Atlanta Braves Holdings-b Aktie

Greetings. Welcome to the Atlanta Braves Holdings Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. At this time, I would like to turn the call over to Cameron Rudd, Vice President of Investor Relations.

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements that represent our beliefs or expectations about future events. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC.

Forward-looking statements are based on current expectations, assumptions and beliefs as well as information available to us at this time and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events. During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA. The full definition of adjusted OIBDA and the reconciliations to the comparable GAAP financial measures are contained in the Form 10-Q and earnings press release available on the company's website. Now I'd like to turn the call over to Terry McGuirk, Chairman, President and CEO of Atlanta Braves Holdings.

Good morning. Thank you for joining us. Joining me today are Derek Schiller, President and CEO of the Atlanta Braves; Mike Plant, President and CEO of Braves Development Company; and Jill Robinson, our CFO. With only 49 games left in the season, our team continues to play well. Currently, we sit in the first place in the National League East with Fan graft giving the Braves an 89% chance of winning the division and a 99% chance of making the playoffs. While we have dealt with our fair share of injuries this season, the team is getting some of these players back and continues to be playoff bound.

Chris Sale has once again performed like a future Hall of Famer and currently commands the second lowest ERA in all of baseball. Matt Olson and Aussie Alves have continued to provide production and veteran leadership. Drake Baldwin has built on his Rookie of the Year season, and Razel Leglacius has been outstanding at the back end of our Bullpen. Michael Harris has returned to form and has been exceptional, both at the plate and in-center field. As we move through the second half of the season, we are encouraged by the progress of several key players who are making their way back from injuries. 23-year-old, AJ Smith-Shawver is back from Tommy John surgery and throwing 100 miles an hour and looking like his old self. Five-time all-star Ronald Acuna, Jr. only recently rejoined the team and his presence makes everyone better. In addition, Sean Murphy and Ha-Seaong Kim were on rehabilitation assignments and returned to the team yesterday. The depth of this team has been on full display in the past few months, and we are excited to be playing at near full strength going into the back half of the season.

Our objective remains the same every year to compete for and win a World Series championship. We have great confidence in Alex Anthopoulos, our President of Baseball Operations; and Walt Weiss, our field Manager, 2 of the finest leaders in baseball. Part of the strength of this organization has been our ability to draft successfully and cultivate young players, which has helped the Braves develop a premier Minor League system. With the expiration of the trade deadline earlier this week, we added some valuable talent for the stretch, starting with talented Outfielder, Lane Thomas as well as multiple players to bolster our pitching depth, including Bailey Falter, Brent Suter, Tyler Uberstine and Tyler Mahle.

We approach the trade deadline the same way we have in the past with a mentality of making our team better without sacrificing the next wave of talent. This is a deep and talented organization, and we believe this team is positioned to compete deep in October. We were extremely proud to have had 5 Braves selected to represent the National League in the All-Star game. Chris Sale, Matt Olson, Ozzie Albies, Drake Baldwin and Raisel Iglesias. Chris Sale was selected for the 10th time in his outstanding career. Having 5 representatives tied for the most among national teams reflects the talent and depth of this club. I also want to recognize Braves' legend, Andruw Jones, who was inducted into the National Baseball Hall of Fame on July 26. Andrew became the 12th player to enter the hall as a brave, capping a remarkable career that included 10 consecutive Gold glove awards, 5 All-Star selections and 434 home runs. His impact on our franchise and the city of Atlanta has been extraordinary. And finally, I'd like to thank Braves Country. Attendance and fan engagement have remained very strong with 17 sellouts this season through July and the energy our fans bring to Truist Park makes a real difference to our players and the entire organization. We never take their passion or loyalty for granted. With that, I'll turn the call over to Derek.

Thank you, Terry. I want to echo Terry's appreciation for Braves Country and the continued support our fans show throughout the season. Providing them with the best possible experience, both at Truist Park and wherever they follow the team remains one of our highest priorities. That commitment was central to the launch of BravesVision, our owned and operated multimedia platform and the official local television home of the Braves. BravesVision gives us a more direct relationship with our viewers and greater ability to shape how fans experience and engage with the team throughout the season. In a short period of time, we have built the capabilities needed to manage distribution, advertising sales, production and programming directly while working with the experienced third-party partners.

Our focus remains on delivering a high-quality viewing experience, bringing fans closer to the team and building a durable platform that can grow over time. We continue to receive high praise from fans in the media for the superior quality of BravesVision. Work has also begun to expand content on the network, including live rating practice at home games in addition to our pre- and post-game shows for those fans who want to tune in and see the action ahead of the game.

Our entire team continues to work to expand the reach of BravesVision and develop programming and content that strengthens the connection between the team and our fans. We remain encouraged by the early success of BravesVision and are confident that we will replicate or exceed revenue from our prior third-party local rights partner on an annualized basis.

Overall, the legacy cable model continues to decline with some distributors seeing subscriber numbers decrease even more so than previously forecasted, putting pressure on our business. This is not unique to the Braves. That pressure is being felt across sports. However, our unique ability to manage our business means that we have been insulated from those impacts more than most teams. One example is our incredibly strong direct-to-consumer business, which is outpacing our early projections and positions us well for the future. As you can see in our published financials, we have renamed the revenue line associated with our broadcasting operations to reflect the impact of BravesVision.

What was formerly broadcasting has been changed to media-related revenue, given the various items in this line stemming from the launch of BravesVision. Jill will go into more detail on this change in a moment.

The enthusiasm of our fans has been evident across Truist Park in the first half of the season. While our second quarter comparison reflects 6 fewer regular season home games than last year, underlying fan demand remains strong. Through the first 6 months of the year, average attendance per home game increased, season ticket demand remained strong and baseball event revenue grew despite 1 fewer regular season home game in the first 6 months of the 2025 season. We believe that performance reflects the enduring strength of Braves Country and the value fans place on experienced Braves Baseball in person. We remain focused on making every visit to Truist Park memorable from the atmosphere inside the ballpark to the broader experience surrounding each game. In fact, just a few weeks ago, the Information Display and Entertainment Association held its annual IDEA conference in which it awards its Golden Matrix Awards to recognize superior achievement throughout the event presentation industry. Our incredibly talented fan experience team received 3 awards, including best overall production across all sports, honoring overall operational and live entertainment excellence, best overall in baseball, recognizing the top game presentation in the sport and Best Tribute Video awarded for the team's special feature production, Hank Aaron Tribute Video. We also continue to identify opportunities to utilize the ballpark beyond our regular season home game schedule, introducing the venue to new audiences while generating additional activity across the broader campus.

During the second quarter, we hosted 3 Savannah Bananas games as well as an additional concert in May. These events attracted fans and visitors to Truist Park outside of traditional Braves games and contributed to strong growth in our other revenue. We hosted the first ever Braves Country music fest presented by Truist in June, which saw over 100,000 visitors attend a variety of concerts held in the stadium as well as out in the battery. This was in addition to the NOACarm concert held in late July and the upcoming Guns N' Roses concert in September. We continue to work around the clock to make the most of our campus and ballpark and bring as many fans and visitors as we can.

Beyond the ballpark, we're also seeing strong engagement with our fans, including demand for our new City Connect apparel. Taken together, the early response to BravesVision, continued support at Truist Park and engagement with the Braves brand reinforce our confidence in the strength and reach of our fan base. We will continue investing in the experiences that bring fans closer to the team, whether they are watching from home, joining us at Truist Park or engaging with the Braves throughout the community. With that, I'll turn the call over to Mike.

Thank you, Derek. It has now been just over 1 year since we acquired Pennant Park, and this quarter represents our first full year-over-year comparison with Pennant Park reflective. We pursued the acquisition because in addition to the strategic and financial benefits, we believe it was a natural extension of our existing mixed-use portfolio and one that would create additional opportunities to drive long-term value.

With a full year of Pennant Park operations, we are proud of the progress made and very much consider this to be a strategic piece of our total campus. Inclusive of Pennant Park, occupancy for our entire mixed-use portfolio remains above 93%, a substantial feat for a development of our size. We continue to see very strong engagement with tenants and in May of this year, hit a new record high for our monthly tenant sales. That relationship and engagement allow our team to operate this portfolio with effective consistency. We are also uniquely positioned to work across our campus on tenant improvements and year-to-date have seen a 130% increase in replacement tenant sales, reinforcing our ability to maximize the opportunities across the campus.

In the second quarter, we saw 3 new grand openings for tenants and currently have 64,000 square feet of leasable space under redevelopment across a variety of tenants, signifying the growth we continue to see. All of this reflects our continued commitment to developing a diverse and durable revenue base that complements our baseball operation.

We remain focused on strengthening the tenant mix, leasing available space and creating an environment where people want to work, live, visit and spend time. Battery Atlanta saw 4.7 million visitors through the first half of 2026, a 6.5% increase from last year as our expanded offerings continue to drive visitors from across the Southeast. Yet another example of our ability to utilize our campus throughout the year was the success of our World Cup viewing parties out on the Plaza. Throughout the tournament, we welcomed more than 35,000 fans to the battery to enjoy watching the games on our large outdoor screen in the Plaza as we continue to look for new and innovative ways to maximize our campus.

Our objective is not simply to add events or assets, but to pursue opportunities that fit within our broader ecosystem, enhance the experience for visitors and make productive use of our facilities throughout the year. Taken together, the contribution from Pennant Park, the continued development of the Battery Atlanta and the growing calendar of events at Truist Park demonstrate how we are building a more balanced and resilient business around our core baseball operations. We will continue to evaluate opportunities thoughtfully and invest in areas that we believe can create sustainable long-term value for the organization. With that, I'll turn the call over to Jill.

Thanks, Mike. Before I begin, I want to remind everyone that a majority of our revenue is seasonal and aligned with the baseball season. During the second quarter of 2026, we played 34 regular season home games compared with 40 home games in the second quarter of 2025. In the second quarter, total revenue was $305 million compared with $312 million in the second quarter of 2025. As a reminder, the company manages its business through 2 reportable segments: baseball and mixed-use development. Our new BravesVision business that we launched in Q2 is included within our baseball segment. Baseball revenue was $276 million in the second quarter of 2026 compared with $287 million in the second quarter of 2025.

Baseball event revenue was $161 million, a decrease of $19 million from the prior year period, primarily due to playing 6 fewer regular season home games during the quarter. Importantly, through the first 6 months of the year, baseball event revenue increased approximately $4 million despite 1 fewer home game. This reflects increased average attendance per regular season home game, contractual rate increases on season tickets and favorable single-game ticket sales. As Derek mentioned, we have updated our presentation of revenue from broadcast into a new media-related line. This is similar to how other peers in the media space report revenue. This revenue line includes not only the various revenue-generating pieces of BravesVision, but also national media, radio and other smaller media-related items. This is consistent with how we have presented historically as well as how we view the business model.

Media-related revenue was $73 million in the second quarter compared with $81 million in the prior year period. The decrease primarily reflects the timing of revenue recognition under BravesVision's linear distribution agreements compared with our previous long-term local broadcasting agreement. As Derek stated earlier, we remain very encouraged by the early success of BravesVision and are confident that we will replicate or exceed revenue from our prior third-party local rights partner on an annualized basis.

Revenue from linear distribution agreements and other aspects of BravesVision should be viewed on an annualized basis because revenue recognition under these year-round distribution agreements differs from that of our previous local broadcasting agreement, which was largely aligned with the MLB season.

In the case of BravesVision, our distribution agreements commenced at the time we signed our contracts with our various distribution partners at the start of the season. Distribution revenue payments will come in on a slower cadence than our traditional rights fee model payments were received, creating a sizable shift in the timing of cash received. Advertising revenue will be paid following the month when the ad airs. Direct-to-consumer payments will also be paid monthly. Since BravesVision effectively launched on April 1, the 2026 fiscal year will not reflect a full year of distribution revenue. However, most of the other revenue streams will be fully recognized in 2026. Retail and licensing revenue increased approximately $3 million to $22 million, primarily due to strong demand for the new City Connect apparel launched in April.

Other baseball revenue increased approximately $13 million to $21 million, primarily due to the greater number of special events held at Truist Park, including 3 Savannah Bananas games and an additional concert during the quarter. Turning to our mixed-use development segment. Revenue was $29 million in the second quarter, up from $25 million in the prior year period. The increase was primarily driven by higher rental income and parking revenue, including increased tenant recoveries and new lease agreements. As Mike discussed, the quarter also represents our first full year-over-year comparison with Pennant Park included in both periods. Adjusted OIBDA was approximately $12 million in the second quarter of 2026 compared with $66 million in the second quarter of 2025. The decrease primarily reflects lower baseball revenue as well as an increase in baseball operating costs and SG&A expenses. Baseball operating costs increased due to higher Major League player salaries, BravesVision production and administrative expenses, costs associated with special events at Truist Park and increased revenue sharing and other shared MLB expenses. These factors were partially offset by improved mixed-use development performance.

Our operating loss was $19 million in the second quarter of 2026 compared with operating income of $42 million in the second quarter of 2025, primarily due to the revenue and expense factors previously discussed. As of June 30, 2026, the company had $116 million of cash and cash equivalents. Substantially all of our cash and cash equivalents are invested in U.S. treasury securities, other government securities or government-guaranteed funds, AAA-rated money market funds and other highly rated financial and corporate debt instruments. Because of our borrowing capacity, we were able to offset the timing impact of the BravesVision cash flow and still have approximately $205 million of available borrowing capacity under our Leagueide credit facility and the TeamCo revolver as of June 30. We remain in compliance with all financial debt covenants and believe our available sources of liquidity provide us with flexibility to support our operating needs and future priorities. And with that, operator, let's open the line for questions.

Your first question comes from the line of David Joyce with Seaport Research Partners.

You've got your obvious on-field success showing through again, and you also have had a nice reception to the BravesVision launch that these will come with investments. Just wondering, is there some sort of cadence we should think about for this elevated baseball expense this quarter, meaning is there kind of a spike in the BravesVision expenses for the launch and there could be a little bit less going forward? And then any other thoughts on -- on the player salary trends would also be helpful.

I'll talk about the expense trend, David. BravesVision aside, you do typically see a spike in expense during Q2 and Q3 when the season is in full motion, we're paying the players, we're operating the stating, et cetera. So that trend is fairly consistent year-over-year, although you'd expect to see a spike each year as salaries continue to rise. As it relates to BravesVision expenses, that is a new set of expenses that we have on our books this year that we haven't had before as the previous model had revenue all coming in under our rights fee agreement.

So will there be elevated BravesVision expenses going forward? Or is this the kind of like the level to expect it at?

Yes. It's going to be an ongoing expense with expenses being slightly elevated during the season and some expenses in the off-season quarters as well. But you can expect this to be a go-forward trend.

Your next question comes from the line of Cameron Mansson-Perrone with Morgan Stanley.

I wanted to ask about your latest expectations on the salary tax deduction limitations that are expected to be implemented. And in particular, I'm curious -- do you see the battery and that cash flow generation as being critical in that new framework in terms of supporting your ability to cover that incremental obligation? Or what other avenues might you have in terms of financing those changes?

Cameron, this is Mike Plant. I think you're specifically asked about $162M. And look, we continue to have very positive and active conversations around the issue. The strong consensus of everyone is that it was an unintended consequence, and we're very confident we'll have a legislative for a regulatory solution. So as we get that, we'll certainly share that information with you.

Your next question comes from the line of Barton Crockett with Rosenblatt.

I was wondering really about 2 things. First is, as you look at kind of the future of the league, what kind of media rights negotiations and reset that is coming up in probably a couple of years. You guys have just launched BravesVision. One of the talking points is what's going to happen with local in the new kind of league setup. I was just wondering if you could give us a sense of what you guys would advocate for? I mean, do you think out of the gate, it makes sense for your rights to be included or whatever the league does? Or is that off the table now that you're starting BravesVision and having such success? And in general, how do you expect the league to kind of accommodate the range of clubs that some of them don't have anything and some of them have really large business operations like yours. That's one question. And then the other question, I was just kind of curious about...

So you want -- are you going to come up with a second question? Or do you want me to answer first? This is Terry McGuirk. Okay. So the answer to.

Go ahead.

Okay. I'll respond to your comments about the media business. I would say, on a general basis, we remain incredibly bullish on both our local and our national media prospects. I think we've shown through BravesVision, the vitality of the local product and the -- while there is no firm plan by MLB at this point for any aggregation or change to how we exploit local rights. We are open to that, and that will be led by MLB. And in all likelihood, it will only happen if it's accretive to the entire business.

On a national basis, as you know, these are long-term deals. The NBA just concluded one and went from approximately $2.7 billion a year to $7.7 billion a year, midpoint to midpoint of deals. Baseball has been under a long-term agreement that ends 1/1/29. I think that will be a long-term deal well into the 30s. Late 30s possibly. And obviously, those negotiations are led by the commissioner. And I think he would also agree that there is a lot of untapped growth in the popularity of baseball, and we're looking to achieve that growth when we get to that deal.

Okay. I mean if I could just follow up on that. I mean, with the Dodgers and the New York kind of sports networks being so formidable, do you see a potential for those to be included as part of a league deal? Or any thoughts around the importance of those to a league deal or whether they can continue to exist as their own separate entities as it evolves?

Well, I would say the status quo is just exactly as you just described, very strong local media offerings in the major markets. I would suggest that should there be changes to where we all are at the present, it would be a 30 team activity and all 30 teams would be involved. As far as the present until there are changes, we remain very bullish on what we've created and the success has been demonstrated.

Your next question comes from the line of Matthew Harrigan with StoneX.

Clearly, your stock doesn't trade off quarterly earnings, but how much delta is there in the financials, if you could remind us if you do have an extended playoff run if you defy the Dodgers and the brewers? And then secondly, at the MLB level, it feels like that international monetization of baseball is not nearly commensurate with the NFL or NBA. What constructive steps do you think the league can take in that direction? Or do you think it's just a pretty heavy lift? I mean, clearly, the NBA is in a different position, but just any thoughts in that regard?

I'll answer the second question first on international. And I would just part the commissioner's comments publicly and to the owners in that he's very bullish on the prospects for international growth. I think the World Baseball Classic just begins to get at that growth, and there will be a potential participation in the Olympics coming up in L.A. So I think baseball is very mindful of international growth and is making an emphasis on that in the future. The first question was again?

Postseason economics, is that your question?

How much -- I mean, if you do have an extended playoff run, is that something that really will flow through the financials that you -- and again, I know the financials are not terribly important in a certain sense, but just kind of what's the upside if you work through the Dodgers and the brewers and you really have a nice run?

Well, if we get that far, and we all hope and believe that we can, there will definitely be some upside that will flow through the baseball event revenue segment in Q4. I certainly don't want to speculate on how much that will be. I don't want to jinx us that way. But if you were to go back and look at prior years in Q4, what we did in those periods relative to how far we went in the series, that should give you a baseline. Of course, we think we're better at doing this now than we were back then. So hopefully, we would perform even better than those years.

We have reached the end of the Q&A session. I will now turn the call back to management for closing remarks.

Thank you. It's Derek. And just on behalf of everybody at the Braves organization, I want to thank you for joining today's call and look forward to seeing you on the next one. Thank you.

This concludes today's call. Thank you for attending. You may now disconnect.

Greetings. Welcome to the Atlanta Braves Holdings First Quarter 2026 Earnings Conference Call. [Operator Instructions]. As a reminder, this call is being recorded. At this time, I would like to turn the call over to Cameron Rudd, Vice President of Investor Relations.

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements that represent our beliefs or expectations about future events. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today.

A number of factors could cause actual results to differ materially from those anticipated including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC. Forward-looking statements are based on current expectations, assumptions and beliefs as well as information available to us at this time. and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events.

During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA. The full definition of non-GAAP financial measures and reconciliations to the comparable GAAP financial measures are contained in the Form 10-Q and earnings press release available on the company's website.

Now I'd like to turn the call over to Terry McGuirk, Chairman, President and CEO of Atlanta Braves Holdings.

Welcome, everyone, and thank you for joining our first quarter 2026 earnings conference call. Joining me today are Derek Schiller, President and CEO of the Atlanta Braves; Mike Plant, President and CEO of the Braves Development Company; and Jill Robinson, our CFO.

Before we begin, I'd like to take a moment to remember 2 Braves icons who passed away last week. Our good friend and former owner, Ted Turner, and the best manager to ever wear a Braves Uniform, Bobby Cox. Ted was one of a kind of brilliant businessman, consummate showman and passionate fan of his beloved Braves. His visionary leadership and innovative approach to broadcast television transform the Braves into Americas team.

Under his stewardship, the ball club experienced one of the greatest runs of sustained excellence in Major League Baseball history and brought a World Series championship to Atlanta in 1995. It was also a legendary philanthropist whose compassion and generosity extended around the world.

Bobby Cox, led our team to 14 straight division titles, 5 National League Pennant and the unforgettable World Series title in 1995. He garnered 2,149 wins as Braves manager, the most in franchise history and delivered the longest period of sustained success for our ball club. Bobby was a 4-time winner of the Manager of the Year award. His Braves managerial legacy will never be matched.

He was a favorite among all in baseball, especially those who played for him. His wealth of knowledge on player development and the intricacies of managing the game were rewarded with the sports ultimate prize in 2014 enshrinement into the Baseball Hall of Fame. Our sincere condolences go out to the Turner family and to the Cox family.

Back to the season, we're off to a terrific start this year, both on and off the field. As we start May, we have one of the best records in baseball and are in first place in the National East. This is the kind of fast start that we were hoping for and we are doing this while still awaiting the return of several impact players who have been recovering from injuries during the early stages of the season.

On the mound, we finished the month of April, leading the National League in ERA and a strong performance by our both starting rotation and bullpen. And at the plate, we led the majors in run scored and sat third in home runs. We outscored our competition by 66 runs in March and April, tied for the best run differential in the sport, which I consider one of the best power ranking metrics in baseball. Alex Anthopoulos has put together an exceptional roster and our new manager, Walt Weiss is bringing a competitive spirit and enthusiasm that is working well with the players in the club house.

As we have said on a number of occasions, our ultimate goal every year is to compete for and win another world series for our fans. This start puts us in an outstanding position to continue focusing on the playoffs, which is the first step on that championship journey.

Baseball continues to grow and cultivate fans across the country and around the world. In addition to the recent MLB world tour series in Mexico City just a few weeks ago, fans from across the globe tuned in for the World Baseball Classic which was held earlier this spring and featured star performances from several of our current brazed players, including Ronald Acuña Jr.. and Ozzie Albies.

The focus and commitment to building a worldwide audience will pay huge dividends as MLB markets itself internationally over the next decade. The pitch clock and the introduction of the automated ball strike challenge system have harnessed technology and strategy enhancing competitiveness and improving the fan experience, especially for the younger demographic.

Our sport is enjoying great momentum and popularity with the fans. In addition to the Braves strong on the field performance off the field, we have grown revenue and made a number of investments that are focused on the fans and their experience. In particular, I'd like to commend our entire organization for the launch of BravesVision, we were able to accomplish in an incredibly short amount of time, something that most organizations would take a year or more to develop. The Herculean effort by the Braves to build an organization in 3 months that we expect to meet or exceed the economics generated under our prior RSN agreement is management excellence in my opinion, and a big victory for the fans.

Now as I turn the call over to Derek, I would like to thank our fans. Attendance has been great to start the year we know as an organization that we have the greatest fans in baseball, and everything we do is focused on delivering for them. We are steadfast in that commitment, and we do not take their passion and loyalty for granted.

With that, I will turn it over to Derek to walk through in more detail the launch of BravesVision and additional details on our operating performance in the first quarter.

Thank you, Terry, and good morning, everyone. I want to start by offering more details on BravesVision. When we developed the plan to launch BravesVision, we recognized that we had an opportunity to create something from the ground up and do it in a way that made the most sense operationally and financially. We have organized the business around 5 core operating units.

They include production, distribution, advertising sales, programming, and direct-to-consumer streaming. We are incredibly pleased with the progress that we have made in short order since launching against each of these areas. From a production standpoint, we were able to leverage existing relationships with Gray Media and Raycom to assist in building out the immediate areas of our focus.

By combining these efforts with our existing Braves team across production, marketing, graphics and others, we're able to control and produce games and create content that is best for our fans. We have seen and heard from fans who appreciate the fact that their favorite team is running the network without somebody else in between. In terms of distribution, we've enhanced the reach of our broadcast through linear distribution deals and expanded our over-the-air partnerships with Gray Media.

We reached agreements prior to opening day that essentially preserved our linear distribution of BravesVision across cable and satellite. In addition, we expanded our over-the-air broadcast reach with grade of 25 games this season, up from only 15 games last season. In terms of advertising, we have made substantial progress in attracting advertisers by leveraging our sponsorship and marketing teams.

The presentation of our network, the popularity and success of the team and the ability to deliver a robust audience is something that we know is critically important to our advertisers, and we're proving our value to them. The Atlanta Braves are well known as a premier franchise across professional sports and one that companies want to partner with as evidenced by our impressive growth in corporate partnerships. We believe that this is a real opportunity for us, and we will continue to focus our efforts on bringing the right brands into our network.

On the programming front, we are working to expand existing programming beyond just pregame, in-game and postgame coverage though we have additional hours of content. Our focus is on delivering a broadcast by the Braves and for the fans and the control we have over that presentation on BravesVision allows us to do just that.

Our direct-to-consumer product has proven to be best-in-class, and we hear from fans in our footprint and across the country that experience has been seamless, easy to use, and it delivers our games to fans wherever and whenever they want to watch them. We have attracted a very strong subscriber base and are investing in marketing to grow that base as the season continues.

Simultaneously, we understand the importance of preserving subscribers and minimizing churn. Just a word on our fans and to echo some of what Terry shared. Our fans have been incredibly appreciative of the direct control the team has over the broadcast. We recognize this, and we will continue to innovate and execute to ensure that BravesVision is the best presentation of Major League Baseball.

We built in a matter of only a few weeks what would typically take 12 to 18 months to assemble and did so with the team leaner than nearly anyone else in the industry by leveraging our in-house experience and top-tier staff. This tremendous achievement is a testament to our vision to control our rights again and be in a position to maximize not only our economics, but the complete fan experience across our geographic territory, Braves Country.

Given that this is an earnings call, we know that many of you will want significant details on the financials at BravesVision. We also know you'll likely want metrics to measure our success. We understand that's important. But it is early days in the launch of BravesVision. So we're going to be thoughtful around which metrics we choose to focus on so that we can give you the best picture of our results.

This is only the first quarter with an extremely limited percentage of our total 162 game season. So look for us to share more when we present Q2 earnings. As mentioned on our year-end call, we see our business in baseball strategies is aligned. A competitive team supports demand and our broader development platform supports revenue throughout the year. There is no doubt that the performance on the field in 26 has been fantastic.

We are thrilled with the way the team has started the season. While the first quarter had a limited number of home games, we opened the season at home and attendance has been strong through April. Through the first 18 home games, we are currently averaging approximately 33,000 tickets sold per game and had 7 sell ups. Our new ticketing strategy is working well and ensuring that we are maximizing revenue opportunities as we sell additional tickets on a game-by-game basis.

Regarding other events outside our regular season, just last week, we welcomed the Eagles to Truist Park as part of their farewell tour and welcome tens of thousands of fans to our ballpark for their concert series. This is only one of our upcoming concerts that have been announced throughout the rest of the year. We're also excited to have Braves Country Fest presented by Truist on June 13 in partnership with Live Nation, featuring performances by Cody Johnson, Ella Langley, ERNEST and Mackenzie Carpenter, among others.

Lastly, just this past weekend, we hosted a 3-game series with the Savannah Bananas, whose product remains exceptionally popular. With 3 sellouts across products at are in Sunday, we were thrilled to welcome more than 100,000 fans to Truist Park and the battery.

Mike will touch on our real estate development strategy and business in a moment, but I'd like to emphasize that as we head into the summer months, we have a number of exciting events ahead that will drive visitors to the Battery Atlanta. It is clear that we are off to an exceptionally busy start to 2026 and the hard work of everyone in the organization is paying off. We look forward to many exciting developments in the months ahead. Go Braves. And now over to you, Mike.

Thanks, Derek. The start of the baseball season was clearly reflected across the Battery Atlanta with increased activity throughout the district as fans return to Truist Park and visitors engage with the broader mix of restaurants, entertainment venues, retail, office, hotel and residential offerings.

The strength of the multiuse nature of the battery continues to be one of the key differentiators of the portfolio. We also continue to focus on enhancing the guest experience and further strengthening the tenant mix. We announced earlier this year that a new restaurant will debut at the Battery. The restaurant, Hundredfold, is an American brasserie headed by James Beard award-winning chef, Timothy Hollingsworth, that will offer an upscale dining experience, which will add another attractive dining option to our portfolio.

The restaurant slated to open the fall at 5 ballpark Center, the office tower housing, the Truist Securities division across the street from the third base gate at Truist Park. This new restaurant will join J. Alexander's as our 2 new premium dining experiences at the Battery Atlanta. As we previously announced, J. Alexander's is a high-end American cuisine restaurant, which recently opened.

From a leasing and development perspective, demand for high-quality space at the battery remains strong. We currently have 5 new or extended deals signed, which represent nearly 50,000 square feet of new tenant base. In addition, we have 75,000 square feet currently under redevelopment. The Battery Atlanta on nearly 1.4 million visitors in the first quarter as our evolving campus continues to be a premier destination for visitors across Atlanta and the Southeast.

We operate one of the most unique locations in the country and with multiple opportunities throughout the rest of the year for concerts, viewing events, markets and more are looking forward to our campus continue to be an important piece of the Atlanta Braves. This campus has grown to become a landmark in Atlanta and across the entire Southeast as we continue to see dozens of teams in professional and collegiate sports attempt to replicate the model we have built. We have fostered an incredibly strong community and are proud to be approaching the 10-year anniversary of our move to Cobb County.

This move was strategic for numerous reasons, and our partnership with Cobb County has only strengthened in the last several years. In fact, just last year, the Braves and Battery Atlanta generated more than $41 million in total tax revenue for the county, Cobb Board of Education, CID and State of Georgia. We look forward to continuing to make a positive impact on the county and the community. With that, I will turn over the call to Jill to walk through the financials in more detail.

Thanks, Mike. Before I start, I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season. Towards the end of the first quarter of 2026, there were 5 regular season home games played. That being said, we are pleased to report a strong start to our year.

Total revenue was $72 million in the first quarter of 2026, up from $47.2 million in the first quarter of 2025. As a reminder, the company manages its business based on the following reportable segments: baseball and mixed-use development.

Baseball revenue was $45.7 million in the first quarter of 2026, up from $28.6 million in the first quarter of 2025. This revenue increase was driven by an increase in baseball event revenue due to the 5 regular season home games in Q1 2026 versus no home games in the same period last year. This increase was partially offset by a decrease in other revenue due to 2 Savannah Banana games hosted at Truist Park in Q1 2025, but not in Q1 2026.

Mixed-use development revenue was $26.3 million in the first quarter of 2026, up from $18.6 million from the same period last year and was primarily driven by increases in rental income, primarily as a result of the in-place leases associated with the Pennant Park acquisition. Given that the launch of BravesVision occurred late in the first quarter, we are still working through the reporting elements within our financials and the manner with which we can share details with our analysts and investors.

We expect to have more clarity on that when we report our second quarter earnings. That being said, we believe we are on pace to meet or exceed the economics generated under our prior RSN agreement, but the timing of the cash flows will be different based on the timing of payments for the different revenue streams.

For example, in our prior relationship with Main Street FanDuel Sports Network, we received a license fee with payments being received equally over the first 9 months of the year. The revenue and cash flow were predictable, albeit there was uncertainty given the financial health of our partner.

In the case of BravesVision, our distribution agreements commenced at the time we signed our contracts with our various distribution partners at the start of the season. Distribution revenue payments will come in on a slower cadence than our traditional rights fee model payments were received, creating a sizable shift in the timing of cash receipts. Advertising revenue will be paid following the month when the ad errors.

Direct-to-consumer payments will also be paid monthly. We are going to work over the coming months to identify the best way to report our financial results and give our investors and analysts the best way to model that going forward. We are being cautious and thoughtful around this given the early few weeks of this new business.

Turning back to specific results. Adjusted OIBDA improved to a loss of $17.6 million, up from a loss of $28.5 million in the first quarter of 2025. This improvement was due to an increase in both baseball and mixed-use development revenue, partially offset by an increase in baseball operating costs, including increased player salaries and variable stadium operating expenses, due to the increase in regular season home games in Q1 2026 versus the same period last year and an increase in mixed-use development operating expenses due to the PennantPark acquisition.

Our operating loss improved to $41.3 million in the first quarter of 2026 as compared to an operating loss of $44.5 million in the first quarter of 2025, primarily due to revenue outpacing increases in operating and SG&A expenses. As of March 31, 2026, the company had $135.2 million of cash and cash equivalents. Nearly all of our cash and cash equivalents are invested in U.S. treasury securities, other government securities or government guaranteed funds, AAA-rated money market funds and other highly rated financial and corporate debt instruments. And with that, operator, let's open the line for questions.

[Operator Instructions] Your first question comes from the line of David Joyce from Seaport Research Partners.

Congratulations on launching BravesVision. And I appreciate that you're not ready to provide too many new KPIs, but could you help us think through kind of what the differences are in the -- beyond what you've said so far on the contract and offerings from the programming last year versus this -- and then what incremental production and platform investments were required to launch this in terms of like what the financial implications might be.

David, it's Derek Schiller, I'll take this one. Thank you for the question. Let's first give a little context it's important to reemphasize why we've done what we've done. First and foremost is we think it's going to be in the best interest of our fans, delivering the best product for them on TV. It gives us control, which we always like that in our business. And with control, we have optionality with what we do today and in the future for that.

And then I think really importantly, I want to emphasize some of the things that Terry and I touched on in our remarks is that we're very bullish about what this management team can do. And this is a great example of that in standing up BravesVision. When we did so, we stood it up with the intent to focus initially primarily on the gain with the direct adjacent programming being a pregame show in post game.

I think there's some opportunity for us, as we mentioned, to extend some of the programming. But really, at the end of the day, I mean, that is what the fans want first and foremost is the ability to watch the game, watch the pre and post game shows with that. So we're focused on that. That's gone really well. The fan feedback has been fantastic.

And I want to emphasize from an economics perspective, at this point in time, we can safely say that we're going to meet or exceed the economics which unto itself is a pretty large statement that we can make. We will see some expenses as it relates to additional programming. We're going to be mindful of that, and we're going to be very selective. So at this point in time, I think we're giving you the best glimpse into the economics. Jill, I don't know if you want to give any more commentary on that. But that's basically what we've got.

The one thing I would add, David, is that because of our partnership with Raycom, our upfront investment, particularly capital investment was relatively minimal.

Your next question comes from the line of Barton Crockett from Rosenblatt.

Congratulations on a great start to the season here. I wanted to ask about an element of the BravesVision set up, and I understand there's a limit on what you can really say at this point. But could you tell us about the TV kind of footprint. I've noticed you've got all the major kind of distributors in there, but there is a notable name, Cox, which I haven't seen in the lineup. And anything you could say about the reach you've got now on TV versus what you had before and if there's scope for that to change as we go through the season or into next year?

Sure. I'll take that again. It's Derek. First, our -- part of the reason why we took on this television project and launching BravesVision ourselves is in addition to what I said about our belief that we could do it, it's the marketplace. have the benefit of having one of the largest television territories in all of sports. And so we want to try to capture that.

We think we're in the best position to do so. The way that I would describe it, to answer your question is there's really a couple of ways that we approach the marketplace and it's largely very similar to what Main Street did. It would be described as a linear distributed network, adding on over-the-air components. In our case, we're extending the number of over-the-air games from 15 to 25 as we mentioned.

And then also allowing fans to have a direct-to-consumer streaming option via the Braves.TV. In the linear distributed product, which is what you were asking about, we have replicated the amount of distributors that were previously with us are all largely the same from what we had, including Cox. They have partnered with Charter. As you know, there's been a combination of those. So that may be why you're looking at that. But we can say at this point in time, all of the major distributors that distribute into the Braves television territory, are carrying BravesVision.

Okay. Now if I could ask one other kind of thing about this, just to get some just adjectives around this. I understand you may not give numbers. But as you've taken control of the streaming, can you give us any sense of how large the streaming kind of audience is relative to linear, just some adjective sense of that and whether that's changed much as you've taken it over versus what it was under the prior regime.

For context, we are streaming through Major League Baseball's MLB.TV, or, in our case, Braves.TV element. They do a fantastic job as we called it, a best-in-class approach to the marketplace. Our fans have really enjoyed that. We -- last year, also for additional contacts last year was the first year that we added streaming into the marketplace. In that case, it was handled by Main Street.

We didn't have an exact glimpse into how many subscribers were subscribed to the product because it was them that was managing that. So it's a little bit difficult to look at comparisons. I can give you just general terms is that we're very happy with the amount of fans that have signed up for subscriptions to Braves.TV.

We are currently working on ways to report on the information and the amount of people that are watching our product because, again, you can watch via linear, you can watch via OTA or the streaming. So as referenced in our earlier commentary, we're continuing to build on how we are going to showcase the amount of people that watch. So look for that information to come in the future.

Okay. That's great. And if I could just ask one last question, kind of shifting gears. Just as I kind of look at your free cash flow and your net debt, your free cash flow is traditionally defined cash flow from operations less CapEx has been negative for the past couple of years. And your net debt has gone up from the 400-ish range in the 2022, '23 ZIP code to $600 million-ish now including some spending on tenant.

How should we think about this going forward? I mean, obviously, there's some constraints on how much that you'd want to add and -- but also a need to kind of invest in your business. So how should we kind of think about how you guys balance this going forward?

Well, thanks for the question, Barton. As we -- I'll tackle the debt question first. As you look at the increase in debt over the past couple of years, keep in mind that on the real estate side of our portfolio, we've added not just Pennant Park but 5 ballpark. So both of those increases in debt are tied to revenue-generating assets that have been extremely profitable for us.

On the baseball side, our -- most of our debt on the stadium and otherwise is pretty well set. We're not looking to increase leverage on that. And we have 2 revolving debt instruments, which as of March 31 is about $265 million of borrowing capacity. We believe that creates a lot of flexibility for us in the future.

From a free cash flow perspective, over the past couple of years, we've been very focused on improvements in the ballpark, which increase the fan experience for our fans and also our revenue generating. It's our master planning project that we've talked about in Investor Days and other such events. Those have been capital projects that have largely been spent in Q4 and Q3. So that's been an impact to our free cash flow as well.

So the implication is the free cash flow trajectory should be perhaps less negative or positive going forward?

Yes. I mean I think we've done the big master planning projects that generate the highest returns. So going forward in the future, I would expect that those would come down a little bit. That spending would come down a little bit, although we're still in the early stages of planning for that.

Your next question comes from the line of Matthew Harrigan from Benchmark.

Your friends at Live Nation have talked about premiumization in terms of getting more efficiency on pricing. Clearly, that's particularly appropriate when the Braves are having a playoff run, which things are looking good for you. But do you feel like you're optimally priced at this point? I mean, in terms of assuring access for everyone and at the same time, really taking the cream on the high end as well? Or do you think you have latitude in your pricing structure over a period of time? And obviously, the amenities, I'm sure it's not the Miami Grand Prix with $200 nachos. But -- just any thoughts on that?

Matthew, it's Derek. I'll take that. Thanks for the question. Yes, I think one of the great things about the Braves in baseball as a whole is that we do have a wide variety of ticketing options and price points that we can offer our fans. And that is absolutely the truth here at Truist Park as well. And we believe, and we've stated this in the past that there was room for growth on the average ticket price over the past years and we certainly have worked on that.

We're still a fan-friendly as I call it, situation where if you're looking for something that is more value offered we can certainly give you that option. But we have also done very well at optimizing our premium, our premium is defined as largely those tickets that have some level of amenity associated with them, whether it be a club or something else, a food and beverage component to that.

And in fact, relating to Jill's previous commentary, some of the additions that we have made to the ballpark in the form of our master planning projects have included expanding upon some of the premium as well as hospitality space related offerings that we have because we are meeting what the fans had wanted, and that's where we have seen the highest demand.

So our premium seats as of now continue to be sold out. And we're seeing high demand on those and feel very good about the price points that we are offering those as we stand today.

And I know you're reticent on commenting on league issues. But when you look at parity and obviously, maintaining the growth of the league and keeping the players happy. What's your perspective on floors, caps and revenue sharing? I know you got some ossification as a result of past experiences. But you got so much going on with baseball right now, be a shame to done it with a lockout as everyone knows.

This is Terry. I would steer those questions to Rob Manfred for the commissioner of baseball. We're in pretty active discussions at his office with the Players Association. And as you know, the CBA concludes that on December 1 of this year, and baseball will be engaging as it normally does throughout this year to culminate at that point with either a new deal or other activities.

So there's been lots of discussion as to what might be included in that -- in those talks. I'm not in a position today to discuss them.

You could mention also Bobby Cox as one of the unbreakable sports records with post game explosions, quite the character. Anyway, thanks for your tolerance on the question.

We love Bobby. He's 1 of our icons and every player whoever played for them would walk across hot coals for them. So we're -- where he's an amazing guy and we'll be honoring him further as the season goes on.

And we have reached the end of our question-and-answer session. I will now turn the call back over to management for closing remarks.

Well, thank you for joining us on today's call. Appreciate it. A reminder that our next home game is tomorrow versus the Cubs and we look forward to you watching us in the stands or maybe on BravesVision. And then a final point is prior to tomorrow's game, we will be doing a pregame tribute for both Bobby Cox as well as Ted Turner. So appreciate you joining us for that. And with that, I want to thank everybody for the call and see you next time.

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Greetings. Welcome to the Atlanta Braves Holdings Fourth Quarter and Year-end 2025 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded.

At this time, I would like to turn the call over to Cameron Rudd, Vice President of Investor Relations.

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today.

A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC. Forward-looking statements are based on current expectations, assumptions and beliefs, as well as information available to us at this time and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future events.

During this call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA. The full definition of non-GAAP financial measures and reconciliations to the comparable GAAP financial measures are contained in the Form 10-K and earnings press release available on the company's website.

Now I'd like to turn the call over to Terry McGuirk, Chairman, President and CEO of Atlanta Braves Holdings.

Welcome, everyone, and thank you for joining our fourth quarter and year-end 2025 call today. With Spring Training underway, we are energized about the year ahead. I've been to our North Port, Florida spring training facility over the past two weeks and I'm pleased with the progress of the team and the pieces we have in place.

Walt Weiss, our new manager is working hard in building team momentum as we look towards opening day. We believe we are well positioned with a strong roster in the organizational depth to be competitive this season. We continue to focus on improving our team with the ultimate goal of competing and winning another world series for our fans.

As I stated on our last call, we are driven to return to our long tradition of winning and championships. And Alex Anthopoulos, our President of Baseball Operations, has done an excellent job navigating this off-season and adding some key free agents to the team. To that end, we're excited about the addition of Robert Suarez, who was just named by ESPN as the believer in baseball and will form one of the best back ends of a bullpen in the majors when paired with Raisel Iglesias.

We also have Jorge Mateo and Mauricio Dubón, who both can play anywhere on the diamond and will be anchoring the shortstop position until mid-May. When Gold Glover and newly signed Ha-Seong Kim, returns from a finger entry. Dubon has also won a Gold Glove as a utility infielder in two of the last three seasons. We were also pleased to strengthen our formidable bullpen with the signings of Tyler Kinley and Joel Payamps. We are adding these talented players to an already elite roster that includes Reigning National League Rookie the Year, Drake Baldwin, Reigning Gold Glove winner, Matt Olson, former National League MVP, Ronald Acuña Jr., and former Cy Young winner, Chris Sale, who we signed to an extension earlier this week, along with the standout players and fan favorites, Austin Riley, Spencer Strider, and many, many more. Also, catcher Sean Murphy is recovering nicely from hip surgery last September and is making great strides towards rejoining the team in the early part of the season.

We firmly believe we have all the pieces we need to make a postseason run this year and compete for a World Series title. And we're not alone in that belief. Fan graphs picked us to compete for a World Series title and named us the #2 preseason team in the entire majors in their power rankings just behind the Dodgers.

Now let me address one more important issue that emerged as we started this year, local media broadcast. As you all know, the industry has been working through the ongoing saga of the decline of Main Street Sports. With Main Street out of the way, the Braves now have our local TV rights back and instead of going through a third-party regional sports network to monetize these rights, we will be stepping into the Main Street role in directly handling the distribution, production and revenue generation of the full season of gains ourselves. We are fortunate to have much of this expertise in-house at the Braves and are confident that we will be able to produce, distribute and deliver our games and additional Braves content in a way that is compelling and serves our fans very well.

We have one of the largest television territories in baseball, spanning multiple states, which affords us the opportunity to optimize our financial outcome, a factor that provides us an advantage that no other Main Street team has. Our goal to be sure that every fan who wants to watch an Atlanta Braves game can do so. The demand for our product remains incredibly high, which makes the job of reengineering the distribution system much easier.

Yesterday, we announced the launch of our new distribution and streaming platform, BravesVision, introducing our fans to the new platform for Braves broadcast. Before I turn the call over to Derek, I would like to thank our fans, our team, the entire organization for their continued support and efforts and recognize that it is through hard work and dedication that we continue to be one of the elite franchises in all of Major League Baseball and across all professional sports.

With that, I'll turn it over to Derek to walk through our operating performance ticketing trends and outlook, including more detail on the local media rights topic.

Thank you, Terry, and good morning, everyone. I will start with one of our most pressing topics as we head into the final weeks before the start of the regular season. For our organization, our priority throughout the whole process around media rights has been clear. We wanted to maximize reach and availability for fans, while protecting our economics given the popularity and value of our team.

As Terry mentioned, we are excited to launch BravesVision, a multimedia platform owned and operated by the team, which will serve as the official home of our local television broadcast beginning this season. And bringing our broadcast back under control, our initial focus in 2026 will be our pregame show, our in-game presentation and post-game content.

Importantly, we will maintain full creative oversight of the production, as well as the sales, marketing and distribution of the venture. We have an experienced team that is talented and motivated so we are confident in our ability to deliver for our fans and excited to see what our operating team can do. BravesVision will allow fans to watch us on multiple platforms, including many of the same television providers where fans are used to watching our games. With all games available on a streaming platform in partnership with MLB.

Importantly, Gray Media will remain our partner. Starting already with spring training, Gray Media will broadcast 15 spring training games, a 50% increase after the successful partnership last year. In addition, Braves will partner with Gray Media to simulcast a selection of regular season games alongside BravesVision. These free over-the-air telecasts will be available on Peachtree TV's Atlanta's CW and Peachtree Sports Network in Atlanta and throughout the Southeast through Gray's network of broadcast stations. This broadcast partnership highlights the Braves commitment to engaging fans across Braves Country.

In addition to local Braves television broadcast, the team will appear in nationally televised games this season with various MLB broadcast partners, including FOX, FS1, ESPN, TVS, NBC Peacock, and Apple TV. As we have said in the past, there is tremendous value in our expansive fan base and serving our fans is our top priority. We believe this is also in the best long-term interest of our team and our shareholders. With this resolution in place, our focus now shifts to execution, optimizing outcomes across subscriber reach, distribution, advertising and streaming options while continuing to ensure fan access.

I'd like to turn now to last season and what we're taking it from as we head into the new year. Despite the season on the field in 2025, we delivered record-breaking regular season ticket sales and sponsorship revenue underscoring the enduring strength of the Braves brand and the unwavering passion of our fans and partners. We also sold the fourth highest number of tickets in the past 25 years, which reinforces the tremendous loyalty we have from our Braves country fan base.

Heading into the 2026 season, we're encouraged by strong ticket demand, having already sold more than 1.9 million tickets across seasons, groups, hospitality packages and single game inventory. Our premium clubs continue to be sold out, and there is a robust wait list on all seasoned product offerings, exemplifying one of the most sought-after season ticket memberships in MLB.

Within ticketing, we have also been able to optimize our process through a combination of pricing strategy, product segmentation and improved inventory management. We are continuing to invest in ticketing analytics so we can better measure demand elasticity by game, opponent, day of week and seating category. That work is already improving marketing efficiency and conversion helping us put the right offer in front of the right fan at the right time. Importantly, it also supports our premium and group strategy, which we view as meaningful leverage for revenue quality.

Looking ahead, we are focused on improving our on-field competitives, while also building momentum in the Battery Atlanta as a multi-use destination that drives year-round engagement and revenue. We see our business and baseball strategies as aligned. A competitive team supports demand and our broader development platform supports durability across cycles.

The Battery also continues to perform as a multi-use destination and our strategy centered on diversifying demand drivers and broadening our calendar to increase repeat visitation is working. With over 380 total events and concerts held in 2025, we reinforced the Battery Atlanta and Truist Park as a premier destination in the Southeast, even outside of the Braves home schedule. Of these 380, we hosted 144 events across the common areas of our campus, held 147 events at the Coca-Cola Roxy and added another 95 game day in Truist Park events.

This breadth of year-round events is another shining example of why we believe we operate one of the most unique partnerships in professional sports. To that point, we continue to expand our nongame day schedule events throughout the season. As an example, after a successful 2-game series last year, we're excited to host the Savannah Bananas for three games this year, further expanding this unique experience at our ballpark. We also recently announced that we will be hosting Braves Country Fest on June 13 in partnership with Live Nation.

This features performances by Cody Johnson, Ella Langley, Ernest and Mackenzie Carpenter, among others. And in addition, Noah Kahan will be performing at Truist Park on July 27. These examples then more reiterate our ability to attract top-tier events to our ballpark and campus throughout the year and we look forward to continuing our positive momentum with additional concerts, community events and other activations.

Looking forward to 2026, we are confident on our ability to deliver to our fans across Atlanta and across the entire Southeast. We continue to focus on improving our fan experience at the ballpark, as well as the overall experience across our campus. The launch of BravesVision is something that we believe will be a defining moment for our franchise and our fans. Our expansive television market territory is one of the largest professional sports and gives our team options that few others do. With our media rights resolved ahead of the season, we are excited about the future this brings and focusing on creating the best possible product.

With that, I'll turn it over to Mike to provide updates on the Battery and our real estate strategy.

Thank you, Derek, and good morning, everyone. Let me start by reinforcing Derek's comments on our real estate strategy. We continue to view the Battery as a long-term platform that diversifies our business, broadens our audience and supports durable growth over time. In 2025, we welcomed nearly 9 million visitors to the Battery mostly in line with our levels from 2024, even as baseball attendance was softer last season.

For us, that's a strong indicator that our awareness is increasing, given all the events we've hosted and other offerings we've added around the Battery and that the destination value proposition is resonating beyond game days. From a tenant perspective, in the Battery, 2025 was a record year. Our tenants collectively achieved a new annual sales milestone of approximately $137 million across just 30 doors, which we believe ranks among the most successful mixed-use operations in the country.

We also continue to strengthen our tenant lineup with the openings of the new Truist Securities building, walk on Sports Bistro and Shake Shack, among others. We are excited about J. Alexander joining the Battery in 2026. From a portfolio standpoint, PennantPark was a key contributor this year. We successfully acquired and closed the property and ended the year at approximately 90% occupancy, an impressive increase from the low 80% range at closing in April.

In the fourth quarter alone, we closed just under 50,000 square feet of new deals and have a very strong tenant pipeline into 2026. Across the Battery more broadly, we had a strong year of continued transformation, including meaningful capital investments aimed at improving the guest experience and long-term functionality of the campus. The pedestrian bridge connecting the Henry project to the Battery is nearing completion, which will further enhance connectivity, expand our parking operations, and improve overall flow throughout our growing footprint. We are still opportunistic as we evaluate future transactions and believe our record speaks for itself as we look to optimize the portfolio over time.

Importantly, we continue to command rent premiums across our retail, office and hotel assets, with rates above markets supported by demand, engagement and performance. Tenant engagement also remains strong. We continue to secure early lease extensions and receive daily inbound interest from prospective tenants, which gives us confidence in the depth and quality of our pipeline.

From a financial standpoint, I'm pleased to report that mixed-use development revenue continues to perform well and represented approximately 13% of the company's total revenue in 2025. We are currently generating over $100 million in revenue on an annualized basis as our mixed-use development revenue continues to expand its role as a meaningful contributor to our team and franchise value.

With that, I'll now turn over the call to Jill to walk through our financials in detail.

Thanks, Mike. Before I begin, I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season. Our final 2025 home game was in the third quarter. We are pleased to report that 2025 was a strong financial year for our organization.

Total revenue in 2025 was $732 million, this was an increase of nearly $70 million from $663 million in 2024. As a reminder, the company manages its business based on the following reportable segments, baseball and mixed-use development. Baseball revenue was $635 million in 2025, up from $595 million in 2024. This revenue increase was driven by a combination of increased event, broadcasting and other revenue.

Baseball event revenue was $358 million in 2025, up from $348 million in 2024, primarily due to contractual rate increases on season tickets and existing sponsorship contracts, as well as new premium seating and sponsorship agreements, offset by attendance-related reductions in revenue. Broadcasting revenue, which includes national and regional revenue, was $189 million in 2025, up from $166 million in 2024.

Other revenue was up by $8 million to $42 million in 2025 compared to $34 million in 2024, primarily due to events held at Truist Park, including two Savannah Bananas games. Next, our mixed-use development revenue was $97 million in 2025, a $30 million increase from $67 million in 2024. This was primarily driven by a $27 million increase in rental income due to new lease commencements and in-place leases acquired with PennantPark and, to a lesser extent, sponsorship and parking revenue.

Adjusted OIBDA was $108 million in 2025, an increase of nearly $70 million from $40 million in 2024. This improvement was driven by an increase of $44 million in baseball adjusted OIBDA and an increase of $23 million in mixed-use development adjusted OIBDA due mainly to the increases in revenue in both segments and reduced baseball operating costs. Mixed-use development adjusted OIBDA serves as a proxy for net operating income.

Additionally, we have invested in two Battery hotel properties as 50% joint ventures, which are accounted for as equity method investments. Our share of earnings in these investments is not included in mixed-use development adjusted OIBDA but still represents an important part of our operations. Our operating loss was $14 million in 2025 compared to a loss of $40 million in 2024.

This improvement was primarily due to increased revenue, partially offset by a $30 million noncash impairment expense associated with the termination of the long-term local broadcasting agreement, and increased depreciation and amortization. As of December 31, 2025, the company had $100 million of cash and cash equivalents. Nearly all of our cash and cash equivalents are invested in U.S. treasury securities, other government securities or government guaranteed funds, AAA-rated money market funds and other highly rated financial and corporate debt instruments.

And with that, operator, let's open the line for questions.

[Operator Instructions] Your first question today comes from the line of David Joyce from Seaport Research Partners.

Congratulations on standing up BravesVision. I was wondering what sort of OpEx or CapEx was reflected in your financials before sort of getting that up and running? Or is it more going to be reflected here in the first quarter? And then secondly, if you could remind us, please, on the blackout rules for the local TV and streaming opportunities. I know that your press release mentioned that there was some no blackout issues. But just remind us of that, please.

David, this is Jill. In response to your first question about OpEx and CapEx for the broadcasting business, historically, we haven't shared information at that level in our financial statements. We do share with you broadcast revenue. So I really can't speak to that at this time. Looking forward, as we launch BravesVision, you should expect to see more detail about the financial results of this new operation starting in Q2.

Yes. And I'll take the second one. It's Derek. The blackout rules and the way that we referenced them really pertain primarily to the streaming platform. So as we launch Braves.TV, which is in partnership with Major League Baseball. In effect, if you are a subscriber of Braves.TV, you can watch anywhere inside of the territory as part of our local broadcast opportunities. And should you leave the home television territory outside of the Southeast, our five, six state area. So long as you're a Braves.TV subscriber, you will be able to watch the Braves games wherever you travel inside of the United States.

If you are an MLB.TV subscriber, so you have an out-of-market package, you can watch both inside and outside the territory, which is why we referenced the blackout restrictions the way that we did.

Appreciate it. And if I could kind of follow on to the media rights aspect. Obviously, with the CBA coming up later this year and other leagues looking to redo their national rights deals. What are your updated thoughts on how things are evolving? And what's the probability that Major League Baseball would want to perhaps negotiate back these local media rights from you later on since they are handling a number of other teams?

This is Terry responding. Yes. As you know, our next national media opportunity is 1/1/29. That will be the next time all of our national rights come up. Rob Manfred, the commissioner, has been quoted, I think, in saying that our best opportunity to possible -- best opportunity would be to aggregate all of our rights like the NBA, like the NFL, like CACI. And that is still a strategy that is not clear yet as to how we'll play that. But the commissioner will be leading that negotiation and that strategy discussion among the owners, and we will surely keep our shareholders and our analysts up to speed when that happens.

[Operator Instructions] Your next question comes from the line of Barton Crockett from Rosenblatt Securities.

Let me see, one of the things that I -- just stepping back, I'm just kind of curious about in terms of the financial cash flow profile of the Braves this year versus years past. In this year, you just reported, you -- the free cash flow was, I guess, a negative $25 million or so, if I've got that right.

And when you look ahead to '26, there's $100 million-ish or so of local broadcast revenue that might be somewhat less as you go through this transition, maybe, maybe not. And then you've got some incremental tax impacts that could be coming up from the tax laws that limit kind of deductibility of salaries to high-paid employees like your star baseball players.

And so I was just wondering if you could talk a little bit about how you see free cash flow trending going forward? And if there's a deficit, how you see kind of financing that? And given your position as kind of a public company versus others where you've got the pockets of billionaires to kind of finance it, does this put any pressure on you guys competitively, do you think?

Yes. Thanks for the question. As we think about cash flows, we do tend to think about this in terms of our two businesses, baseball and the real estate business. On the baseball side, what we've said on a few occasions is that our goal is always to reinvest the profits from our team performance and from the operations of baseball into the team. We believe the team is the biggest asset we have that can drive top line growth for the company, and that's generally what our focus is.

Now that said, over the past couple of years, we have launched master planning project across the stadium, we're adding increased offerings to the stadium, specifically in premium areas and other hospitality areas we believe those things are already driving great returns and paying dividends for us.

On the baseball side, we think of things a little bit differently as we're continuously evaluating opportunistic investments in real estate that we can add to our portfolio, similar to what we did last year on PennantPark.

Now as you look forward, I think without disclosing too much here, you may see a difference in how the cash flow comes in with us running the business now as opposed to outsourcing the media business to FanDuel like I said earlier, you'll begin to see a little bit more of how that plays out when the business really begins to operate in Q2.

Okay. But I guess I'll leave some of that aside. Maybe just one more kind of detailed question.

I think there's been some discussion about the changes in tax laws around deductibility of high salary kind of employees and that being a new kind of tax impact for maybe a publicly traded sports franchise like the Braves that the privately owned franchises don't face.

I was wondering if you could talk about the materiality of that for you guys. And given that there are -- there is at least maybe another corporate enterprise out there that has some teams that's publicly traded, is there any possibility for you guys to get together with others to lobby for that law to be treating both private and public ownership more fairly?

It's Derek. I'll jump in on this one. We're obviously aware of the 162(m) issue that you're referencing. We've looked into it. We understand what's out there, and we're working on that. I don't think it's appropriate at this point in time to comment on that because we're still in the midst of those discussions and what we're trying to do with that. But certainly aware of what's out there and what we need to do to try to figure that out.

And at this time, there are no more questions in queue. I will now turn the call back to management for closing remarks.

So I'll close it out. It's Derek. On behalf of the entire management team, I want to thank everybody for participating in today's call, and we look forward to seeing you -- hearing from you again soon. We're 30 days from opening day. I hope you're all paying attention. We're excited to get the season started and look forward to seeing you on March 27 for our opener. Bye-bye.

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Greetings. Welcome to the Atlanta Braves Holdings Third Quarter Earnings Call. [Operator Instructions]. As a reminder, this call is being recorded.

At this time, I would like to turn the call over to Cameron Rudd, Vice President of Investor Relations.

Before we begin, we'd like to remind everyone that on today's call, management's prepared remarks may contain forward-looking statements. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. A number of factors could cause actual results to differ materially from those anticipated, including those set forth in the Risk Factors section of our annual and quarterly reports filed with the SEC.

Forward-looking statements are based on current expectations, assumptions and beliefs as well as information available to us at this time and speak only as of the date they are made, and management undertakes no obligation to update publicly any of them in light of new information or future results. During this call, we will discuss certain non-GAAP financial measures, including adjusted EBITDA.

The full definition of non-GAAP financial measures and reconciliations to the comparable GAAP financial measures are contained in the Form 10-Q and earnings press release available on the company's website.

Now I'd like to turn the call over to Terry McGuirk, Chairman, President and CEO of Atlanta Braves Holdings.

Thanks for joining the call today, and we appreciate your continued interest and support. In a rare year where we did not make the playoffs, the strength of our brand and the passion of our fans remain strong. That gives us great confidence as we enter the off season and look ahead to 2026. We did have some notable highlights that will help build momentum going into next season.

Rookie Drake Baldwin had a breakout season hitting 274 with 19 home runs and 80 RBIs. He became the first Braves' Catcher ever to debut as an opening day starter and then go on to win nationally Rookie of the month in May. Drake is now a top contender for Rookie of the Year, which is an exciting milestone for our organization.

Chris Sale, despite dealing with a nonthrowing injury while covering first pace remained one of the top performers in the league and achieved a major career milestone by becoming the fastest picture in MLB history to reach 2,500 strike outs. He finished strong and is ready for 2026.

Matt Olson showcased remarkable consistency and durability and became 1 of only 5 MLB players to appear in all 162 games. He led the team with a 6.1 war and ranked among MLB's top defensive first basement. And earlier this week, he was awarded a Gold Glove Award his first as a Brave and third in his 10 season MLB career. He also represented the Braves in the Home Run Derby during the All-Star week here in his hometown.

While our pictures lost a lot of time due to injuries, it did give us an opportunity to see some of our young talent and how they perform and we were greatly encouraged by that. Newcomer, Herston Waldrip, a 2023 first round pick out of Florida sees the opportunity and ended up with a 6 and 1 record with a 2.8 ERA intense game started. You will likely see him again in 2026.

Now that we're in the off season and our focus is shifting towards our strategic priorities which include adding a couple of key players to a veteran win now squad that has so many years of success ahead. Turning to our field manager position after 10 seasons, Brian Snitker transitioned from our manager to a senior adviser role Brian led our team to a World Series championship in 2021 and has spent his entire career with our organization, 49 years and all. We are grateful for his dedication to our franchise, and we look forward to having him around to advise us on baseball matters into the future.

This past Monday, Walt Wise was named the 49th Manager in franchise history, after spending the previous 8 seasons as the club's Major League bench coach. Walt previously served as a manager for the Colorado Rockies has twice been a World Series champion first as a player with the Oakland athletics in '89 and then as a base bench coach in 2021. He has been a part of the Braves organization for 11 seasons as both a player and coach. Since joining the staff, the Brave have made 7 postseason appearances, earned 6 national Leagues division titles and won the 2021 World Series.

On the MLB front, there remains a lot of positivity on the broader state of baseball as we look to the 2026 season. across Major League Baseball national viewership continues to grow, ESPN's MLB coverage is up roughly 21% year-over-year. TNT Sports is up 29% and MLB.TV consumption has grown by 24%. These trends further reinforce the growing engagement across the sport and underscore the strength of baseball's fan connection.

We continue to see positive momentum following the regular season, including the highest post-season viewership since 2017 and an increase of 13% year-over-year. This all culminated in one of the most exciting World Series finishes in recent memory only a few days ago, which saw an extra innings come back in Game 7. Early indications have this as one of the highest-rated World Series games since 2017 with over 25 million fans tuning in to watch the final.

The global audience was on full display as well, welcoming millions of viewers from Japan and across Asia that coupled with our domestic audience highlight the state of baseball, which is an exciting upwards trajectory. Total MLB attendance for 2025 exceeded 71 million fans, making the third consecutive year of growth for the first time in 18 years and reaffirming MLB's position as the most attended sports league in the world.

This is a testament to America's favorite past time, and the Braves Country continues to play a major role in that success. So what we're doing within this organization is truly unique, not only in baseball, but in all of professional sports. The continued momentum and strategic interplay between our baseball and real estate segments remains remarkable and really reflects the long-term vision that has set the Atlanta Braves organization apart. Most every sports organization is trying to emulate our success in combining a stadium environment with a large bustling mixed-use development.

And with that, I'll turn the call over to Derek, who will discuss in more detail how our season has shaped up and share more on our outlook heading into next year.

Thanks, Terry. Although this season has brought its challenges, our team played their hearts out until the very end, and we're extremely proud of their achievements. The Atlanta Braves have a history of success on the field, and we remain focused and optimistic on returning to our winning ways and getting back to the post season again next season.

Despite the challenges on the field, we continue to provide great times for our fans and their families, and we accomplished a great deal as an organization. First, despite the inconsistent season on the field, we've navigated adverse fee to deliver record-breaking ticket sales and sponsorship revenue, underscoring the enduring strength of the Braves brand and the unwavering passion of our fans and partners.

The Braves sold the fourth highest number of tickets in the past 25 years, highlighting both the depth of our fan base and the effectiveness of our sales and marketing strategies. Similarly, secondary market activity and ancillary revenues in retail and concessions remain strong, and our team remains disciplined and adaptive in driving demand and maintaining engagement. We also added and renovated several areas of the ballpark as part of a continuing innovation of the Gameday experience, which resulted in new and enhanced revenue streams.

Lastly, we extended our partnership with FanDuel sports networks to include our first-ever direct-to-consumer streaming opportunity for fans. In addition, our new arrangement with Gray Media provided enhanced broadcast opportunities and more fans able to watch games in our territory. The result of the revised media approach resulted in strong ratings and allowed our entire Braves country television territory among the largest in sports to follow their favorite.

Ticketing remains a top priority for us as a meaningful driver of revenue, and we are proud to have our premium and full season ticket inventory sold out through the end of the season, our third straight year of doing so. While -- tunes moderated slightly in late August and September, primarily from lower single-game tickets, demand for season, group and hospitality package offerings remains robust. We sold out 24 games this year and had high record revenue from a number of those games. We sold over 2.9 million tickets in 2025 and a level that puts the bridge inside the top 10 highest NMV for the fifth consecutive year.

As we transition into the off-season and begin the planning for next year, our team is still actively evaluating pricing and inventory strategies to further optimize our ticket mix. These changes will better optimize how we manage our ticketing process from start to finish, and we are hopeful that this will make a meaningful change in our operations.

We remain committed to our growing and loyal fan base and are focused on enhancing the fan experience, including more innovative changes to the ballpark while driving continued growth around Truist Park and the Battery Atlanta.

Elsewhere around Truist Park, we recently announced an extension with our incumbent food and beverage partner, industry-leading Delaware North for an additional 10 years beyond our current term. Over the last 10 years, we've worked with Delaware North to elevate the fan experience through high-quality, locally inspired food options. They share our vision of perfecting the ballpark classics, while also offering innovative food, beverage and premium hospitality and putting a creative Braves country spin on fan favorite. I'm excited about this extension and expansion of our partnership which will enable us to further leverage Delaware North.

As part of this renewal, we will also lean into Delaware North's restaurant and trading experience division, Patina to provide best-in-class food options for every guest in the Battery Atlanta and Truist Park. In addition, our recent master planning projects completed throughout the end of the 24 season and into the start of the 25 season are performing particularly well, both in terms of generating significant additional revenue but importantly, further enhancing our fan experience here at the ballpark.

This multiyear capital improvement process uses a proprietary ROI evaluation process to ensure successful implementation which drives both a better fan experience and, in most cases, more revenue to our top line. We have a truly unique fan experience on and off the field, and we continue to be grateful for the support we received from our fan base as well as our many corporate partners.

Our park operates as much more than just the baseball field and including events already booked in the fourth quarter, we expect to host over 150 separate events this year with in Truist Park. These events include conferences, corporate seminars, client entertainment and company celebrations, among others. Some use the field and some use our variety of premium and expanded facilities to create memorable events.

In addition to the park itself, we held over 195 events in the battery through the end of September, including movies on the lawn, concerts at the Roxy, Yoga mornings, 5Ks, farmer markets and more. We believe that our unique business model remains the gold standard across professional franchises, and we have seen countless organizations attempt to replicate what we have built here. This was on full display in this year's successful Major League Baseball All-Star week, where thousands of fans and industry executives from across the globe were able to see our entire project in action, many for the first time.

This campus is not only home to thousands of employees, but work in the approximately 1.7 million square feet of office space we operate but a destination for millions of visitors who grace the battery each year, which continues to grow.

And with that, I will now turn the call over to Mike, who will provide an update on this growth and the developments within our extending and strong real estate portfolio.

Thank you, Derek. As you all know, the Battery Atlanta were conceived to not just be a destination for Braves games, but year on lifestyle, entertainment and commercial campus built to complement and derisk the dependence on game day revenue. And now that we are outside of the baseball season, it's becoming more evident just how important this is to our organization.

As Derek mentioned, we have hosted and activated 195 events at the Battery Atlanta, in addition to 81 baseball games through the end of September, including a variety of concerts and common are events. Of this number, Roxy has held 72 concerts this year including 28 concerts in the third quarter alone. The total events hosted at the Roxy are expected to exceed 150 by year-end.

As we head into the fourth quarter, we are looking forward to the battery's presence in the community highlighted by our various holiday events. These events include our tree lighting ceremony as well as our New Year's Eve celebrations, which saw over 33,000 attendees across both events last year. I'm pleased to report that our mixed-use development revenue continues to perform well and represents approximately 11% of the company's total revenue year-to-date.

Notably, in the third quarter of 2025, we saw an impressive 56% increase in mixed-use development revenue compared to the prior year period reaching $27 million driven by the performance of our recent acquisition, Penn Park, strong leasing activity and enhanced tenant engagement. On a go-forward basis, we are now generating more than $100 million annually in revenue from our real estate holdings, an incredible achievement as we grew this from 0, less than only 8 years ago.

One of the most significant moves this year was our strategic acquisition of Pennon Park. This acquisition greatly expanded our office footprint and brought significant leasable square footage to our existing 100% lease battery office space. We continue to receive incredible positive responses from the Penn and Park tenants since taking over the complex earlier this year. with relative minimum capital improvements, we anticipate Penn and Park being 90% leased by year-end, a substantial improvement from the sub-85% occupancy the building was at when we acquired it back in April.

This is a testament to our team and brand as we attract top tenant profiles and companies who wish to partner with us and know the operational expertise we bring to our campus. Our purchase has reinvigorated the market in this area, we have seen the results of this catalyst and our existing tenants who continue to expand and extend as well as new tenants who are looking to work with us for the first time.

Looking ahead, we will continue to focus on improving tenant experience and operational efficiency with amenities such as fitness centers, conference facilities enhanced security and recreational options that make our properties highly attractive. Our ability for tenant improvements allows us to further optimize our footprint.

And as an example of this, we are excited to welcome J. Alexander's, a high-end American cuisine restaurant to the Battery next year, replacing the space of a tenant who was underperforming in their location. Additionally, our ongoing partnership with local and regional stakeholders ensures we maintain strong community ties and continue to position the Battery Atlanta as a premier destination. Elsewhere around our extended campus, the Henry development across from Truist Park is well underway as construction ramps up for the 2 tower complex, which will bring additional apartments, hotel rooms and condos adjacent to the battery to be connected with a newly constructed pedestrian bridge.

In closing, I want to thank our leasing, property management and development teams for their execution this quarter as well as the broader Braves organization for their support. The success of the Battery Atlanta is a testament to the vision of embedding a mixed-use destination adjacent to the stadium, and our Q3 results reflect that strategy bearing fruit.

Our portfolio of high occupancy assets also brings a level of stability and certainty to the far more seasonal nature of baseball and our financials. We remain a beacon in the market and region for continued expansion opportunities, which allows us to be thoughtful about the best future for our campus. I'm proud of what we have done, and I'm excited for all that is to come.

With that, I'll turn the call over to Jill to discuss our financial results in more detail.

Thanks, Mike. Before I begin, I want to remind everyone that a majority of our revenue is seasonal and is aligned to the baseball season. During the third quarter of 2025, we placed 41 home games. Despite on-field performance, we continue to be encouraged with our revenue growth. In the third quarter, total revenue was $312 million, up over 7% from $291 million in the third quarter of 2024.

As a reminder, the company manages its business based on the following reportable segments, baseball and mixed-use development.

Total baseball revenue was $284 million in the third quarter of 2025, up from $273 million in the third quarter of 2024. Baseball net revenue increased to $176 million during the third quarter of 2025 compared to $173 million during the corresponding period in the prior year primarily due to contractual rate increases on seasoned tickets and existing sponsorship contracts as well as new premium seating and sponsorship agreements, offset by attendance-related reductions in concessions revenue.

Broadcasting revenue increased to $79 million in the third quarter of 2025 compared to $71 million during the corresponding period in the prior year. due primarily to the impact of our renegotiated local rights agreement signed at the end of 2024. Next, our mixed-use development revenue was $27 million in the third quarter of 2025 and up over 56% from $17 million in the third quarter of 2024. This was primarily driven by a $9 million increase in rental income, which includes revenue from our Pennant Park acquisition, and new lease commencements, including the Truist Securities building and to a lesser extent, sponsorship and parking revenue.

Adjusted OIBDA was $67 million in the third quarter of 2025 and an increase of over 113% from $31 million in the same period last year. This improvement was due to an increase in both baseball and mixed-use development revenue and a reduction in baseball operating costs partially offset by increases in mixed-use development operating costs and SG&A expenses.

Baseball operating costs decreased primarily due to lower-than-expected Major League player salaries and variable concession and retail expenses. This decrease was partially offset by increases in MLB's revenue sharing plan, expenses for events held at Truth Park and Myer League-related expenses.

Our operating income was $39 million in the third quarter of 2025, up from $6 million in the third quarter of 2024, primarily due to increased revenue. As of September 30, 2025, the company had $115 million of cash and cash equivalents. Nearly all of our cash and cash equivalents are invested in U.S. treasury securities other government securities or government guaranteed funds, AAA-rated money market funds and other highly rated financial and corporate debt instruments. As of September 30, 2025, we have $215 million of untapped liquidity in the form of 2 baseball revolvers, which we believe provides us flexibility for the future.

And with that, operator, let's open the line for questions.

[Operator Instructions]. Our first question today comes from the line of Barton Crockett from Rosenblatt.

Okay. Great. And I guess 1 of the things I was just wanting to drill into a little bit is you mentioned you're doing some work on tickets and ticket pricing. And really, I think there's a little bit of interest from this for a number of quarters. And I was wondering if you could address a couple of things. One is, there's been some reports about some people having to pay much higher season pass prices. I just wonder if you could address just what's going on there?

And just more generally, how should we think about kind of average kind of revenue per ticket trajectory for you guys in the upcoming season in 2026? And how do you guys think about kind of pricing in terms of your leverage and how you think about delivering incremental value relative to incremental pricing and whether kind of Antea performance has any kind of role in that or whether it's more kind of amenities driven?

Hi, barton. It's Derek. Thanks for the question. Yes. So first off, that last part, yes, there is a relationship between team performance and ticketing and attendance. And we saw that a little bit. But I would remind you and everybody that our revenue is relatively stable and predictable. A substantial amount of our revenue is in -- whether it be a full season package or a premium seat, which, in many cases, most cases, is multiyear. So the commitment is longer term. So that's why we can predict what that revenue is going to be over a period of time. As it relates to the seasoned pricing.

We, like all teams are studying what our pricing is each and every year and trying to understand what's the best pricing options than products that we can go into the marketplace with. Many years, we make changes to that. In some cases, we go up a little bit. In some cases, we go down a little bit. One of the important parts for us is that we have packages and offerings that are available at every price point. We're continuing to be proud of that. And so you might see certain packages that are well below $20 and on par would say, going out to a movie or something like that.

And if you're interested in a premium offering, you can certainly pay more than that, but the amenities and the location and other things are going to be different. We are continuing to watch about how the average ticket price looks. And how we compare, contrast with other teams across Major League Baseball or even in our marketplace. And I would still say there's room for growth in that while still protecting some of those lower price points as we talked about.

Okay. But is it reasonable to presume that there's going to be some inflation plus kind of growth in average revenue per ticket in the upcoming season as part of a base plan?

I think if you obviously, you, like others, have watched us and seen what's happened with the event revenues over the course of the past few years, number of years, our goal is going to be to continue to grow that because the cost of running a baseball team. In most cases, it doesn't go down every year. So we're trying to keep up with that and trying to make sure that we again have prices available for everybody.

But I think it's fair to say we're continuing to monitor that. and also looking at how secondary ticketing continues to influence that. I think that's really important when you -- when we get the data from a secondary ticket, we understand not just what we sell it to that, but what the ticket ultimately gets sold at in the marketplace. That informs of what the supply and demand is, if you will, of that. And so what we've continued to see is that the secondary ticketing marketplace is very strong for our tickets has been for the past several years. And that does a really good job of helping us understand what we're capable of ultimately pricing our product at.

Okay. And then just 1 other kind of topic I wanted to ask about, and that is how to think about player salaries. Now that you've completed this season, and we've seen the Dodgers "run baseball" by winning 4 more games with a high kind of player salary. You guys are in a place of kind of maybe able to rethink how you approach the upcoming year. How would you think about kind of positioning player salary spending? I mean, is there any argument for a substantial change in your approach to what it's been historically? Or any thoughts about that as we look at the upcoming year?

Barton, this is Terry McGuirk. Well, I won't comment on the expenses that the Los Angeles Dodgers had. And -- but back to the Braves, we've always professed to try and be a leader in player compensation from a team standpoint. I think I've stated in the past that our goals are to be a top 5 salary team. We're currently a top 10 and haven't been out of that in quite some time out of that range. I think aiming back to the top 5 is a place that I want to get to. I think we're capable of doing that.

This is a very fluid decision-making concept last year, as you've seen from our financials, we were below where we were the previous year. previous year, but I think it's a good aspiration to get back to those goals in the coming year and years. And I think you'll see us quite active in the free agent market and the trade market. As I stated in my remarks, we're a win now team we want to fill in the places where we might have players that need replacing. But the majority of the reason for last year was injuries, as we know and even back into the previous year. So everybody is back at full speed, except Smith Scharmer, who's coming back probably about midyear from Tommy John. So we're very, very optimistic about what the team looks like for next year.

Your next question comes from the line of Stephen Sikes from Citi.

I just wanted to get your general thoughts on skin's appetite to take on some of the local media rights deals, both media rights and just the potential implications this might have for your next renewal cycle?

So the next major national media deal for MLB is in -- is 1129. And I do think that's going to be a major inflection point for the industry and the values created. Between now and then, I think MLB will be in lots of discussions with their teams with the 30 teams about how the best way to structure our offerings into the future. And we certainly know that local games rate incredibly high compared to national games and that a component of that offering in '29 will include local games. And I think that will be very attractive to many like ESPN and to the entire digital streaming universe. And be assured that we're going to spend a lot of time in this rapidly evolving media environment, trying to tailor how we structure our offering to meet that contract term.

And who knows what the media business will look like in 2035. And so it's very hard to say exactly how we'll structure today, but we'll be a lot closer to understanding that in as we lead into 1129 when we have to make that deal. So we're -- it's a fluid set of decisions, and we will be ready to make those good decisions at that time.

And that concludes our question-and-answer session. I will now turn the call back over to management for closing remarks.

Well, on behalf of everybody here at the Atlanta Braves, we appreciate you listening in. Thank you and look forward to seeing you and talking to you next time around.

This concludes today's conference call. Thank you for your participation. You may now disconnect.