Madison Square Garden Sports Corp. (MSGS) saw its stock plummet 5.90% in pre-market trading on Friday following the release of its fiscal 2026 first quarter results. The company reported disappointing financials, missing analyst expectations on key metrics.

MSG Sports posted quarterly revenue of $39.5 million, falling short of the $41.3 million estimated by analysts. This represents a significant 26% decrease from the $53.3 million reported in the same period last year. The revenue decline was primarily attributed to lower league distributions, which fell by $11.4 million, and a $2.3 million decrease in local media rights fees following amendments to the Knicks' and Rangers' agreements with MSG Networks.

The company's bottom line also weakened, with a reported net loss of $8.8 million for the quarter, compared to a $7.5 million loss in the previous year. The loss per share widened to $0.37, up from $0.31 in the prior year period. Despite the wider loss, it beat the analyst consensus estimate of a $0.88 loss per share. Operating loss increased to $27.4 million, up from $8.3 million in the same quarter last year, while adjusted operating loss grew to $20.8 million, missing analyst estimates of $19.8 million. These results reflect the challenging environment faced by MSG Sports, prompting investors to reassess their positions and leading to the sharp stock decline.