SPHR

Interested in Sphere Entertainment Co.? Here are five stocks we like better. Sphere Entertainment reported Q2 revenue of $313.6 million and adjusted operating income of $50.9 million. The Sphere segment grew nearly 30% to $226.4 million, driven primarily by strong per-show revenue from The Wizard of Oz at Sphere. The company is advancing venue expansion in Abu Dhabi and National Harbor, Maryland, with Abu Dhabi construction targeted for completion by late 2029. Management aims to operate at least five venues within five to six years and may announce another project by early 2027. Sphere is broadening its content pipeline with The Rocky Horror Picture Show at Sphere, planned for 2027, and an enhanced Wizard of Oz 2.0. Advertising and sponsorship activity also gained momentum, while MSG Networks revenue fell to $87.3 million amid subscriber and advertising declines. Cheap Thrills: Why These 3 Entertainment Stocks Are Soaring Sphere Entertainment (NYSE:SPHR) reported second-quarter revenue of $313.6 million and adjusted operating income of $50.9 million, while executives highlighted progress on venue expansion, original content development and advertising partnerships. Executive Chairman and Chief Executive Officer Jim Dolan said the company is pursuing its long-term strategy of building a global network of Sphere venues, with projects advancing in Abu Dhabi and National Harbor, Maryland. He also pointed to the continued performance of The Wizard of Oz at Sphere and plans for additional immersive productions. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The 5 Hottest CEO Stock Purchases So Far This Year In Abu Dhabi, Sphere recently announced the site location for its planned venue on Yas Island. Construction is underway and is expected to be completed by the end of 2029, Dolan said. In the U.S., the company is moving forward with plans for a Sphere at National Harbor. Sphere expects to complete an agreement for third-party financing “in the near term,” Dolan said. The planned financing would supplement $200 million in state, local and private incentives. → Microsoft Just Flipped the AI Spending Narrative Overnight Digger Granville-Smith, executive vice president at Sphere Entertainment, said the company is evaluating a build-to-suit and leaseback arrangement for National Harbor. Under that structure, a third-party partner would fund construction and own the venue, while Sphere would hold a long-term lease and maintain day-to-day operational control. The company said this approach would allow it to consolidate National Harbor financial results, retain more adjusted operating income and preserve potential upside. Sphere has also filed a detailed site plan with Prince George’s County as it seeks required permits, and Dolan said the venue could open in less than four years. → Carrier Earnings Could Send the Stock to a New All-Time High Management emphasized that financing structures could vary by project. Granville-Smith said Abu Dhabi uses a franchise model, while domestic projects could be owned, structured through sale-leasebacks or supported by other financing arrangements. Dolan said the company’s objective is to build venues quickly and that it aims to have five or more venues operating within five to six years, with another five potentially under construction. Dolan said Sphere remains in discussions with a “significant number” of markets regarding both large and smaller Sphere venues. He said the company could announce another expansion project before the end of 2026 and would be disappointed if it did not have another venue announcement by the first quarter. Sphere announced last month that The Rocky Horror Picture Show at Sphere is expected to debut in 2027. Dolan said the production would broaden the company’s content slate into a new genre and enable the venue to schedule Sphere Experiences later in the evening, complementing family-oriented daytime programming. Meanwhile, The Wizard of Oz at Sphere has sold nearly 3.6 million tickets and generated approximately $450 million in ticket sales, according to Dolan. He said attendance is subject to Las Vegas seasonality, with summer representing a lower-demand period, but described the show’s performance as strong. The company is developing The Wizard of Oz 2.0, an enhanced version of the experience that Dolan said it hopes to launch in September. The updated production is expected to include new elements involving the witch and flying monkeys. Dolan said the company believes The Wizard of Oz could have a lengthy run and could eventually play at other Sphere venues. Sphere is also developing an experience called From The Edge and remains in discussions with intellectual-property holders regarding other potential productions. Management said it is becoming more efficient in creating immersive content. Dolan said the original Wizard of Oz production took about two years to make, while Rocky Horror Picture Show is expected to take less than 12 months. He cited production techniques developed for Wizard of Oz and the use of artificial intelligence as factors that could support faster and less-expensive content creation. By the end of 2027, Dolan estimated that Sphere could have three to four Sphere Experiences playing at the venue. Sphere segment revenue totaled $226.4 million in the second quarter, up nearly 30% from the prior-year period. Chief Financial Officer Robert Langer said the increase was driven primarily by higher per-show revenue from The Wizard of Oz at Sphere. Revenue also increased from Exosphere advertising, sponsorship, suite license fees and concert residencies. Those gains were partly offset by fewer brand events held at Sphere compared with the prior year. Sphere segment adjusted operating income increased to $39.9 million from $24.9 million a year earlier. Langer said revenue growth was partly offset by higher selling, general and administrative costs and higher direct operating expenses, including higher per-show expenses associated with The Wizard of Oz. Company-wide SG&A expense was $125.6 million, up $29.2 million. Langer attributed part of the increase to mark-to-market adjustments on certain share-based compensation awards following appreciation in Sphere’s stock price. He said the company cash-settled more than half of those awards during the quarter, which should lessen the mark-to-market effect in future periods, all else being equal. Chief Operating Officer Jen Koester said the Exosphere advertising and sponsorship business posted significant growth during the quarter and remains a potential growth driver over the next several quarters and into 2027. She cited brand activity from Verizon related to the World Cup and Adobe’s multiday Las Vegas summit, along with a pipeline of potential multiyear official partnerships. MSG Networks generated second-quarter revenue of $87.3 million and adjusted operating income of $11 million, compared with $107.1 million and $36.5 million, respectively, in the prior-year quarter. Langer said the year-over-year decline reflected an approximately 16.5% decrease in subscribers, lower advertising revenue and the absence of certain retroactive media-rights adjustments recorded in the prior-year period. Sphere’s business held approximately $534 million of unrestricted cash and cash equivalents as of June 30, alongside $259 million of convertible debt and a $275 million term loan related to Sphere in Las Vegas. MSG Networks had approximately $98 million in net debt, including $116 million outstanding on its term loan. Dolan said MSG Networks’ debt is non-recourse to Sphere. Sphere Entertainment Co (NYSE: SPHR) is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world. At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sphere Entertainment Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Live Nation Entertainment, Inc. LYV has rallied sharply, with shares up 21.2% over the past year and recently trading at $183.56. The move reflects resilient demand for live events and a sizable second-quarter earnings beat.Yet the valuation case is less straightforward. Estimate cuts, higher debt, legal exposure and a price target below the recent market price argue for a more cautious view. Live Nation reported second-quarter 2026 earnings of $1.05 per share, surpassing the Zacks Consensus Estimate of 59 cents by nearly 78%. Revenues rose 9.4% year over year to $7.67 billion. Live Nation Entertainment, Inc. price-consensus-chart | Live Nation Entertainment, Inc. Quote Operating income increased 7.2% to $521.9 million, while adjusted operating income rose 2.3% to $817 million. Concerts revenue grew 8.4%, but Concerts adjusted operating income declined 13.7% due to stadium show timing, venue pre-opening costs and new international festivals. LYV trades at 1.48X forward 12-month sales, above its five-year median of 1.19X. That premium matters because the stock has already reflected much of the optimism around demand strength and Ticketmaster growth.The recent stock price of $183.56 also sits above the $156 price target, which reflects a 1.25X forward 12-month sales multiple. Madison Square Garden Entertainment Corp. MSGE offers a closer live-entertainment venue comparison, while Sphere Entertainment Co. SPHR gives investors another event-driven media and entertainment reference point. The earnings-revision trend is a key concern. The current fiscal-year earnings estimate has declined 14.1% over the past four weeks and 32.8% over the past 12 weeks.That weakens the case for chasing the stock after one strong quarter. A large earnings surprise can improve sentiment, but falling estimates suggest analysts are still weighing cost pressure, legal risk and second-half execution requirements. Live Nation ended June 30, 2026, with total debt, net of discounts and issuance costs, of $9.2 billion, up from $8.2 billion at year-end 2025. The current portion of debt rose to nearly $3.0 billion from $587.6 million.Interest expense increased to $187.8 million in the first half from $152.4 million a year earlier. The company also recorded a $450 million legal accrual, while unresolved antitrust and ticket-pricing proceedings could add costs, penalties or operational restrictions. The bottom line is that LYV’s operating demand remains strong, but the stock’s valuation already embeds a meaningful amount of optimism. The gap between the recent price and the $156 target supports a defensive stance.LYV currently carries a Zacks Rank #5 (Strong Sell), which aligns with negative estimate momentum over the near term. Its Value Score of F and Momentum Score of F also temper the investment case for investors focused on valuation discipline and recent trading quality.The Growth Score of A recognizes Live Nation’s longer-term expansion profile, while the VGM Score of B presents a more mixed picture across value, growth and momentum factors. For now, the unfavorable Rank and weaker Value and Momentum Scores outweigh the earnings beat for near-term investors.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report Madison Square Garden Entertainment Corp. (MSGE) : Free Stock Analysis Report Sphere Entertainment Co. (SPHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Sphere Entertainment (SPHR) moved into focus after its latest quarterly report. The company posted a Q2 net loss alongside higher sales, and the stock reacted positively as results topped market expectations. See our latest analysis for Sphere Entertainment. Sphere Entertainment's latest results came after a strong run, with a year to date share price return of 57.29% and a 1 year total shareholder return of 244.53%. This hints at building momentum despite a 30 day share price pullback of 14.28%. If this kind of post earnings move has your attention and you want more ideas with similar potential, take a look at our screener of 19 top founder-led companies Sphere Entertainment has just posted a smaller than expected loss, and the stock has already moved sharply over the past year but has pulled back in recent weeks. Does that set up a reasonable entry now, or argue for patience and a better price later? The most followed narrative values Sphere Entertainment at $176.55 per share compared with a last close of $148.32, which implies meaningful upside in that framework. Read the complete narrative. Read the complete narrative. Want to understand why this fair value sits well above today’s price? The narrative leans on measured revenue growth, higher margins, and a relatively elevated future earnings multiple. It also highlights which assumptions have the greatest impact on the valuation. The narrative framework uses a 9.15% discount rate and ties that to a long term outlook for Sphere Entertainment’s venues, content slate and potential franchise expansion. Analysts behind this view also anchor their price target on earnings projections and a higher future P/E multiple than the broader US Entertainment industry, which helps explain the gap between the $148.32 share price and the $176.55 fair value mark. Result: Fair Value of $176.55 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you also need to weigh the risk that high build and upgrade costs or weaker demand for Sphere Entertainment experiences could pressure margins and call this narrative into question. Find out about the key risks to this Sphere Entertainment narrative. The most followed Sphere Entertainment narrative leans on discounted future earnings and a fair value of $176.55, which suggests the stock is undervalued versus the $148.32 share price. On plain P/E terms though, SPHR trades at 46.7x, versus 23.9x for the US Entertainment industry and 44x for peers, while the fair ratio sits at 24.4x. That is a wide premium and points to meaningful valuation risk if expectations ease. Which signal do you put more weight on? See what the numbers say about this price — find out in our valuation breakdown. With Sphere Entertainment showing both potential and clear pressure points, it may be helpful to review the full picture for yourself as soon as possible. For a concise snapshot of what stands out on both sides of the story, take a look at the 3 key rewards and 1 important warning sign If you want to keep building on the work you have done with Sphere Entertainment, do not stop at a single stock. The Simply Wall St Screener can surface other companies that match your style, whether you care most about value, resilience, or income potential. Target potential bargains by focusing on quality companies trading below their estimated worth using the 57 high quality undervalued stocks. Strengthen your core holdings by filtering for businesses that show robust finances and dependable track records through the solid balance sheet and fundamentals stocks screener (46 results). Spot lesser known opportunities with solid fundamentals before they become crowded trades by checking the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SPHR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Sphere Entertainment stock has delivered a very strong 360.9% return over the last 5 years, while the latest valuation checks are more cautious, with the Discounted Cash Flow (DCF) estimate pointing to upside and market multiples suggesting the shares are already pricing in a lot of good news. Recent swings in the share price add to the debate about whether the current US$148.32 level offers enough margin of safety. Over 5 years, Sphere Entertainment has returned 360.9%, which puts today’s price in the context of a long and powerful move that investors need to reassess against current fundamentals. The recent distribution deal that makes DAZN the exclusive direct to consumer streaming home of MSG Networks and YES Network may support sentiment around Sphere Entertainment’s media assets, while any disappointment around cash flow delivery from such arrangements could weigh on what investors are willing to pay. Sphere Entertainment scores 2 of 6 on Simply Wall St’s broader valuation checks. This leans more towards expensive territory than a clear bargain, even though the intrinsic value work suggests the stock may be undervalued on a DCF basis, as shown here. The issue now is whether Sphere Entertainment’s strong long term share price performance and mixed valuation signals still leave enough upside relative to its intrinsic value estimate to justify taking on the current risks. Sphere Entertainment delivered 244.5% returns over the last year. See how this stacks up to the rest of the Entertainment industry. The Discounted Cash Flow (DCF) model values Sphere Entertainment by projecting future free cash flows and discounting them back to today. On this basis, the company’s latest twelve month free cash flow is about $84.6 million, with the model assuming that cash flows grow from this level rather than shrink. Feeding these projections into a 2 Stage Free Cash Flow to Equity framework gives an estimated intrinsic value of about $188.62 per share. Set against the current share price of about $148.32, the DCF output implies Sphere Entertainment trades at roughly a 21.4% discount to this intrinsic estimate, which indicates the shares may be undervalued. The landmark DAZN agreement for MSG Networks and YES Network highlights why long term cash flow expectations are central to the analysis, because it directly affects what future streaming economics could look like. On balance, the DCF work indicates that Sphere Entertainment stock may be undervalued relative to the cash flows currently built into the model. Our Discounted Cash Flow (DCF) analysis suggests Sphere Entertainment is undervalued by 21.4%. Track this in your watchlist or portfolio, or discover 57 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Sphere Entertainment. The P/E ratio is a useful metric for Sphere Entertainment because investors often focus on earnings power when assessing media and live entertainment businesses. On this measure, Sphere Entertainment trades on a P/E of about 46.7x, which is slightly above the peer average of 44.0x and around double the broader Entertainment industry average of 23.9x. This places the stock toward the higher end of the earnings valuation range for its sector. The tailored fair P/E ratio for Sphere Entertainment is estimated at 24.4x, which is well below the current 46.7x level. This difference indicates that investors are paying a sizeable premium to what the model suggests might be reasonable once factors such as growth profile, margins, size and risk are considered. On this earnings multiple, Sphere Entertainment stock currently appears overvalued relative to its fair P/E benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Sphere Entertainment valuation puzzle leaves off. They spell out which assumptions about future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. Each narrative links a specific set of catalysts and risks to a view of fair value, so you can see over time which version of Sphere Entertainment's story appears to be taking shape on the Community page. One of the top community narratives on Sphere Entertainment: 16% undervalued Read one of the top narratives on Sphere Entertainment Do you think there's more to the story for Sphere Entertainment? Head over to our Community to see what others are saying! For Sphere Entertainment, the Discounted Cash Flow (DCF) work points to meaningful upside from intrinsic value, while the P/E based market view flags the stock as overvalued relative to peers. That split reflects models that lean on long term cash flow delivery and capital needs on one side and current growth expectations and sentiment on the other. Recent sharp share price swings have amplified the disconnect. Broader valuation checks remain weak despite the DCF signal, so the key question is whether future cash flows from assets like the DAZN streaming deal ultimately justify today’s richer earnings multiple or confirm that the current discount is warranted. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SPHR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sphere Entertainment Co (NYSE:SPHR) reported a 30% year-over-year revenue increase in its Sphere segment, driven by strong ticket sales for 'The Wizard of Oz at Sphere'. The company is expanding its global footprint with construction underway for a new Sphere in Abu Dhabi, expected to be completed by the end of 2029. Sphere Entertainment Co (NYSE:SPHR) is developing a diverse content slate, including 'The Rocky Horror Picture Show at Sphere' debuting in 2027, which will extend venue utilization into later evening hours. The company is advancing plans for Sphere at National Harbor, expecting to secure third-party financing that allows full operational control and consolidation of financials. Sphere Entertainment Co (NYSE:SPHR) is improving content production efficiency, with 'The Rocky Horror Picture Show' taking less than 12 months to produce compared to two years for 'The Wizard of Oz'. Sphere Entertainment Co (NYSE:SPHR) experienced a decline in MSG Networks segment, with revenues dropping from $107.1 million to $87.3 million year-over-year due to a 16.5% subscriber decrease and lower advertising revenue. The company faces seasonality challenges in Las Vegas, with summer being a low season for 'The Wizard of Oz' attendance. Sphere Entertainment Co (NYSE:SPHR) reported higher SG&A expenses of $125.6 million, up $29.2 million, partly due to mark-to-market adjustments on share-based compensation awards. The company's expansion plans are subject to construction timelines, with the Abu Dhabi Sphere not expected to be completed until 2029. Sphere Entertainment Co (NYSE:SPHR) faces uncertainty in securing financing for new venues, as the National Harbor project requires a specific build-to-suit leaseback structure rather than a simpler franchise model. Here are the key highlights from the Sphere Entertainment Co. (NYSE:SPHR) Q2 2026 earnings call, presented as Q&A pairs. Warning! GuruFocus has detected 2 Warning Sign with SPHR. Is SPHR fairly valued? Test your thesis with our free DCF calculator. Q: With Wizard of Oz, can you discuss how you see the progression of attendance from launch until now in terms of seasonality? How does that inform your view of the show from here as you lap the anniversary and look to put enhancements into the experience?A: Jim Dolan, Executive Chairman and CEO: The show is performing very well. It is subject to Vegas seasonality, and we are in the middle of the summer low season, but it's still doing very well. I anticipate we could run Wizard of Oz for a long time. Our plans are to release a new version (2.0) in September, followed by the Rocky Horror Picture Show in March. I think Wizard of Oz could easily go 10 years, playing in other spheres and occasionally in Vegas, because it is so universally loved. The 2.0 version will include new additions like going for a ride with a witch and new flying monkeys. Q: On National Harbor, can you explain why you think the operational model is advantageous versus a traditional franchise model? And if you have interest in pursuing a similar structure for future spheres?A: Jim Dolan, Executive Chairman and CEO: The model works for National Harbor, but the idea is to build as many spheres as quickly as possible. Robert, CFO: We see a number of benefits for a build-to-suit and leaseback structure for National Harbor. A third-party partner would fund the total construction. While that third-party will own the venue, we will enter into a long-term lease and have day-to-day operational control. This allows us to fully consolidate National Harbor's results and retain more of the AOI and potential upside. As we look at other structures, it could be a combination of franchise, build-to-suit, minority equity, or debt structures. We will look at each one individually to maximize returns. Q: You mentioned Rocky Horror represents a different genre of content. How should investors think about the role of complementary IP within the broader content strategy and the opportunity to increase show count over time?A: Jim Dolan, Executive Chairman and CEO: I think Rocky Horror is going to be a smash. The whole business strategy is to create reusable content that goes from sphere to sphere. Nobody in Abu Dhabi has seen Rocky Horror or Wizard of Oz, and the same is true for National Harbor. As we continue to build out spheres, our ability to create and monetize content also increases. I would like to get ahead of that as much as we can before the openings of these venues to make their results even more robust. Q: Regardless of seasonality, Wizard of Oz has been a massive hit. With the concert calendar in Vegas already full, what are the growth levers for the Las Vegas sphere specifically in 2027 and beyond?A: Jim Dolan, Executive Chairman and CEO: You're right about concerts; we are not shy of demand from artists. The whole business strategy behind Sphere is utilization of the venue, and that's where the growth will come from. Madison Square Garden runs approximately 200+ events a year but is hamstrung by load-in/load-out. When we created Sphere, the business model was all about increasing utilization through our own IP and content. We will continue to pursue that. We have new products, some of which we haven't talked about, that will increase utilization, and that is where I think the growth will come. Q: In terms of original content, do you have the capacity to take on additional projects? Has the time to market gotten shorter? How many sphere experiences could we expect by the end of 2027?A: Jim Dolan, Executive Chairman and CEO: We are definitely getting faster and becoming more efficient. Rocky Horror is a good example; Wizard of Oz took two years to make, while Rocky Horror will take less than 12 months. We are getting better, particularly with the use of AI and production techniques developed for Wizard of Oz. I expect we will be able to create more content at a less expensive and more efficient fashion. By the end of 2027, I'd guess we will have three to four experiences. Q: Can you provide some color on the progress of expansion discussions? Do you think there's a possibility of another expansion announcement in 2026, or is it more likely to be a 2027 event?A: Jim Dolan, Executive Chairman and CEO: I am hopeful. I think it's very possible we will have another announcement this year. We are in pretty serious discussions with a couple of different marketplaces. If it's not by the end of this year, certainly by the first quarter of 2027, I will be disappointed if we don't have another one. Q: Can you update us on your capacity to develop new spheres? Can you still support the simultaneous development of five or six spheres?A: Robert, CFO: We have the capacity to do that. We have an in-house development and construction team. For Abu Dhabi, we have a consulting team. For National Harbor, our team will be building it. We think they can take on another two, three, or four over the coming year and a half. Our goal is to have five spheres opened in five-plus years, with others in construction. Jim Dolan, Executive Chairman and CEO: The choke point for us has been the design work. We have been working on that consistently since we opened Sphere. We have settled down the model pretty well. The tech stack is the same in Abu Dhabi, National Harbor, and Vegas. Once you know how to do it and have the design, you can go faster. Q: You had nice growth in the sponsorship, signage, and exosphere revenue line. What were some drivers there and what is the outlook for the next few quarters?A: Jen, Chief Operating Officer: We had significant growth in this category this quarter, and we are seeing the momentum continue. We see the exosphere and sponsorship business as a true growth driver for the next few quarters and into next year. We have big brands like Verizon coming in for the World Cup and Adobe for a takeover. We have a very strong pipeline of official partnerships in the works, which means we will continue to secure more multi-year sponsorship deals. We remain on track for growth in '26 and have good potential for pipeline deals for '27. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, July 30, 2026--(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: In May, the Company announced with the Department of Culture and Tourism – Abu Dhabi that Yas Island has been selected as the location for Sphere Abu Dhabi, with construction expected to be completed by the end of 2029; The Company remains in discussions with a significant number of markets globally regarding additional large and smaller-scale Sphere venues, while plans to bring Sphere to National Harbor also continue to move forward; The Company announced the production of a new Sphere Experience – The Rocky Horror Picture Show at Sphere – based on the 1975 film, which is expected to open in 2027; In mid-June, The Wizard of Oz at Sphere, the Sphere Experience that opened in Las Vegas on August 28, 2025, surpassed $400 million in ticket sales with over three million total tickets sold; In July, the Company and Formula 1 Las Vegas Grand Prix announced a new five-year agreement, extending their partnership through 2030. 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: SphereFor 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 NetworksFor 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 MeasuresWe 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 StatementsThis 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 777582186Webcast replay available at investor.sphereentertainmentco.com SPHERE ENTERTAINMENT CO.ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TOADJUSTED 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: Share-based compensation. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted under the Sphere Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by Sphere Entertainment, and Sphere Entertainment Non-Employee Director Plan. Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and equipment and intangible assets. Restructuring charges. This adjustment eliminates costs related to termination benefits provided to certain executives and employees. Impairment and other losses (gains), net. This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses. Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries. This adjustment eliminates costs related to mergers, debt work-outs and acquisitions, including litigation expenses. Amortization for capitalized cloud computing arrangement costs. This adjustment eliminates amortization of capitalized cloud computing arrangement costs. Remeasurement of deferred compensation plan liabilities. This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730180224/en/ Contacts Ari Danes, CFAInvestor Relations(212) 465-6072Grace KaminerInvestor Relations(212) 631-5076

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Sphere Entertainment stock has produced a very strong share price gain over the past few years, yet its valuation signals are pulling in different directions, with a Discounted Cash Flow (DCF) intrinsic value pointing to some upside while traditional market multiples suggest the shares are expensive. Over the last 3 years, Sphere Entertainment has delivered a return of about 3.9x, which puts extra focus on whether today’s price still leaves room for further upside. Recent attention on Sphere Entertainment’s Sphere venue and content slate, including interest around The Wizard of Oz at Sphere, can support expectations for revenue and cash flow. However, any setback in demand or higher than expected operating costs may weigh on what investors are willing to pay for the stock. The broader valuation checks lean expensive, with Sphere Entertainment scoring just 1 out of 6 on the value score, even though the intrinsic value estimate suggests the shares trade at about a 14.0% discount. The issue now is whether Sphere Entertainment’s strong share price performance, alongside this split between the intrinsic value estimate and market multiples, still offers an appealing entry point for new investors. Sphere Entertainment delivered 277.1% returns over the last year. See how this stacks up to the rest of the Entertainment industry. The Discounted Cash Flow (DCF) model estimates what Sphere Entertainment might be worth based on the cash it is expected to generate in the future. For Sphere Entertainment, the latest twelve month free cash flow is about $84.6 million, with the model using a growing cash flow profile over time to reflect the planned expansion of the business. Under these assumptions, the DCF model points to an estimated intrinsic value of about $190 per share, which implies the stock is trading at roughly a 14.0% discount and therefore appears undervalued on this basis. Because recent optimism around The Wizard of Oz at Sphere has already drawn attention to the stock, the fact that the cash flow based value still sits above the current share price suggests expectations for the venue and content pipeline are broadly consistent with the model. Overall, this Discounted Cash Flow analysis suggests Sphere Entertainment stock appears undervalued at current levels based on the model’s inputs and assumptions. Our Discounted Cash Flow (DCF) analysis suggests Sphere Entertainment is undervalued by 14.0%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Sphere Entertainment. The P/E ratio is a useful way to see how much investors are paying for each dollar of Sphere Entertainment earnings. Sphere Entertainment currently trades at about 51.5x earnings, which is well above the Entertainment industry average of roughly 23.0x and its peer group average of about 35.2x. The fair P/E multiple implied by the broader model is about 3.6x. The large gap to the current 51.5x suggests the framework is heavily discounting Sphere Entertainment based on its risk profile and earnings quality, rather than pointing to a precise fair value target. Taken together, these comparisons indicate the market is assigning a rich earnings multiple to Sphere Entertainment stock relative to what this model and sector benchmarks would imply. On this P/E measure, Sphere Entertainment stock currently appears overvalued compared with both the modelled fair multiple and typical levels across the Entertainment industry. See what the numbers say about this price — find out in our valuation breakdown. For Sphere Entertainment, Simply Wall St Narratives sit between the DCF estimate and the high P/E multiple, explaining which paths for revenue growth, margins and earnings would need to unfold for the stock to be worth materially more or less than today’s price. Rather than stopping at a single number from a ratio or model, Narratives set out the future that number depends on, so you can monitor whether Sphere Entertainment's actual progress aligns with those assumptions. Community views on Sphere Entertainment are pulled in very different directions, with one side focused on content and venue expansion and the other on demand and cost risks. Bull case: roughly fairly valued Read the full Bull Case to see why Sphere Entertainment could be undervalued Bear case: 184% overvalued Read the full Bear Case to see why Sphere Entertainment could be overvalued Do you think there's more to the story for Sphere Entertainment? Head over to our Community to see what others are saying! Sphere Entertainment sits at an awkward crossroads, with the Discounted Cash Flow (DCF) intrinsic value pointing to some upside while earnings-based multiples flag the stock as overvalued. The tension stems from a cash flow model that looks through heavy investment and timing of returns, versus a P/E framework that penalises rich expectations and risk, which helps explain the wide gap between the two signals. With broader valuation checks still weak, the key question is whether Sphere Entertainment can translate its venue and content ambition into durable cash generation, or whether the apparent discount in the intrinsic value estimate is simply compensation for execution and demand risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SPHR. Have feedback on this article? Concerned about the content? 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