Sphere Entertainment (NYSE: SPHR) accelerates 2025 results with Sphere growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sphere Entertainment Co. reported sharply improved results for the fourth quarter and full year 2025. Fourth-quarter revenue was $394.3 million, up 28% year over year, with net income attributable to stockholders of $57.6 million versus a prior-year loss. Full-year revenue reached $1,220.0 million, up 8%, while the operating loss narrowed to $229.6 million from $372.3 million. Adjusted operating income rose to $128.0 million in Q4 and $261.8 million for the year, an increase of 138%.
The Sphere segment drove growth, with Q4 revenue of $274.2 million, up 62%, and full-year revenue of $781.4 million, up 27%, though it still posted an operating loss. MSG Networks revenue declined. Cash provided by operating activities jumped to $243.3 million from $69.4 million. Management highlighted progress expanding the Sphere concept, including a planned smaller-scale venue at National Harbor, strong ticket sales for The Wizard of Oz at Sphere, repeat CES keynote usage, and new multi-year sponsorships.
Positive
- Major improvement in profitability: Full-year income from continuing operations of $33.4 million versus a $349.7 million loss, and adjusted operating income up 138% to $261.8 million.
- Strong Sphere segment growth and cash generation: Sphere revenue grew 27% to $781.4 million, Q4 Sphere revenue rose 62%, and operating cash flow increased to $243.3 million from $69.4 million.
Negative
- None.
Insights
Sphere shows a strong 2025 turnaround led by Sphere segment growth and higher cash flow.
Sphere Entertainment delivered a notable swing in performance in 2025. Revenue rose to
The Sphere segment was the main growth engine, with Q4 revenue of
Cash generation improved meaningfully: net cash provided by operating activities rose to
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 | ||
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 12, 2026
(Exact Name of Registrant as Specified in Charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (725 ) 258-0001
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425). | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)). | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)). | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 12, 2026, Sphere Entertainment Co. (the “Company”) announced its financial results for its fourth quarter and year ended December 31, 2025. A copy of the press release containing the announcement is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
1
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated February 12, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SPHERE ENTERTAINMENT CO. | ||
(Registrant) | ||
| By: /s/ Robert H. Langer | ||
| Name: Robert H. Langer | ||
Title: Executive Vice President, Chief Financial Officer and Treasurer | ||
Dated: February 12, 2026
3
Exhibit 99.1
SPHERE ENTERTAINMENT CO. REPORTS
FOURTH QUARTER AND FULL YEAR 2025 RESULTS
NEW YORK, N.Y., February 12, 2026 - Sphere Entertainment Co. (NYSE: SPHR) (“Sphere Entertainment” or the “Company”) today reported financial results for the fourth quarter and full-year ended December 31, 2025.
Recent highlights for the Company’s Sphere segment include:
•In January, the Company announced with the State of Maryland, Prince George’s County, and Peterson Companies the intent to develop a new Sphere venue – which would be the second in the U.S. and first to utilize a smaller-scale design model – at National Harbor, a premier destination in the Washington, D.C. metropolitan area;
•The Wizard of Oz at Sphere, the Sphere Experience that opened in Las Vegas on August 28, 2025, surpassed two million tickets sold in mid-January;
•Lenovo held its Tech World event at Sphere during the Consumer Electronics Show (“CES”) in January, marking the venue’s second consecutive year as a CES keynote destination; and
•The Company announced multi-year sponsorship and advertising partnerships, including with Anheuser-Busch and Delta Air Lines, and debuted the first live interactive game experience on the Exosphere, in collaboration with the LEGO Group and Lucasfilm’s Star Wars.
For the three months ended December 31, 2025, the Company reported revenues of $394.3 million, an increase of $86.0 million, or 28%, as compared to the prior year quarter. In addition, the Company reported operating income of $28.9 million, an increase of $171.9 million, and adjusted operating income of $128.0 million, an increase of $95.2 million, both as compared to the prior year quarter.(1)
For the twelve months ended December 31, 2025, the Company reported revenues of $1,220.0 million, an increase of $89.1 million, or 8%, as compared to the prior year period. In addition, the Company reported an operating loss of $229.6 million, an improvement of $142.8 million, or 38%, and adjusted operating income of $261.8 million, an increase of $152.0 million, or 138%, both as compared to the prior year period.(1)
Executive Chairman and CEO James L. Dolan said, “Today’s results serve as continued validation of the business model behind Sphere. As we begin 2026, we remain focused on expanding Sphere’s global footprint, including advancing our plans to bring Sphere to Abu Dhabi and National Harbor, and believe the Company is well-positioned for long-term growth.”
Segment Results for the Three and Twelve Months Ended December 31, 2025 and 2024:
| (In millions) | Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, | Change | December 31, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphere | $ | 274.2 | $ | 169.0 | $ | 105.2 | 62 | % | $ | 781.4 | $ | 617.7 | $ | 163.7 | 27 | % | ||||||||||||||||||||||||||||||||||
| MSG Networks | 120.1 | 139.3 | (19.2) | (14) | % | 438.6 | 513.3 | (74.6) | (15) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | $ | 394.3 | $ | 308.3 | $ | 86.0 | 28 | % | $ | 1,220.0 | $ | 1,130.9 | $ | 89.1 | 8 | % | ||||||||||||||||||||||||||||||||||
| Operating Income (Loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphere | $ | (6.5) | $ | (107.9) | $ | 101.4 | 94 | % | $ | (268.2) | $ | (421.0) | $ | 152.9 | 36 | % | ||||||||||||||||||||||||||||||||||
| MSG Networks | 35.4 | (35.0) | 70.5 | NM | 38.6 | 48.7 | (10.1) | (21) | % | |||||||||||||||||||||||||||||||||||||||||
| Total Operating Income (Loss) | $ | 28.9 | $ | (142.9) | $ | 171.9 | NM | $ | (229.6) | $ | (372.3) | $ | 142.8 | 38 | % | |||||||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss):(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphere | $ | 89.4 | $ | (0.8) | $ | 90.2 | NM | $ | 144.6 | $ | (19.7) | $ | 164.2 | NM | ||||||||||||||||||||||||||||||||||||
| MSG Networks | 38.6 | 33.7 | 5.0 | 15 | % | 117.3 | 129.5 | (12.2) | (9) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Adjusted Operating Income | $ | 128.0 | $ | 32.9 | $ | 95.2 | NM | $ | 261.8 | $ | 109.8 | $ | 152.0 | 138 | % | |||||||||||||||||||||||||||||||||||
(1)See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.
1
Sphere
For the three months ended December 31, 2025, the Sphere segment reported revenues of $274.2 million, an increase of $105.2 million, or 62%, as compared to the prior year quarter.
Revenues related to The Sphere Experience increased $108.5 million as compared to the prior year quarter, which reflected higher per-show revenue due to the impact of The Wizard of Oz at Sphere and, to a lesser extent, an increase in the number of overall performances. In the current year quarter, The Sphere Experience included 245 performances of The Wizard of Oz at Sphere as compared to 190 performances of Postcard from Earth and V-U2 An Immersive Concert Film in the prior year quarter.
Revenues from sponsorship, Exosphere advertising and suite license fees increased $4.2 million as compared to the prior year quarter, reflecting an increase in Exosphere advertising and sponsorship revenues, as well as higher suite license fee revenues.
Other revenues decreased $4.4 million as compared to the prior year quarter.
Event-related revenues decreased $3.1 million as compared to the prior year quarter, primarily due to the absence of one brand event (formerly referred to as corporate events) held in the prior year quarter. This decrease was partially offset by two additional concert residency shows held at Sphere as compared to the prior year quarter and, to a lesser extent, higher per-concert revenue as compared to the prior year quarter.
For the three months ended December 31, 2025, the Sphere segment had direct operating expenses of $92.6 million, an increase of $20.0 million, or 27%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $21.9 million as compared to the prior year quarter due to higher per-show expenses for The Wizard of Oz at Sphere and an increase in the number of overall performances. This was partially offset by other cost decreases.
For the three months ended December 31, 2025, selling, general and administrative expenses of $104.1 million decreased $14.9 million, or 13%, as compared to the prior year quarter, primarily due to lower employee compensation and related benefits of $14.4 million, including the impact of executive management transition costs of $4.2 million recorded in the current year quarter as compared to executive management transition costs of $8.3 million recorded in the prior year quarter.
For the three months ended December 31, 2025, operating loss of $6.5 million improved by $101.4 million and adjusted operating income of $89.4 million increased by $90.2 million, both as compared to the prior year quarter, primarily due to the increase in revenues and, to a lesser extent, lower selling, general and administrative expenses, partially offset by higher direct operating expenses.
MSG Networks
For the three months ended December 31, 2025, the MSG Networks segment reported total revenues of $120.1 million, a decrease of $19.2 million, or 14%, as compared to the prior year quarter.
Distribution revenue decreased $19.7 million, primarily due to a decrease in total subscribers of approximately 14.5% and the impact of lower affiliation rates in the current year quarter.
For the three months ended December 31, 2025, direct operating expenses of $70.7 million decreased $23.8 million, or 25%, as compared to the prior year quarter. Rights fees expense decreased $19.5 million as compared to the prior year quarter, primarily reflecting reductions in media rights fees as a result of the amendments to MSG Networks’ media rights agreements with certain professional sports teams and other rights fees decreases. Other programming and production costs decreased $4.3 million as compared to the prior year quarter, primarily due to lower costs related to MSG+ as well as other cost decreases.
For the three months ended December 31, 2025, selling, general and administrative expenses of $10.8 million decreased $5.5 million, or 33%, as compared to the prior year quarter. This decrease was primarily due to (i) lower employee compensation and related benefits of $3.2 million and (ii) lower professional fees of $3.2 million, mainly due to the absence of costs associated with pursuing a work-out of MSG Networks’ credit facilities with its syndicate of lenders recorded in the prior year quarter, partially offset by higher advertising and marketing costs of $1.0 million.
In addition, results for the three months ended December 31, 2025 had no impairment and other losses, net, as compared to a non-cash goodwill impairment charge of $61.2 million in the prior year quarter.
For the three months ended December 31, 2025, operating income of $35.4 million increased by $70.5 million from an operating loss of $35.0 million in the prior year quarter, primarily due to the absence of impairment and other losses, net, recorded in the prior year quarter, lower direct operating expenses and, to a lesser extent, lower selling, general and administrative expenses, partially offset by the decrease in revenues. Adjusted operating income of $38.6 million increased $5.0 million, or 15%, as compared to the prior year quarter, primarily due to lower direct operating expenses, partially offset by the decrease in revenues.
2
About Sphere Entertainment Co.
Sphere Entertainment Co. is a leader in immersive experiences, technology and media. The Company includes Sphere, an experiential medium powered by advanced technologies. The first Sphere opened in Las Vegas, with a second venue planned for Abu Dhabi. In addition, the Company includes MSG Networks, which operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as a direct-to-consumer and authenticated streaming product, MSG+, delivering a wide range of live sports content and other programming. More information is available at www.sphereentertainmentco.com.
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger, debt work-out and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (viii) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, debt work-out and acquisition-related costs, including merger related litigation expenses, net of insurance recoveries, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in other income (expense), net, which is not reflected in operating income (loss).
We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this earnings release.
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
# # #
Contacts:
| Ari Danes, CFA Investor Relations and Financial Communications (212) 465-6072 | |||||
| Grace Kaminer Investor Relations (212) 631-5076 | |||||
| Sarah Rothschild Investor Relations (212) 631-5345 | |||||
Conference Call Information:
The conference call will be Webcast live today at 10:00 a.m. ET at investor.sphereentertainmentco.com
Conference call dial-in number is 888-800-3155 / Conference ID Number 8089430
Conference call replay number is 800-770-2030 / Conference ID Number 8089430 until February 19, 2026
3
SPHERE ENTERTAINMENT CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Revenues | $ | 394,283 | $ | 308,290 | $ | 1,220,045 | $ | 1,130,928 | ||||||||||||||||||
| Direct operating expenses | (163,354) | (167,175) | (589,979) | (610,430) | ||||||||||||||||||||||
| Selling, general and administrative expenses | (114,934) | (135,286) | (441,918) | (484,452) | ||||||||||||||||||||||
| Depreciation and amortization | (84,173) | (83,319) | (336,411) | (327,436) | ||||||||||||||||||||||
| Impairment and other losses, net | (162) | (61,200) | (69,781) | (70,968) | ||||||||||||||||||||||
| Restructuring charges | (2,739) | (4,251) | (11,520) | (9,972) | ||||||||||||||||||||||
| Operating income (loss) | 28,921 | (142,941) | (229,564) | (372,330) | ||||||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | — | 346,092 | — | ||||||||||||||||||||||
| Interest income | 2,799 | 4,374 | 13,498 | 26,796 | ||||||||||||||||||||||
| Interest expense | (9,079) | (30,414) | (70,546) | (111,428) | ||||||||||||||||||||||
| Other (expense) income, net | (197) | 651 | (2,265) | (5,913) | ||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 22,444 | (168,330) | 57,215 | (462,875) | ||||||||||||||||||||||
| Income tax benefit (expense) | 42,295 | 42,380 | (23,810) | 113,185 | ||||||||||||||||||||||
| Income (loss) from continuing operations | 64,739 | (125,950) | 33,405 | (349,690) | ||||||||||||||||||||||
| Income from discontinued operations, net of taxes | — | — | — | 24,631 | ||||||||||||||||||||||
| Less: Net income attributable to participating securities | 7,092 | — | — | — | ||||||||||||||||||||||
| Net income (loss) attributable to Sphere Entertainment Co.’s stockholders | $ | 57,647 | $ | (125,950) | $ | 33,405 | $ | (325,059) | ||||||||||||||||||
| Basic income (loss) per common share | ||||||||||||||||||||||||||
| Continuing operations | $ | 1.62 | $ | (3.49) | $ | 0.93 | $ | (9.77) | ||||||||||||||||||
| Discontinued operations | — | — | — | 0.69 | ||||||||||||||||||||||
| Basic income (loss) per common share attributable to Sphere Entertainment Co.’s stockholders | $ | 1.62 | $ | (3.49) | $ | 0.93 | $ | (9.09) | ||||||||||||||||||
| Diluted income (loss) per common share | ||||||||||||||||||||||||||
| Continuing operations | $ | 1.23 | $ | (3.49) | $ | 0.74 | $ | (9.77) | ||||||||||||||||||
| Discontinued operations | — | — | — | 0.69 | ||||||||||||||||||||||
| Diluted income (loss) per common share attributable to Sphere Entertainment Co.’s stockholders | $ | 1.23 | $ | (3.49) | $ | 0.74 | $ | (9.09) | ||||||||||||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 35,687 | 36,054 | 36,069 | 35,775 | ||||||||||||||||||||||
| Diluted | 46,859 | 36,054 | 45,298 | 35,775 | ||||||||||||||||||||||
4
SPHERE ENTERTAINMENT CO.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(In thousands)
(Unaudited)
The following is a description of the adjustments to operating income (loss) in arriving at adjusted operating income as described in this earnings release:
•Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted under the Sphere Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by Sphere Entertainment, and Sphere Entertainment Non-Employee Director Plan.
•Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets.
•Restructuring charges. This adjustment eliminates costs related to termination benefits provided to employees as part of the Company's full-time workforce reductions.
•Impairment and other losses (gains), net. This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses.
•Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries. This adjustment eliminates costs related to mergers, debt work-outs and acquisitions, including litigation expenses.
•Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs.
•Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan.
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| Operating income (loss) | $ | 28,921 | $ | (142,941) | $ | (229,564) | $ | (372,330) | ||||||||||||||||||
| Share-based compensation | 10,027 | 17,827 | 59,005 | 63,439 | ||||||||||||||||||||||
| Depreciation and amortization | 84,173 | 83,319 | 336,411 | 327,436 | ||||||||||||||||||||||
| Restructuring charges | 2,739 | 4,251 | 11,520 | 9,972 | ||||||||||||||||||||||
| Impairment and other losses, net | 162 | 61,200 | 69,781 | 70,968 | ||||||||||||||||||||||
| Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 358 | 7,557 | 7,888 | 8,322 | ||||||||||||||||||||||
| Amortization for capitalized cloud computing costs | 1,579 | 1,709 | 6,316 | 1,774 | ||||||||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 67 | (66) | 467 | 259 | ||||||||||||||||||||||
Adjusted operating income | $ | 128,026 | $ | 32,856 | $ | 261,824 | $ | 109,840 | ||||||||||||||||||
5
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS
(In thousands)
(Unaudited)
BUSINESS SEGMENT RESULTS
| Three Months Ended December 31, 2025 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 274,190 | $ | 120,093 | $ | 394,283 | ||||||||||||||
| Direct operating expenses | (92,645) | (70,709) | (163,354) | |||||||||||||||||
| Selling, general and administrative expenses | (104,104) | (10,830) | (114,934) | |||||||||||||||||
| Depreciation and amortization | (82,061) | (2,112) | (84,173) | |||||||||||||||||
| Impairment and other losses, net | (162) | — | (162) | |||||||||||||||||
| Restructuring charges | (1,731) | (1,008) | (2,739) | |||||||||||||||||
| Operating (loss) income | $ | (6,513) | $ | 35,434 | $ | 28,921 | ||||||||||||||
| Reconciliation to adjusted operating income: | ||||||||||||||||||||
| Share-based compensation | 9,956 | 71 | 10,027 | |||||||||||||||||
| Depreciation and amortization | 82,061 | 2,112 | 84,173 | |||||||||||||||||
| Restructuring charges | 1,731 | 1,008 | 2,739 | |||||||||||||||||
| Impairment and other losses, net | 162 | — | 162 | |||||||||||||||||
| Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 358 | — | 358 | |||||||||||||||||
| Amortization for capitalized cloud computing costs | 1,579 | — | 1,579 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 67 | — | 67 | |||||||||||||||||
| Adjusted operating income | $ | 89,401 | $ | 38,625 | $ | 128,026 | ||||||||||||||
| Three Months Ended December 31, 2024 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 169,020 | $ | 139,270 | $ | 308,290 | ||||||||||||||
| Direct operating expenses | (72,665) | (94,510) | (167,175) | |||||||||||||||||
| Selling, general and administrative expenses | (119,003) | (16,283) | (135,286) | |||||||||||||||||
| Depreciation and amortization | (81,002) | (2,317) | (83,319) | |||||||||||||||||
| Impairment and other losses, net | — | (61,200) | (61,200) | |||||||||||||||||
| Restructuring charges | (4,251) | — | (4,251) | |||||||||||||||||
| Operating loss | $ | (107,901) | $ | (35,040) | $ | (142,941) | ||||||||||||||
| Reconciliation to adjusted operating (loss) income: | ||||||||||||||||||||
| Share-based compensation | 16,183 | 1,644 | 17,827 | |||||||||||||||||
| Depreciation and amortization | 81,002 | 2,317 | 83,319 | |||||||||||||||||
| Restructuring charges | 4,251 | — | 4,251 | |||||||||||||||||
| Impairment and other losses, net | — | 61,200 | 61,200 | |||||||||||||||||
| Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 4,151 | 3,406 | 7,557 | |||||||||||||||||
| Amortization for capitalized cloud computing costs | 1,579 | 130 | 1,709 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | (66) | — | (66) | |||||||||||||||||
| Adjusted operating (loss) income | $ | (801) | $ | 33,657 | $ | 32,856 | ||||||||||||||
6
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS (Continued)
(In thousands)
(Unaudited)
| Twelve Months Ended December 31, 2025 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 781,412 | $ | 438,633 | $ | 1,220,045 | ||||||||||||||
| Direct operating expenses | (318,265) | (271,714) | (589,979) | |||||||||||||||||
| Selling, general and administrative expenses | (389,594) | (52,324) | (441,918) | |||||||||||||||||
| Depreciation and amortization | (327,769) | (8,642) | (336,411) | |||||||||||||||||
| Impairment and other losses, net | (4,381) | (65,400) | (69,781) | |||||||||||||||||
| Restructuring charges | (9,560) | (1,960) | (11,520) | |||||||||||||||||
| Operating (loss) income | $ | (268,157) | $ | 38,593 | $ | (229,564) | ||||||||||||||
| Reconciliation to adjusted operating income: | ||||||||||||||||||||
| Share-based compensation | 60,272 | (1,267) | 59,005 | |||||||||||||||||
| Depreciation and amortization | 327,769 | 8,642 | 336,411 | |||||||||||||||||
| Restructuring charges | 9,560 | 1,960 | 11,520 | |||||||||||||||||
| Impairment and other losses, net | 4,381 | 65,400 | 69,781 | |||||||||||||||||
| Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 3,954 | 3,934 | 7,888 | |||||||||||||||||
| Amortization for capitalized cloud computing costs | 6,316 | — | 6,316 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 467 | — | 467 | |||||||||||||||||
| Adjusted operating income | $ | 144,562 | $ | 117,262 | $ | 261,824 | ||||||||||||||
| Twelve Months Ended December 31, 2024 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 617,673 | $ | 513,255 | $ | 1,130,928 | ||||||||||||||
| Direct operating expenses | (265,278) | (345,152) | (610,430) | |||||||||||||||||
| Selling, general and administrative expenses | (435,038) | (49,414) | (484,452) | |||||||||||||||||
| Depreciation and amortization | (318,667) | (8,769) | (327,436) | |||||||||||||||||
| Impairment and other losses, net | (9,768) | (61,200) | (70,968) | |||||||||||||||||
| Restructuring charges | (9,932) | (40) | (9,972) | |||||||||||||||||
| Operating (loss) income | $ | (421,010) | $ | 48,680 | $ | (372,330) | ||||||||||||||
| Reconciliation to adjusted operating (loss) income: | ||||||||||||||||||||
| Share-based compensation | 54,973 | 8,466 | 63,439 | |||||||||||||||||
| Depreciation and amortization | 318,667 | 8,769 | 327,436 | |||||||||||||||||
| Restructuring charges | 9,932 | 40 | 9,972 | |||||||||||||||||
| Impairment and other losses, net | 9,768 | 61,200 | 70,968 | |||||||||||||||||
| Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 6,169 | 2,153 | 8,322 | |||||||||||||||||
| Amortization for capitalized cloud computing costs | 1,579 | 195 | 1,774 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 259 | — | 259 | |||||||||||||||||
| Adjusted operating (loss) income | $ | (19,663) | $ | 129,503 | $ | 109,840 | ||||||||||||||
7
SPHERE ENTERTAINMENT CO.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| ASSETS | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 521,264 | $ | 515,633 | ||||||||||
| Accounts receivable, net | 171,630 | 154,624 | ||||||||||||
| Related party receivables, current | 24,457 | 25,729 | ||||||||||||
| Prepaid expenses and other current assets | 92,824 | 65,007 | ||||||||||||
| Total current assets | 810,175 | 760,993 | ||||||||||||
| Non-Current Assets: | ||||||||||||||
| Investments | 38,725 | 40,396 | ||||||||||||
| Property and equipment, net | 2,710,643 | 3,035,730 | ||||||||||||
| Right-of-use lease assets | 91,372 | 93,920 | ||||||||||||
| Goodwill | 344,772 | 410,172 | ||||||||||||
| Intangible assets, net | 21,817 | 28,383 | ||||||||||||
| Other non-current assets | 192,404 | 145,706 | ||||||||||||
| Total assets | $ | 4,209,908 | $ | 4,515,300 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $ | 24,593 | $ | 33,606 | ||||||||||
| Accrued expenses and other current liabilities | 431,477 | 388,370 | ||||||||||||
| Related party payables, current | 14,301 | 9,504 | ||||||||||||
| Current portion of long-term debt, net | 63,009 | 829,125 | ||||||||||||
| Operating lease liabilities, current | 17,186 | 19,268 | ||||||||||||
| Deferred revenue | 192,808 | 91,794 | ||||||||||||
| Total current liabilities | 743,374 | 1,371,667 | ||||||||||||
| Non-Current Liabilities: | ||||||||||||||
| Long-term debt, net | 767,439 | 524,010 | ||||||||||||
| Operating lease liabilities, non-current | 113,824 | 116,668 | ||||||||||||
| Deferred tax liabilities, net | 172,111 | 148,870 | ||||||||||||
| Other non-current liabilities | 179,921 | 152,666 | ||||||||||||
| Total liabilities | 1,976,669 | 2,313,881 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Equity: | ||||||||||||||
Class A Common Stock (a) | 297 | 290 | ||||||||||||
Class B Common Stock (b) | 69 | 69 | ||||||||||||
| Additional paid-in capital | 2,470,120 | 2,428,414 | ||||||||||||
Treasury stock, at cost, 1,054 and 0 shares as of December 31, 2025 and 2024 | (50,024) | — | ||||||||||||
| Accumulated deficit | (186,441) | (219,846) | ||||||||||||
| Accumulated other comprehensive loss | (782) | (7,508) | ||||||||||||
| Total stockholders’ equity | 2,233,239 | 2,201,419 | ||||||||||||
| Total liabilities and equity | $ | 4,209,908 | $ | 4,515,300 | ||||||||||
_________________
(a) Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 28,629 and 28,960 shares outstanding as of December 31, 2025 and 2024, respectively.
(b) Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares outstanding as of December 31, 2025 and 2024.
8
SPHERE ENTERTAINMENT CO.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
| Twelve Months Ended | ||||||||||||||
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Net cash provided by operating activities | $ | 243,346 | $ | 69,407 | ||||||||||
Net cash used in investing activities | (3,901) | (106,312) | ||||||||||||
| Net cash used in financing activities | (233,345) | (74,168) | ||||||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (469) | (1,121) | ||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 5,631 | (112,194) | ||||||||||||
| Cash, cash equivalents and restricted cash beginning of period | 515,633 | 627,827 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 521,264 | $ | 515,633 | ||||||||||
9
FAQ
How did Sphere Entertainment Co. (SPHR) perform financially in Q4 2025?
Sphere Entertainment reported strong Q4 2025 results, with revenue of $394.3 million, up 28% year over year. Net income attributable to stockholders was $57.6 million, compared with a loss in the prior-year quarter, and adjusted operating income rose to $128.0 million.
What were Sphere Entertainment Co. (SPHR)’s full-year 2025 results?
For 2025, Sphere Entertainment generated $1,220.0 million in revenue, up 8% from 2024. The operating loss improved to $229.6 million, while adjusted operating income increased to $261.8 million, up 138%, and income from continuing operations reached $33.4 million.
How did the Sphere segment perform for Sphere Entertainment Co. (SPHR) in 2025?
The Sphere segment delivered rapid growth. Q4 2025 revenue was $274.2 million, up 62% year over year, and full-year 2025 revenue reached $781.4 million, up 27%. Despite this, the segment recorded a full-year operating loss of $268.2 million.
What happened to MSG Networks’ results within Sphere Entertainment Co. (SPHR)?
MSG Networks saw declines in 2025. Segment revenue fell to $438.6 million from $513.3 million, a 15% decrease, and operating income declined to $38.6 million from $48.7 million. Adjusted operating income also slipped to $117.3 million from $129.5 million.
How did Sphere Entertainment Co. (SPHR)’s cash flow change in 2025?
Sphere Entertainment’s cash generation improved significantly. Net cash provided by operating activities rose to $243.3 million in 2025 from $69.4 million in 2024. Year-end cash, cash equivalents and restricted cash increased slightly to $521.3 million from $515.6 million.
What strategic initiatives did Sphere Entertainment Co. (SPHR) highlight for the Sphere segment?
Sphere Entertainment highlighted several initiatives: plans to develop a smaller-scale Sphere venue at National Harbor, progress on bringing Sphere to Abu Dhabi, strong ticket sales for The Wizard of Oz at Sphere, repeat CES keynote hosting, and new multi-year sponsorships with brands like Anheuser-Busch and Delta Air Lines.
Filing Exhibits & Attachments
4 documents
Sphere Entertainment Co
NYSE:SPHR
SPHR Rankings
SPHR Latest News
SPHR Latest SEC Filings
Feb 12, 2026
[10-K] Sphere Entertainment Co. Files Annual Report
SPHR Stock Data
3.35B
26.63M
5.77%
129.41%
20.76%
Entertainment
Services-amusement & Recreation Services
United States
NEW YORK