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Sphere Entertainment
(NYSE:SPHR)
Select Model
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Rating:62Neutral
Price Target:
$180.00
▲(32.67% Upside)
Action:Reiterated
Date:06/13/26
The score is driven mainly by improving TTM fundamentals (better margins, healthier leverage, and strong free cash flow) but held back by a volatile history of losses and inconsistent cash flow. Technicals are supportive with a strong uptrend, while the high P/E and lack of dividend yield pressure the valuation component; corporate governance news is a modest positive.
Positive Factors
Strong free cash flow
Sustained, material free cash flow provides durable internal funding for content, capital expenditures, and debt reduction, lowering reliance on external financing. Over a 2–6 month horizon, strong FCF improves flexibility to invest in shows, marketing, or strategic initiatives that support longer-term revenue generation.
Negative Factors
Volatile profitability and cash flow
A documented history of swings between profits and losses reduces confidence that recent improvements will persist. Lumpy event schedules, timing of large productions, and working-capital swings can rapidly reverse cash flow and margins, raising execution risk for capital allocation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained, material free cash flow provides durable internal funding for content, capital expenditures, and debt reduction, lowering reliance on external financing. Over a 2–6 month horizon, strong FCF improves flexibility to invest in shows, marketing, or strategic initiatives that support longer-term revenue generation.
Read all positive factors
Sphere Entertainment (SPHR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.08B
Dividend YieldN/A
Average Volume (3M)727.06K
Price to Earnings (P/E)54.8
Beta (1Y)1.67
Revenue Growth11.47%
EPS GrowthN/A
CountryUS
Employees1,080
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)3.15
Shares Outstanding28,925,450
10 Day Avg. Volume735,041
30 Day Avg. Volume727,056
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.62
Price to Sales (P/S)1.46
P/FCF Ratio-4.84
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue4.37
Enterprise Value/Gross Profit9.05
Enterprise Value/Ebitda10.57
Forecast
1Y Price Target
$169.70Price Target Upside25.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)-2.46
Revenue Forecast (FY)$1.37B
Sphere Entertainment Business Overview & Revenue Model
Company Description
Sphere Entertainment Co. is a prominent player in the entertainment sector, specializing in orchestrating, staging, and hosting a diverse array of live events. This encompasses musical concerts, family-oriented productions, and unique special occa...
How the Company Makes Money
Sphere Entertainment primarily makes money through two operating segments: (1) Sphere and (2) MSG Networks. In the Sphere segment, revenue is generated from ticket sales for events and proprietary shows hosted at Sphere, including concerts and oth...
Sphere Entertainment Earnings Call Summary
Earnings Call Date:Mar 03, 2025
(Q5-2025)
| % Change Since: |
Next Earnings Date:Aug 17, 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.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.
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.
Read all updates
Q5-2025 Updates
Positive
Negative
Increase in Total Company Revenues
Sphere Entertainment generated total company revenues of $282.7 million, which is an increase from the prior year period.
Read all positive updates
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
Income Statement
62
Positive
Balance Sheet
69
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.03B | 1.03B | 573.83M | 610.05M | 647.51M |
| Gross Profit | 640.21M | 222.57M | 479.06M | 231.62M | 289.78M | 384.65M |
| EBITDA | 548.04M | -23.86M | -23.86M | 378.81M | -43.05M | 185.75M |
| Net Income | 119.82M | -200.65M | -200.65M | 502.77M | -194.40M | -148.15M |
Balance Sheet | ||||||
| Total Assets | 4.22B | 4.79B | 4.79B | 4.97B | 5.52B | 5.29B |
| Cash, Cash Equivalents and Short-Term Investments | 630.15M | 559.76M | 559.76M | 131.97M | 747.31M | 1.52B |
| Total Debt | 938.37M | 1.52B | 1.52B | 1.32B | 1.09B | 2.01B |
| Total Liabilities | 1.97B | 2.37B | 2.37B | 2.39B | 3.36B | 2.97B |
| Stockholders Equity | 2.25B | 2.42B | 2.42B | 2.58B | 1.96B | 2.17B |
Cash Flow | ||||||
| Free Cash Flow | 333.50M | -309.41M | -309.41M | -1.02B | -663.88M | -514.70M |
| Operating Cash Flow | 373.24M | -19.66M | -19.66M | 153.59M | 141.34M | -58.69M |
| Investing Cash Flow | 8.66M | -45.18M | -45.18M | -653.92M | -804.16M | -123.18M |
| Financing Cash Flow | -229.30M | 209.73M | 209.73M | 85.54M | -30.39M | 592.68M |
Sphere Entertainment Technical Analysis
Positive
135.67
Price Trends
140.38
Positive
126.85
Positive
102.23
Positive
Market Momentum
7.09
Negative
74.60
Negative
84.63
Negative
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 135.67 is below the 20-day moving average (MA) of 149.63, below the 50-day MA of 140.38, and above the 200-day MA of 102.23, indicating a bullish trend. The MACD of 7.09 indicates Negative momentum. The RSI at 74.60 is Negative, neither overbought nor oversold. The STOCH value of 84.63 is Negative, 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 60 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.25B | 59.52 | 10.95% | ― | 12.56% | 43.49% | |
67 Neutral | $3.80B | 73.59 | 8.89% | ― | 4.51% | -62.44% | |
65 Neutral | $3.91B | 22.24 | 31.48% | 1.45% | 6.85% | -26.53% | |
62 Neutral | $6.08B | 54.79 | 5.36% | ― | 11.47% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $4.77B | -22.01 | 16.27% | ― | -17.64% | -54.79% | |
45 Neutral | $951.13M | -9.76 | -0.92% | ― | -6.04% | -339.14% |
* Communication Services Sector Average
SPHR
Sphere Entertainment
172.34
130.54
312.30%
CNK
Cinemark Holdings
32.70
2.91
9.75%
IMAX
IMAX
40.47
12.51
44.74%
IQ
Iqiyi
1.01
-0.76
-42.94%
LION
Lionsgate Studios
15.63
9.82
169.02%
MSGE
Madison Square Garden Entertainment Corp.
80.95
40.98
102.53%
Sphere Entertainment Corporate Events
Executive/Board ChangesShareholder Meetings
Sphere Entertainment Stockholders Back Board and Governance Proposals
Positive
Jun 12, 2026
On June 10, 2026, Sphere Entertainment Co. held its annual meeting of stockholders, where Class A holders elected four directors and Class B holders elected eleven directors to serve until the 2027 annual meeting. Stockholders also ratified the ap...
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.