Revenue growth has stabilized at 37.7% in 2026Q3, though gross margins remain volatile, fluctuating between a low of 34.3% and a peak of 58.6% over the last four quarters.
| Sales/Revenue | 1.33B | 1.03B | 1.03B | 573.83M | 610.05M | 647.51M | 1.44B | 1.05B | 988.99M | 711.02M | 1.12B | 1.12B |
| Revenue Growth % | 21.62% | 0% | 78.95% | -5.94% | -5.78% | -54.91% | 36.91% | 6.06% | 39.09% | -36.25% | - | - |
| Cost of Goods Sold | 685.67M | 804.32M | 547.82M | 342.21M | 320.28M | 262.86M | 790.5M | 670.64M | 635.22M | 517.08M | 737.86M | 737.86M |
| COGS % of Revenue | - | 78.33% | 53.35% | 59.64% | 52.5% | 40.6% | 55.05% | 63.94% | 64.23% | 72.72% | 66.16% | 66.16% |
| Gross Profit | 640.21M | 222.57M | 479.06M | 231.62M | 289.78M | 384.65M | 645.52M | 378.27M | 353.77M | 193.94M | 377.45M | 377.45M |
| Gross Margin % | 48.29% | 21.67% | 46.65% | 40.36% | 47.5% | 59.4% | 44.95% | 36.06% | 35.77% | 27.28% | 33.84% | 33.84% |
| Gross Profit Growth % | - | -53.54% | 106.83% | -20.07% | -24.66% | -40.41% | 70.65% | 6.92% | 82.41% | -48.62% | - | - |
| Operating Expenses | 780.39M | 445.57M | 820.31M | 504.66M | 455.51M | 320.14M | 410.31M | 423.87M | 385.05M | 292.35M | 459.2M | 459.2M |
| OpEx % of Revenue | - | 43.39% | 79.88% | 87.95% | 74.67% | 49.44% | 28.57% | 40.41% | 38.93% | 41.12% | 41.17% | 41.17% |
| Selling, General & Admin | 449.35M | 380.78M | 432.85M | 452.14M | 419.79M | 301.89M | 433.21M | 314.52M | 273M | 194.28M | 333.6M | 333.6M |
| SG&A % of Revenue | - | 37.08% | 42.15% | 78.79% | 68.81% | 46.62% | 30.17% | 29.99% | 27.6% | 27.32% | 29.91% | 29.91% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.91M | 64.79M | 387.45M | 52.52M | 35.72M | 18.25M | -22.9M | 109.34M | 112.06M | 98.07M | 0 | 0 |
| Operating Income | -140.17M | -223M | -341.24M | -273.04M | -165.74M | 64.51M | 235.21M | -45.6M | -31.28M | -98.41M | -58.63M | -58.63M |
| Operating Margin % | -10.57% | -21.72% | -33.23% | -47.58% | -27.17% | 9.96% | 16.38% | -4.35% | -3.16% | -13.84% | -5.26% | -5.26% |
| Operating Income Growth % | - | 34.65% | -24.98% | -64.74% | -356.91% | -72.57% | 615.85% | -45.76% | 68.21% | -67.84% | - | - |
| EBITDA | 196.38M | 33.49M | -84.75M | -169.67M | -41.11M | 186.51M | 347.27M | 63.75M | 80.78M | -337K | 43.85M | 43.85M |
| EBITDA Margin % | 14.81% | 3.26% | -8.25% | -29.57% | -6.74% | 28.8% | 24.18% | 6.08% | 8.17% | -0.05% | 3.93% | 3.93% |
| EBITDA Growth % | 349.37% | 139.52% | 50.05% | -312.73% | -122.04% | -46.29% | 444.78% | -21.08% | 24069.14% | -100.77% | - | - |
| D&A (Non-Cash Add-back) | 336.55M | 256.49M | 256.49M | 103.38M | 124.63M | 122M | 112.06M | 109.34M | 112.06M | 98.07M | 102.48M | 102.48M |
| EBIT | 214.61M | -280.36M | -280.36M | 275.43M | -167.68M | 63.75M | 288.07M | -14.43M | -16.79M | -118.5M | -58.63M | -58.63M |
| Net Interest Income | -38.81M | -54.18M | -54.18M | 11.59M | -17.2M | -17.05M | -17.1M | 24.58M | 9.2M | 9.83M | 0 | 0 |
| Interest Income | 13.57M | 25.69M | 25.69M | 11.59M | 3.22M | 3.17M | 22.23M | 30.16M | 21.35M | 11.76M | 4.75M | 4.75M |
| Interest Expense | 52.38M | 79.87M | 79.87M | 0 | 20.42M | 20.22M | 36.56M | 5.59M | 12.15M | 1.93M | 0 | 0 |
| Other Income/Expense | 299.28M | -137.22M | -18.98M | 548.47M | -1.94M | -20.98M | 16.29M | 25.58M | 2.34M | -22.02M | -18.36M | -18.36M |
| Pretax Income | 159.11M | -360.23M | -360.23M | 275.43M | -167.68M | 43.53M | 251.5M | -20.02M | -28.94M | -120.42M | -76.99M | -76.99M |
| Pretax Margin % | 12% | -35.08% | -35.08% | 48% | -27.49% | 6.72% | 17.51% | -1.91% | -2.93% | -16.94% | -6.9% | -6.9% |
| Income Tax | 39.29M | -135.59M | -135.59M | 103.4M | -29.83M | 38.91M | 101.69M | 443K | -30.83M | -7.81M | 297K | 297K |
| Effective Tax Rate % | 24.69% | 37.64% | 37.64% | 37.54% | 17.79% | 89.38% | 40.43% | -2.21% | 106.52% | 6.49% | -0.39% | -0.39% |
| Net Income | 119.82M | -200.65M | -200.65M | 502.77M | -194.4M | -148.15M | 181.73M | -8.22M | 6.9M | -108.55M | -77.29M | -77.29M |
| Net Margin % | 9.04% | -19.54% | -19.54% | 87.62% | -31.87% | -22.88% | 12.66% | -0.78% | 0.7% | -15.27% | -6.93% | -6.93% |
| Net Income Growth % | 133.3% | 0% | -139.91% | 358.63% | -31.21% | -181.52% | 2311.14% | -219.15% | 106.36% | -40.44% | - | - |
| Net Income (Continuing) | 119.82M | -224.63M | -224.63M | 172.03M | -137.85M | 4.62M | 149.81M | -20.46M | 1.89M | -112.61M | -77.29M | -77.29M |
| Discontinued Operations | 0 | 23.98M | 23.98M | 330.75M | -56.55M | -171.14M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 196.35M | 149.74M | 32.8M | 81.42M | 88.19M | 92.33M | 0 | 0 |
| EPS (Diluted) | 3.34 | -5.68 | -5.68 | 14.40 | -5.77 | -0.13 | 0.72 | -0.34 | 0.29 | -4.57 | -3.12 | -3.12 |
| EPS Growth % | 119.22% | 0% | -139.44% | 349.57% | -4338.46% | -118.06% | 311.76% | -217.24% | 106.35% | -46.47% | - | - |
| EPS (Basic) | - | -5.68 | -5.68 | 14.51 | -5.77 | -0.12 | 0.72 | -0.34 | 0.29 | -4.57 | -3.12 | -3.12 |
| Diluted Shares Outstanding | 35.88M | 35.86M | 35.3M | 34.93M | 34.26M | 24.2M | 24.02M | 23.99M | 23.99M | 23.77M | 24.75M | 24.75M |
| Basic Shares Outstanding | 35.88M | 35.85M | 35.3M | 34.65M | 34.26M | 24.2M | 24M | 23.99M | 23.99M | 23.77M | 24.75M | 24.75M |
| Dividend Payout Ratio | - | - | - | 24.17% | - | - | - | - | - | - | - | - |
High Fixed Cost Leverage
As indicated by the provided quarterly income statements, SPHR's revenue growth has exhibited significant volatility, swinging from a 148.3% surge in 2024Q4 to a 12.7% contraction in 2025Q3, before stabilizing at a 37.7% growth rate in the most recent 2026Q3 reporting period.
The erratic top-line performance suggests a heavy reliance on event-driven cycles and the nascent adoption of the Sphere venue's proprietary content. Investors should monitor whether the recent 37.7% growth indicates a sustainable ramp-up in throughput or merely reflects favorable seasonal comparisons in the Las Vegas market.
Based on the reported financial data, gross margins have fluctuated wildly between a low of 34.3% in 2026Q3 and a peak of 58.6% in 2026Q2, highlighting the inherent difficulty in managing the high fixed-cost base associated with the company's unique entertainment infrastructure.
The wide variance in gross profitability suggests that the company's cost structure is highly sensitive to venue utilization rates and production expenses for bespoke content. This volatility implies that achieving consistent margin expansion will likely require a more predictable cadence of high-margin events and advertising revenue.
According to the income statement history, SPHR has struggled to achieve consistent operating leverage, with operating margins remaining negative for the majority of the last ten quarters, only turning positive at 2.8% in 2026Q3 as revenue scaled to $386.4 million.
The transition to positive operating income appears fragile, as the company's high overhead costs continue to absorb a significant portion of gross profit. It remains unclear if the current operating efficiency is a structural improvement or a temporary benefit from reduced SG&A spending in the most recent quarter.
As reported in the financial statements, net income has been subject to extreme swings, including a $151.8 million profit in 2025Q4 followed by a $101.2 million loss in 2026Q1, suggesting that bottom-line results are heavily influenced by non-operating items rather than core operational performance.
The lack of correlation between EPS and operating income warrants further investigation into the impact of one-time gains or accounting adjustments. Investors should be cautious in using reported net income as a proxy for the underlying cash-generating capability of the Sphere venue.
While recent quarters show signs of improvement, the company's history of deep operating losses and the reliance on high-cost production content suggest that the current business model may face significant margin compression if venue occupancy fails to meet aggressive long-term targets.
Short-term improvements in operating income may be masking the long-term challenge of maintaining a high-cost asset in a discretionary spending environment. The potential for continued secular decline in the MSG Networks segment further complicates the narrative, as it may force the company to rely entirely on the volatile Sphere venue for future profitability.
Quick answers to the most common questions about buying SPHR stock.
For fiscal year 2025, Sphere Entertainment Co. (SPHR) reported total revenue of $1.03B. This represents a 7.9% decline compared to $1.12B in 2015.
Sphere Entertainment Co. (SPHR) reported a net loss of $200.6M for the fiscal year ending 2025.
Sphere Entertainment Co. (SPHR) reported an operating income of $-223.0M, resulting in an operating profit margin of -21.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Sphere Entertainment Co. (SPHR) generated $222.6M in gross profit for the year, representing a gross profit margin of 21.7%. This demonstrates the company's core pricing power and production efficiency.