The traditional party held after the Mardi Gras parade has been cancelled as organisers fight to secure its financial future.
The Mardi Gras' chief executive flagged rising production and infrastructure costs made running the party financially irresponsible this year, labelling the decision "heartbreaking".
But Jesse Matheson said the event, which cost around $2 million to put on, would be back for 2027.
"We were again faced with the same choice as last year: push ahead with an event we did not believe met the standards of our community, or pause, reassess and plan for the future," he said.
"As CEO, I could not continue to sell expensive tickets to an event I did not believe offered value for our community, honoured the Mardi Gras Party’s legacy, or protected the organisation’s financial future."
Heading into its 48th edition from February 13 to March 1, the Sydney Gay and Lesbian Mardi Gras remains one of the world’s most iconic LGBTQI festivals.
The Mardi Gras parade will return to Oxford and Flinders streets and the Taylor Square viewing area will be supersized to ensure as many people as possible can watch the festivities.
But the party at its culmination, which has previously featured stars such as Kylie Minogue, Dua Lipa and Cher, could not be financially justified by the organisation.
Mr Matheson said the party had run at a deficit every year since 2020.
"This decision was not taken lightly ... facing an existential threat to the future of Mardi Gras, and with new sponsorship uncertain, it was absolutely the right decision," he said.
"At times, it has cost more to deliver than the Parade and Fair Day, while also being our most expensive ticketed event for the community ... it has always been a significant undertaking."
Mr Matheson said Mardi Gras was exploring a "small-scale" celebration for the end of the parade, with a decision to be reached by the end of the week.
