A Business at a Glance
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Sphere Entertainment Co.
SPHR
$6.2B
Mkt Cap
$136.26
+2.21%
Sphere Entertainment Co. (SPHR) has a current P/E ratio of 184.1, compared to its historical median P/E of 2.3. The stock is currently considered Expensive based on its historical valuation range.
Sphere Entertainment Co. (SPHR) has a 5-year average return on invested capital (ROIC) of -1.1%. This is below average and may indicate limited pricing power.
Sphere Entertainment Co. (SPHR) has a market capitalization of $4.9B. It is classified as a mid-cap stock.
Sphere Entertainment Co. (SPHR) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.02%.
Based on historical P/E analysis, Sphere Entertainment Co. (SPHR) appears expensive. The current P/E of 184.1 is 7759% above its historical median of 2.3. The estimated fair value CAGR (P/E method) is -19.7%.
Sphere Entertainment Co. (SPHR) operates in the Services-Amusement & Recreation Services industry, within the Consumer Cyclical sector.
Item 1. Business Sphere Entertainment Co. is a Nevada corporation with its principal executive office at Two Pennsylvania Plaza, New York, NY, 10121. Unless the context otherwise requires, all references to “we,” “us,” “our,” “Sphere Entertainment” or the “Company” refer collectively to Sphere Entertainment Co., a holding company, and its direct and indirect subsidiaries. We conduct substantially all of our business activities discussed in this Annual Report on Form 10-K (this “Form 10-K”) through Sphere Entertainment Group, LLC (“Sphere Entertainment Group”) and MSG Networks Inc. (together with its subsidiaries, “MSG Networks”), and each of their direct and indirect subsidiaries. The Company (formerly Madison Square Garden Entertainment Corp.) was incorporated on November 21, 2019 as a direct, wholly-owned subsidiary of Madison Square Garden Sports Corp. (“MSG Sports”).
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Operating Segments | $648M | $608M | $571M | $530M | $689M | 23% |
Event-related | — | — | — | $420M | $689M | 23% |
Ticketing and venue license fee revenues | $8M | $250M | — | $335M | $561M | 18% |
Media networks revenues | $648M | $608M | $571M | $530M | $439M | 14% |
Media related, primarily from affiliation agreements | $639M | $596M | $558M | $522M | $431M | 14% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.2B | 1.0B | 574M | 610M | 648M |
| Net Income | 114M | 33M | -201M | 331M | -194M | -162M |
| EPS | $1.97 | $0.74 | $-5.68 | $14.40 | $-5.77 | $-4.59 |
| Free Cash Flow | 369M | 191M | -284M | -905M | -615M | -515M |
| ROIC | -4.4% | 1.2% | -6.2% | 10.0% | -5.8% | -4.8% |
| Gross Margin | - | 63.8% | 57.8% | 21.2% | -65.4% | 32.9% |
| Debt/Equity | 0.36 | 0.43 | 0.68 | 0.46 | 0.51 | 0.79 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -144M | -230M | -341M | -273M | -103M | -188M |
| Operating Margin | -10.8% | -18.8% | -33.2% | -47.6% | -16.8% | -29.1% |
| ROE | 5.1% | 1.5% | -8.4% | 14.5% | -9.4% | -6.4% |
| Shares Outstanding | 36M | 45M | 35M | 23M | 34M | 35M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 989M | 1.0B | 1.4B | 648M | 610M | 574M | 1.0B | 1.2B | 1.3B |
| Gross Margin | 35.8% | 36.1% | 45.0% | 32.9% | -65.4% | 21.2% | 57.8% | 63.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 273M | 315M | 433M | 424M | 682M | N/A | 253M | 549M | 549M |
| EBIT | -31M | -46M | 235M | -188M | -103M | -273M | -341M | -230M | -144M |
| Op. Margin | -3.2% | -4.3% | 16.4% | -29.1% | -16.8% | -47.6% | -33.2% | -18.8% | -10.8% |
| Net Income | 6.9M | -8.2M | 182M | -162M | -194M | 331M | -201M | 33M | 114M |
| Net Margin | 0.7% | -0.8% | 12.7% | -24.9% | -31.9% | 57.6% | -19.5% | 2.7% | 8.6% |
| Non-Recurring | 0 | 0 | 329M | 21M | 16M | 248M | 131M | 77M | 13M |
| Returns on Capital | |||||||||
| ROIC | N/A | -0.3% | 8.9% | -4.8% | -5.8% | 10.0% | -6.2% | 1.2% | -4.4% |
| ROE | N/A | -0.3% | 6.7% | -6.4% | -9.4% | 14.5% | -8.4% | 1.5% | 5.1% |
| ROA | N/A | -0.5% | 5.2% | -3.6% | -3.6% | 6.3% | -4.2% | 0.8% | 2.7% |
| Cash Flow | |||||||||
| Op. Cash Flow | 144M | 101M | 308M | -59M | 141M | 154M | -20M | 243M | 373M |
| Free Cash Flow | -43M | -83M | -147M | -515M | -615M | -905M | -284M | 191M | 369M |
| Owner Earnings | 5.0M | -43M | 135M | -251M | -60M | -12M | -324M | -152M | -15M |
| CapEx | 187M | 184M | 455M | 456M | 757M | 1.1B | 265M | 52M | 4.1M |
| Maint. CapEx | 112M | 109M | 112M | 122M | 125M | 103M | 256M | 336M | 337M |
| Growth CapEx | 75M | 75M | 343M | 334M | 632M | 956M | 8.2M | 0 | 0 |
| D&A | 112M | 109M | 112M | 122M | 125M | 103M | 256M | 336M | 337M |
| CapEx/OCF | N/A | N/A | 461.2% | N/A | 146.1% | 161.5% | N/A | 1.8% | 1.1% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 294M | 0 | 0 | 0 | 0 | 50M | 50M |
| Buyback Yield | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | 1.2% | 1.0% |
| Stock-Based Comp | 27M | 35M | 61M | 71M | 77M | 63M | 48M | 59M | 51M |
| Debt Repayment | 0 | 1.2M | 15M | 0 | 13M | 2.0M | 0 | 0 | 0 |
| Balance Sheet | |||||||||
| Net Debt | -1.2B | -1.1B | -1.2B | 188M | 248M | 1.1B | 973M | 440M | 181M |
| Cash & Equiv. | 1.2B | 1.1B | 907M | 1.5B | 747M | 132M | 516M | 521M | 629M |
| Long-Term Debt | 0 | 49M | 28M | 1.7B | 930M | 1.1B | 524M | 767M | 753M |
| Debt/Equity | N/A | 0.02 | 0.01 | 0.79 | 0.51 | 0.46 | 0.68 | 0.43 | 0.36 |
| Interest Coverage | -2.6 | -8.2 | 6.4 | -9.2 | -3.8 | -42.9 | -68.1 | -80.9 | -80.9 |
| Equity | N/A | 2.6B | 2.9B | 2.2B | 2.0B | 2.6B | 2.2B | 2.2B | 2.2B |
| Total Assets | N/A | 3.3B | 3.7B | 5.3B | 5.5B | 5.0B | 4.5B | 4.2B | 4.2B |
| Total Liabilities | N/A | 662M | 845M | 3.0B | 3.4B | 2.4B | 2.3B | 2.0B | 2.0B |
| Intangibles | N/A | 214M | 150M | 198M | 21M | 18M | 28M | 22M | 20M |
| Retained Earnings | N/A | 0 | 142M | -96M | -291M | 212M | -220M | -186M | -182M |
| Working Capital | N/A | 873M | 917M | 1.1B | 258M | -68M | -611M | 67M | 161M |
| Current Assets | N/A | 1.3B | 1.4B | 1.9B | 1.2B | 624M | 761M | 810M | 904M |
| Current Liabilities | N/A | 474M | 510M | 730M | 961M | 692M | 1.4B | 743M | 743M |
| Per Share Data | |||||||||
| EPS | 0.29 | -0.35 | 5.20 | -4.59 | -5.77 | 14.40 | -5.68 | 0.74 | 1.97 |
| Owner EPS | 0.21 | -1.85 | 3.85 | -7.14 | -1.79 | -0.54 | -9.18 | -3.37 | -0.41 |
| Book Value | N/A | 109.53 | 81.72 | 61.63 | 58.27 | 112.50 | 62.32 | 49.47 | 62.65 |
| Cash Flow/Share | 6.07 | 4.32 | 8.82 | -1.67 | 4.20 | 6.69 | -0.56 | 5.39 | 12.55 |
| Dividends/Share | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 23.8M | 23.5M | 34.9M | 35.2M | 33.7M | 23.0M | 35.3M | 45.1M | 35.9M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | 117.1 | N/A | N/A | 2.3 | N/A | 126.3 | 69.1 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 22.1 | 13.2 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | 3.6 | N/A | N/A | N/A |
| Price/Book | N/A | N/A | 0.8 | 1.0 | 0.3 | 0.5 | 0.6 | 1.9 | 2.2 |
| Price/Sales | N/A | N/A | 2.3 | 3.3 | 1.6 | 1.9 | 1.4 | 1.8 | 3.7 |
| FCF Yield | N/A | N/A | -6.5% | -22.9% | -92.8% | -76.9% | -21.1% | 4.5% | 7.6% |
| Market Cap | 0 | N/A | 2.3B | 2.2B | 663M | 1.2B | 1.3B | 4.2B | 4.9B |
| Avg. Price | 0.00 | N/A | 34.46 | 38.60 | 28.27 | 30.68 | 40.96 | 49.12 | 136.26 |
| Year-End Price | 0.00 | N/A | 43.81 | 32.25 | 19.68 | 33.74 | 38.08 | 93.43 | 136.26 |
Sphere Entertainment Co. passes 1 of 9 quality checks, indicating weak fundamentals.
Sphere Entertainment Co. trades at 184.1x trailing earnings, compared to its 15-year median P/E of 2.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 16.3x vs a median of 22.1x. The company's 5-year average gross margin is 22.1%. Total shareholder yield (buybacks) is 1.0%. At current prices, the estimated annualized return to fair value is -19.7%.
Sphere Entertainment Co. (SPHR) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Sphere Entertainment Co. (SPHR) has a net profit margin of 2.7%. This is a modest margin.
Sphere Entertainment Co. (SPHR) generated $191 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Sphere Entertainment Co. (SPHR) has a debt-to-equity ratio of 0.43. This indicates a conservatively financed balance sheet.
Sphere Entertainment Co. (SPHR) reported earnings per share (EPS) of $0.74 in its most recent fiscal year.
Sphere Entertainment Co. (SPHR) has a return on equity (ROE) of 1.5%. This indicates moderate shareholder returns.
Sphere Entertainment Co. (SPHR) has a 5-year average gross margin of 22.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 8 years of financial data for Sphere Entertainment Co. (SPHR), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Sphere Entertainment Co. (SPHR) has a book value per share of $49.47, based on its most recent annual SEC filing.