Sphere Entertainment Co.

MSG Networks

For the three months ended September 30, 2026, the MSG Networks segment reported total revenues of $75.4 million, a decrease of $13.0 million, or 15%, as compared to the prior year quarter.

Distribution revenue decreased $12.8 million, primarily reflecting a decrease in total subscribers of approximately 15.5%.

For the three months ended September 30, 2026, direct operating expenses of $59.3 million increased $1.0 million, or 2%, as compared to the prior year quarter.

For the three months ended September 30, 2026, selling, general and administrative expenses of $10.0 million increased $3.0 million, or 43%, as compared to the prior year quarter. This increase was primarily due to (i) higher employee compensation and related benefits of $3.5 million and (ii) other cost increases, partially offset by (iii) lower advertising and marketing costs of $1.6 million.

For the three months ended September 30, 2026, operating loss of $173.6 million increased $94.9 million as compared to the prior year quarter, primarily due to an increase in impairments and other losses(3) and, to a lesser extent, the decrease in revenues. Adjusted operating income of $6.8 million decreased $12.5 million as compared to the prior year quarter, primarily due to the decrease in revenues.

(3)Results for the three months ended September 30, 2026 included a non-cash goodwill impairment charge of $177.6 million as compared to a charge of $98.8 million in the prior year quarter. The charge in the prior year quarter reflects revised prior period financials. See “Exhibit A” in this earnings release for additional information.