0001628280-26-032215
SEC filingRevenue grew modestly on higher concert and sponsorship activity, but profitability declined sharply due to cost inflation and restructuring charges.
Revenue for the three months ended March 31, 2026 increased 1.6% to $246.3 million compared to $242.5 million in the prior year period. The growth was primarily driven by higher concert activity at The Garden, including an increase in the number of concerts, which boosted ticket sales and related food, beverage, and merchandise revenue. Sponsorship revenue also contributed to the top-line improvement. These gains were partially offset by a decrease in the number of concerts at the Company’s theaters.
Net cash provided by operating activities surged to $368.1 million from $142.3 million in the prior year period, more than doubling. The significant increase was primarily driven by favorable working capital timing, including changes in accounts receivable, accounts payable, and accrued liabilities. The Company believes it has sufficient liquidity from cash and cash equivalents, available borrowing capacity under the National Properties Revolving Credit Facility, and cash flows from operations to fund its operations and satisfy any obligations for the foreseeable future.
The Company recorded restructuring charges during the quarter as part of a voluntary exit program. These charges, combined with higher operating costs, contributed to the decline in operating income. The cost is expected to be recognized over a weighted-average period of approximately 2.0 years.
The Christmas Spectacular show contributed to entertainment revenue during the quarter. The Company added performances compared to the prior year, which helped drive revenue growth in the entertainment segment. However, specific financial details of the show's performance are not separately disclosed.
The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full fiscal year. The Company's business is subject to seasonal fluctuations, with higher activity typically occurring during the holiday season and concert tour schedules. Management continues to monitor cost pressures and liquidity to navigate the operating environment.