Sphere Entertainment Co. Reports Fourth Quarter and Full Year 2025 Results
NEW YORK--( BUSINESS WIRE)--Sphere Entertainment Co. (NYSE: SPHR) (“Sphere Entertainment” or the “Company”) today reported financial results for the fourth quarter and full-year ended December 31, 2025.
Recent highlights for the Company’s Sphere segment include:
For the three months ended December 31, 2025, the Company reported revenues of $394.3 million, an increase of $86.0 million, or 28%, as compared to the prior year quarter. In addition, the Company reported operating income of $28.9 million, an increase of $171.9 million, and adjusted operating income of $128.0 million, an increase of $95.2 million, both as compared to the prior year quarter. (1)
For the twelve months ended December 31, 2025, the Company reported revenues of $1,220.0 million, an increase of $89.1 million, or 8%, as compared to the prior year period. In addition, the Company reported an operating loss of $229.6 million, an improvement of $142.8 million, or 38%, and adjusted operating income of $261.8 million, an increase of $152.0 million, or 138%, both as compared to the prior year period. (1)
Executive Chairman and CEO James L. Dolan said, “Today’s results serve as continued validation of the business model behind Sphere. As we begin 2026, we remain focused on expanding Sphere’s global footprint, including advancing our plans to bring Sphere to Abu Dhabi and National Harbor, and believe the Company is well-positioned for long-term growth.”
Segment Results for the Three and Twelve Months Ended December 31, 2025 and 2024:
(In millions)
Three Months Ended
Twelve Months Ended
December 31,
Change
December 31,
Change
2025
2024
$
%
2025
2024
$
%
Revenues:
Sphere
$
274.2
$
169.0
$
105.2
62
%
$
781.4
$
617.7
$
163.7
27
%
MSG Networks
120.1
139.3
(19.2
)
(14
)%
438.6
513.3
(74.6
)
(15
)%
Total Revenues
$
394.3
$
308.3
$
86.0
28
%
$
1,220.0
$
1,130.9
$
89.1
8
%
Operating Income (Loss):
Sphere
$
(6.5
)
$
(107.9
)
$
101.4
94
%
$
(268.2
)
$
(421.0
)
$
152.9
36
%
MSG Networks
35.4
(35.0
)
70.5
NM
38.6
48.7
(10.1
)
(21
)%
Total Operating Income (Loss)
$
28.9
$
(142.9
)
$
171.9
NM
$
(229.6
)
$
(372.3
)
$
142.8
38
%
Adjusted Operating Income (Loss): (1)
Sphere
$
89.4
$
(0.8
)
$
90.2
NM
$
144.6
$
(19.7
)
$
164.2
NM
MSG Networks
38.6
33.7
5.0
15
%
117.3
129.5
(12.2
)
(9
)%
Total Adjusted Operating Income
$
128.0
$
32.9
$
95.2
NM
$
261.8
$
109.8
$
152.0
138
%
Note: Does not foot due to rounding. NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.
Sphere
For the three months ended December 31, 2025, the Sphere segment reported revenues of $274.2 million, an increase of $105.2 million, or 62%, as compared to the prior year quarter.
Revenues related to The Sphere Experience increased $108.5 million as compared to the prior year quarter, which reflected higher per-show revenue due to the impact of The Wizard of Oz at Sphere and, to a lesser extent, an increase in the number of overall performances. In the current year quarter, The Sphere Experience included 245 performances of The Wizard of Oz at Sphere as compared to 190 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 $4.2 million as compared to the prior year quarter, reflecting an increase in Exosphere advertising and sponsorship revenues, as well as higher suite license fee revenues.
Other revenues decreased $4.4 million as compared to the prior year quarter.
Event-related revenues decreased $3.1 million as compared to the prior year quarter, primarily due to the absence of one brand event (formerly referred to as corporate events) held in the prior year quarter. This decrease was partially offset by two additional concert residency shows held at Sphere as compared to the prior year quarter and, to a lesser extent, higher per-concert revenue as compared to the prior year quarter.
For the three months ended December 31, 2025, the Sphere segment had direct operating expenses of $92.6 million, an increase of $20.0 million, or 27%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $21.9 million as compared to the prior year quarter due to higher per-show expenses for The Wizard of Oz at Sphere and an increase in the number of overall performances. This was partially offset by other cost decreases.
For the three months ended December 31, 2025, selling, general and administrative expenses of $104.1 million decreased $14.9 million, or 13%, as compared to the prior year quarter, primarily due to lower employee compensation and related benefits of $14.4 million, including the impact of executive management transition costs of $4.2 million recorded in the current year quarter as compared to executive management transition costs of $8.3 million recorded in the prior year quarter.
For the three months ended December 31, 2025, operating loss of $6.5 million improved by $101.4 million and adjusted operating income of $89.4 million increased by $90.2 million, both as compared to the prior year quarter, primarily due to the increase in revenues and, to a lesser extent, lower selling, general and administrative expenses, partially offset by higher direct operating expenses.
MSG Networks
For the three months ended December 31, 2025, the MSG Networks segment reported total revenues of $120.1 million, a decrease of $19.2 million, or 14%, as compared to the prior year quarter.
Distribution revenue decreased $19.7 million, primarily due to a decrease in total subscribers of approximately 14.5% and the impact of lower affiliation rates in the current year quarter.
For the three months ended December 31, 2025, direct operating expenses of $70.7 million decreased $23.8 million, or 25%, as compared to the prior year quarter. Rights fees expense decreased $19.5 million as compared to the prior year quarter, primarily reflecting reductions in media rights fees as a result of the amendments to MSG Networks’ media rights agreements with certain professional sports teams and other rights fees decreases. Other programming and production costs decreased $4.3 million as compared to the prior year quarter, primarily due to lower costs related to MSG+ as well as other cost decreases.
For the three months ended December 31, 2025, selling, general and administrative expenses of $10.8 million decreased $5.5 million, or 33%, as compared to the prior year quarter. This decrease was primarily due to (i) lower employee compensation and related benefits of $3.2 million and (ii) lower professional fees of $3.2 million, mainly due to the absence of costs associated with pursuing a work-out of MSG Networks’ credit facilities with its syndicate of lenders recorded in the prior year quarter, partially offset by higher advertising and marketing costs of $1.0 million.
In addition, results for the three months ended December 31, 2025 had no impairment and other losses, net, as compared to a non-cash goodwill impairment charge of $61.2 million in the prior year quarter.
For the three months ended December 31, 2025, operating income of $35.4 million increased by $70.5 million from an operating loss of $35.0 million in the prior year quarter, primarily due to the absence of impairment and other losses, net, recorded in the prior year quarter, lower direct operating expenses and, to a lesser extent, lower selling, general and administrative expenses, partially offset by the decrease in revenues. Adjusted operating income of $38.6 million increased $5.0 million, or 15%, as compared to the prior year quarter, primarily due to lower direct operating expenses, partially offset by the decrease in revenues.
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 a second venue planned for Abu Dhabi. 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 earnings 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 888-800-3155 / Conference ID Number 8089430
Conference call replay number is 800-770-2030 / Conference ID Number 8089430 until February 19, 2026
SPHERE ENTERTAINMENT CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Revenues
$
394,283
$
308,290
$
1,220,045
$
1,130,928
Direct operating expenses
(163,354
)
(167,175
)
(589,979
)
(610,430
)
Selling, general and administrative expenses
(114,934
)
(135,286
)
(441,918
)
(484,452
)
Depreciation and amortization
(84,173
)
(83,319
)
(336,411
)
(327,436
)
Impairment and other losses, net
(162
)
(61,200
)
(69,781
)
(70,968
)
Restructuring charges
(2,739
)
(4,251
)
(11,520
)
(9,972
)
Operating income (loss)
28,921
(142,941
)
(229,564
)
(372,330
)
Other income (expense):
Gain on extinguishment of debt
—
—
346,092
—
Interest income
2,799
4,374
13,498
26,796
Interest expense
(9,079
)
(30,414
)
(70,546
)
(111,428
)
Other (expense) income, net
(197
)
651
(2,265
)
(5,913
)
Income (loss) from continuing operations before income taxes
22,444
(168,330
)
57,215
(462,875
)
Income tax benefit (expense)
42,295
42,380
(23,810
)
113,185
Income (loss) from continuing operations
64,739
(125,950
)
33,405
(349,690
)
Income from discontinued operations, net of taxes
—
—
—
24,631
Less: Net income attributable to participating securities
7,092
—
—
—
Net income (loss) attributable to Sphere Entertainment Co.’s stockholders
$
57,647
$
(125,950
)
$
33,405
$
(325,059
)
Basic income (loss) per common share
Continuing operations
$
1.62
$
(3.49
)
$
0.93
$
(9.77
)
Discontinued operations
—
—
—
0.69
Basic income (loss) per common share attributable to Sphere Entertainment Co.’s stockholders
$
1.62
$
(3.49
)
$
0.93
$
(9.09
)
Diluted income (loss) per common share
Continuing operations
$
1.23
$
(3.49
)
$
0.74
$
(9.77
)
Discontinued operations
—
—
—
0.69
Diluted income (loss) per common share attributable to Sphere Entertainment Co.’s stockholders
$
1.23
$
(3.49
)
$
0.74
$
(9.09
)
Weighted-average number of common shares outstanding:
Basic
35,687
36,054
36,069
35,775
Diluted
46,859
36,054
45,298
35,775
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 income (loss) in arriving at adjusted operating income as described in this earnings release:
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Operating income (loss)
$
28,921
$
(142,941
)
$
(229,564
)
$
(372,330
)
Share-based compensation
10,027
17,827
59,005
63,439
Depreciation and amortization
84,173
83,319
336,411
327,436
Restructuring charges
2,739
4,251
11,520
9,972
Impairment and other losses, net
162
61,200
69,781
70,968
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
358
7,557
7,888
8,322
Amortization for capitalized cloud computing costs
1,579
1,709
6,316
1,774
Remeasurement of deferred compensation plan liabilities
67
(66
)
467
259
Adjusted operating income
$
128,026
$
32,856
$
261,824
$
109,840
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS
(In thousands)
(Unaudited)
BUSINESS SEGMENT RESULTS
Three Months Ended
December 31, 2025
Sphere
MSG Networks
Total
Revenues
$
274,190
$
120,093
$
394,283
Direct operating expenses
(92,645
)
(70,709
)
(163,354
)
Selling, general and administrative expenses
(104,104
)
(10,830
)
(114,934
)
Depreciation and amortization
(82,061
)
(2,112
)
(84,173
)
Impairment and other losses, net
(162
)
—
(162
)
Restructuring charges
(1,731
)
(1,008
)
(2,739
)
Operating (loss) income
$
(6,513
)
$
35,434
$
28,921
Reconciliation to adjusted operating income:
Share-based compensation
9,956
71
10,027
Depreciation and amortization
82,061
2,112
84,173
Restructuring charges
1,731
1,008
2,739
Impairment and other losses, net
162
—
162
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
358
—
358
Amortization for capitalized cloud computing costs
1,579
—
1,579
Remeasurement of deferred compensation plan liabilities
67
—
67
Adjusted operating income
$
89,401
$
38,625
$
128,026
Three Months Ended
December 31, 2024
Sphere
MSG Networks
Total
Revenues
$
169,020
$
139,270
$
308,290
Direct operating expenses
(72,665
)
(94,510
)
(167,175
)
Selling, general and administrative expenses
(119,003
)
(16,283
)
(135,286
)
Depreciation and amortization
(81,002
)
(2,317
)
(83,319
)
Impairment and other losses, net
—
(61,200
)
(61,200
)
Restructuring charges
(4,251
)
—
(4,251
)
Operating loss
$
(107,901
)
$
(35,040
)
$
(142,941
)
Reconciliation to adjusted operating (loss) income:
Share-based compensation
16,183
1,644
17,827
Depreciation and amortization
81,002
2,317
83,319
Restructuring charges
4,251
—
4,251
Impairment and other losses, net
—
61,200
61,200
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
4,151
3,406
7,557
Amortization for capitalized cloud computing costs
1,579
130
1,709
Remeasurement of deferred compensation plan liabilities
(66
)
—
(66
)
Adjusted operating (loss) income
$
(801
)
$
33,657
$
32,856
SPHERE ENTERTAINMENT CO.
SEGMENT RESULTS (Continued)
(In thousands)
(Unaudited)
Twelve Months Ended
December 31, 2025
Sphere
MSG Networks
Total
Revenues
$
781,412
$
438,633
$
1,220,045
Direct operating expenses
(318,265
)
(271,714
)
(589,979
)
Selling, general and administrative expenses
(389,594
)
(52,324
)
(441,918
)
Depreciation and amortization
(327,769
)
(8,642
)
(336,411
)
Impairment and other losses, net
(4,381
)
(65,400
)
(69,781
)
Restructuring charges
(9,560
)
(1,960
)
(11,520
)
Operating (loss) income
$
(268,157
)
$
38,593
$
(229,564
)
Reconciliation to adjusted operating income:
Share-based compensation
60,272
(1,267
)
59,005
Depreciation and amortization
327,769
8,642
336,411
Restructuring charges.
9,560
1,960
11,520
Impairment and other losses, net
4,381
65,400
69,781
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
3,954
3,934
7,888
Amortization for capitalized cloud computing costs
6,316
—
6,316
Remeasurement of deferred compensation plan liabilities
467
—
467
Adjusted operating income
$
144,562
$
117,262
$
261,824
Twelve Months Ended
December 31, 2024
Sphere
MSG Networks
Total
Revenues
$
617,673
$
513,255
$
1,130,928
Direct operating expenses
(265,278
)
(345,152
)
(610,430
)
Selling, general and administrative expenses
(435,038
)
(49,414
)
(484,452
)
Depreciation and amortization
(318,667
)
(8,769
)
(327,436
)
Impairment and other losses, net
(9,768
)
(61,200
)
(70,968
)
Restructuring charges
(9,932
)
(40
)
(9,972
)
Operating (loss) income
$
(421,010
)
$
48,680
$
(372,330
)
Reconciliation to adjusted operating (loss) income:
Share-based compensation
54,973
8,466
63,439
Depreciation and amortization
318,667
8,769
327,436
Restructuring charges
9,932
40
9,972
Impairment and other losses, net
9,768
61,200
70,968
Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries
6,169
2,153
8,322
Amortization for capitalized cloud computing costs
1,579
195
1,774
Remeasurement of deferred compensation plan liabilities
259
—
259
Adjusted operating (loss) income
$
(19,663
)
$
129,503
$
109,840
SPHERE ENTERTAINMENT CO.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
As of December 31,
2025
2024
ASSETS
Current Assets:
Cash, cash equivalents and restricted cash
$
521,264
$
515,633
Accounts receivable, net
171,630
154,624
Related party receivables, current
24,457
25,729
Prepaid expenses and other current assets
92,824
65,007
Total current assets
810,175
760,993
Non-Current Assets:
Investments
38,725
40,396
Property and equipment, net
2,710,643
3,035,730
Right-of-use lease assets
91,372
93,920
Goodwill
344,772
410,172
Intangible assets, net
21,817
28,383
Other non-current assets
192,404
145,706
Total assets
$
4,209,908
$
4,515,300
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$
24,593
$
33,606
Accrued expenses and other current liabilities
431,477
388,370
Related party payables, current
14,301
9,504
Current portion of long-term debt, net
63,009
829,125
Operating lease liabilities, current
17,186
19,268
Deferred revenue
192,808
91,794
Total current liabilities
743,374
1,371,667
Non-Current Liabilities:
Long-term debt, net
767,439
524,010
Operating lease liabilities, non-current
113,824
116,668
Deferred tax liabilities, net
172,111
148,870
Other non-current liabilities
179,921
152,666
Total liabilities
1,976,669
2,313,881
Commitments and contingencies
Equity:
Class A Common Stock (a)
297
290
Class B Common Stock (b)
69
69
Additional paid-in capital
2,470,120
2,428,414
Treasury stock, at cost, 1,054 and 0 shares as of December 31, 2025 and 2024
(50,024
)
—
Accumulated deficit
(186,441
)
(219,846
)
Accumulated other comprehensive loss
(782
)
(7,508
)
Total stockholders’ equity
2,233,239
2,201,419
Total liabilities and equity
$
4,209,908
$
4,515,300
_________________
(a) Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 28,629 and 28,960 shares outstanding as of December 31, 2025 and 2024, respectively.
(b) Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares outstanding as of December 31, 2025 and 2024.
SPHERE ENTERTAINMENT CO.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Twelve Months Ended
December 31,
2025
2024
Net cash provided by operating activities
$
243,346
$
69,407
Net cash used in investing activities
(3,901
)
(106,312
)
Net cash used in financing activities
(233,345
)
(74,168
)
Effect of exchange rates on cash, cash equivalents and restricted cash
(469
)
(1,121
)
Net increase (decrease) in cash, cash equivalents and restricted cash
5,631
(112,194
)
Cash, cash equivalents and restricted cash beginning of period
515,633
627,827
Cash, cash equivalents and restricted cash at end of period
$
521,264
$
515,633