Sphere Entertainment Co.

Previous wording

•our ability to successfully execute MSG Networks’ strategy for its direct-to-consumer (“DTC”) and authenticated streaming offering, MSG+ (which is currently included in the Gotham Sports streaming product and is anticipated to be available through the DAZN streaming product during the 2026-2027 National Basketball Association (the “NBA”) and National Hockey League (the “NHL”) seasons), the success of such offering and our ability to adapt to new content distribution platforms or changes in consumer behavior resulting from emerging technologies;

Current wording

•our ability to successfully execute MSG Networks’ strategy for its direct-to-consumer (“DTC”) and authenticated streaming offering, MSG+ (which is currently available through the DAZN streaming product), the success of such offering and our ability to adapt to new content distribution platforms or changes in consumer behavior resulting from emerging technologies;

Previous wording

•any economic, social or political actions, such as boycotts, protests, work stoppages or campaigns by labor organizations, including the unions representing players and officials of the NBA and the NHL, artists or employees involved in our productions or other work stoppages that may impact us or our business partners;

Current wording

•any economic, social or political actions, such as boycotts, protests, work stoppages or campaigns by labor organizations, including the unions representing players and officials of the National Basketball Association (the “NBA”) and the National Hockey League (the “NHL”), artists or employees involved in our productions or other work stoppages that may impact us or our business partners;

Previous wording

•the tax-free treatment of the distribution of Madison Square Garden Entertainment Corp. (“MSG Entertainment”) from the Company in 2023 and the distribution from Madison Square Garden Sports Corp. (“MSG Sports”) in 2020; and

Current wording

•the tax-free treatment of the distribution of Madison Square Garden Entertainment Corp. (“MSG Entertainment”) from the Company in 2023 and the distribution from MSG Knickerbockers Corp. (formerly Madison Square Garden Sports Corp., “MSG Knicks”) in 2020; and

Previous wording

Sphere: This segment reflects Sphere, an experiential medium powered by advanced technologies that bring storytelling to a new level. The Company’s first Sphere venue opened in Las Vegas on September 29, 2023. The entire exterior surface of Sphere, referred to as the Exosphere®, is covered with nearly 580,000 square feet of fully programmable LED lighting, creating the largest LED screen in the world and an impactful display for artistic and branded content. Inside, the venue features a 16K x 16K interior display plane – the world’s highest-resolution LED screen that wraps up, over, and around the audience creating a fully immersive visual environment. In addition, Sphere’s advanced technologies include Sphere Immersive Sound TM – Sphere’s proprietary audio system – as well as haptic seating and 4D environmental effects. The venue can accommodate up to 20,000 guests and hosts a wide variety of events year-round, including The Sphere Experience TM, which features original immersive productions, as well as concerts and residencies from renowned artists, and marquee sports and brand events (formerly referred to as corporate events). Production efforts for Sphere events are supported by Sphere Studios TM, an immersive content studio dedicated to creating multi-sensory experiences exclusively for Sphere, using proprietary technology, tools and production facilities. Sphere Studios is home to a team of creative, production, technology and software engineering experts who provide full in-house creative and production services. The studio campus in Burbank includes a 68,000-square-foot development facility, as well as Big Dome, a 28,000-square-foot, 100-foot high custom dome, with a quarter-sized version of the interior display plane at Sphere in Las Vegas, that serves as a specialized screening, production facility, and lab for content at Sphere.

Current wording

Sphere: This segment reflects Sphere, an experiential medium powered by advanced technologies that bring storytelling to a new level. The Company’s first Sphere venue opened in Las Vegas on September 29, 2023. The entire exterior surface of Sphere, referred to as the Exosphere®, is covered with nearly 580,000 square feet of fully programmable LED lighting, creating the largest LED screen in the world and an impactful display for artistic and branded content. Inside, the venue features a 16K x 16K interior display plane – the world’s highest-resolution LED screen that wraps up, over, and around the audience creating a fully immersive visual environment. In addition, Sphere’s advanced technologies include Sphere Immersive Sound TM – Sphere’s proprietary audio system – as well as haptic seating and 4D environmental effects. The venue can accommodate up to 20,000 guests and hosts a wide variety of events year-round, including The Sphere Experience TM, which features original immersive productions, as well as concerts and residencies from renowned artists, and marquee sports and brand events (formerly referred to as corporate events). Production efforts for Sphere events are supported by Sphere Studios TM, an immersive content studio dedicated to creating multi-sensory experiences exclusively for Sphere, using proprietary technology, tools and production facilities. Sphere Studios is home to a team of creative, production, technology and software engineering experts who provide full in-house creative and production services. The studio campus in Burbank includes a 68,000-square-foot development facility, as well as Big Dome, a 28,000-square-foot, 100-foot high custom dome, with a quarter-sized version of the interior display plane at Sphere in Las Vegas, that serves as a specialized screening facility, production facility, and lab for content at Sphere.

Previous wording

The Company is focused on creating a global network of Spheres. The Company is working with DCT Abu Dhabi to bring Sphere to Abu Dhabi, United Arab Emirates. In May 2026, Yas Island was selected as the site for Sphere Abu Dhabi. DCT Abu Dhabi is funding construction, which is expected to be completed by end of 2029. In January 2026, the Company, the State of Maryland, Prince George’s County, and Peterson Companies announced the Company’s intent to develop a new Sphere venue at National Harbor, Maryland.

Current wording

The Company is focused on creating a global network of Spheres. The Company is working with DCT Abu Dhabi to bring Sphere to Abu Dhabi, United Arab Emirates. In May 2026, Yas Island was selected as the site for Sphere Abu Dhabi. DCT Abu Dhabi is funding construction, which is expected to be completed by the end of 2029. In January 2026, the Company, the State of Maryland, Prince George’s County, and Peterson Companies announced the Company’s intent to develop a new Sphere venue at National Harbor, Maryland.

Previous wording

MSG Networks: This segment is comprised of the Company’s regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as its DTC and authenticated streaming offering, MSG+ (which is currently included in the Gotham Sports streaming product and is anticipated to be available through the DAZN streaming product during the 2026-2027 NBA and NHL seasons). MSG Networks serves the New York designated market area, as well as other portions of New York, New Jersey, Connecticut and Pennsylvania and features a wide range of sports content, including exclusive live local games and other programming of the New York Knicks of the NBA and the New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres of the NHL, as well as significant coverage of the New York Giants and the Buffalo Bills of the National Football League.

Current wording

MSG Networks: This segment is comprised of the Company’s regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as its DTC and authenticated streaming offering, MSG+ (which is currently available through the DAZN streaming product). MSG Networks serves the New York designated market area, as well as other portions of New York, New Jersey, Connecticut and Pennsylvania and features a wide range of sports content, including exclusive live local games and other programming of the New York Knicks of the NBA and the New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabres of the NHL, as well as significant coverage of the New York Giants and the Buffalo Bills of the National Football League.

Previous wording

Results of Operations. This section provides an analysis of our unaudited results of operations for the three and six months ended June 30, 2026 and 2025 on both a (i) consolidated basis and (ii) segment basis.

Current wording

Results of Operations. This section provides an analysis of our unaudited results of operations for the three and nine months ended September 30, 2026 and 2025 on both a (i) consolidated basis and (ii) segment basis.

Previous wording

Liquidity and Capital Resources. This section provides a discussion of our financial condition and liquidity, an analysis of our cash flows for the six months ended June 30, 2026 and 2025, as well as certain contractual obligations and off-balance sheet arrangements.

Current wording

Liquidity and Capital Resources. This section provides a discussion of our financial condition and liquidity, an analysis of our cash flows for the nine months ended September 30, 2026 and 2025, as well as certain contractual obligations and off-balance sheet arrangements.

Previous wording

Our Company’s future performance is dependent in part on general economic conditions and the effect of these conditions on our customers. Weak economic conditions may lead to lower tourism and lower demand for our entertainment offerings (including The Sphere Experience) and programming content, which would also negatively affect concession and merchandise sales, and could lead to lower levels of advertising, sponsorship and venue signage. Recent developments relating to geopolitical events, including, foreign wars and conflicts, as well as tariffs, have intensified concerns over the global macroeconomic environment, which has resulted in a rise in volatility across financial markets and concerns over the prospect of a U.S. recession. These conditions may also affect the number of immersive productions, concerts, residencies and other events that take place in the future. An economic downturn could adversely affect our business and results of operations. The Company continues to explore additional opportunities to expand our presence in the entertainment industry, both domestically and internationally. Any new investment may not initially contribute to operating income, but is intended to contribute to the success of the Company over time. Our results will also be affected by investments in, and the success of, new immersive productions.

Current wording

Our Company’s future performance is dependent in part on general economic conditions and the effect of these conditions on our customers. Weak economic conditions may lead to lower tourism and lower demand for our entertainment offerings (including The Sphere Experience) and programming content, which would also negatively affect concession and merchandise sales, and could lead to lower levels of advertising, sponsorship and venue signage. Higher interest rates may lead to increased costs to finance and develop new Sphere venues and lower returns on the investment in those Sphere venues. Recent developments relating to geopolitical events, including, foreign wars and conflicts, as well as tariffs and higher interest rates, have intensified concerns over the global macroeconomic environment, which has resulted in a rise in volatility across financial markets and concerns over the prospect of a U.S. recession. These conditions may also affect the number of immersive productions, concerts, residencies and other events that take place in the future. An economic downturn could adversely affect our business and results of operations. The Company continues to explore additional opportunities to expand our presence in the entertainment industry, both domestically and internationally. Any new investment may not initially contribute to operating income, but is intended to contribute to the success of the Company over time. Our results will also be affected by investments in, and the success of, new immersive productions.

Previous wording

Comparison of the Three and Six Months Ended June 30, 2026 versus the Three and Six Months Ended June 30, 2025

Current wording

Comparison of the Three and Nine Months Ended September 30, 2026 versus the Three and Nine Months Ended September 30, 2025

Previous wording

The following is a summary of changes in our segments’ operating results for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, which are discussed below under “—Business Segment Results.”

Current wording

The following is a summary of changes in our segments’ operating results for the three and nine months ended September 30, 2026 as compared to the three and nine months ended September 30, 2025, which are discussed below under “—Business Segment Results.”

Previous wording

For the three and six months ended June 30, 2026, the Company recognized restructuring charges of $323 and $2,996, respectively, as compared to restructuring charges of $947 and $2,788 for the three and six months ended June 30, 2025, respectively, primarily due to termination benefits provided as part of a voluntary exit program the Company implemented during the six month period.

Current wording

For the three and nine months ended September 30, 2026, the Company recorded restructuring charges of $2,466 and $6,203, respectively, primarily related to termination benefits provided for certain executives and employees during the three month period and termination benefits provided as part of a voluntary exit program the Company implemented during the nine month period. The Company recorded restructuring charges of $5,993 and $8,781, in the three and nine months ended September 30, 2025, respectively, related to termination benefits provided for certain executives and employees.

Previous wording

For the three and six months ended June 30, 2026, the Company recorded a loss on extinguishment of debt of $0 and $2,071, respectively, related to the write-off of deferred financing costs in connection with the partial repayment of its 2022 LV Sphere Term Loan Facility.

Current wording

For the nine months ended September 30, 2026, the Company recorded a loss on extinguishment of debt of $2,071, related to the write-off of deferred financing costs in connection with the partial repayment of its 2022 LV Sphere Term Loan Facility.

Previous wording

For the three and six months ended June 30, 2026, interest income increased $702 and $775, respectively, as compared to the prior year periods, primarily due to higher average cash and cash equivalent balances.

Current wording

For the three and nine months ended September 30, 2026, interest income increased $2,114 and $2,889, respectively, as compared to the prior year periods, primarily due to higher average cash and cash equivalent balances.

Previous wording

For the three and six months ended June 30, 2026, interest expense decreased $17,589 and $35,756, respectively, as compared to the prior year periods primarily due to the application of troubled debt restructuring for interest expense recognition for the MSGN Term Loan Facility as described in Note 10. Credit Facilities and Convertible Notes to the condensed consolidated financial statements included in “— Item 1. Financial Statements” of this Form 10-Q.

Current wording

For the three months ended September 30, 2026, interest expense decreased $1,388 as compared to the prior year period, primarily due to lower average interest rates under the LV Sphere Term Loan Facility. For the nine months ended September 30, 2026, interest expense decreased $37,144 as compared to the prior year period, primarily due to the application of troubled debt restructuring for interest expense recognition for the MSGN Term Loan Facility as described in Note 10. Credit Facilities and Convertible Notes to the condensed consolidated financial statements included in “— Item 1. Financial Statements” of this Form 10-Q.

Previous wording

For the three and six months ended June 30, 2026, other expense, net increased $104 and $188, respectively, as compared to the prior year periods, primarily due to higher losses on equity method investments and foreign exchange.

Current wording

For the three and nine months ended September 30, 2026, other expense, net increased $803 and $991, respectively, as compared to the prior year periods, primarily due to higher losses from equity method investments and foreign exchange.

Previous wording

For U.S. income tax purposes, the Company is required to recognize cancellation of debt income (“CODI”) on the difference between the face value of debt exchanged and the fair market value of new debt issued. On June 27, 2025, in connection with the execution of the A&R MSGN Credit Agreement, the Company recognized CODI of approximately $614,000, all of which was excluded from taxable income. In the six months ended June 30, 2026, as a result of a reassessment of the amount applicable as CODI under these provisions, we reduced the amount recognized by approximately $80,000.

Current wording

For U.S. income tax purposes, the Company is required to recognize cancellation of debt income (“CODI”) on the difference between the face value of debt exchanged and the fair market value of new debt issued. On June 27, 2025, in connection with the execution of the A&R MSGN Credit Agreement, the Company recognized CODI of approximately $614,000, all of which was excluded from taxable income. In the nine months ended September 30, 2026, as a result of a reassessment of the amount applicable as CODI under these provisions, we reduced the amount recognized by approximately $80,000.

Previous wording

Income tax benefit for the three and six months ended June 30, 2026 of $26,926 and $31,767, respectively, reflects an effective tax rate of 41% and 48%, respectively. The effective tax rate is higher than the statutory federal tax rate of 21% primarily due to discrete income tax benefit related to the impact of CODI, excess tax benefit related to share based award compensation, partially offset by nondeductible officers’ compensation.

Current wording

Income tax benefit for the three and nine months ended September 30, 2026 of $68,824 and $100,591, respectively, reflects an effective tax rate of 28% and 32%, respectively. The effective tax rate is higher than the statutory federal tax rate of 21% primarily due to discrete income tax benefit related to the impact of CODI (recorded in the six months ended June 30, 2026), excess tax benefit related to share based award compensation, partially offset by nondeductible officers’ compensation.

Previous wording

Income tax expense for the three and six months ended June 30, 2025 of $121,939 and $101,616, respectively, reflects an effective tax rate of 45% and 59%, respectively. The effective tax rate is higher than the statutory federal tax rate of 21% primarily due to discrete income tax expense related to the impact of CODI, partially offset by discrete income tax benefits from the reversal of the US GAAP gain on extinguishment of debt and income tax benefits due to a decrease in the valuation allowance and state and local taxes.

Current wording

Income tax expense for the nine months ended September 30, 2025 of $57,204 reflects an effective tax rate that is higher than the statutory federal tax rate of 21% primarily due to discrete income tax expense related to the impact of CODI, partially offset by discrete income tax benefits from the reversal of the GAAP gain on extinguishment of debt and income tax benefits due to a decrease in the valuation allowance and state and local taxes.

Previous wording

The following is a reconciliation of operating loss to adjusted operating income (as defined in Note 15. Segment Information to the condensed consolidated financial statements included in “— Item 1. Financial Statements” of this Form 10-Q) for the three and six months ended June 30, 2026 as compared to the prior year period:

Current wording

The following is a reconciliation of operating loss to adjusted operating income (as defined in Note 15. Segment Information to the condensed consolidated financial statements included in “— Item 1. Financial Statements” of this Form 10-Q) for the three and nine months ended September 30, 2026 as compared to the prior year period:

Previous wording

Adjusted operating income for the three months ended June 30, 2026 decreased $10,542 as compared to the prior year period to $50,924. Adjusted operating income for the six months ended June 30, 2026 increased $63,466 as compared to the prior year period to $160,900. The changes in adjusted operating income were attributable to the Company’s segments as follows:

Current wording

Adjusted operating income for the three months ended September 30, 2026 increased $2,788 as compared to the prior year period to $39,152. Adjusted operating income for the nine months ended September 30, 2026 increased $66,254 as compared to the prior year period to $200,052. The changes in adjusted operating income were attributable to the Company’s segments as follows:

Previous wording

For the three and six months ended June 30, 2026, revenues increased $50,766 and $159,186, respectively, as compared to the prior year periods. The change in revenues was attributable to the following:

Current wording

For the three and nine months ended September 30, 2026, revenues increased $24,766 and $183,952, respectively, as compared to the prior year periods. The change in revenues was attributable to the following:

Previous wording

For the three and six months ended June 30, 2026, the increase in revenues for The Sphere Experience primarily reflects higher per-show revenue as compared to the prior year period due to the impact of The Wizard of Oz at Sphere, which debuted on August 28, 2025. In the current year period, The Sphere Experience reflected 220 and 429 performances of The Wizard of Oz at Sphere (which generated per-show revenue of approximately $553 and $647) for the three and six months ended June 30, 2026, respectively. For the three months ended June 30, 2025, The Sphere Experience reflected 215 total performances, comprised of 198 performances of Postcard From Earth and 17 performances of V-U2 An Immersive Concert Film (which generated a combined per-show revenue of approximately $315). For the six months ended June 30, 2025, The Sphere Experience reflected 415 total performances, comprised of 364 performances of Postcard From Earth and 51 performances of V-U2 An Immersive Concert Film (which generated a combined per-show revenue of approximately $342).

Current wording

For the three months ended September 30, 2026, the increase in revenues for The Sphere Experience reflects an increase in the number of overall performances and, to a lesser extent, higher per-show revenue as compared to the prior year period due to a full quarter of the The Wizard of Oz at Sphere, which debuted on August 28, 2025. For the nine months ended September 30, 2026, the increase in revenues for The Sphere Experience primarily reflects higher per-show revenue as compared to the prior year period due to the impact of The Wizard of Oz at Sphere. In the current year period, The Sphere Experience reflected 241 and 670 performances of The Wizard of Oz at Sphere (which generated per-show revenue of approximately $469 and $583) for the three and nine months ended September 30, 2026, respectively. For the three months ended September 30, 2025, The Sphere Experience reflected 220 total performances, comprised of 130 performances of Postcard From Earth,8 performances of V-U2 An Immersive Concert Film, and 82 performances of The Wizard of Oz at Sphere(with combined average per-show revenue of approximately $454). For the nine months ended September 30, 2025, The Sphere Experience reflected 635 performances, comprised of 494 performances of Postcard From Earth, 59 performances of V-U2 An Immersive Concert Film, and 82 performances of The Wizard of Oz at Sphere (with combined average per-show revenue of approximately $381).

Previous wording

For the three and six months ended June 30, 2026, the increase in revenues from sponsorship, signage, Exosphere advertising and suite license fees reflects higher Exosphere advertising revenue and, to a lesser extent, higher sponsorship revenues (due to increased sales of existing sponsorship inventory) and suite license fee revenues.

Current wording

For the three and nine months ended September 30, 2026, the increase in revenues from sponsorship, signage, Exosphere advertising and suite license fees reflects higher Exosphere advertising revenue and, to a lesser extent, higher sponsorship revenues (due to increased sales of existing sponsorship inventory) and suite license fee revenues.

Previous wording

For the three months ended June 30, 2026, the decrease in event-related revenues reflects (i) lower revenues from brand events, primarily due to the impact of two fewer brand events held in the current year period, partially offset by (ii) higher revenues from concerts. The increase in revenues from concerts reflected six additional concert residency shows held at Sphere in Las Vegas, offset by lower per-concert revenue due to the mix of concerts as compared to the prior year period.

Current wording

For the three months ended September 30, 2026, the increase in event-related revenues mainly reflects higher revenues from concerts, primarily due to the impact of three additional concert residency shows held at Sphere in Las Vegas as compared to the prior year period.

Previous wording

For the six months ended June 30, 2026, the increase in event-related revenues reflects (i) higher revenues from concerts, primarily due to the impact of twelve additional concert residency shows held at Sphere in Las Vegas, partially offset by lower per-concert revenue due to the mix of concerts as compared to the prior year period, partially offset by (ii) lower revenues from brand events, due to one fewer brand event as compared to the prior year period, partially offset by higher per-event revenue.

Current wording

For the nine months ended September 30, 2026, the increase in event-related revenues reflects (i) higher revenues from concerts due to the impact of fifteen additional concert residency shows held at Sphere in Las Vegas as compared to the prior year period, partially offset by lower per-concert revenue due to the mix of concerts as compared to the prior year period, and (ii) lower revenues from brand events due to one fewer brand event as compared to the prior year period, partially offset by higher per-event revenue.

Previous wording

For the three and six months ended June 30, 2026, direct operating expenses increased by $11,379 and $40,069, respectively, as compared to the prior year periods. The change in direct operating expenses was attributable to the following:

Current wording

For the three and nine months ended September 30, 2026, direct operating expenses increased by $5,102 and $45,171, respectively, as compared to the prior year periods. The change in direct operating expenses was attributable to the following:

Previous wording

For the three and six months ended June 30, 2026, the increase in direct operating expenses for The Sphere Experience was primarily due to higher per-show expenses as compared to the prior year period, due to the impact of The Wizard of Oz at Sphere, which debuted on August 28, 2025. In the current year period, The Sphere Experience reflected 220 and 429 performances of The Wizard of Oz at Sphere (which incurred per-show direct operating expenses of approximately $193 and $203) for the three and six months ended

Current wording

For the three and nine months ended September 30, 2026, the increase in direct operating expenses for The Sphere Experience was primarily due to higher per-show expenses as compared to the prior year period due to the impact of The Wizard of Oz at Sphere, which debuted on August 28, 2025. In addition, for the three months ended September 30, 2026, the increase in direct operating expenses for The Sphere Experience was due to an increase in the overall number of performances. In the current year period, The Sphere Experience reflected 241 and 670 performances of The Wizard of Oz at Sphere (which incurred per-show direct operating expenses of approximately $176 and $193) for the three and nine months ended September 30, 2026, respectively. For thethree months ended September 30, 2025, The Sphere Experience reflected 220 total performances, comprised of 130 performances of Postcard From Earth,8 performances of V-U2 An Immersive Concert Film, and 82 performances of The Wizard of Oz at Sphere(with combined average direct operating expenses of $158 per show). For the nine months ended September 30, 2025, The Sphere Experience reflected 635 performances, comprised of 494 performances of Postcard From Earth, 59 performances of V-U2 An Immersive Concert Film, and 82 performances of The Wizard of Oz at Sphere (with combined average direct operating expenses of $132 per show).

Previous wording

For the six months ended June 30, 2026, the increase in venue operating expenses was primarily related to an increase in employee compensation and benefits and repairs and maintenance expenses.

Current wording

For the nine months ended September 30, 2026, the increase in venue operating expenses was primarily related to an increase in employee compensation and benefits and repairs and maintenance expenses.

Previous wording

For the three months ended June 30, 2026, the decrease in event-related direct operating expenses reflects (i) lower expenses from brand events, primarily due to the impact of two fewer brand events, partially offset by (ii) higher expenses from concerts, due to six additional concert residency shows held at Sphere in Las Vegas as compared to the prior year period, partially offset by lower per-concert expenses. For the six months ended June 30, 2026, the increase in event-related direct operating expenses reflects (i) higher expenses from concerts due to the impact of twelve additional concert residency shows, partially offset by lower per-concert expenses and (ii) higher expenses from brand events due to higher per-event expenses, partially offset by one fewer brand event as compared to the prior year period.

Current wording

For the three months ended September 30, 2026, the decrease in event-related direct operating expenses primarily reflects lower per-concert expenses, partially offset by the impact of three additional residency shows held at Sphere in Las Vegas as compared to the prior year period. For the nine months ended September 30, 2026, the increase in event-related direct operating expenses reflects (i) higher expenses from concerts, due to fifteen additional concert residency shows held at Sphere in Las Vegas as compared to the prior year period, partially offset by lower per-concert expenses and (ii) higher expenses from brand events due to higher per-event expenses, partially offset by one fewer brand event as compared to the prior year period.

Previous wording

For the three and six months ended June 30, 2026, selling, general, and administrative expenses increased $29,201 and $39,393, respectively, as compared to the prior year periods, primarily due to (i) the impact of mark-to-market adjustments on certain share-based compensation awards as a result of the appreciation in the Company’s stock price during the current year quarter, (ii) higher employee compensation and related benefits and (iii) higher professional fees, including an increase in litigation-related expenses associated with the Networks Merger, partially offset by the absence of costs associated with pursuing a work-out of the Prior MSGN Credit Facilities in the prior year period.

Current wording

For the three months ended September 30, 2026, selling, general, and administrative expenses increased $5,626 as compared to the prior year period, primarily due to (i) higher employee compensation and related benefits and (ii) other cost increases, partially offset by (iii) the impact of mark-to-market adjustments on certain share-based compensation awards as a result of the decrease in the Company’s stock price during the current year period. For the nine months ended September 30, 2026, selling, general, and administrative expenses increased $45,019 primarily due to (i) higher employee compensation and related benefits, (ii) the impact of mark-to-market adjustments on certain share-based compensation awards as a result of the appreciation in the Company’s stock price during the current year period, and (iii) an increase in litigation-related expenses associated with the Networks Merger in the current year period compared to the absence of costs associated with pursuing a work-out of the Prior MSGN Credit Facilities in the prior year period.

Previous wording

During the three and six months ended June 30, 2026, the Company recognized impairments and other losses, net of $0 and $79, respectively. During the three and six months ended June 30, 2025, the Company recognized impairments and other losses, net of $3,641 and $4,162, respectively, primarily due to the recorded losses of $3,741 from the sale of the Company’s land in Stratford, London and fixed assets at Sphere Las Vegas that were removed from the venue and were impaired.

Current wording

During the nine months ended September 30, 2026, the Company recognized Impairments and other losses, net of $79. During the three and nine months ended September 30, 2025, the Company recognized Impairments and other losses, net of $57 and $4,219, respectively, primarily due to the recorded losses of $3,741 from the sale of the Company’s land in Stratford, London and fixed assets at Sphere in Las Vegas that were removed from the venue and were impaired.

Previous wording

For the three and six months ended June 30, 2026, depreciation and amortization increased $579 and $848, respectively, as compared to the prior year period primarily due to the increase in total property and equipment, gross.

Current wording

For the three months ended September 30, 2026, depreciation and amortization decreased $479 as compared to the prior year period due to certain assets becoming fully depreciated. For the nine months ended September 30, 2026, depreciation and amortization increased $369 as compared to the prior year period primarily due to additional assets placed into service, which resulted in an increase in total property and equipment, gross, partially offset due to certain assets becoming fully depreciated in the current quarter.

Previous wording

For the three and six months ended June 30, 2026, the Company recorded restructuring charges of $323 and $3,737, respectively, as compared to restructuring charges of $947 and $2,788, in the three and six months ended June 30, 2025, respectively, primarily related to termination benefits provided as part of a voluntary exit program the Company conducted during each six month period.

Current wording

For the three and nine months ended September 30, 2026, the Company recorded restructuring charges of $2,148 and $5,144, respectively, primarily related to termination benefits for certain executive and employees during the three month period and termination benefits provided as part of a voluntary exit program the Company implemented during the nine month period. The Company recorded restructuring charges of $5,041 and $7,829, in the three and nine months ended September 30, 2025, respectively, related to termination benefits provided for certain executives and employees.

Previous wording

For the three and six months ended June 30, 2026, operating loss improved by $13,872 and $82,751, respectively as compared to the prior year period, primarily due to an increase in revenue and, to a lesser extent, the absence of impairment and other losses, net,, partially offset by an increase in selling, general and administrative expenses and direct operating expenses.

Current wording

For the three and nine months ended September 30, 2026, operating loss improved by $17,467 and $100,218, respectively, as compared to the prior year periods, primarily due to an increase in revenues, partially offset by an increase in selling, general and administrative expenses and direct operating expenses.

Previous wording

For the three and six months ended June 30, 2026, adjusted operating income improved by $14,960 and $76,103 as compared to the prior year period, primarily due to an increase in revenue, partially offset by an increase in selling, general and administrative expenses and direct operating expenses.

Current wording

For the three and nine months ended September 30, 2026, adjusted operating income improved by $15,333 and $91,436, respectively, as compared to the prior year periods, primarily due to an increase in revenue, partially offset by an increase in direct operating expenses and selling, general and administrative expenses.

Previous wording

The tables below set forth, for the periods presented, certain historical financial information and a reconciliation of operating income to adjusted operating income for the Company’s MSG Networks segment.

Current wording

The tables below set forth, for the periods presented, certain historical financial information and a reconciliation of operating loss to adjusted operating income for the Company’s MSG Networks segment.

Previous wording

For the three and six months ended June 30, 2026, revenues decreased $19,804 and $22,386, respectively, as compared to the prior year periods. The change in revenues was attributable to the following:

Current wording

For the three and nine months ended September 30, 2026, revenues decreased $13,017 and $35,403, respectively, as compared to the prior year periods. The change in revenues was attributable to the following:

Previous wording

For the three and six months ended June 30, 2026, distribution revenue decreased $13,694 and $11,922, respectively, primarily due to a decrease in total subscribers of approximately 16.5% and 16.0%, respectively (excluding the impact of the Altice non-carriage period in the prior year six month period). In addition, the decrease in distribution revenue for the six months ended June 30, 2026 was partially offset by the absence of revenues from Altice during the non-carriage period in the prior year period.

Current wording

For the three and nine months ended September 30, 2026, distribution revenue decreased $12,794 and $24,716, respectively, primarily due to a decrease in total subscribers of approximately 15.5% and 16.0%, respectively (excluding the impact of the Altice non-carriage period in the prior year nine month period). In addition, the decrease in distribution revenue for the nine months ended September 30, 2026 was partially offset by the absence of revenues from Altice during the non-carriage period in the prior year period.

Previous wording

For the three and six months ended June 30, 2026, advertising revenue decreased $5,975 and $10,872, respectively, primarily due to a lower number of live postseason professional sports telecasts.

Current wording

For the nine months ended September 30, 2026, advertising revenue decreased $11,173, primarily due to a lower number of live regular season and postseason professional sports telecasts.