English soccer heavyweights Manchester United saw their revenue during the second quarter of the 2025-26 financial year fall year-on-year, but still posted a much-improved operating profit for the three-month period of £19.6 million ($26.5 million).
This latter figure comes as a contrast to the profit of £3.1 million generated by the Manchester club during Q2 of 2024-25.
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The significant rise in operating profit can be attributed to an equally significant drop in total operating expenses, year-on-year, during the three months up to December 31. This figure came to £173.9 million, a drop of £22.5 million (11.5%) from the 2024-25 numbers.
United have, over the last 18 months to two years, downsized their workforce headcount significantly. Roughly 450 jobs have been cut, according to multiple media reports, while numerous other costs (including staff perks) have also been eliminated.
This cost-cutting has taken place since petrochemicals billionaire Sir Jim Ratcliffe took a 29% stake in the club in late 2023. Ratcliffe is now in operational control of United's on-pitch operations, and has made increasing profits and reducing expenses one of his top priorities.
Employee benefit expenses came to £75.1 million during Q2, a drop of £7.4 million from the prior year.
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By GlobalDataFor the revenue generated, meanwhile, in Q2 this fell from £198.7 million to £190.3 million year-on-year.
For the specific revenue sectors, there were drops for commercial and matchday income (the club played fewer home games during the three months than between October and December 2024), and a small increase – of 1.1% – for broadcasting revenue.
Adjusted EBITDA (earnings before interest, taxation, depreciation, and amortisation) came to £76 million, up 7.8% year-on-year.
Club debt, however, now stands at almost £1.3 billion in total – the debt has been increasing incrementally for many years, ever since the Glazer family (still the majority shareholders) took over United in 2005. It is one of the main issues which the club's fanbase has with the Glazers, and indeed now with Ratcliffe – who has not visibly been able to reduce it.
Net finance costs in Q2 amounted to £13.9 million, a substantial improvement from prior year costs of £37.6 million.
Q2 on the pitch was a tumultuous time for United's men's team, eventually leading to manager Ruben Amorim being sacked in January. Since then, however, they have consolidated a position of fourth in the Premier League table, which would secure a return to pan-European soccer's lucrative, top-tier UEFA Champions League competition next season.
Omar Berrada, chief executive at Manchester United, has now said: "We are now seeing the positive financial impact of our off-pitch transformation materialise both in our costs and profitability.
"Today’s results demonstrate the underlying strength of our business as we continue to push for the best football results possible for our men’s and women’s teams."
For the 2026 fiscal year as a whole, Manchester United expect to secure total revenue of between £640 million and £660 million, and adjusted EBITDA of between £180 million and £200 million.
Back in late December, United registered an operating profit of £13 million.
