Sphere Entertainment (NYSE: SPHR) posts Q2 2026 loss as Sphere segment grows
Rhea-AI Filing Summary
Sphere Entertainment Co. reported second-quarter 2026 results for the period ended June 30, 2026. Revenues were $313.6 million, an increase of $31.0 million, or 11%, from the prior-year quarter. The company recorded an operating loss of $61.3 million, 22% higher year over year, and adjusted operating income of $50.9 million, down 17%.
The Sphere segment generated Q2 revenues of $226.4 million, up 29%, with adjusted operating income of $39.9 million, up 60%, while MSG Networks revenues declined to $87.3 million. Net loss attributable to stockholders was $38.8 million, or $(1.07) per diluted share, compared with net income of $151.8 million, or $3.39 per diluted share, a year earlier.
For the first six months of 2026, revenues totaled $700.1 million and adjusted operating income $160.9 million. Net cash provided by operating activities was $102.6 million, compared with net cash used of $52.7 million in the prior-year period. The company ended June 30, 2026 with $552.0 million in cash, cash equivalents and restricted cash.
Positive
- Sphere segment Q2 revenue rose 29% to $226.4 million and adjusted operating income grew 60% to $39.9 million, indicating strong performance in the core Sphere venue business.
Negative
- The company reported a Q2 net loss attributable to stockholders of $38.8 million, or $(1.07) per diluted share, versus net income of $151.8 million, or $3.39 per diluted share, in the prior-year quarter.
Filing Explained
Sphere Abu Dhabi has a selected site and expected end-2029 completion, while Sphere’s Formula 1 partnership now runs through 2030.
A Form 8-K reports specified material events, and this July 30 filing furnishes Sphere Entertainment’s second-quarter results under Item 2.02, with the release included as Exhibit 99.1.
The filing states that this Item 2.02 information is furnished rather than treated as filed for Section 18 purposes or incorporated by reference into other filings.
The company reports that Yas Island was selected as the location for Sphere Abu Dhabi, with construction expected to be completed by the end of
Separately, the company and Formula 1 announced a new five-year agreement extending their partnership through
Additional venues remain at discussion or planning stages: the company says it is discussing other markets, while plans for National Harbor continue to move forward. The key follow-up is whether National Harbor advances beyond that planning description.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenues: $313.6 million
Sphere Segment Q2 2026 Revenues: $226.4 million
Q2 2026 Operating Loss: $61.3 million
+5 more
8 metrics
Q2 2026 Revenues
$313.6 million
Three months ended June 30, 2026; up 11% versus prior-year quarter
Sphere Segment Q2 2026 Revenues
$226.4 million
Sphere segment revenues for the three months ended June 30, 2026; up 29%
Q2 2026 Operating Loss
$61.3 million
Total operating loss for the three months ended June 30, 2026; 22% higher year over year
Q2 2026 Adjusted Operating Income
$50.9 million
Total adjusted operating income for the three months ended June 30, 2026; down 17% year over year
Six-Month 2026 Net Cash from Operating Activities
$102,583 (in thousands)
Net cash provided by operating activities for the six months ended June 30, 2026
Cash and Restricted Cash
$552,019 (in thousands)
Cash, cash equivalents, and restricted cash as of June 30, 2026
Total Assets
$4,035,968 (in thousands)
Total assets on the balance sheet as of June 30, 2026
Long-Term Debt, Net
$722,142 (in thousands)
Long-term debt, net, excluding current portion, as of June 30, 2026
Key Terms
adjusted operating income, gain on extinguishment of debt, restructuring charges, share-based compensation, +1 more
5 terms
adjusted operating income financial
"Total Adjusted Operating Income | | $ | 50.9 | | | $ | 61.5 |"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
gain on extinguishment of debt financial
"Gain (loss) on extinguishment of debt | | — | | | 346,092 |"
restructuring charges financial
"Restructuring charges | | 323 | | | 947 |"
Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.
deferred revenue financial
"Deferred revenue | | 158,443 | | | 192,808 |"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
Earnings Snapshot
Q2 2026 Revenues: $313.6 million
Three and six months ended June 30, 2026
Q2 2026 Revenues
$313.6 million
$31.0 million increase, or 11%, compared to the prior-year quarter
Q2 2026 Operating Loss
$61.3 million
$11.1 million increase, or 22%, compared to the prior-year quarter
Q2 2026 Adjusted Operating Income
$50.9 million
$10.5 million decrease, or 17%, compared to the prior-year quarter
Six-Month 2026 Revenues
$700.1 million
$136.8 million increase, or 24%, compared to the prior-year period
Six-Month 2026 Adjusted Operating Income
$160.9 million
$63.5 million increase, or 65%, compared to the prior-year period
Six-Month Net (Loss) Income Attributable to Stockholders
$(40.4) million
compared to net income of $69.9 million in the prior-year period
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Sphere Entertainment (SPHR) Q2 2026 revenues and year-over-year growth?
Sphere Entertainment reported Q2 2026 revenues of $313.6 million, an increase of $31.0 million, or 11%, versus the prior-year quarter. Growth was driven primarily by the Sphere segment, which posted a 29% revenue increase to $226.4 million.
Did Sphere Entertainment (SPHR) post a profit or loss in Q2 2026?
Sphere Entertainment recorded a net loss attributable to stockholders of $38.8 million in Q2 2026. This compares with net income of $151.8 million in the prior-year quarter, with diluted earnings per share moving from $3.39 to $(1.07).
How did the Sphere segment perform for SPHR in the second quarter of 2026?
The Sphere segment generated Q2 2026 revenues of $226.4 million, up 29% year over year, and adjusted operating income of $39.9 million, up 60%. This contrasts with MSG Networks, where quarterly revenues declined to $87.3 million and adjusted operating income fell to $11.0 million.
What were Sphere Entertainment’s (SPHR) cash and debt levels as of June 30, 2026?
As of June 30, 2026, Sphere Entertainment held $552.0 million in cash, cash equivalents and restricted cash. Long-term debt, net, was $722.1 million, with an additional $58.3 million classified as current portion of long-term debt on the balance sheet.
How did SPHR’s operating cash flow change in the first half of 2026?
For the six months ended June 30, 2026, net cash provided by operating activities was $102.6 million. This represents an improvement from the prior-year period, when operating activities used $52.7 million in cash, contributing to an increase in the company’s cash balance.
What is adjusted operating income for Sphere Entertainment (SPHR) and how did it trend?
Adjusted operating income removes items such as share-based compensation, depreciation and amortization, restructuring charges and certain other costs. It was $50.9 million in Q2 2026, down 17% year over year, but reached $160.9 million for the six-month period, up 65%.
How did MSG Networks perform within Sphere Entertainment (SPHR) in Q2 2026?
MSG Networks posted Q2 2026 revenues of $87.3 million, down from $107.1 million a year earlier. Segment operating income declined to $8.3 million, and adjusted operating income decreased to $11.0 million, reflecting weaker performance relative to the Sphere segment.
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): July 30, 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 July 30, 2026, Sphere Entertainment Co. (the “Company”) announced its financial results for its second quarter ended June 30, 2026. 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 July 30, 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: July 30, 2026
3
Exhibit 99.1
SPHERE ENTERTAINMENT CO. REPORTS
SECOND QUARTER 2026 RESULTS
NEW YORK, N.Y., July 30, 2026 - Sphere Entertainment Co. (NYSE: SPHR) (“Sphere Entertainment” or the “Company”) today reported financial results for the second quarter ended June 30, 2026.
Recent highlights for the Company’s Sphere segment include:
•In May, the Company announced with the Department of Culture and Tourism – Abu Dhabi that Yas Island has been selected as the location for Sphere Abu Dhabi, with construction expected to be completed by the end of 2029;
•The Company remains in discussions with a significant number of markets globally regarding additional large and smaller-scale Sphere venues, while plans to bring Sphere to National Harbor also continue to move forward;
•The Company announced the production of a new Sphere Experience – The Rocky Horror Picture Show at Sphere – based on the 1975 film, which is expected to open in 2027;
•In mid-June, The Wizard of Oz at Sphere, the Sphere Experience that opened in Las Vegas on August 28, 2025, surpassed $400 million in ticket sales with over three million total tickets sold;
•In July, the Company and Formula 1 Las Vegas Grand Prix announced a new five-year agreement, extending their partnership through 2030.
For the three months ended June 30, 2026, the Company reported revenues of $313.6 million, an increase of $31.0 million, or 11%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $61.3 million, an increase of $11.1 million, or 22%, and adjusted operating income of $50.9 million, a decrease of $10.5 million, or 17%, both as compared to the prior year quarter.(1)
Executive Chairman and CEO James L. Dolan said, “Today’s results reflect our continued execution in Las Vegas, as we remain on track to deliver substantial growth this calendar year. We are also advancing our long-term vision for a global network of Sphere venues, including in Abu Dhabi and National Harbor.”
Segment Results for the Three and Six Months Ended June 30, 2026 and 2025:
| (In millions) | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, | Change | June 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphere | $ | 226.4 | $ | 175.6 | $ | 50.8 | 29 | % | $ | 492.3 | $ | 333.1 | $ | 159.2 | 48 | % | ||||||||||||||||||||||||||||||||||
| MSG Networks | 87.3 | 107.1 | (19.8) | (18) | % | 207.7 | 230.1 | (22.4) | (10) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Revenues | $ | 313.6 | $ | 282.7 | $ | 31.0 | 11 | % | $ | 700.1 | $ | 563.3 | $ | 136.8 | 24 | % | ||||||||||||||||||||||||||||||||||
| Operating (Loss) Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Sphere | $ | (69.6) | $ | (83.4) | $ | 13.9 | 17 | % | $ | (94.5) | $ | (177.2) | $ | 82.8 | 47 | % | ||||||||||||||||||||||||||||||||||
MSG Networks | 8.3 | 33.3 | (25.0) | (75) | % | 40.4 | 48.4 | (8.0) | (17) | % | ||||||||||||||||||||||||||||||||||||||||
| Total Operating Loss | $ | (61.3) | $ | (50.2) | $ | (11.1) | (22) | % | $ | (54.1) | $ | (128.8) | $ | 74.7 | 58 | % | ||||||||||||||||||||||||||||||||||
Adjusted Operating Income:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sphere | $ | 39.9 | $ | 24.9 | $ | 15.0 | 60 | % | $ | 114.2 | $ | 38.1 | $ | 76.1 | 200 | % | ||||||||||||||||||||||||||||||||||
MSG Networks | 11.0 | 36.5 | (25.5) | (70) | % | 46.7 | 59.3 | (12.6) | (21) | % | ||||||||||||||||||||||||||||||||||||||||
Total Adjusted Operating Income | $ | 50.9 | $ | 61.5 | $ | (10.5) | (17) | % | $ | 160.9 | $ | 97.4 | $ | 63.5 | 65 | % | ||||||||||||||||||||||||||||||||||
Note: Does not foot due to rounding.
(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 June 30, 2026, the Sphere segment reported revenues of $226.4 million, an increase of $50.8 million, or 29%, as compared to the prior year quarter.
Revenues related to The Sphere Experience increased $53.8 million as compared to the prior year quarter, which primarily reflected higher per-show revenue for The Wizard of Oz at Sphere. In the current year quarter, The Sphere Experience reflected 220 performances of The Wizard of Oz at Sphere as compared to 215 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 $10.5 million as compared to the prior year quarter due to higher Exosphere advertising revenues and, to a lesser extent, higher sponsorship revenues and suite license fee revenues.
Event-related revenues decreased $11.7 million as compared to the prior year quarter, primarily due to two fewer brand events held in the current year quarter, partially offset by higher revenues from concerts. The increase in revenues from concerts reflected the impact of six additional concert residency shows held at Sphere in Las Vegas during the current year quarter, offset by lower per-concert revenue due to the mix of concerts as compared to the prior year quarter.
For the three months ended June 30, 2026, the Sphere segment had direct operating expenses of $87.7 million, an increase of $11.4 million, or 15%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $19.7 million as compared to the prior year quarter, primarily due to higher per-show expenses for The Wizard of Oz at Sphere. This increase was partially offset by a decrease in event-related expenses of $4.1 million as compared to the prior year quarter, primarily due to (i) two fewer brand events held in the current year quarter, partially offset by (ii) higher expenses from concerts, due to an increase in the number of concert residency shows held at Sphere in Las Vegas, partially offset by lower per-concert expenses.
For the three months ended June 30, 2026, selling, general and administrative expenses of $125.6 million increased $29.2 million, or 30%, as compared to the prior year quarter, primarily due to (i) the impact of mark-to-market adjustments on certain share-based compensation awards as a result of the appreciation in the Company’s stock price during the current year quarter, (ii) higher employee compensation and related benefits, (iii) higher professional fees, primarily due to an increase in litigation-related expenses associated with the merger of a subsidiary of the Company with MSG Networks Inc., partially offset by the absence of costs associated with pursuing a work-out of MSG Networks’ credit facilities in the prior year quarter.
For the three months ended June 30, 2026, operating loss of $69.6 million improved by $13.9 million, or 17%, as compared to the prior year quarter, primarily due to the increase in revenues and, to a lesser extent, the absence of impairment and other losses, net, partially offset by higher selling, general and administrative expenses and direct operating expenses. Adjusted operating income of $39.9 million increased $15.0 million, or 60%, as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by higher selling, general and administrative expenses and direct operating expenses.
MSG Networks
For the three months ended June 30, 2026, the MSG Networks segment reported total revenues of $87.3 million, a decrease of $19.8 million, or 18%, as compared to the prior year quarter.
Distribution revenue decreased $13.7 million, primarily reflecting a decrease in total subscribers of approximately 16.5%.
Advertising revenue decreased $6.0 million as compared to the prior year quarter, primarily due to fewer live postseason professional sports telecasts.
For the three months ended June 30, 2026, direct operating expenses of $63.3 million increased $8.4 million, or 15%, as compared to the prior year quarter. Rights fees expense increased $9.2 million as compared to the prior year quarter, primarily reflecting (i) retroactive reductions in media rights fees for the 2024-25 NBA and NHL seasons recorded in the prior year quarter as a result of the amendments to MSG Networks’ media rights agreements with certain professional sports teams, partially offset by (ii) reductions resulting from fewer NBA and NHL games made available to MSG Networks for exclusive broadcast in the current year quarter. This increase was partially offset by other cost decreases.
For the three months ended June 30, 2026, selling, general and administrative expenses of $13.6 million decreased $3.0 million, or 18%, as compared to the prior year quarter. This decrease was primarily due to (i) lower employee compensation and related benefits of $1.9 million and (ii) lower advertising and marketing costs of $1.2 million.
For the three months ended June 30, 2026, operating income of $8.3 million decreased $25.0 million and adjusted operating income of $11.0 million decreased $25.5 million, both as compared to the prior year quarter, primarily due to the decrease in revenues and higher direct operating expenses, partially offset by lower selling, general and administrative expenses.
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 plans also announced for Sphere venues in Abu Dhabi and National Harbor. 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 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 (212) 465-6072 | ||
| Grace Kaminer Investor Relations (212) 631-5076 | ||
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 833-461-5787 / Conference ID Number 777582186
Webcast replay available at investor.sphereentertainmentco.com
3
SPHERE ENTERTAINMENT CO.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Revenues | $ | 313,639 | $ | 282,677 | $ | 700,051 | $ | 563,251 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Direct operating expenses | 151,063 | 131,318 | 320,710 | 289,641 | ||||||||||||||||||||||
| Selling, general, and administrative expenses | 139,207 | 113,023 | 260,910 | 227,292 | ||||||||||||||||||||||
| Depreciation and amortization | 84,308 | 83,907 | 168,675 | 168,136 | ||||||||||||||||||||||
| Impairment and other losses, net | — | 3,641 | 79 | 4,162 | ||||||||||||||||||||||
| Restructuring charges | 323 | 947 | 3,737 | 2,788 | ||||||||||||||||||||||
| Operating loss | (61,262) | (50,159) | (54,060) | (128,768) | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
| Gain (loss) on extinguishment of debt | — | 346,092 | (2,071) | 346,092 | ||||||||||||||||||||||
| Interest income | 4,786 | 4,084 | 8,737 | 7,962 | ||||||||||||||||||||||
| Interest expense | (8,273) | (25,862) | (16,312) | (52,068) | ||||||||||||||||||||||
| Other expense, net | (504) | (400) | (1,928) | (1,740) | ||||||||||||||||||||||
| (Loss) income from continuing operations before income taxes | (65,253) | 273,755 | (65,634) | 171,478 | ||||||||||||||||||||||
| Income tax benefit (expense) | 26,926 | (121,939) | 31,767 | (101,616) | ||||||||||||||||||||||
| Net (loss) income | (38,327) | 151,816 | (33,867) | 69,862 | ||||||||||||||||||||||
Less: Net income attributable to participating securities | 461 | — | 6,514 | — | ||||||||||||||||||||||
| Net (loss) income attributable to Sphere Entertainment Co.’s stockholders | $ | (38,788) | $ | 151,816 | $ | (40,381) | $ | 69,862 | ||||||||||||||||||
| Basic (loss) income per common share attributable to Sphere Entertainment Co.’s stockholders | $ | (1.07) | $ | 4.18 | $ | (1.12) | $ | 1.93 | ||||||||||||||||||
| Diluted (loss) income per common share attributable to Sphere Entertainment Co.’s stockholders | $ | (1.07) | $ | 3.39 | $ | (1.12) | $ | 1.56 | ||||||||||||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 36,150 | 36,283 | 36,015 | 36,196 | ||||||||||||||||||||||
| Diluted | 36,150 | 44,848 | 36,015 | 44,865 | ||||||||||||||||||||||
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 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 certain executives and employees.
•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 | Six Months Ended | |||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| Operating loss | $ | (61,262) | $ | (50,159) | $ | (54,060) | $ | (128,768) | ||||||||||||||||||
| Share-based compensation | 17,722 | 18,850 | 31,632 | 40,445 | ||||||||||||||||||||||
| Depreciation and amortization | 84,308 | 83,907 | 168,675 | 168,136 | ||||||||||||||||||||||
| Restructuring charges | 323 | 947 | 3,737 | 2,788 | ||||||||||||||||||||||
| Impairment and other losses, net | — | 3,641 | 79 | 4,162 | ||||||||||||||||||||||
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 8,206 | 2,482 | 8,293 | 7,273 | ||||||||||||||||||||||
| Amortization for capitalized cloud computing arrangement costs | 1,399 | 1,579 | 2,316 | 3,158 | ||||||||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 228 | 219 | 228 | 240 | ||||||||||||||||||||||
| Adjusted operating income | $ | 50,924 | $ | 61,466 | $ | 160,900 | $ | 97,434 | ||||||||||||||||||
5
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS
(In thousands)
(Unaudited)
BUSINESS SEGMENT RESULTS
| Three Months Ended June 30, 2026 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 226,353 | $ | 87,286 | $ | 313,639 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
| Direct operating expenses | 87,730 | 63,333 | 151,063 | |||||||||||||||||
| Selling, general and administrative expenses | 125,590 | 13,617 | 139,207 | |||||||||||||||||
| Depreciation and amortization | 82,286 | 2,022 | 84,308 | |||||||||||||||||
| Restructuring charges | 323 | — | 323 | |||||||||||||||||
| Operating (loss) income | $ | (69,576) | $ | 8,314 | $ | (61,262) | ||||||||||||||
| Reconciliation to adjusted operating income: | ||||||||||||||||||||
| Share-based compensation | 17,043 | 679 | 17,722 | |||||||||||||||||
| Depreciation and amortization | 82,286 | 2,022 | 84,308 | |||||||||||||||||
| Restructuring charges | 323 | — | 323 | |||||||||||||||||
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 8,206 | — | 8,206 | |||||||||||||||||
| Amortization for capitalized cloud computing arrangement costs | 1,399 | — | 1,399 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 228 | — | 228 | |||||||||||||||||
| Adjusted operating income | $ | 39,909 | $ | 11,015 | $ | 50,924 | ||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 175,587 | $ | 107,090 | $ | 282,677 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
| Direct operating expenses | 76,351 | 54,967 | 131,318 | |||||||||||||||||
| Selling, general and administrative expenses | 96,389 | 16,634 | 113,023 | |||||||||||||||||
| Depreciation and amortization | 81,707 | 2,200 | 83,907 | |||||||||||||||||
| Impairment and other losses, net | 3,641 | — | 3,641 | |||||||||||||||||
| Restructuring charges | 947 | — | 947 | |||||||||||||||||
| Operating (loss) income | $ | (83,448) | $ | 33,289 | $ | (50,159) | ||||||||||||||
| Reconciliation to adjusted operating income: | ||||||||||||||||||||
| Share-based compensation | 17,953 | 897 | 18,850 | |||||||||||||||||
| Depreciation and amortization | 81,707 | 2,200 | 83,907 | |||||||||||||||||
| Restructuring charges | 947 | — | 947 | |||||||||||||||||
| Impairment and other losses, net | 3,641 | — | 3,641 | |||||||||||||||||
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 2,351 | 131 | 2,482 | |||||||||||||||||
| Amortization for capitalized cloud computing arrangement costs | 1,579 | — | 1,579 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 219 | — | 219 | |||||||||||||||||
| Adjusted operating income | $ | 24,949 | $ | 36,517 | $ | 61,466 | ||||||||||||||
6
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS
(In thousands)
(Unaudited)
BUSINESS SEGMENT RESULTS
| Six Months Ended June 30, 2026 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 492,318 | $ | 207,733 | $ | 700,051 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
| Direct operating expenses | 186,956 | 133,754 | 320,710 | |||||||||||||||||
| Selling, general and administrative expenses | 232,186 | 28,724 | 260,910 | |||||||||||||||||
| Depreciation and amortization | 164,560 | 4,115 | 168,675 | |||||||||||||||||
| Impairment and other losses, net | 79 | — | 79 | |||||||||||||||||
| Restructuring charges | 2,996 | 741 | 3,737 | |||||||||||||||||
| Operating (loss) income | $ | (94,459) | $ | 40,399 | $ | (54,060) | ||||||||||||||
| Reconciliation to adjusted operating income: | ||||||||||||||||||||
| Share-based compensation | 30,186 | 1,446 | 31,632 | |||||||||||||||||
| Depreciation and amortization | 164,560 | 4,115 | 168,675 | |||||||||||||||||
| Restructuring charges | 2,996 | 741 | 3,737 | |||||||||||||||||
| Impairment and other losses, net | 79 | — | 79 | |||||||||||||||||
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 8,293 | — | 8,293 | |||||||||||||||||
| Amortization for capitalized cloud computing arrangement costs | 2,316 | — | 2,316 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 228 | — | 228 | |||||||||||||||||
| Adjusted operating income | $ | 114,199 | $ | 46,701 | $ | 160,900 | ||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| Sphere | MSG Networks | Total | ||||||||||||||||||
| Revenues | $ | 333,132 | $ | 230,119 | $ | 563,251 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
| Direct operating expenses | 146,887 | 142,754 | 289,641 | |||||||||||||||||
| Selling, general and administrative expenses | 192,793 | 34,499 | 227,292 | |||||||||||||||||
| Depreciation and amortization | 163,712 | 4,424 | 168,136 | |||||||||||||||||
| Impairment and other losses, net | 4,162 | — | 4,162 | |||||||||||||||||
| Restructuring charges | 2,788 | — | 2,788 | |||||||||||||||||
| Operating (loss) income | $ | (177,210) | $ | 48,442 | $ | (128,768) | ||||||||||||||
| Reconciliation to adjusted operating income: | ||||||||||||||||||||
| Share-based compensation | 37,907 | 2,538 | 40,445 | |||||||||||||||||
| Depreciation and amortization | 163,712 | 4,424 | 168,136 | |||||||||||||||||
| Restructuring charges | 2,788 | — | 2,788 | |||||||||||||||||
| Impairment and other losses, net | 4,162 | — | 4,162 | |||||||||||||||||
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries | 3,339 | 3,934 | 7,273 | |||||||||||||||||
| Amortization for capitalized cloud computing arrangement costs | 3,158 | — | 3,158 | |||||||||||||||||
| Remeasurement of deferred compensation plan liabilities | 240 | — | 240 | |||||||||||||||||
| Adjusted operating income | $ | 38,096 | $ | 59,338 | $ | 97,434 | ||||||||||||||
7
SPHERE ENTERTAINMENT CO.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
| As of | ||||||||||||||
| June 30, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| ASSETS | ||||||||||||||
| Current Assets: | ||||||||||||||
| Cash, cash equivalents, and restricted cash | $ | 552,019 | $ | 521,264 | ||||||||||
| Accounts receivable, net | 152,316 | 171,630 | ||||||||||||
| Related party receivables, current | 12,802 | 24,457 | ||||||||||||
| Prepaid expenses and other current assets | 66,906 | 92,824 | ||||||||||||
| Total current assets | 784,043 | 810,175 | ||||||||||||
| Non-Current Assets: | ||||||||||||||
| Investments | 37,309 | 38,725 | ||||||||||||
| Property and equipment, net | 2,550,078 | 2,710,643 | ||||||||||||
| Right-of-use lease assets | 96,500 | 91,372 | ||||||||||||
| Goodwill | 344,772 | 344,772 | ||||||||||||
| Intangible assets, net | 18,506 | 21,817 | ||||||||||||
| Other non-current assets | 204,760 | 192,404 | ||||||||||||
| Total assets | $ | 4,035,968 | $ | 4,209,908 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts payable | $ | 13,880 | $ | 24,593 | ||||||||||
| Accrued expenses and other current liabilities | 391,507 | 431,477 | ||||||||||||
| Related party payables, current | 4,234 | 14,301 | ||||||||||||
| Current portion of long-term debt, net | 58,263 | 63,009 | ||||||||||||
| Operating lease liabilities, current | 14,085 | 17,186 | ||||||||||||
| Deferred revenue | 158,443 | 192,808 | ||||||||||||
| Total current liabilities | 640,412 | 743,374 | ||||||||||||
| Non-Current Liabilities: | ||||||||||||||
| Long-term debt, net | 722,142 | 767,439 | ||||||||||||
| Operating lease liabilities, non-current | 118,816 | 113,824 | ||||||||||||
| Deferred tax liabilities, net | 135,198 | 172,111 | ||||||||||||
| Other non-current liabilities | 191,542 | 179,921 | ||||||||||||
| Total liabilities | 1,808,110 | 1,976,669 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Equity: | ||||||||||||||
Class A Common Stock (a) | 301 | 297 | ||||||||||||
Class B Common Stock (b) | 69 | 69 | ||||||||||||
| Additional paid-in capital | 2,499,315 | 2,470,120 | ||||||||||||
Treasury stock, at cost, 1,054 shares as of June 30, 2026 and December 31, 2025, respectively | (50,024) | (50,024) | ||||||||||||
| Accumulated deficit | (220,308) | (186,441) | ||||||||||||
| Accumulated other comprehensive loss | (1,495) | (782) | ||||||||||||
| Total stockholders’ equity | 2,227,858 | 2,233,239 | ||||||||||||
| Total liabilities and equity | $ | 4,035,968 | $ | 4,209,908 | ||||||||||
_________________
(a) Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 29,046 and 28,629 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively.
(b) Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued and outstanding as of June 30, 2026 and December 31, 2025.
8
SPHERE ENTERTAINMENT CO.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
| Six Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash provided by (used in) operating activities | $ | 102,583 | $ | (52,711) | ||||||||||
| Net cash (used in) provided by investing activities | (19,627) | 16,441 | ||||||||||||
| Net cash used in financing activities | (52,128) | (111,059) | ||||||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (73) | 623 | ||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 30,755 | (146,706) | ||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 521,264 | 515,633 | ||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 552,019 | $ | 368,927 | ||||||||||
9