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Sep 30
Sphere Entertainment Co Q1 2026 Earnings Report
Sphere Entertainment reported a Q3 2025 net loss of $101.2 million despite a 15% increase in total revenue, driven by growth in Sphere segment activity and sponsorships.
Key Takeaways
Sphere Entertainment's Q3 2025 performance saw strong revenue growth led by the Sphere segment, including The Wizard of Oz launch. However, elevated costs, impairments, and restructuring led to a net loss, despite adjusted operating income turning positive.
Total revenue rose 15% YoY to $262.5 million, led by Sphere segment growth
Net loss was $101.2 million, improving slightly from $105.3 million YoY
Adjusted operating income turned positive at $36.4 million, up from a loss of $10.2 million
Cash balance declined to $398.3 million, mainly due to financing outflows including $50 million in share buybacks
Sphere Entertainment Co
Sphere Entertainment Co
Sphere Entertainment Co Revenue by Segment
Revenue by Segment
Sphere Revenue
CapyFin.comMSG Networks Revenue
CapyFin.com Forward Guidance
Sphere Entertainment emphasized confidence in its long-term vision driven by the early success of The Wizard of Oz at Sphere and strategic sponsorships. No quantitative guidance was provided.
Positive Outlook
- Strong consumer demand for The Wizard of Oz at Sphere
- Over 1 million tickets sold for Sphere experiences
- Successful start of electronic music events and new residencies
- Multi-year sponsorships signed with Zoox and Lenovo
- Improvement in adjusted operating income year-over-year
Challenges Ahead
- Net loss remains high at $101.2 million
- Cash declined significantly from prior year due to share buybacks and financing outflows
- MSG Networks revenue dropped 12% YoY due to subscriber losses
- High impairments and restructuring charges continue to weigh on operating results
- Interest income declined and interest expense remained high