Atlanta Braves Holdings, Inc. Q1 FY2026 earnings call

• On-Field Performance

  • The Atlanta Braves hold first place in the National League East as of early May 2026, with one of the league's best records, while several key impact players are still recovering from early-season injuries
  • The team led the National League in ERA in April, led all MLB in runs scored, ranked third in home runs, and posted a +66 run differential tied for the best mark in the majors
  • MLB's new rules (pitch clock, automated ball-strike challenge system) have enhanced competitiveness and improved fan experience, particularly for younger demographics, and the league is seeing strong momentum and global growth from initiatives like the MLB World Tour and World Baseball Classic

• Braves Vision Launch

  • The team launched its own direct-to-consumer and linear broadcast network, Braves Vision, in only 3 months (vs. the typical 12-18 month industry timeline), with the goal of matching or exceeding the annual economic returns of the prior RSN agreement
  • The network is organized into 5 core units: production, distribution, advertising sales, programming, and direct-to-consumer streaming; it leverages existing partnerships with Gray Media and Raycom to minimize upfront investment
  • Distribution: linear deals are in place with all major distributors in the Braves territory, over-the-air game coverage increased from 15 to 25 games per season, and the direct-to-consumer product has already attracted a strong subscriber base with positive fan feedback for its seamless experience

• Off-Field & Real Estate Operations

  • Through the first 18 home games of 2026, the team averages ~33,000 tickets sold per game with 7 sellouts, and the new dynamic ticketing strategy is working to maximize revenue
  • The Battery Atlanta welcomed nearly 1.4 million visitors in Q1 2026, hosts a growing lineup of non-baseball events (including a recent 3-game sellout series with the Savannah Bananas, upcoming concerts, and the Braves Country Fest), and continues to see strong demand for commercial and office space, with 5 new/extended leases signed for nearly 50,000 square feet of new tenant space and 75,000 square feet currently under redevelopment
  • Two new premium dining options are being added to The Battery: J. Alexander's, which has already opened, and Hundredfold, a new upscale American brasserie slated to open in fall 2026
  • The Braves and The Battery generated over $41 million in total tax revenue for Cobb County and the state of Georgia in 2025, and the 10-year anniversary of the move to Cobb County is approaching with a strengthened partnership with local government

Atlanta Braves Holdings operates two reportable business segments. For Q1 2026: 1. Baseball segment: Generated $45.7 million in revenue, up from $28.6 million in Q1 2025. This accounted for 63.5% of total company revenue in the quarter. The revenue increase was driven by 5 regular season home games held in Q1 2026, compared to zero home games in the same period a year prior; this gain was partially offset by the absence of two Savannah Bananas games hosted in Q1 2025 that did not recur in 2026. 2. Mixed-use development (The Battery Atlanta) segment: Generated $26.3 million in revenue, up from $18.6 million in Q1 2025. This accounted for 36.5% of total company revenue in the quarter. Revenue growth was primarily driven by increased rental income from the in-place leases associated with the Pennant Park acquisition. Total company revenue for Q1 2026 was $72 million, up from $47.2 million in Q1 2025.

• Management expects Braves Vision to meet or exceed the annual economic returns generated under the prior RSN agreement, though cash flow timing will differ from the previous predictable equal monthly license fee structure: distribution revenue will be received more slowly, advertising revenue will be paid monthly after ads air, and direct-to-consumer revenue will also be collected monthly
• Management expects capital spending on large ballpark master planning projects to decline going forward after several years of major investment, which will lead to a less negative (and potentially positive) free cash flow trajectory
• Full financial performance details and operating metrics for Braves Vision will be shared with investors when the company reports Q2 2026 earnings, as Q1 only includes a very limited portion of the full 162-game season
• The company maintains $265 million of available borrowing capacity across its two revolving credit facilities, providing sufficient financial flexibility for future investments, and does not plan to increase leverage on its core baseball and stadium assets

• All forward-looking statements (particularly related to Braves Vision performance) are subject to risks and uncertainties that could cause actual results to differ materially from expectations, as outlined in the company's SEC filings
• The MLB collective bargaining agreement expires on December 1, 2026, creating uncertainty around future labor negotiations and potential work stoppage
• Braves Vision is a newly launched business, and results are still too early to report full metrics, creating near-term uncertainty around its long-term revenue and cost trajectory

Q: What are the key differences between this year's Braves Vision programming and last year's RSN offering, and how large were the incremental capital investments required to launch the new network? / A: The core priority for Braves Vision is delivering games plus standard pregame and postgame coverage, matching what fans want most, with planned incremental programming expansion that management will approach selectively to control costs. Upfront capital investment was relatively minimal, as the team leveraged existing production and distribution partnerships with Raycom and Gray Media to launch the network quickly. Management confirms that even with incremental costs, Braves Vision is on track to meet or exceed the prior RSN agreement's annual economics, and the launch gives the team full control and strategic optionality over its broadcast rights going forward.

Q: Why has Cox not been named as a Braves Vision distributor, and how does current TV reach compare to the prior RSN's footprint? Could the distributor lineup change over time? / A: All major distributors in the Braves' large TV territory are carrying Braves Vision, including Cox. Cox has partnered with Charter in a combined operation, which led to the confusion around its absence from public distributor announcements. The network model matches the prior linear distribution approach, with an expanded over-the-air game offering (15 to 25 games) and the addition of a direct-to-consumer streaming option, maintaining the same broad reach the team had previously.

Q: Can you share any general context on the size of the Braves Vision streaming audience relative to linear, and how it compares to last year's streaming numbers under the prior RSN? / A: It is difficult to draw direct comparisons because the prior RSN controlled streaming subscriber data last year, so the Braves did not have full visibility into those metrics. Management notes that the direct-to-consumer product is built on MLB's best-in-class MLB.tv infrastructure, and fans have responded very positively to the offering. Management is working on processes to properly report audience split metrics and will share that information when it is available in future earnings reports.

Q: How does the company balance the need for continued business investment against rising net debt and persistent negative free cash flow in recent years? What should investors expect for future free cash flow? / A: The majority of the net debt increase over the past few years is tied to the acquisition of revenue-generating real estate assets (Pennant Park and 5 Ballpark Center), and core baseball-related debt is already stable with no plans to increase leverage on that side of the business. The company has $265 million in available revolving credit capacity, providing plenty of flexibility for future investment. Most large, high-return ballpark master planning capital projects are now complete, so capital spending will decline going forward, leading to a less negative (and potentially positive) free cash flow trajectory.