Sphere Entertainment (SPHR) Reports 38% Revenue Growth

By Chris Stiles • Tuesday, May 05 14:26 • Permanent Link

Sphere Entertainment Co. reported first-quarter 2026 revenue of $386.4 million, up $105.8 million, or 38%, from $280.6 million a year earlier.

Operating income improved to $7.2 million from a loss of $78.6 million, a swing of $85.8 million. Adjusted operating income rose to $110.0 million from $36.0 million, up $74.0 million.

The Sphere segment drove most of the change. Revenue climbed to $266.0 million from $157.5 million, an increase of $108.4 million, or 69%. Within that segment, revenue tied to the Sphere experience rose $81.7 million, while event-related revenue increased $24.4 million. Sponsorship, exosphere advertising and suite license fees added another $1.6 million.

Sphere segment direct operating expenses increased to $99.2 million from $70.5 million, up $28.7 million, or 41%. Selling, general and administrative expenses rose to $106.6 million from $96.4 million, up $10.2 million, or 11%. Even with those higher costs, the segment’s operating loss narrowed to $24.9 million from $93.8 million, an improvement of $68.9 million. Adjusted operating income for Sphere jumped to $74.3 million from $13.1 million.

The company said the Sphere experience had 209 performances of The Wizard of Oz at Sphere in the quarter, compared with 200 performances of Postcard from Earth and V-U2 in the year-earlier period.

MSG Networks posted a different pattern. Revenue fell to $120.4 million from $123.0 million, down $2.6 million, or 2%. Advertising revenue declined $4.9 million, partly offset by a $1.8 million increase in distribution revenue.

Direct operating expenses at MSG Networks dropped to $70.4 million from $87.8 million, a decrease of $17.4 million, or 20%. Selling, general and administrative expenses fell to $15.1 million from $17.9 million, down $2.8 million, or 15%. Operating income increased to $32.1 million from $15.2 million, up $16.9 million, while adjusted operating income rose to $35.7 million from $22.8 million, an increase of $12.9 million, or 56%. The market has reacted to these announcements by moving the company's shares 1.45% to a price of $138.435. For the full picture, make sure to review Sphere Entertainment's 8-K report.

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