Sphere Entertainment Co. (SPHR)
NYSE:SPHR
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Sphere Entertainment
(NYSE:SPHR)
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Rating:62Neutral
Price Target:
$141.00
▲(3.93% Upside)
Action:ReiteratedDate:05/09/26
The score is driven by improving financial momentum (better margins, positive net income, and strong TTM free cash flow) and supportive technical trends. These positives are materially offset by an expensive valuation (very high P/E) and a history of volatile profitability and cash flow that raises durability risk.
Positive Factors
Strong recent free cash flow generation
The company generated materially positive TTM operating cash flow ($373M) and free cash flow ($333M), with FCF growth up sharply. Durable cash generation improves ability to fund capex, content investment, and debt reduction, enhancing financial flexibility over the next several quarters.
Negative Factors
Historic volatility in cash flow and profitability
Despite strong TTM cash flow, historical swings including negative OCF/FCF and large annual losses indicate execution and timing risk. This uneven track record weakens confidence that current momentum will persist across industry seasonality and investment cycles over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong recent free cash flow generation
The company generated materially positive TTM operating cash flow ($373M) and free cash flow ($333M), with FCF growth up sharply. Durable cash generation improves ability to fund capex, content investment, and debt reduction, enhancing financial flexibility over the next several quarters.
Read all positive factors
Sphere Entertainment (SPHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.73B
Dividend YieldN/A
Average Volume (3M)902.02K
Price to Earnings (P/E)236.1
Beta (1Y)1.64
Revenue Growth11.47%
EPS GrowthN/A
CountryUS
Employees1,080
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.15
Shares Outstanding28,635,366
10 Day Avg. Volume580,126
30 Day Avg. Volume902,018
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.62
Price to Sales (P/S)1.46
P/FCF Ratio-4.84
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue3.85
Enterprise Value/Gross Profit7.98
Enterprise Value/Ebitda9.27
Forecast
1Y Price Target
$157.36Price Target Upside15.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)-2.44
Revenue Forecast (FY)$1.37B
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, colle...
How the Company Makes Money
Sphere Entertainment primarily makes money through venue-based live entertainment and content monetization. Key revenue streams include: (1) Event and content-related revenue: ticket sales for concerts, residencies, and proprietary shows/experienc...
Sphere Entertainment Earnings Call Summary
Earnings Call Date:Mar 03, 2025
(Q5-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call demonstrated strong growth and expansion plans, particularly in the Sphere segment and new projects like Sphere Abu Dhabi and The Wizard of Oz. However, challenges such as a drop in MSG Networks revenues, lower revenues from Sphere Experience, and concerns over Las Vegas visitation pose significant hurdles.Positive Updates
Increase in Total Company Revenues
Sphere Entertainment generated total company revenues of $282.7 million, which is an increase from the prior year period.
Negative Updates
Decrease in MSG Networks Revenue
MSG Networks generated $107.1 million in revenues, down from $122.2 million in the prior year period, due to a decrease in subscribers.
Read all updates
Q5-2025 Updates
Positive
Negative
Increase in Total Company Revenues
Sphere Entertainment generated total company revenues of $282.7 million, which is an increase from the prior year period.
Read all positive updates
Company Guidance
During Sphere Entertainment's second quarter 2025 earnings call, the company provided guidance on several key metrics. They reported total company revenues of $282.7 million and an adjusted operating income (AOI) of $61.5 million for the June quarter. The Sphere segment alone generated $175.6 million in revenues, up from $151.2 million the previous year, driven by increased event-related revenues and additional shows. The company is focused on expanding its global network, with plans for Sphere venues in Abu Dhabi and other international markets. They have also sold over 120,000 tickets for their new experience, "The Wizard of Oz at Sphere," and expect to reach 200,000 by its opening. Sphere is on track to host over 100 concerts this year, up from 70 in 2024, and is building a recurring revenue base through corporate events and a new multiyear sponsorship deal. MSG Networks generated $107.1 million in revenues and $36.5 million in AOI for the quarter, with a completed restructuring of its credit facilities. The company remains optimistic about the long-term growth potential of its Sphere segment and is exploring strategic options for MSG Networks.Sphere Entertainment Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
69
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.03B | 1.03B | 573.83M | 610.05M | 647.51M |
| Gross Profit | 640.21M | 222.57M | 479.06M | 231.62M | 289.78M | 384.65M |
| EBITDA | 551.08M | -23.86M | -23.86M | 378.81M | -43.05M | 185.75M |
| Net Income | 119.82M | -200.65M | -200.65M | 502.77M | -194.40M | -148.15M |
Balance Sheet | ||||||
| Total Assets | 4.22B | 4.79B | 4.79B | 4.97B | 5.52B | 5.29B |
| Cash, Cash Equivalents and Short-Term Investments | 630.15M | 559.76M | 559.76M | 131.97M | 747.31M | 1.52B |
| Total Debt | 938.37M | 1.52B | 1.52B | 1.32B | 1.09B | 2.01B |
| Total Liabilities | 1.97B | 2.37B | 2.37B | 2.39B | 3.36B | 2.97B |
| Stockholders Equity | 2.25B | 2.42B | 2.42B | 2.58B | 1.96B | 2.17B |
Cash Flow | ||||||
| Free Cash Flow | 333.50M | -309.41M | -309.41M | -1.02B | -663.88M | -514.70M |
| Operating Cash Flow | 373.24M | -19.66M | -19.66M | 153.59M | 141.34M | -58.69M |
| Investing Cash Flow | 8.66M | -45.18M | -45.18M | -653.92M | -804.16M | -123.18M |
| Financing Cash Flow | -229.30M | 209.73M | 209.73M | 85.54M | -30.39M | 592.68M |
Sphere Entertainment Technical Analysis
Positive
135.67
Price Trends
114.96
Positive
102.93
Positive
78.94
Positive
Market Momentum
6.13
Negative
68.49
Neutral
80.83
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 135.67 is above the 20-day moving average (MA) of 121.90, above the 50-day MA of 114.96, and above the 200-day MA of 78.94, indicating a bullish trend. The MACD of 6.13 indicates Negative momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 80.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPHR.
Sphere Entertainment Risk Analysis
Sphere Entertainment disclosed 61 risk factors in its most recent earnings report. Sphere Entertainment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sphere Entertainment Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.09B | -331.70 | 7.67% | ― | 4.51% | -62.44% | |
63 Neutral | $1.94B | 121.70 | 10.67% | ― | 12.56% | 43.49% | |
62 Neutral | $4.73B | 236.10 | 5.36% | ― | 11.47% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $3.16B | -127.78 | 31.48% | 1.45% | 6.85% | -26.53% | |
52 Neutral | $3.55B | -14.33 | 20.86% | ― | 31.47% | -35.23% | |
45 Neutral | $1.16B | -16,598.34 | -1.49% | ― | -6.53% | -127.14% |
* Communication Services Sector Average
SPHR
Sphere Entertainment
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100.82
310.12%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.