Free cash flow has reached an inflection point of $131.4 million in 2026Q3 as capital expenditure intensity moderated to just 1.3% of revenue.
Sphere Entertainment Co. (SPHR) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'16 |
|---|
| Cash from Operations | 243.35M | -19.66M | -19.66M | 153.59M | 141.34M | -58.69M | 308.12M | 101.4M | 144.38M | 96.31M | 125.78M | 125.78M |
| Operating CF Margin % | 19.95% | -1.91% | -1.91% | 26.77% | 23.17% | -9.06% | 21.46% | 9.67% | 14.6% | 13.55% | 11.28% | 11.28% |
| Operating CF Growth % | 1337.9% | 0% | -112.8% | 8.67% | 340.81% | -119.05% | 203.87% | -29.77% | 49.91% | -23.43% | - | - |
| Net Income | 33.41M | -462.47M | -200.65M | 505.68M | -190.15M | -166.52M | 149.81M | -20.46M | 1.89M | -112.61M | -77.29M | -77.29M |
| Depreciation & Amortization | 336.41M | 365.43M | 256.49M | 103.38M | 124.63M | 122M | 112.06M | 109.34M | 112.06M | 98.07M | 102.48M | 102.48M |
| Stock-Based Compensation | 59.01M | 68.19M | 48.01M | 62.66M | 77.14M | 70.58M | 61.42M | 35.4M | 27.29M | 22.18M | 24.48M | 24.48M |
| Deferred Taxes | 20.92M | 0 | -132.54M | 123.47M | -31.27M | -71.36M | 8.7M | -371K | -31.27M | -7.81M | 0 | 0 |
| Other Non-Cash Items | -248.64M | 168.7M | 168.54M | -769M | 97.82M | -16.42M | -11.48M | 579K | 6.38M | 71.88M | 76.12M | 76.12M |
| Working Capital Changes | 42.24M | -159.51M | -159.51M | 127.41M | 63.17M | 3.02M | -12.39M | -23.09M | 28.04M | 24.61M | 0 | 0 |
| Change in Receivables | -17.13M | -115.1M | -115.1M | 7.1M | -30.75M | -10.04M | -251K | 4.04M | -1.92M | -13.32M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -9.01M | -28.06M | -28.06M | 117.28M | 78.44M | -5.27M | -6.23M | -4.31M | 5.31M | 2.02M | 0 | 0 |
| Cash from Investing | -3.9M | -45.18M | -45.18M | -653.92M | -804.16M | -123.18M | -394.53M | -237.74M | -169.62M | -260.06M | -115.69M | -115.69M |
| Capital Expenditures | -52.35M | -97.88M | -289.75M | -1.18B | -805.22M | -456.01M | -457.3M | -193.68M | -187.36M | -41.83M | 0 | 0 |
| CapEx % of Revenue | 4.29% | 9.53% | 28.22% | 204.77% | 131.99% | 70.42% | 31.85% | 18.46% | 18.94% | 5.88% | - | - |
| Acquisitions | 48.76M | -2.52M | 246.35M | 516.73M | 1.06M | 197K | 227.47M | 73.04M | -17.36M | -199.48M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -311K | 55.22M | -1.78M | 0 | 0 | -28.56M | 62.59M | -4.41M | 35.1M | 4.47M | -115.69M | -115.69M |
| Cash from Financing | -233.34M | 209.73M | 209.73M | 85.54M | -30.39M | 592.68M | -113.87M | -8.62M | 15.36M | -38.63M | 1.42B | 1.42B |
| Debt Issued (Net) | -165.27M | 232.79M | 232.79M | 227.79M | 24.1M | 598.75M | 43.75M | -54.86M | -688K | 0 | 0 | 0 |
| Equity Issued (Net) | -43.54M | -34.6M | 8.83M | 0 | 0 | 0 | -293.53M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -121.51M | -2.26M | -1.77M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -50.02M | -34.6M | 0 | 0 | 0 | 0 | -293.53M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -24.54M | 11.55M | -31.88M | -20.74M | -52.24M | -4.29M | 135.91M | 46.24M | 16.04M | -38.63M | 1.42B | 1.42B |
| Net Change in Cash | 5.63M | 144.12M | 144.12M | -416.9M | -693.97M | 418.83M | -197.35M | -140.29M | -9.55M | -202.37M | 1.43B | 1.43B |
| Free Cash Flow | 191M | -309.41M | -309.41M | -1.02B | -663.88M | -514.7M | -149.18M | -92.28M | -42.98M | 54.48M | 125.78M | 125.78M |
| FCF Margin % | 15.66% | -30.13% | -30.13% | -178% | -108.82% | -79.49% | -10.39% | -8.8% | -4.35% | 7.66% | 11.28% | 11.28% |
| FCF Growth % | 161.73% | 0% | 69.71% | -53.86% | -28.98% | -245.03% | -61.66% | -114.71% | -178.88% | -56.68% | - | - |
| FCF per Share | 4.22 | -8.63 | -8.76 | -29.24 | -19.38 | -21.26 | -6.21 | -3.85 | -1.79 | 2.29 | 5.08 | 5.08 |
| FCF Conversion (FCF/Net Income) | 7.28x | 0.10x | 0.10x | 0.31x | -0.73x | 0.40x | 1.70x | -12.34x | 20.93x | -0.89x | -1.63x | -1.63x |
| Interest Paid | 0 | 106.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying SPHR stock.
Sphere Entertainment Co. (SPHR) generated $243.3M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Sphere Entertainment Co. (SPHR) generated $191.0M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sphere Entertainment Co. (SPHR) spent $52.3M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Sphere Entertainment Co. (SPHR) spent $50.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
High Fixed Cost Leverage
Metrics are mathematically derived from official filings.
Earnings Quality Remains Highly Volatile
As reported in recent financial filings, the relationship between net income and operating cash flow remains erratic, with the OCF/NI ratio swinging from a negative 1.14 in 2026Q1 to a positive 30.55 in 2026Q3, underscoring significant disconnects between accounting profits and actual cash generation.
The extreme variance in the OCF/NI ratio suggests that net income is heavily influenced by non-cash charges, particularly the substantial depreciation associated with the Las Vegas facility. Investors should monitor whether the recent positive cash flow conversion in 2026Q3 represents a sustainable shift in operational efficiency or merely a temporary timing benefit from working capital movements.
Free Cash Flow Inflection Point
Based on the provided quarterly data, free cash flow has demonstrated a notable recovery, reaching $131.4 million in 2026Q3 compared to the $87.2 million outflow observed in 2024Q4, suggesting that the venue's operational throughput is finally beginning to outpace its massive fixed-cost structure.
The transition to positive FCF margins of 34.0% in the most recent quarter appears to be a critical development for the company's long-term viability. However, given the historical volatility, it remains unclear if this trajectory can be maintained without further capital-intensive investments in new content or additional venue builds.
Capital Intensity Moderating Post-Construction
According to historical cash flow statements, capital expenditure intensity has declined significantly from a peak of 20.9% of revenue in 2024Q2 to just 1.3% in 2026Q3, indicating that the company has moved past the initial heavy investment phase of its primary Las Vegas asset.
The reduction in CapEx suggests a pivot toward maximizing the utilization of existing infrastructure rather than aggressive expansion. While this supports near-term cash flow, it warrants further investigation into whether maintenance CapEx is being deferred, which could lead to higher costs or operational disruptions in future periods.
Working Capital Swings Mask Performance
As indicated by the quarterly cash flow data, working capital changes have been a primary driver of cash flow volatility, with a $128.8 million outflow in 2024Q4 contrasting sharply with a $27.6 million inflow in 2026Q3, complicating the assessment of core operational cash health.
These fluctuations suggest that the company's cash position is highly sensitive to the timing of ticket sales, advertising contracts, and vendor payments. Analysts should be cautious in interpreting these swings as permanent improvements in operational efficiency, as they may reflect seasonal or contractual timing rather than structural gains.