Sphere Entertainment Co. Reports Second Quarter 2026 Results
NEW YORK--( BUSINESS WIRE)--Sphere Entertainment Co. (NYSE: SPHR) (“Sphere Entertainment” or the “Company”) today reported financial results for the second quarter ended June 30, 2026.
Recent highlights for the Company’s Sphere segment include:
For the three months ended June 30, 2026, the Company reported revenues of $313.6 million, an increase of $31.0 million, or 11%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $61.3 million, an increase of $11.1 million, or 22%, and adjusted operating income of $50.9 million, a decrease of $10.5 million, or 17%, both as compared to the prior year quarter. (1)
Executive Chairman and CEO James L. Dolan said, “Today’s results reflect our continued execution in Las Vegas, as we remain on track to deliver substantial growth this calendar year. We are also advancing our long-term vision for a global network of Sphere venues, including in Abu Dhabi and National Harbor.”
Segment Results for the Three and Six Months Ended June 30, 2026 and 2025:
(In millions)
Three Months Ended
Six Months Ended
June 30,
Change
June 30,
Change
2026
2025
$
%
2026
2025
$
%
Revenues:
Sphere
$
226.4
$
175.6
$
50.8
29
%
$
492.3
$
333.1
$
159.2
48
%
MSG Networks
87.3
107.1
(19.8
)
(18
)%
207.7
230.1
(22.4
)
(10
)%
Total Revenues
$
313.6
$
282.7
$
31.0
11
%
$
700.1
$
563.3
$
136.8
24
%
Operating (Loss) Income:
Sphere
$
(69.6
)
$
(83.4
)
$
13.9
17
%
$
(94.5
)
$
(177.2
)
$
82.8
47
%
MSG Networks
8.3
33.3
(25.0
)
(75
)%
40.4
48.4
(8.0
)
(17
)%
Total Operating Loss
$
(61.3
)
$
(50.2
)
$
(11.1
)
(22
)%
$
(54.1
)
$
(128.8
)
$
74.7
58
%
Adjusted Operating Income: (1)
Sphere
$
39.9
$
24.9
$
15.0
60
%
$
114.2
$
38.1
$
76.1
200
%
MSG Networks
11.0
36.5
(25.5
)
(70
)%
46.7
59.3
(12.6
)
(21
)%
Total Adjusted Operating Income
$
50.9
$
61.5
$
(10.5
)
(17
)%
$
160.9
$
97.4
$
63.5
65
%
(1)
See page 3 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.
Sphere
For the three months ended June 30, 2026, the Sphere segment reported revenues of $226.4 million, an increase of $50.8 million, or 29%, as compared to the prior year quarter.
Revenues related to The Sphere Experience increased $53.8 million as compared to the prior year quarter, which primarily reflected higher per-show revenue for The Wizard of Oz at Sphere. In the current year quarter, The Sphere Experience reflected 220 performances of The Wizard of Oz at Sphere as compared to 215 performances of Postcard from Earth and V-U2 An Immersive Concert Film in the prior year quarter.
Revenues from sponsorship, Exosphere advertising and suite license fees increased $10.5 million as compared to the prior year quarter due to higher Exosphere advertising revenues and, to a lesser extent, higher sponsorship revenues and suite license fee revenues.
Event-related revenues decreased $11.7 million as compared to the prior year quarter, primarily due to two fewer brand events held in the current year quarter, partially offset by higher revenues from concerts. The increase in revenues from concerts reflected the impact of six additional concert residency shows held at Sphere in Las Vegas during the current year quarter, offset by lower per-concert revenue due to the mix of concerts as compared to the prior year quarter.
For the three months ended June 30, 2026, the Sphere segment had direct operating expenses of $87.7 million, an increase of $11.4 million, or 15%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $19.7 million as compared to the prior year quarter, primarily due to higher per-show expenses for The Wizard of Oz at Sphere. This increase was partially offset by a decrease in event-related expenses of $4.1 million as compared to the prior year quarter, primarily due to (i) two fewer brand events held in the current year quarter, partially offset by (ii) higher expenses from concerts, due to an increase in the number of concert residency shows held at Sphere in Las Vegas, partially offset by lower per-concert expenses.
For the three months ended June 30, 2026, selling, general and administrative expenses of $125.6 million increased $29.2 million, or 30%, as compared to the prior year quarter, primarily due to (i) the impact of mark-to-market adjustments on certain share-based compensation awards as a result of the appreciation in the Company’s stock price during the current year quarter, (ii) higher employee compensation and related benefits, (iii) higher professional fees, primarily due to an increase in litigation-related expenses associated with the merger of a subsidiary of the Company with MSG Networks Inc., partially offset by the absence of costs associated with pursuing a work-out of MSG Networks’ credit facilities in the prior year quarter.
For the three months ended June 30, 2026, operating loss of $69.6 million improved by $13.9 million, or 17%, as compared to the prior year quarter, primarily due to the increase in revenues and, to a lesser extent, the absence of impairment and other losses, net, partially offset by higher selling, general and administrative expenses and direct operating expenses. Adjusted operating income of $39.9 million increased $15.0 million, or 60%, as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by higher selling, general and administrative expenses and direct operating expenses.
MSG Networks
For the three months ended June 30, 2026, the MSG Networks segment reported total revenues of $87.3 million, a decrease of $19.8 million, or 18%, as compared to the prior year quarter.
Distribution revenue decreased $13.7 million, primarily reflecting a decrease in total subscribers of approximately 16.5%.
Advertising revenue decreased $6.0 million as compared to the prior year quarter, primarily due to fewer live postseason professional sports telecasts.
For the three months ended June 30, 2026, direct operating expenses of $63.3 million increased $8.4 million, or 15%, as compared to the prior year quarter. Rights fees expense increased $9.2 million as compared to the prior year quarter, primarily reflecting (i) retroactive reductions in media rights fees for the 2024-25 NBA and NHL seasons recorded in the prior year quarter as a result of the amendments to MSG Networks’ media rights agreements with certain professional sports teams, partially offset by (ii) reductions resulting from fewer NBA and NHL games made available to MSG Networks for exclusive broadcast in the current year quarter. This increase was partially offset by other cost decreases.
For the three months ended June 30, 2026, selling, general and administrative expenses of $13.6 million decreased $3.0 million, or 18%, as compared to the prior year quarter. This decrease was primarily due to (i) lower employee compensation and related benefits of $1.9 million and (ii) lower advertising and marketing costs of $1.2 million.
For the three months ended June 30, 2026, operating income of $8.3 million decreased $25.0 million and adjusted operating income of $11.0 million decreased $25.5 million, both as compared to the prior year quarter, primarily due to the decrease in revenues and higher direct operating expenses, partially offset by lower selling, general and administrative expenses.
About Sphere Entertainment Co.
Sphere Entertainment Co. is a leader in immersive experiences, technology and media. The Company includes Sphere, an experiential medium powered by advanced technologies. The first Sphere opened in Las Vegas, with plans also announced for Sphere venues in Abu Dhabi and National Harbor. In addition, the Company includes MSG Networks, which operates two regional sports and entertainment networks, MSG Network and MSG Sportsnet, as well as a direct-to-consumer and authenticated streaming product, MSG+, delivering a wide range of live sports content and other programming. More information is available at www.sphereentertainmentco.com.
Non-GAAP Financial Measures
We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger, debt work-out and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (viii) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, debt work-out and acquisition-related costs, including merger related litigation expenses, net of insurance recoveries, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan, provides investors with a clearer picture of the Company’s operating performance given that, in accordance with U.S. generally accepted accounting principles (“GAAP”), gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in other income (expense), net, which is not reflected in operating income (loss).
We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 5 of this release.
Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
Conference Call Information:
The conference call will be Webcast live today at 10:00 a.m. ET at investor.sphereentertainmentco.com
Conference call dial-in number is 833-461-5787 / Conference ID Number 777582186
Webcast replay available at investor.sphereentertainmentco.com
SPHERE ENTERTAINMENT CO.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Revenues
$
313,639
$
282,677
$
700,051
$
563,251
Operating expenses:
Direct operating expenses
151,063
131,318
320,710
289,641
Selling, general, and administrative expenses
139,207
113,023
260,910
227,292
Depreciation and amortization
84,308
83,907
168,675
168,136
Impairment and other losses, net
—
3,641
79
4,162
Restructuring charges
323
947
3,737
2,788
Operating loss
(61,262
)
(50,159
)
(54,060
)
(128,768
)
Other income (expense):
Gain (loss) on extinguishment of debt
—
346,092
(2,071
)
346,092
Interest income
4,786
4,084
8,737
7,962
Interest expense
(8,273
)
(25,862
)
(16,312
)
(52,068
)
Other expense, net
(504
)
(400
)
(1,928
)
(1,740
)
(Loss) income from continuing operations before income taxes
(65,253
)
273,755
(65,634
)
171,478
Income tax benefit (expense)
26,926
(121,939
)
31,767
(101,616
)
Net (loss) income
(38,327
)
151,816
(33,867
)
69,862
Less: Net income attributable to participating securities
461
—
6,514
—
Net (loss) income attributable to Sphere Entertainment Co.’s stockholders
$
(38,788
)
$
151,816
$
(40,381
)
$
69,862
Basic (loss) income per common share attributable to Sphere Entertainment Co.’s stockholders
$
(1.07
)
$
4.18
$
(1.12
)
$
1.93
Diluted (loss) income per common share attributable to Sphere Entertainment Co.’s stockholders
$
(1.07
)
$
3.39
$
(1.12
)
$
1.56
Weighted-average number of common shares outstanding:
Basic
36,150
36,283
36,015
36,196
Diluted
36,150
44,848
36,015
44,865
SPHERE ENTERTAINMENT CO.
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO
ADJUSTED OPERATING INCOME (LOSS)
(In thousands)
(Unaudited)
The following is a description of the adjustments to operating loss in arriving at adjusted operating income as described in this earnings release:
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Operating loss
$
(61,262
)
$
(50,159
)
$
(54,060
)
$
(128,768
)
Share-based compensation
17,722
18,850
31,632
40,445
Depreciation and amortization
84,308
83,907
168,675
168,136
Restructuring charges
323
947
3,737
2,788
Impairment and other losses, net
—
3,641
79
4,162
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
8,206
2,482
8,293
7,273
Amortization for capitalized cloud computing arrangement costs
1,399
1,579
2,316
3,158
Remeasurement of deferred compensation plan liabilities
228
219
228
240
Adjusted operating income
$
50,924
$
61,466
$
160,900
$
97,434
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS
(In thousands)
(Unaudited)
BUSINESS SEGMENT RESULTS
Three Months Ended June 30, 2026
Sphere
MSG Networks
Total
Revenues
$
226,353
$
87,286
$
313,639
Operating expenses:
Direct operating expenses
87,730
63,333
151,063
Selling, general and administrative expenses
125,590
13,617
139,207
Depreciation and amortization
82,286
2,022
84,308
Restructuring charges
323
—
323
Operating (loss) income
$
(69,576
)
$
8,314
$
(61,262
)
Reconciliation to adjusted operating income:
Share-based compensation
17,043
679
17,722
Depreciation and amortization
82,286
2,022
84,308
Restructuring charges
323
—
323
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
8,206
—
8,206
Amortization for capitalized cloud computing arrangement costs
1,399
—
1,399
Remeasurement of deferred compensation plan liabilities
228
—
228
Adjusted operating income
$
39,909
$
11,015
$
50,924
Three Months Ended June 30, 2025
Sphere
MSG Networks
Total
Revenues
$
175,587
$
107,090
$
282,677
Operating expenses:
Direct operating expenses
76,351
54,967
131,318
Selling, general and administrative expenses
96,389
16,634
113,023
Depreciation and amortization
81,707
2,200
83,907
Impairment and other losses, net
3,641
—
3,641
Restructuring charges
947
—
947
Operating (loss) income
$
(83,448
)
$
33,289
$
(50,159
)
Reconciliation to adjusted operating income:
Share-based compensation
17,953
897
18,850
Depreciation and amortization
81,707
2,200
83,907
Restructuring charges
947
—
947
Impairment and other losses, net
3,641
—
3,641
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
2,351
131
2,482
Amortization for capitalized cloud computing arrangement costs
1,579
—
1,579
Remeasurement of deferred compensation plan liabilities
219
—
219
Adjusted operating income
$
24,949
$
36,517
$
61,466
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS
(In thousands)
(Unaudited)
BUSINESS SEGMENT RESULTS
Six Months Ended June 30, 2026
Sphere
MSG Networks
Total
Revenues
$
492,318
$
207,733
$
700,051
Operating expenses:
Direct operating expenses
186,956
133,754
320,710
Selling, general and administrative expenses
232,186
28,724
260,910
Depreciation and amortization
164,560
4,115
168,675
Impairment and other losses, net
79
—
79
Restructuring charges
2,996
741
3,737
Operating (loss) income
$
(94,459
)
$
40,399
$
(54,060
)
Reconciliation to adjusted operating income:
Share-based compensation
30,186
1,446
31,632
Depreciation and amortization
164,560
4,115
168,675
Restructuring charges
2,996
741
3,737
Impairment and other losses, net
79
—
79
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
8,293
—
8,293
Amortization for capitalized cloud computing arrangement costs
2,316
—
2,316
Remeasurement of deferred compensation plan liabilities
228
—
228
Adjusted operating income
$
114,199
$
46,701
$
160,900
Six Months Ended June 30, 2025
Sphere
MSG Networks
Total
Revenues
$
333,132
$
230,119
$
563,251
Operating expenses:
Direct operating expenses
146,887
142,754
289,641
Selling, general and administrative expenses
192,793
34,499
227,292
Depreciation and amortization
163,712
4,424
168,136
Impairment and other losses, net
4,162
—
4,162
Restructuring charges
2,788
—
2,788
Operating (loss) income
$
(177,210
)
$
48,442
$
(128,768
)
Reconciliation to adjusted operating income:
Share-based compensation
37,907
2,538
40,445
Depreciation and amortization
163,712
4,424
168,136
Restructuring charges
2,788
—
2,788
Impairment and other losses, net
4,162
—
4,162
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
3,339
3,934
7,273
Amortization for capitalized cloud computing arrangement costs
3,158
—
3,158
Remeasurement of deferred compensation plan liabilities
240
—
240
Adjusted operating income
$
38,096
$
59,338
$
97,434
SPHERE ENTERTAINMENT CO.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
As of
June 30,
December 31,
2026
2025
ASSETS
Current Assets:
Cash, cash equivalents, and restricted cash
$
552,019
$
521,264
Accounts receivable, net
152,316
171,630
Related party receivables, current
12,802
24,457
Prepaid expenses and other current assets
66,906
92,824
Total current assets
784,043
810,175
Non-Current Assets:
Investments
37,309
38,725
Property and equipment, net
2,550,078
2,710,643
Right-of-use lease assets
96,500
91,372
Goodwill
344,772
344,772
Intangible assets, net
18,506
21,817
Other non-current assets
204,760
192,404
Total assets
$
4,035,968
$
4,209,908
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$
13,880
$
24,593
Accrued expenses and other current liabilities
391,507
431,477
Related party payables, current
4,234
14,301
Current portion of long-term debt, net
58,263
63,009
Operating lease liabilities, current
14,085
17,186
Deferred revenue
158,443
192,808
Total current liabilities
640,412
743,374
Non-Current Liabilities:
Long-term debt, net
722,142
767,439
Operating lease liabilities, non-current
118,816
113,824
Deferred tax liabilities, net
135,198
172,111
Other non-current liabilities
191,542
179,921
Total liabilities
1,808,110
1,976,669
Commitments and contingencies
Equity:
Class A Common Stock (a)
301
297
Class B Common Stock (b)
69
69
Additional paid-in capital
2,499,315
2,470,120
Treasury stock, at cost, 1,054 shares as of June 30, 2026 and December 31, 2025, respectively
(50,024
)
(50,024
)
Accumulated deficit
(220,308
)
(186,441
)
Accumulated other comprehensive loss
(1,495
)
(782
)
Total stockholders’ equity
2,227,858
2,233,239
Total liabilities and equity
$
4,035,968
$
4,209,908
(a)
Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 29,046 and 28,629 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively.
(b)
Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued and outstanding as of June 30, 2026 and December 31, 2025.
SPHERE ENTERTAINMENT CO.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2026
2025
Net cash provided by (used in) operating activities
$
102,583
$
(52,711
)
Net cash (used in) provided by investing activities
(19,627
)
16,441
Net cash used in financing activities
(52,128
)
(111,059
)
Effect of exchange rates on cash, cash equivalents and restricted cash
(73
)
623
Net increase (decrease) in cash, cash equivalents, and restricted cash
30,755
(146,706
)
Cash, cash equivalents, and restricted cash at beginning of period
521,264
515,633
Cash, cash equivalents, and restricted cash at end of period
$
552,019
$
368,927