Sphere Entertainment (SPHR) AI Stock Analysis

• Market Cap: $2.45B
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: 25.25%
• EPS Growth: -106.76%
• Country: US
• Employees: 1,080
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 29,132,664
• 10 Day Avg. Volume: 957,838
• 30 Day Avg. Volume: 1,060,942
• 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: $59.00
• Price Target Upside: -13.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 63 Neutral
• Price Target: $70.00 ▲(2.99% Upside)

Sphere Entertainment's stock score is primarily driven by strong technical momentum, despite challenges in financial performance and valuation. The company's robust revenue growth and solid balance sheet provide a stable foundation, but profitability and cash flow issues need addressing. The technical indicators suggest positive market sentiment, but the negative P/E ratio and lack of dividend yield highlight valuation concerns.

Positive Factors

Revenue Growth

The impressive revenue growth rate indicates robust demand for Sphere's offerings, suggesting successful market penetration and potential for sustained expansion.

Low Leverage

Low leverage enhances financial stability, providing Sphere with flexibility to invest in growth opportunities without the burden of high debt costs.

Successful New Product Launch

The successful launch of a new immersive experience highlights Sphere's ability to innovate and capture audience interest, supporting long-term revenue streams.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder Sphere's ability to reinvest in business operations and could affect long-term financial health if not addressed.

Cash Flow Issues

Persistent cash flow challenges could limit Sphere's operational flexibility and ability to fund new projects, impacting future growth potential.

Management Turnover

Leadership changes can disrupt strategic direction and execution, potentially affecting company performance and investor confidence in the near term.

Sphere Entertainment Business Overview & Revenue Model

Company Description

Sphere Entertainment (SPHR) is a diversified entertainment company primarily engaged in the development and operation of immersive entertainment experiences, live events, and innovative media content. With a focus on creating unique venues and experiences, Sphere Entertainment operates in sectors such as live entertainment, media production, and technology-driven experiences, aiming to leverage cutting-edge technology to captivate audiences worldwide.

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: 67.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 67.97 is above the 20-day moving average (MA) of 63.09, above the 50-day MA of 57.10, and above the 200-day MA of 42.95, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 67.28 is Neutral, neither overbought nor oversold. The STOCH value of 84.79 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	―	$1.77B	46.02	12.38%	―	9.30%	67.19%
CNK	―	$3.14B	14.63	70.99%	0.88%	13.80%	109.00%
SPHR	―	$2.45B	―	-2.03%	―	25.25%	-106.76%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IQ	―	$2.26B	183.59	0.67%	―	-10.86%	-94.68%
MSGE	―	$2.13B	59.47	―	―	-1.72%	-75.17%
LION	―	$1.84B	―	―	―	432.48%	-930.72%

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.

Sphere Entertainment Finalizes Abu Dhabi Venue Agreements

On July 25, 2025, Sphere Entertainment Group, a subsidiary of Sphere Entertainment Co., finalized agreements with the Department of Culture and Tourism – Abu Dhabi to construct and operate the second Sphere venue in Abu Dhabi. The agreements grant DCT exclusive rights to build and operate Sphere venues in the Middle East and North Africa for at least 10 years, with Sphere Entertainment Group receiving fees and royalties based on intellectual property usage and venue revenues.

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.