Sphere Entertainment (SPHR) AI Stock Analysis

• Market Cap: $2.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• 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: 1,213,044
• 30 Day Avg. Volume: 1,041,107
• PEG Ratio: 0.00
• 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: $72.43
• Price Target Upside: -6.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $77.00 ▼(-1.03% Downside)

Sphere Entertainment's stock score is primarily driven by its strong technical momentum, despite overbought signals. Financial performance shows robust revenue growth but is hampered by profitability and cash flow issues. The valuation is weak due to a negative P/E ratio and lack of dividends, which weighs down the overall score.

Positive Factors

Revenue Growth

The strong revenue growth rate of 85.1% indicates Sphere Entertainment's successful market expansion and product adoption, which is crucial for long-term business sustainability and competitiveness.

Low Leverage

A low debt-to-equity ratio signifies financial stability, providing Sphere Entertainment with the flexibility to invest in growth opportunities without the burden of high-interest obligations.

Innovative Offerings

Innovative offerings like 'The Wizard of Oz at Sphere' demonstrate Sphere Entertainment's ability to captivate audiences, enhancing its competitive edge and supporting long-term growth.

Negative Factors

Profitability Challenges

Negative EBIT margin indicates ongoing profitability challenges, which could hinder Sphere Entertainment's ability to reinvest in growth and improve shareholder value over time.

Cash Flow Issues

Negative cash flows suggest difficulties in managing operational liquidity, potentially limiting Sphere Entertainment's capacity to fund new projects and meet financial obligations.

Decreasing Gross Profit Margin

A decreasing gross profit margin points to rising costs or pricing pressures, which could erode profitability and affect Sphere Entertainment's competitive positioning if not addressed.

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 for live events, venue rentals, and partnerships with corporations for branded experiences. The company also earns income from media production, where it creates and distributes content across various platforms. Strategic partnerships with technology firms enhance its offerings and broaden its audience reach, contributing significantly to its revenue. Additionally, the company benefits from sponsorship deals and advertising revenues associated with its events and media productions.

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	1.10B	1.03B	1.03B	573.83M	610.05M	647.51M
Gross Profit	419.62M	222.57M	479.06M	231.62M	289.78M	384.65M
EBITDA	323.18M	-23.86M	-23.86M	405.62M	-16.38M	-18.37M
Net Income	-161.37M	-200.65M	-200.65M	502.77M	-194.40M	-148.15M
Balance Sheet
Total Assets	4.20B	4.79B	4.79B	4.97B	5.52B	5.29B
Cash, Cash Equivalents and Short-Term Investments	368.93M	559.76M	559.76M	131.97M	747.31M	1.52B
Total Debt	1.02B	1.52B	1.52B	1.32B	1.09B	2.01B
Total Liabilities	1.89B	2.37B	2.37B	2.39B	3.36B	2.97B
Stockholders Equity	2.31B	2.42B	2.42B	2.58B	1.96B	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: 77.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 77.8 is above the 20-day moving average (MA) of 72.59, above the 50-day MA of 65.45, and above the 200-day MA of 45.25, indicating a bullish trend. The MACD of 4.10 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 55.80 is Neutral, 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	71 Outperform	$1.96B	50.96	12.38%	―	9.30%	67.19%
CNK	67 Neutral	$3.48B	28.78	32.60%	0.90%	9.70%	-31.62%
MSGE	64 Neutral	$2.11B	58.54	―	―	0.68%	-80.73%
SPHR	61 Neutral	$2.65B	―	-4.46%	―	24.54%	-119.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IQ	51 Neutral	$1.97B	170.31	-2.91%	―	-10.68%	-127.54%
LION	48 Neutral	$1.98B	―	―	―	97.19%	-21.46%

Sphere Entertainment Corporate Events

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.

The most recent analyst rating on (SPHR) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Sphere Entertainment stock, see the SPHR Stock Forecast page.

Sphere Entertainment CEO Andrea Greenberg Departs Company

On September 2, 2025, Andrea Greenberg, the President & CEO of MSG Networks, a subsidiary of Sphere Entertainment Co., departed the company following the expiration of her employment agreement. In recognition of her service, she was granted benefits including full vesting of stock units, a target bonus payment, and a waiver of her non-compete clause, potentially impacting the company’s leadership dynamics and future strategic direction.

The most recent analyst rating on (SPHR) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Sphere Entertainment stock, see the SPHR Stock Forecast page.