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Sphere Entertainment (SPHR)
NYSE:SPHR
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Sphere Entertainment
(NYSE:SPHR)
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Rating:66Neutral
Price Target:
$91.00
▼(-0.40% Downside)
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 (SPHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend YieldN/A
Average Volume (3M)665.55K
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth24.54%
EPS Growth-119.75%
CountryUS
Employees1,080
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-2.80
Shares Outstanding28,447,508
10 Day Avg. Volume529,842
30 Day Avg. Volume665,546
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.60
Price to Sales (P/S)1.41
P/FCF Ratio-4.67
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue2.03
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda5.63
Forecast
1Y Price Target
$91.80Price Target Upside0.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sphere Entertainment Business Overview & Revenue Model
Company DescriptionSphere 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 MoneySphere 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 Earnings Call Summary
Earnings Call Date:Mar 03, 2025
(Q5-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 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.Q5-2025 Updates
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.
Growth in Sphere Segment Revenue
The Sphere segment generated revenues of $175.6 million, up from $151.2 million in the prior year period, driven by an increase in event-related revenues and additional residency shows.
Successful Ticket Sales for The Wizard of Oz
Over 120,000 tickets have been sold for The Wizard of Oz at Sphere, with expectations to reach 200,000 by the opening.
Expansion Plans for Sphere Abu Dhabi
Agreements related to the construction and operation of Sphere Abu Dhabi have been entered into, with preconstruction phase finalizations ongoing.
Successful Debt Restructuring
MSG Networks completed restructuring of its credit facilities, replacing a prior $804 million term loan with a new $210 million term loan facility.
Decrease in SG&A Expenses
SG&A expenses for the June quarter decreased by $5.7 million year-over-year.
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.
Lower Revenues from Sphere Experience
There was a decline in revenue from the Sphere Experience due to lower average per-show revenues, despite an increase in the number of performances.
Challenges in Las Vegas Visitation
Visitor numbers in Las Vegas are down, which could impact overall performance despite efforts to position for long-term growth.
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
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 | 1.03B | 573.83M | 610.05M | 647.51M |
| Gross Profit | 485.70M | 222.57M | 222.57M | 231.62M | 289.78M | 384.65M |
| EBITDA | 384.52M | -23.86M | -3.44M | 405.62M | -16.38M | -18.37M |
| Net Income | -82.01M | -200.65M | -200.65M | 502.77M | -194.40M | -148.15M |
Balance Sheet | ||||||
| Total Assets | 4.20B | 4.79B | 5.06B | 4.97B | 5.52B | 5.29B |
| Cash, Cash Equivalents and Short-Term Investments | 368.93M | 559.76M | 573.23M | 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 | 2.64B | 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
Positive
91.37
Price Trends
83.01
Positive
69.52
Positive
53.13
Positive
Market Momentum
2.94
Positive
56.33
Neutral
30.67
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 91.37 is below the 20-day moving average (MA) of 91.81, above the 50-day MA of 83.01, and above the 200-day MA of 53.13, indicating a neutral trend. The MACD of 2.94 indicates Positive momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 30.67 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.82B | 47.35 | 12.38% | ― | 9.30% | 67.19% | |
66 Neutral | $3.23B | -30.56 | -4.46% | ― | 24.54% | -119.75% | |
64 Neutral | $2.59B | 78.35 | ― | ― | 0.68% | -80.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $2.67B | 21.85 | 32.60% | 1.45% | 9.70% | -31.62% | |
52 Neutral | $2.61B | -12.98 | ― | ― | 97.19% | -21.46% | |
51 Neutral | $2.00B | -36.75 | -2.91% | ― | -10.68% | -127.54% |
* Communication Services Sector Average
SPHR
Sphere Entertainment
91.37
49.74
119.48%
CNK
Cinemark Holdings
22.74
-6.65
-22.63%
IMAX
IMAX
33.86
11.05
48.44%
IQ
Iqiyi
2.08
0.25
13.66%
LION
Lionsgate Studios
9.00
1.85
25.87%
MSGE
Madison Square Garden Entertainment Corp.
54.91
20.01
57.34%
Sphere Entertainment Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sphere Entertainment Appoints New Senior VP and Controller
Positive
Nov 21, 2025
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.
The most recent analyst rating on (SPHR) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Sphere Entertainment stock, see the SPHR Stock Forecast page.
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.