Sphere Entertainment (SPHR) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: N/A
• Average Volume (3M): 559.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: -5.04%
• EPS Growth: -155.66%
• Country: US
• Employees: 1,080
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): -2.27
• Shares Outstanding: 29,132,664
• 10 Day Avg. Volume: 514,042
• 30 Day Avg. Volume: 559,355
• PEG Ratio: 0.12
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.94
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: -18.39
• 1Y Price Target: $49.88
• Price Target Upside: 12.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: $44.00 ▼(-0.72%Downside)

Sphere Entertainment's overall stock score reflects a mix of positive technical indicators and significant financial challenges. The bullish market momentum contributes positively to the score, but the company's financial performance, particularly its negative profitability and cash flow issues, weighs heavily. The negative P/E ratio further diminishes the stock's valuation appeal.

Positive Factors

Debt and Financial Management

Sphere announced an agreement with the MSG Networks term loan lending group to reduce the outstanding loan from over $800mm to $210mm.

Expansion and Revenue Growth

The announcement of a franchise in Abu Dhabi is expected to generate recurring license fees and add significant value to shareholders.

Financial Restructuring

Significant progress has been made over the past few years, leading to positive adjustments in operating income and favorable restructuring.

Negative Factors

Financial Risk

Every core component of the Sphere platform, content, advertising, and live performance, relies on the Las Vegas ecosystem, and expanding beyond it increases financial risk.

Management Strategy

Management's strategy to expand through mini-Spheres fundamentally misreads the uniqueness of the Vegas market.

Revenue Decline

Sphere Experience revenue declined 14%, while advertising and sponsorship fell 16%, despite a fully operational flagship venue in Las Vegas.

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 Co. generates revenue primarily through ticket sales for its immersive events and live performances held at its venues. The company also earns income from partnerships and sponsorships with brands seeking to associate with its unique entertainment offerings. Additionally, Sphere Entertainment capitalizes on merchandising opportunities, selling branded products and memorabilia to enhance the customer experience. The company's strategic partnerships with artists, production companies, and technology providers further expand its revenue potential by enabling a diverse range of shows and spectacles. Venue bookings for private events and collaborations with other entertainment entities also contribute to its income.

Sphere Entertainment Financial Statement Overview

Summary

Sphere Entertainment faces significant financial challenges, particularly in profitability and cash flow management. While gross profit margins are relatively healthy, the company struggles with negative net income and cash flow inefficiencies. The balance sheet remains stable, but overall, the company must address operational inefficiencies and improve cash flow generation to enhance financial health.

Income Statement

Sphere Entertainment shows a mixed performance in its income statement. The TTM data reveals a gross profit margin of 38.59%, indicating moderate profitability. However, a concerning trend is evident with a negative net profit margin of -32.99% and a declining revenue growth rate from the previous year at 6.16%. The company faces challenges in EBIT and EBITDA margins, both in negative territory at -34.97% and -4.18%, respectively, reflecting operational inefficiencies.

Balance Sheet

The balance sheet presents a stable yet cautious outlook. The debt-to-equity ratio is at 0.68, suggesting a manageable level of leverage. The equity ratio stands at 48.17%, supporting a stable capital structure. However, the return on equity is negative at -16.79%, indicating difficulties in generating returns for shareholders.

Cash Flow

Sphere Entertainment’s cash flow statement displays considerable challenges. The free cash flow growth rate is negative, and both the operating cash flow to net income and free cash flow to net income ratios are unfavorable, reflecting cash flow inefficiencies. The operating cash flow to net income ratio is -0.07, underscoring difficulties in converting sales into cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.03B	573.83M	610.05M	647.51M	1.44B
Gross Profit	484.79M	231.62M	289.78M	384.65M	645.52M
EBITDA	-23.86M	405.62M	-16.38M	193.75M	210.04M
Net Income	-200.65M	502.77M	-194.40M	-148.15M	181.73M
Balance Sheet
Total Assets	4.79B	4.97B	5.52B	5.29B	3.73B
Cash, Cash Equivalents and Short-Term Investments	559.76M	131.97M	747.31M	1.52B	1.24B
Total Debt	1.52B	1.32B	1.09B	2.01B	261.16M
Total Liabilities	2.37B	2.39B	3.36B	2.97B	844.77M
Stockholders Equity	2.42B	2.58B	1.96B	2.17B	2.86B
Cash Flow
Free Cash Flow	-309.41M	-905.39M	-615.38M	-514.70M	-149.18M
Operating Cash Flow	-19.66M	153.59M	141.34M	-58.69M	308.12M
Investing Cash Flow	-45.18M	-653.92M	-804.16M	-123.18M	-394.53M
Financing Cash Flow	209.73M	85.54M	-30.39M	592.68M	-113.87M

Sphere Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 44.32 is above the 20-day moving average (MA) of 41.56, above the 50-day MA of 38.43, and above the 200-day MA of 39.08, indicating a bullish trend. The MACD of 1.51 indicates Positive momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.13 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	73 Outperform	$1.50B	60.16	9.00%	―	-1.98%	-1.18%
PLAY	69 Neutral	$1.11B	30.05	17.57%	―	-3.82%	-56.18%
CNK	65 Neutral	$3.43B	19.68	71.46%	1.07%	-0.80%	13.07%
MSGE	63 Neutral	$1.92B	14.49	1222.83%	―	5.81%	133.05%
Sector *	61 Neutral	$41.05B	-1.44	-12.05%	3.94%	2.10%	-69.66%
SPHR	60 Neutral	$1.55B	―	-15.64%	―	-5.04%	-155.66%
AMC	50 Neutral	$1.44B	―	20.03%	―	-5.43%	26.07%

Sphere Entertainment Corporate Events

Sphere Entertainment Secures New $210M Term Loan

Sphere Entertainment‘s subsidiary, MSG Networks, along with its associated entities, has entered into a second amended and restated credit agreement with JPMorgan Chase Bank, replacing its previous credit facility with a new $210 million term loan maturing in December 2029. This agreement includes various financial and operational covenants, mandatory prepayment conditions, and amendments to media rights agreements, which impact the company’s financial structure and its dealings with professional sports teams, notably reducing annual rights fees for the New York Knicks and Rangers.

The most recent analyst rating on (SPHR) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Sphere Entertainment stock, see the SPHR Stock Forecast page.

Sphere Entertainment Holds Annual Meeting with Key Votes

Sphere Entertainment held its Annual Meeting on June 4, 2025, where Class A and Class B stockholders voted on several key proposals. The election of directors for both classes was completed, with Class A electing four directors and Class B electing eleven directors. Additionally, stockholders ratified the appointment of the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation in a non-binding vote, and agreed to redomesticate the company from Delaware to Nevada.

The most recent analyst rating on (SPHR) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Sphere Entertainment stock, see the SPHR Stock Forecast page.