NEW YORK--(BUSINESS WIRE)--May 05, 2026--
Sphere Entertainment Co. (NYSE: SPHR) ("Sphere Entertainment" or the "Company") today reported financial results for the first quarter ended March 31, 2026.
Recent highlights for the Company's Sphere segment include:
-- Plans to bring Sphere to Abu Dhabi and National Harbor continue to move
forward, while the Company also remains in discussions with a significant
number of markets globally regarding additional large and smaller-scale
Sphere venues;
-- The Wizard of Oz at Sphere, the Sphere Experience that opened in Las
Vegas on August 28, 2025, surpassed its 500th showing in March;
-- Metallica announced a new concert residency at Sphere, with 24 concerts
planned beginning in October 2026, while Backstreet Boys announced they
will return this summer, extending their residency run to 56 nights
total;
-- The Company continues to draw robust interest from Exosphere
advertisers and sponsors, including the announcement in April of a new
multi-year sponsorship agreement with Evian.
For the three months ended March 31, 2026, the Company reported revenues of $386.4 million, an increase of $105.8 million, or 38%, as compared to the prior year quarter. In addition, the Company reported operating income of $7.2 million, an increase of $85.8 million, and adjusted operating income of $110.0 million, an increase of $74.0 million, both as compared to the prior year quarter.(1)
Executive Chairman and CEO James L. Dolan said, "Today's results demonstrate our continued success proving out Sphere's business model. Looking ahead, we remain focused on maximizing that model's full potential in Las Vegas, while executing on our long-term vision for a global network of Sphere venues."
Segment Results for the Three Months Ended March 31, 2026 and 2025:
(In millions) Three Months Ended
March 31, Change
---------------- ----------------
2026 2025 $ %
------- ------- ------- -------
Revenues:
---------------------
Sphere $266.0 $157.5 $108.4 69%
MSG Networks 120.4 123.0 (2.6) (2)%
----- ----- ----- ---
Total Revenues $386.4 $280.6 $105.8 38%
Operating Income
(Loss):
---------------------
Sphere $(24.9) $(93.8) $ 68.9 73%
MSG Networks 32.1 15.2 16.9 112%
----- ----- ----- ---
Total Operating Income
(Loss) $ 7.2 $(78.6) $ 85.8 NM
Adjusted Operating
Income:(1)
---------------------
Sphere $ 74.3 $ 13.1 $ 61.1 NM
MSG Networks 35.7 22.8 12.9 56%
----- ----- ----- ---
Total Adjusted
Operating Income $110.0 $ 36.0 $ 74.0 NM
Note: Does not foot due to rounding. NM -- Absolute percentages greater than
200% and comparisons from positive to negative values or to zero values are
considered not meaningful.
(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 first quarter 2026, the Sphere segment reported revenues of $266.0 million, an increase of $108.4 million, or 69%, as compared to the prior year quarter.
Revenues related to The Sphere Experience increased $81.7 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 209 performances of The Wizard of Oz at Sphere as compared to 200 performances of Postcard from Earth and V-U2 An Immersive Concert Film in the prior year quarter.
Event-related revenues increased $24.4 million as compared to the prior year quarter, primarily due to (i) higher revenues from brand events, due to one additional brand event held in the current year quarter and higher per-event revenue, and (ii) higher revenues from concerts, primarily due to six additional concert residency shows held at Sphere in Las Vegas during the current year period.
Revenues from sponsorship, Exosphere advertising and suite license fees increased $1.6 million as compared to the prior year quarter, primarily reflecting an increase in sponsorship revenues and higher suite license fee revenues.
Other revenues increased $0.7 million as compared to the prior year quarter.
For the first quarter 2026, the Sphere segment had direct operating expenses of $99.2 million, an increase of $28.7 million, or 41%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $18.1 million as compared to the prior year quarter, primarily due to higher per-show expenses for The Wizard of Oz at Sphere. Event-related expenses increased $10.8 million as compared to the prior year quarter, primarily due to (i) higher expenses from brand events, due to higher per-event expenses and an increase in the number of brand events held in the current year quarter, and (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 first quarter 2026, selling, general and administrative expenses of $106.6 million increased $10.2 million, or 11%, as compared to the prior year quarter, primarily due to 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.
For the first quarter 2026, operating loss of $24.9 million improved by $68.9 million, or 73%, and adjusted operating income of $74.3 million increased $61.1 million, both as compared to the prior year quarter, primarily due to the increase in revenues, partially offset by higher direct operating expenses and higher selling, general and administrative expenses.
MSG Networks
For the first quarter 2026, the MSG Networks segment reported total revenues of $120.4 million, a decrease of $2.6 million, or 2%, as compared to the prior year quarter.
Advertising revenue decreased $4.9 million as compared to the prior year quarter, primarily due to a lower number of live regular season professional sports telecasts. This decrease was partially offset by an increase in distribution revenue of $1.8 million, primarily reflecting the absence of revenues from Altice during MSG Networks' non-carriage period from January 1, 2025 through February 21, 2025 in the prior year quarter, partially offset by a decrease in total subscribers of approximately 16.0% (excluding the impact of the Altice non-carriage period in the prior year quarter).
For the first quarter 2026, direct operating expenses of $70.4 million decreased $17.4 million, or 20%, as compared to the prior year quarter. Rights fees expense decreased $16.5 million as compared to the prior year quarter, primarily reflecting reductions in media rights fees as a result of the amendments to MSG Networks' media rights agreements with certain professional sports teams.
For the first quarter 2026, selling, general and administrative expenses of $15.1 million decreased $2.8 million, or 15%, as compared to the prior year quarter. This decrease was primarily due to (i) lower professional fees of $3.6 million, mainly due to the absence of costs associated with pursuing a work-out of MSG Networks' credit facilities recorded in the prior year quarter, and (ii) lower employee compensation and related benefits of $2.3 million, partially offset by (iii) higher advertising and marketing costs of $3.0 million.
For the first quarter 2026, operating income of $32.1 million increased $16.9 million as compared to the prior year quarter, primarily due to lower direct operating expenses and, to a lesser extent, lower selling, general and administrative expenses (including merger, debt work-out and acquisition related costs), partially offset by the decrease in revenues. Adjusted operating income of $35.7 million increased $12.9 million, or 56%, as compared to the prior year quarter, primarily due to lower direct operating expenses, partially offset by the decrease in revenues and higher selling, general and administrative expenses (excluding merger, debt work-out and acquisition related costs).
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
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