I'm LongbridgeAI, I can summarize articles.Revenue: As of FY2026 Q2, the actual value is USD 313.64 M, beating the estimate of USD 308.04 M.
EPS: As of FY2026 Q2, the actual value is USD -1.07.
EBIT: As of FY2026 Q2, the actual value is USD -57.78 M.
Financial Performance for Three Months Ended June 30, 2026 (vs. 2025)
Operating Loss
Sphere Entertainment Co. reported an operating loss of -$61.3 million, an increase of -$11.1 million or -22% compared to -$50.2 million in the prior year quarter.
Adjusted Operating Income
Adjusted operating income was $50.9 million, a decrease of -$10.5 million or -17% from $61.5 million in the prior year quarter.
Financial Performance for Six Months Ended June 30, 2026 (vs. 2025)
Operating Loss
The operating loss was -$54.1 million, an improvement of $74.7 million or 58% compared to -$128.8 million in the prior year period.
Adjusted Operating Income
Adjusted operating income reached $160.9 million, an increase of $63.5 million or 65% from $97.4 million in the prior year period.
Net Loss
Sphere Entertainment Co. reported a net loss of -$33.867 million for the six months ended June 30, 2026, compared to a net income of $69.862 million in the prior year period.
Net Loss Attributable to Stockholders
Net loss attributable to Sphere Entertainment Co.’s stockholders was -$40.381 million, compared to net income of $69.862 million in the prior year period.
Segment Results (Three Months Ended June 30, 2026 vs. 2025)
Sphere Segment
- Revenues: The Sphere segment reported revenues of $226.4 million, a 29% increase from $175.6 million in the prior year quarter.
- Revenues from The Sphere Experience increased by $53.8 million, driven by higher per-show revenue for The Wizard of Oz at Sphere.
- Sponsorship, Exosphere advertising, and suite license fees increased by $10.5 million, primarily due to higher Exosphere advertising revenues.
- Event-related revenues decreased by -$11.7 million, mainly due to two fewer brand events, partially offset by higher revenues from six additional concert residency shows.
- Operating Loss: The operating loss for the Sphere segment was -$69.6 million, an improvement of $13.9 million or 17% compared to -$83.4 million in the prior year quarter.
- Adjusted Operating Income: Adjusted operating income for the Sphere segment increased by $15.0 million or 60% to $39.9 million, from $24.9 million in the prior year quarter.
- Direct Operating Expenses: Direct operating expenses were $87.7 million, a 15% increase from $76.351 million in the prior year quarter. Expenses for The Sphere Experience increased by $19.7 million due to higher per-show expenses for The Wizard of Oz at Sphere, partially offset by a -$4.1 million decrease in event-related expenses.
- Selling, General and Administrative Expenses: These expenses increased by $29.2 million or 30% to $125.6 million, primarily due to mark-to-market adjustments on share-based compensation, higher employee compensation, and increased professional fees (litigation-related).
MSG Networks Segment
- Revenues: The MSG Networks segment reported revenues of $87.3 million, an -18% decrease from $107.1 million in the prior year quarter.
- Distribution revenue decreased by -$13.7 million, reflecting an approximate 16.5% decrease in total subscribers.
- Advertising revenue decreased by -$6.0 million, mainly due to fewer live postseason professional sports telecasts.
- Operating Income: Operating income for the MSG Networks segment was $8.3 million, a decrease of -$25.0 million compared to $33.3 million in the prior year quarter.
- Adjusted Operating Income: Adjusted operating income decreased by -$25.5 million to $11.0 million, from $36.5 million in the prior year quarter.
- Direct Operating Expenses: Direct operating expenses increased by $8.4 million or 15% to $63.3 million. Rights fees expense increased by $9.2 million due to retroactive reductions in media rights fees in the prior year, partially offset by fewer NBA and NHL games.
- Selling, General and Administrative Expenses: These expenses decreased by -$3.0 million or -18% to $13.6 million, primarily due to lower employee compensation and related benefits (-$1.9 million) and advertising and marketing costs (-$1.2 million).
Cash Flow (Six Months Ended June 30, 2026 vs. 2025)
Net Cash Provided by Operating Activities
Net cash provided by operating activities was $102.583 million, compared to net cash used in operating activities of -$52.711 million in the prior year period.
Net Cash Used in Investing Activities
Net cash used in investing activities was -$19.627 million, compared to net cash provided by investing activities of $16.441 million in the prior year period.
Net Cash Used in Financing Activities
Net cash used in financing activities was -$52.128 million, compared to -$111.059 million in the prior year period.
Cash, Cash Equivalents, and Restricted Cash at End of Period
The company ended the period with $552.019 million in cash, cash equivalents, and restricted cash, up from $368.927 million in the prior year period.
Outlook / Guidance
Sphere Entertainment Co. is advancing its long-term vision for a global network of Sphere venues, with plans for Sphere Abu Dhabi expected by the end of 2029 and National Harbor. The company also announced a new Sphere Experience, The Rocky Horror Picture Show at Sphere, anticipated to open in 2027. Furthermore, Sphere Entertainment Co. extended its partnership with Formula 1 Las Vegas Grand Prix through 2030.