NEW YORK--(BUSINESS WIRE)--July 30, 2026--
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:
(In millions) Three Months Ended Six Months Ended
June 30, Change June 30, Change
---------------- ---------------- ----------------- ----------------
2026 2025 $ % 2026 2025 $ %
----- ----- ------- ------- ----- ------ ------- -------
Revenues:
--------------
Sphere $226.4 $175.6 $ 50.8 29% $492.3 $ 333.1 $159.2 48%
MSG Networks 87.3 107.1 (19.8) (18)% 207.7 230.1 (22.4) (10)%
----- ----- ----- --- ----- ------ ----- ---
Total Revenues $313.6 $282.7 $ 31.0 11% $700.1 $ 563.3 $136.8 24%
Operating
(Loss)
Income:
--------------
Sphere $(69.6) $(83.4) $ 13.9 17% $(94.5) $(177.2) $ 82.8 47%
MSG Networks 8.3 33.3 (25.0) (75)% 40.4 48.4 (8.0) (17)%
----- ----- ----- --- ----- ------ ----- ---
Total Operating
Loss $(61.3) $(50.2) $(11.1) (22)% $(54.1) $(128.8) $ 74.7 58%
Adjusted
Operating
Income:(1)
--------------
Sphere $ 39.9 $ 24.9 $ 15.0 60% $114.2 $ 38.1 $ 76.1 200%
MSG Networks 11.0 36.5 (25.5) (70)% 46.7 59.3 (12.6) (21)%
----- ----- ----- --- ----- ------ ----- ---
Total Adjusted
Operating
Income $ 50.9 $ 61.5 $(10.5) (17)% $160.9 $ 97.4 $ 63.5 65%
Note: Does not foot due to rounding.
(1) See page 3 of this earnings release for the definition of adjusted
operating income (loss) included in the discussion of non-GAAP
financial measures.
Sphere
For 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 Networks
For 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 Measures