Sphere Entertainment (NYSE:SPHR) Announces Earnings Results

Sphere Entertainment (NYSE:SPHR) released its earnings results on Thursday. The company reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.12) by $1.35, FiscalAI reports. The business had revenue of $394.28 million for the quarter, compared to analyst estimates of $377.60 million. Sphere Entertainment had a negative net margin of 13.87% and a negative return on equity of 17.20%. The business’s revenue was up 27.9% on a year-over-year basis. During the same period last year, the company posted ($3.49) EPS.

Here are the key takeaways from Sphere Entertainment’s conference call:

• The company announced a second U.S. 6,000-seat Sphere at National Harbor, backed by ~ $200 million in state/local/private incentives and targeting opening in four years or less, with Abu Dhabi and multiple other market discussions underway.
• Strong Q4 results with total company revenue of $394.3 million and adjusted operating income of $128 million; Sphere segment revenue rose to $274.2 million (up >60% YoY) and AOI turned positive at $89.4 million.
• The Wizard of Oz continues to perform well—~2.2 million tickets sold and ~$290 million in ticket sales—with a planned Wizard of Oz 2.0 release and a new Sphere Experience (“From the Edge”) expected later this year, plus active IP discussions.
• MSG Networks showed pressure with revenues down to $120.1 million and AOI of $38.6 million, reflecting an ~14.5% subscriber decline, lower affiliate rates, and amended media-rights agreements.
• Balance-sheet and liquidity strengthened for Sphere: net debt of ~ $56 million offset by ~$477 million of unrestricted cash, refinancing of the Las Vegas facility with an improved rate and maturity extended to January 2031, and a new undrawn $275 million revolver for corporate purposes.

Sphere Entertainment Trading Up 23.0%

Shares of SPHR traded up $21.77 during trading on Thursday, reaching $116.57. 1,725,391 shares of the company traded hands, compared to its average volume of 755,433. The stock has a 50-day simple moving average of $93.01 and a 200-day simple moving average of $71.14. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.36. Sphere Entertainment has a twelve month low of $23.89 and a twelve month high of $117.06. The stock has a market cap of $4.12 billion, a PE ratio of -22.42 and a beta of 1.68.

Key Sphere Entertainment News

Here are the key news stories impacting Sphere Entertainment this week:

• Positive Sentiment: Q4 earnings beat: Sphere reported $1.23 EPS vs. consensus -$0.12 and revenue of $394.3M vs. estimates ~ $377.6M; revenue was up ~28% year-over-year — this drove the immediate rally. Zacks: Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Strong operating momentum from live shows — company and media reports point to continued success of the “Wizard of Oz” residency, supporting ticket and F&B revenue at Sphere venues. MSN: Sphere shares surge on Q4 results
• Positive Sentiment: Growth/expansion update: Sphere announced intent to develop a second U.S. Sphere venue (smaller-scale design) with Maryland/Prince George’s County partners — a meaningful capacity and pipeline signal. BusinessWire: Q4 and Full-Year Results / new venue
• Neutral Sentiment: Management commentary and the full earnings transcript are available for details on guidance, cost trends and cash flow — useful for investors who want to parse sustainability of margins and cap-ex for new venues. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Negative Sentiment: Profitability remains uneven: despite the quarter’s upside, Sphere reported a negative net margin and negative return on equity last year — the business is not consistently cash-positive and remains sensitive to show performance and venue ramp costs. MarketBeat: Q4 results summary
• Negative Sentiment: Analyst outlook: some consensus models still forecast negative annual EPS for the year, suggesting analysts expect uneven results beyond this quarter — risks remain if show demand or new-venue economics disappoint. Yahoo Finance: Q4 Sales Beat Estimates

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on SPHR shares. Seaport Research Partners raised Sphere Entertainment from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 8th. Craig Hallum reiterated a “buy” rating and set a $100.00 price target on shares of Sphere Entertainment in a report on Thursday, December 18th. New Street Research set a $110.00 price objective on shares of Sphere Entertainment in a report on Thursday, January 15th. Wolfe Research restated an “outperform” rating and set a $105.00 price objective on shares of Sphere Entertainment in a research report on Monday, December 15th. Finally, JPMorgan Chase & Co. increased their price target on shares of Sphere Entertainment from $91.00 to $110.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Eight research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $94.38.

Institutional Trading of Sphere Entertainment

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. First Trust Advisors LP grew its stake in shares of Sphere Entertainment by 1.6% in the second quarter. First Trust Advisors LP now owns 20,610 shares of the company’s stock valued at $861,000 after buying an additional 315 shares in the last quarter. Advisory Services Network LLC raised its stake in shares of Sphere Entertainment by 5.9% in the third quarter. Advisory Services Network LLC now owns 7,858 shares of the company’s stock valued at $488,000 after acquiring an additional 440 shares in the last quarter. US Bancorp DE boosted its stake in shares of Sphere Entertainment by 44.2% in the 3rd quarter. US Bancorp DE now owns 2,057 shares of the company’s stock valued at $128,000 after buying an additional 631 shares during the period. Swiss National Bank lifted its stake in Sphere Entertainment by 1.4% in the third quarter. Swiss National Bank now owns 50,859 shares of the company’s stock worth $3,159,000 after acquiring an additional 700 shares during the last quarter. Finally, NewEdge Advisors LLC raised its stake in Sphere Entertainment by 576.6% in the third quarter. NewEdge Advisors LLC now owns 927 shares of the company’s stock valued at $58,000 after buying an additional 790 shares in the last quarter. Hedge funds and other institutional investors own 92.03% of the company’s stock.

About Sphere Entertainment

Sphere Entertainment Co (NYSE: SPHR) is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world.

At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems.