Sphere Entertainment (SPHR) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: N/A
• Average Volume (3M): 891.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: 24.54%
• EPS Growth: -119.75%
• Country: US
• Employees: 1,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -2.80
• Shares Outstanding: 28,447,508
• 10 Day Avg. Volume: 708,329
• 30 Day Avg. Volume: 891,090
• PEG Ratio: 0.05
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 1.41
• P/FCF Ratio: -4.67
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $74.00
• Price Target Upside: -17.59% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.4
• Revenue Forecast (FY): $1.19B

• Rating: 66 Neutral
• Price Target: $91.00 ▲(1.35% Upside)

Sphere Entertainment's overall score is driven by strong technical momentum and a strategic corporate appointment, which are offset by valuation concerns and cash flow challenges. The company's solid balance sheet provides a stable foundation, but profitability and cash flow management need improvement to sustain growth.

Positive Factors

Revenue Growth

The impressive revenue growth rate indicates robust demand and successful market penetration, suggesting potential for continued expansion and increased market share.

New Leadership

The appointment of a new financial leader with extensive experience is expected to enhance operational capabilities and strengthen financial management, supporting long-term strategic goals.

Successful Event

The success of major events like The Wizard of Oz demonstrates Sphere's ability to attract large audiences, boosting revenue and reinforcing its position as a leading entertainment venue.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, indicated by negative EBIT margins, may hinder long-term financial health and require strategic cost management improvements.

Cash Flow Issues

Persistent cash flow issues could restrict operational flexibility and investment capacity, necessitating improved cash management strategies to support sustainable growth.

Decreasing Gross Margin

A declining gross margin suggests rising costs or pricing pressures, which could impact profitability unless addressed through strategic cost control measures.

Sphere Entertainment Business Overview & Revenue Model

Company Description

Sphere Entertainment Co. engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre. The company also operates 70 entertainment dining and nightlife venues spanning 20 markets across five continents under the Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia brand names; and creates and operates New England's premier music festival. In addition, it features the Radio City Rockettes, which serves as the star for its Christmas Spectacular at Radio City Music Hall. The company was formerly known as Madison Square Garden Entertainment Corp. and changed its name to Sphere Entertainment Co. in April 2023. Sphere Entertainment Co. was founded in 2006 and is based in New York, New York.

How the Company Makes Money

Sphere Entertainment generates revenue through multiple streams, including ticket sales from live events, venue rentals, and partnerships with artists and corporations for event sponsorships. The company also earns income from merchandise sales during events and through the distribution of content produced in-house or in collaboration with other creators. Significant factors contributing to its earnings include its strategic location in major urban markets, the appeal of its technologically advanced venue, and partnerships with well-known artists and brands that enhance its market visibility and attract larger audiences.

Sphere Entertainment Financial Statement Overview

Summary

Sphere Entertainment shows promising revenue growth but faces challenges in profitability and cash flow management. The balance sheet remains strong with low leverage, providing a stable foundation. However, the company must address its cash flow issues and improve operational efficiency to enhance profitability and sustain growth.

Income Statement

Sphere Entertainment's income statement shows a mixed performance. The TTM data indicates a strong revenue growth rate of 85.1%, suggesting a positive trajectory in sales. However, the company struggles with profitability, as evidenced by a negative EBIT margin of -2.33% and a modest net profit margin of 7.50%. The gross profit margin has decreased from previous years, indicating potential cost management issues.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.08 in the TTM period, indicating low leverage and financial stability. The equity ratio is strong, and the return on equity has improved to 3.68%, showing better utilization of equity. However, the company has experienced fluctuations in equity over the years, which could pose a risk if not managed properly.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. Despite a significant improvement in free cash flow growth, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to profits, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.03B	573.83M	573.83M	647.51M	647.51M
Gross Profit	485.70M	222.57M	231.62M	231.62M	390.24M	384.65M
EBITDA	384.52M	-23.86M	405.62M	405.62M	-16.38M	-18.37M
Net Income	-82.01M	-200.65M	502.77M	502.77M	-156.88M	-148.15M
Balance Sheet
Total Assets	4.20B	4.79B	4.97B	5.52B	5.29B	5.29B
Cash, Cash Equivalents and Short-Term Investments	368.93M	559.76M	131.97M	747.31M	1.52B	1.52B
Total Debt	1.02B	1.52B	1.32B	1.09B	2.01B	2.01B
Total Liabilities	1.89B	2.37B	2.39B	3.36B	2.97B	2.97B
Stockholders Equity	2.31B	2.42B	2.58B	1.96B	2.17B	2.17B
Cash Flow
Free Cash Flow	-44.03M	-309.41M	-309.41M	-905.39M	-615.38M	-514.70M
Operating Cash Flow	-11.88M	-19.66M	-19.66M	153.59M	141.34M	-58.69M
Investing Cash Flow	-43.72M	-45.18M	-45.18M	-653.92M	-804.16M	-123.18M
Financing Cash Flow	-148.99M	209.73M	209.73M	85.54M	-30.39M	592.68M

Sphere Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPHR, the sentiment is Positive. The current price of 89.79 is above the 20-day moving average (MA) of 81.77, above the 50-day MA of 72.79, and above the 200-day MA of 48.19, indicating a bullish trend. The MACD of 4.38 indicates Negative momentum. The RSI at 74.21 is Negative, neither overbought nor oversold. The STOCH value of 83.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPHR.

Sphere Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	76 Outperform	$2.05B	53.38	12.38%	―	9.30%	67.19%
SPHR	66 Neutral	$3.17B	―	-4.46%	―	24.54%	-119.75%
MSGE	64 Neutral	$2.11B	58.54	―	―	0.68%	-80.73%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNK	58 Neutral	$2.94B	24.36	32.60%	1.34%	9.70%	-31.62%
LION	52 Neutral	$2.27B	―	―	―	97.19%	-21.46%
IQ	51 Neutral	$1.96B	―	-2.91%	―	-10.68%	-127.54%

Sphere Entertainment Corporate Events

Sphere Entertainment Appoints New Senior VP and Controller

Sphere Entertainment Co. has appointed Christopher Winters as Senior Vice President, Controller, and Principal Accounting Officer effective November 24, 2025. Winters, who has extensive experience in accounting roles at Madison Square Garden Entertainment Corp. and Madison Square Garden Sports Corp., will bring his expertise to Sphere Entertainment. The appointment includes a comprehensive employment agreement with a base salary, bonus eligibility, and long-term incentive programs, reflecting the company’s commitment to strengthening its financial leadership. This strategic move is expected to enhance Sphere Entertainment’s operational capabilities and market positioning.

Sphere Entertainment Announces Senior VP Resignation

On September 22, 2025, Sphere Entertainment Co. announced the resignation of Gregory Brunner, their Senior Vice President, Controller, and Principal Accounting Officer, effective October 17, 2025. The resignation was not due to any disagreements with the company’s auditors or management. Robert Langer, the Executive Vice President, CFO, and Treasurer, will serve as interim principal accounting officer until a replacement is named.