Sphere Entertainment (SPHR) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: N/A
• Average Volume (3M): 677.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• 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: 28,635,366
• 10 Day Avg. Volume: 605,990
• 30 Day Avg. Volume: 677,692
• PEG Ratio: 0.00
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.46
• P/FCF Ratio: -4.84
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 3.89
• Enterprise Value/Gross Profit: 7.53
• Enterprise Value/Ebitda: 10.23
• 1Y Price Target: $121.60
• Price Target Upside: 2.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): -2.62
• Revenue Forecast (FY): $1.34B

• Rating: 61 Neutral
• Price Target: $122.00 ▲(2.51% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

SPHR scores as a moderate-quality turnaround: improving TTM profitability and cash generation are the main positives, supported by strong price trend/momentum. The score is held back by inconsistent earnings quality (negative TTM EBIT, weak ROE), limited valuation support (negative P/E, no dividend yield provided), and financing covenants that may constrain flexibility.

Positive Factors

Strong free cash flow generation

A durable shift to positive TTM free cash flow (~$173M) signals the business can self-fund operations, capital expenditures and deleveraging. Sustained cash conversion reduces refinancing risk and supports reinvestment in venue tech and content even while GAAP profits lag.

Improving leverage and sizable equity

Lower net leverage (debt ~0.46x equity) and a large equity base (~$2.16B) provide a financial buffer and flexibility. This structural improvement enhances resilience to event-seasonality and supports multi-year investment in technology and venue operations without over-reliance on external capital.

Unique flagship venue and strategic partnerships

The technologically advanced Sphere plus extended strategic partnerships (e.g., Infosys/MSG) create enduring competitive moats: differentiated fan experiences, premium pricing, and partner-funded innovation. These structural advantages support long-term demand and content monetization.

Negative Factors

Persistent negative operating margins

Material negative operating margins (~-23%) show the core business has yet to consistently translate revenue into operating profits. Over months, sustained losses can pressure margins, force cost cuts or higher pricing that could reduce demand for events and slow long-term margin recovery.

Negative return on equity

A negative TTM ROE (~-4.4%) indicates the company’s asset and capital base is not generating shareholder returns. Persistently negative ROE can hinder capital allocation, limit investor support for equity raises, and constrain long-term capacity to finance growth from internal returns.

Restrictive credit facilities and covenants

The recently negotiated credit facilities include leverage and debt-service covenants plus restrictions on dividends, investments and asset dispositions. These durable covenant constraints reduce strategic flexibility, potentially forcing deleveraging or limiting opportunistic investments during stress periods.

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 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 Financial Statement Overview

Summary

Financials indicate an improving turnaround: TTM revenue growth (+7.6%), higher gross margin (~51.6%), and a return to positive net income (net margin ~2.7%) and positive free cash flow (~$191M). Offsetting this, profitability durability is still questionable with negative TTM EBIT, weak ROE (~1.5%), and notable volatility across recent annual periods (including large losses and uneven cash flow).

Income Statement

TTM (Trailing-Twelve-Months) shows a clear profitability rebound: revenue grew 7.6%, gross margin improved to ~51.6%, and the company returned to positive net income (net margin ~2.7%). However, profitability quality is still mixed—EBIT remains negative in TTM, and results have been volatile across recent annual periods (large losses in 2024/2025 annual data and an unusually strong 2023 net profit margin), suggesting earnings are not yet consistently durable.

Balance Sheet

Leverage is moderate and improving, with debt-to-equity at ~0.43 in TTM versus ~0.63 in the most recent annual periods, supported by a sizable equity base. Returns are currently low (TTM return on equity ~1.5%) following negative returns in recent annual years, indicating the balance sheet is stabilizing but not yet producing strong shareholder-level profitability.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation improved materially: operating cash flow is positive (~$243M) and free cash flow is positive (~$191M) with very strong free cash flow growth. The main concern is inconsistency—recent annual periods included negative operating cash flow and deeply negative free cash flow, and cash conversion relative to earnings is not especially strong, indicating cash performance may still be lumpy.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.22B	1.03B	1.03B	573.83M	610.05M	647.51M
Gross Profit	630.07M	222.57M	479.06M	231.62M	289.78M	384.65M
EBITDA	464.17M	-23.86M	-23.86M	378.81M	-43.05M	185.75M
Net Income	33.41M	-200.65M	-200.65M	502.77M	-194.40M	-148.15M
Balance Sheet
Total Assets	4.21B	4.79B	4.79B	4.97B	5.52B	5.29B
Cash, Cash Equivalents and Short-Term Investments	507.78M	559.76M	559.76M	131.97M	747.31M	1.52B
Total Debt	961.46M	1.52B	1.52B	1.32B	1.09B	2.01B
Total Liabilities	1.98B	2.37B	2.37B	2.39B	3.36B	2.97B
Stockholders Equity	2.23B	2.42B	2.42B	2.58B	1.96B	2.17B
Cash Flow
Free Cash Flow	191.00M	-309.41M	-309.41M	-1.02B	-663.88M	-514.70M
Operating Cash Flow	243.35M	-19.66M	-19.66M	153.59M	141.34M	-58.69M
Investing Cash Flow	-3.90M	-45.18M	-45.18M	-653.92M	-804.16M	-123.18M
Financing Cash Flow	-233.34M	209.73M	209.73M	85.54M	-30.39M	592.68M

Sphere Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 119.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 119.01 is above the 20-day moving average (MA) of 105.53, above the 50-day MA of 98.72, and above the 200-day MA of 65.47, indicating a bullish trend. The MACD of 5.99 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 77.05 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	$2.31B	68.05	10.94%	―	9.30%	67.19%
MSGE	65 Neutral	$2.98B	58.59	224.08%	―	0.68%	-80.73%
SPHR	61 Neutral	$4.23B	-398.96	1.44%	―	24.54%	-119.75%
CNK	61 Neutral	$3.26B	27.09	27.31%	1.45%	9.70%	-31.62%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IQ	51 Neutral	$1.54B	-53.16	-1.55%	―	-10.68%	-127.54%
LION	47 Neutral	$2.61B	-10.28	―	―	97.19%	-21.46%

Sphere Entertainment Corporate Events

Sphere Entertainment secures new long-term credit facilities

On January 29, 2026, MSG Las Vegas, LLC, an indirect wholly owned subsidiary of Sphere Entertainment Co., entered into a new credit agreement with a syndicate of lenders led by JPMorgan Chase Bank, N.A., establishing a $275 million senior secured term loan to refinance its existing term loan and a $275 million senior secured revolving credit facility for working capital and general corporate purposes, including potential distributions to Sphere Entertainment Group, LLC. The facilities, which mature on January 29, 2031, are secured by all of MSG LV’s assets, including its leasehold interest in the Las Vegas Sphere, and are guaranteed by Sphere Entertainment Group, and they impose quarterly tested financial covenants on leverage and debt service coverage, mandatory prepayment provisions tied to insurance or condemnation proceeds, and a range of restrictions on additional indebtedness, liens, investments, dividends under certain conditions, business changes, affiliate transactions, organizational amendments, mergers, and asset dispositions, underscoring a tightly structured capital framework that is likely to shape the company’s financial flexibility and risk profile over the life of the loans.

The most recent analyst rating on (SPHR) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on Sphere Entertainment stock, see the SPHR Stock Forecast page.