interest expense, three months ended September 30GAAP | −694K | – | – |
| Miscellaneous (expense) income, net, three months ended September 30GAAP | −15K | – | – |
| Loss before income taxes, three months ended September 30GAAP | −24.29M | – | – |
| Income tax benefit, three months ended September 30GAAP | 7.41M | – | – |
| Net loss and comprehensive loss, three months ended September 30GAAP | −$16.89M | – | – |
| Basic and diluted earnings (loss) per common share attributable to MSG Rangers stockholders, three months ended September 30GAAP | $ (1.39) | – | – |
| Share-based compensation, three months ended September 30non-GAAP | 1.5M | – | – |
| Adjusted operating loss, three months ended September 30non-GAAP | −$21.30M | – | $10.9 million |
| Net cash used in operating activities, three months ended September 30GAAP | −$71.19M | – | – |
| Net cash used in investing activities, three months ended September 30GAAP | −194K | – | – |
| Net cash provided by financing activities, three months ended September 30GAAP | 71.27M | – | – |
| Net (decrease) increase in cash, cash equivalents and restricted cash, three months ended September 30GAAP | −109K | – | – |
| Cash, cash equivalents and restricted cash at end of periodGAAP | $51K | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- Revenue growth primarily reflected higher revenues from league distributions of $1.2 million, mainly due to an increase in certain league distributions unrelated to national media rights fees, partially offset by other revenue decreases.
- Direct operating expenses increased primarily due to higher net provisions for certain team personnel transactions of $3.1 million and higher team personnel compensation of $1.3 million.
- Selling, general and administrative expense increased primarily due to expenses related to the spin-off transaction in the current year period of $3.6 million and higher employee compensation and related benefits of $1.4 million.
- The spin-off from MSG Knickerbockers Corp. was completed on October 26, 2026.
Concerns
- Operating loss was $ (23,588) (In thousands), compared with $ (12,843) (In thousands) in the prior-year period.
- Adjusted operating loss was $ (21,301) (In thousands), compared with $ (10,427) (In thousands) in the prior-year period.
- Net cash used in operating activities was $ (71,188) (In thousands), compared with $ (5,111) (In thousands) in the prior-year period.
- Fiscal 2027 and 2026 results are carve-out financial statements and do not include all actual expenses that would have been incurred had MSG Rangers been a standalone company for the periods presented.
What to watch
- League distributions and other revenue decreases referenced by the Company.
- Team personnel transaction provisions and team personnel compensation.
- Spin-off-related expenses and employee compensation and related benefits within selling, general and administrative expenses.
- Operating cash flow following the October 26, 2026 spin-off.
Balance sheet and cash flow
- Cash and cash equivalents: $ 51 (In thousands) as of September 30, 2026; $ 160 (In thousands) as of June 30, 2026.
- Accounts receivable, net of allowance for doubtful accounts: 8,258 (In thousands) as of September 30, 2026; 9,033 (In thousands) as of June 30, 2026.
- Net related party receivables: 44,518 (In thousands) as of September 30, 2026; 13,399 (In thousands) as of June 30, 2026.
- Prepaid expenses: 56,943 (In thousands) as of September 30, 2026; 32,666 (In thousands) as of June 30, 2026.
- Other current assets: 8,540 (In thousands) as of September 30, 2026; 13,430 (In thousands) as of June 30, 2026.
- Total current assets: 118,310 (In thousands) as of September 30, 2026; 68,688 (In thousands) as of June 30, 2026.
- Property and equipment, net: 22,568 (In thousands) as of September 30, 2026; 22,944 (In thousands) as of June 30, 2026.
- Right-of-use lease assets: 266,568 (In thousands) as of September 30, 2026; 266,802 (In thousands) as of June 30, 2026.
- Indefinite-lived intangible assets: 20,378 (In thousands) as of September 30, 2026; 20,378 (In thousands) as of June 30, 2026.
- Goodwill: 76,423 (In thousands) as of September 30, 2026; 76,423 (In thousands) as of June 30, 2026.
- Deferred tax assets, net: 49,793 (In thousands) as of September 30, 2026; 42,374 (In thousands) as of June 30, 2026.
- Other assets: 47,843 (In thousands) as of September 30, 2026; 19,685 (In thousands) as of June 30, 2026.
- Total assets: $ 601,883 (In thousands) as of September 30, 2026; $ 517,294 (In thousands) as of June 30, 2026.
- Accounts payable: $ 2,535 (In thousands) as of September 30, 2026; $ 1,703 (In thousands) as of June 30, 2026.
- Net related party payables: 6 (In thousands) as of September 30, 2026; 47 (In thousands) as of June 30, 2026.
- Debt: 16,500 (In thousands) as of September 30, 2026; 16,500 (In thousands) as of June 30, 2026.
- Employee-related costs: 17,771 (In thousands) as of September 30, 2026; 18,258 (In thousands) as of June 30, 2026.
- League-related accruals: 57,886 (In thousands) as of September 30, 2026; 87,250 (In thousands) as of June 30, 2026.
- Other accrued liabilities: 2,260 (In thousands) as of September 30, 2026; 1,166 (In thousands) as of June 30, 2026.
- Operating lease liabilities, current: 19,429 (In thousands) as of September 30, 2026; 19,288 (In thousands) as of June 30, 2026.
- Deferred revenue: 139,365 (In thousands) as of September 30, 2026; 75,143 (In thousands) as of June 30, 2026.
- Total current liabilities: 255,752 (In thousands) as of September 30, 2026; 219,355 (In thousands) as of June 30, 2026.
- Operating lease liabilities, noncurrent: 308,263 (In thousands) as of September 30, 2026; 312,309 (In thousands) as of June 30, 2026.
- Other employee-related costs: 14,708 (In thousands) as of September 30, 2026; 18,347 (In thousands) as of June 30, 2026.
- Deferred revenue, noncurrent: 195 (In thousands) as of September 30, 2026; 205 (In thousands) as of June 30, 2026.
- Total liabilities: 578,918 (In thousands) as of September 30, 2026; 550,216 (In thousands) as of June 30, 2026.
- MSG Knicks investment: 22,965 (In thousands) as of September 30, 2026; (32,922) (In thousands) as of June 30, 2026.
- Total MSG Rangers divisional equity (deficit): 22,965 (In thousands) as of September 30, 2026; (32,922) (In thousands) as of June 30, 2026.
- Total liabilities and MSG Rangers divisional equity (deficit): $ 601,883 (In thousands) as of September 30, 2026; $ 517,294 (In thousands) as of June 30, 2026.
- Cash, cash equivalents and restricted cash at beginning of period: 160 (In thousands) for the three months ended September 30, 2026; 8,720 (In thousands) for the three months ended September 30, 2025.
Analysis
MSG Rangers reported fiscal 2027 first-quarter revenues of $14.1 million, up $0.4 million, or 3%, from the prior-year period. The Company attributed the increase primarily to higher league distributions of $1.2 million, mainly from certain league distributions unrelated to national media rights fees, partly offset by other revenue decreases. No operating segments or segment-level revenue were disclosed.
The modest revenue increase did not offset a substantial increase in costs. Direct operating expenses rose $5.2 million, driven by higher net provisions for certain team personnel transactions of $3.1 million and higher team personnel compensation of $1.3 million. Selling, general and administrative expenses rose $5.8 million, or 26%, including $3.6 million of spin-off transaction expenses and $1.4 million of higher employee compensation and related benefits.
Operating loss was $ (23,588) (In thousands), versus $ (12,843) (In thousands), while adjusted operating loss was $ (21,301) (In thousands), versus $ (10,427) (In thousands). Net loss and comprehensive loss was $ (16,886) (In thousands), and basic and diluted loss per common share was $ (1.39). The reported results are carve-out financial statements and the Company states that they do not include all expenses that would have been incurred as a standalone company for the periods presented.
Cash flow was a key pressure point, with net cash used in operating activities of $ (71,188) (In thousands), compared with $ (5,111) (In thousands) in the prior-year period. Net cash provided by financing activities was 71,273 (In thousands), and cash and cash equivalents were $ 51 (In thousands) at September 30, 2026. The balance sheet also reported debt of 16,500 (In thousands), current deferred revenue of 139,365 (In thousands), and noncurrent operating lease liabilities of 308,263 (In thousands).
The filing provides no forward guidance and no capital-return disclosure. The reported period precedes the October 26, 2026 spin-off completion, making the Company’s stated carve-out basis and the expenses associated with the transaction central considerations when assessing reported revenue, costs, losses, and cash flow.
Management, verbatim
Following our spin-off, MSG Rangers begins its new chapter as a standalone company with enhanced strategic flexibility. The Rangers are a marquee franchise with a large and passionate fan base, and we remain well-positioned to create long-term value for shareholders.
James L. Dolan, Executive Chairman and CEO
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, or other metrics was not provided.
- Previous-period outlook was not provided.
- Segment revenue and segment profitability were not provided.
- Gross profit and gross margin were not provided.
- Income tax rate was not provided.
- Free cash flow was not provided.
- Share repurchases and dividend information were not provided.
- Total debt beyond the balance-sheet line item labeled Debt was not provided.
- Weighted-average shares outstanding were not provided.
- Year-over-year percentage changes were not reported for net loss, loss per share, operating cash flow, investing cash flow, or financing cash flow.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.