Recent News
On March 30, 2026, Citizens initiated coverage of Sphere Entertainment (NYSE:SPHR) with a Market Outperform recommendation. On May 20, 2026, shareholders approved board and governance proposals at the annual meeting, according to reporting.
Technical Analysis
The directional indicators show an emerging trend: ADX at 21.07 indicates trend development rather than a dominant trend, while DI+ at 25.73 increasing and DI– at 14.50 decreasing creates a bullish directional picture that supports further near-term upside relative to current valuation.
MACD sits at 3.60 with the MACD signal at 2.61 and shows a dip-and-reversal pattern; the MACD currently trades above its signal line, indicating renewed bullish momentum that aligns with price strength above key averages.
MRO reads 25.91 with a dip-and-reversal pattern; the positive MRO indicates the price currently sits above a modeled target and therefore introduces potential mean-reversion pressure even as momentum indicators turn constructive.
RSI at 58.48 with a dip-and-reversal pattern shows momentum backing without overbought stress, supporting a path for additional gains while leaving room before classic overbought thresholds.
Price action sits above short- and long-term averages: closing at $153.25, above the 20-day ($140.87), 50-day ($135.20), 200-day ($97.29) and the 12-day EMA (increasing at $142.77). The close trades just above the 1x Bollinger upper band and beneath the 2x band, signaling strong intraband strength. The last close also registers above the prior 52-week high of $151.94, reinforcing breakout dynamics, though daily volume (555,080) trails 10-, 50- and 200-day averages and therefore tempers conviction on the breakout.
Support clusters align with the SuperTrend lower level at $135.61 and Ichimoku baselines around $125–$142; volatility measures (42-day and 52-week) remain moderate, consistent with a momentum-driven advance that retains volatility-managed risk for swing horizons.
Fundamental Analysis
Revenue totaled $394.283 million with a reported revenue growth rate of 50.20%. Year-over-year revenue growth reads -4.02% on the YoY metric provided. Gross profit reached $230.929 million, translating to a gross margin of 58.57%, reflecting high-margin content and venue economics.
Operating income and EBIT show positive operating leverage: EBIT of $31,523,000 implies an EBIT margin of 8.00%, below the industry peer mean of 13.71% and below the industry peer median of 15.92%, indicating margin expansion opportunity relative to peers despite current positive operating performance.
Net income measured $64,739,000 and EPS came in at $0.14 versus an estimate of -$0.44, a $0.58 beat and an EPS surprise of approximately 131.82%, signaling an earnings beat versus consensus expectations for the reported period.
Cash and liquidity present strength: cash and short-term investments $507.776 million, operating cash flow $180.219 million, and free cash flow $165.011 million, delivering a free cash flow yield of 5.29% and a cash-flow-to-earnings ratio above 2.0, underlining high conversion of earnings into cash and supporting the valuation argument.
Balance sheet and leverage metrics: total debt $961.458 million with net debt $322.672 million and debt-to-EBITDA of 8.31x. Debt-to-assets stands at 22.84%, below the industry peer mean of 27.55%, providing modest capital structure flexibility but a leverage multiple versus EBITDA that warrants monitoring.
Profitability returns remain modest on a capital basis: return on equity ~2.90% and return on assets ~1.55%, reflecting capital intensity and early-stage payback on major investments. Free cash flow growth at 48.87% paired with a cash conversion ratio near 5.90 supports a fundamental case for continued value realization.
Valuation context: price multiples show a trailing P/E around 71.44 and a price-to-sales of 7.91. The current valuation as determined by WMDST: under-valued, a view driven primarily by strong free cash flow generation and balance sheet liquidity against growth prospects and momentum indicators.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-05-05 |
| NEXT REPORT DATE: | 2026-08-04 |
| CASH FLOW | Begin Period Cash Flow | $ 398.3 M |
| Operating Cash Flow | $ 180.2 M | |
| Capital Expenditures | $ -15.21 M | |
| Change In Working Capital | $ 48.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 123.0 M | |
| End Period Cash Flow | $ 521.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 394.3 M | |
| Forward Revenue | $ -16.55 M | |
| COSTS | ||
| Cost Of Revenue | $ 163.4 M | |
| Depreciation | $ 82.5 M | |
| Depreciation and Amortization | $ 84.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 362.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 230.9 M | |
| EBITDA | $ 115.7 M | |
| EBIT | $ 31.5 M | |
| Operating Income | $ 31.8 M | |
| Interest Income | $ 2.8 M | |
| Interest Expense | $ 9.1 M | |
| Net Interest Income | $ -6.28 M | |
| Income Before Tax | $ 22.4 M | |
| Tax Provision | $ -42.30 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 64.7 M | |
| Net Income From Continuing Operations | $ 64.7 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.44 | |
| EPS Actual | $ 0.14 | |
| EPS Difference | $ 0.58 | |
| EPS Surprise | 131.818 % | |
| Forward EPS | $ -0.31 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.2 B | |
| Intangible Assets | $ 366.6 M | |
| Net Tangible Assets | $ 1.9 B | |
| Total Current Assets | $ 810.2 M | |
| Cash and Short-Term Investments | $ 507.8 M | |
| Cash | $ 507.8 M | |
| Net Receivables | $ 171.6 M | |
| Inventory | $ 14.5 M | |
| Long-Term Investments | $ 192.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 24.6 M | |
| Short-Term Debt | $ 63.0 M | |
| Total Current Liabilities | $ 743.4 M | |
| Net Debt | $ 322.7 M | |
| Total Debt | $ 961.5 M | |
| Total Liabilities | $ 2.0 B | |
| EQUITY | ||
| Total Equity | $ 2.2 B | |
| Retained Earnings | $ -186.44 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 62.92 | |
| Shares Outstanding | 35.496 M | |
| Revenue Per-Share | $ 11.11 | |
| VALUATION | Market Capitalization | $ 3.1 B |
| Enterprise Value | $ 3.6 B | |
| Enterprise Multiple | 30.88 | |
| Enterprise Multiple QoQ | -150.754 % | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | high: 115.706 mean: 44.641 median: 43.857 SPHR: 30.88 low: -144.61 |
|
| EV/R | 9.061 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.885 | |
| Asset To Liability | 2.13 | |
| Debt To Capital | 0.301 | |
| Debt To Assets | 0.228 | |
| Debt To Assets QoQ | -5.558 % | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | high: 0.83 mean: 0.275 median: 0.231 SPHR: 0.228 low: 0.051 |
|
| Debt To Equity | 0.431 | |
| Debt To Equity QoQ | -7.291 % | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | high: 7.384 mean: 0.462 SPHR: 0.431 median: 0.43 low: -4.211 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.397 | |
| Price To Book QoQ | 49.535 % | |
| Price To Book YoY | — | |
| Price To Book IPRWA | high: 7.09 mean: 2.161 median: 1.827 SPHR: 1.397 low: -2.923 |
|
| Price To Earnings (P/E) | 71.439 | |
| Price To Earnings QoQ | -240.324 % | |
| Price To Earnings YoY | -671.322 % | |
| Price To Earnings IPRWA | high: 239.895 mean: 93.727 SPHR: 71.439 median: 68.447 low: -139.831 |
|
| PE/G Ratio | -0.34 | |
| Price To Sales (P/S) | 7.911 | |
| Price To Sales QoQ | 3.17 % | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | high: 15.405 mean: 8.802 SPHR: 7.911 median: 7.627 low: 0.505 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -106.491 | |
| Forward PE/G | 0.508 | |
| Forward P/S | -79.328 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -2.485 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.094 | |
| Asset Turnover Ratio QoQ | 50.008 % | |
| Asset Turnover Ratio YoY | — | |
| Asset Turnover Ratio IPRWA | high: 0.265 median: 0.13 mean: 0.127 SPHR: 0.094 low: 0.037 |
|
| Receivables Turnover | 2.302 | |
| Receivables Turnover Ratio QoQ | 41.25 % | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | high: 13.717 mean: 3.135 SPHR: 2.302 median: 2.039 low: 1.018 |
|
| Inventory Turnover | 12.063 | |
| Inventory Turnover Ratio QoQ | 12.056 % | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | high: 26.472 SPHR: 12.063 median: 7.769 mean: 7.698 low: 0.731 |
|
| Days Sales Outstanding (DSO) | 39.644 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 30.219 | |
| Cash Conversion Cycle Days QoQ | -38.34 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 120.315 median: 58.725 mean: 37.304 SPHR: 30.219 low: -369.999 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.902 | |
| CapEx To Revenue | -0.039 | |
| CapEx To Depreciation | -0.184 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.0 B | |
| Net Invested Capital | $ 3.1 B | |
| Invested Capital | $ 3.1 B | |
| Net Tangible Assets | $ 1.9 B | |
| Net Working Capital | $ 66.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.683 | |
| Current Ratio | 1.09 | |
| Current Ratio QoQ | 14.03 % | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | high: 2.479 SPHR: 1.09 mean: 0.806 median: 0.669 low: 0.17 |
|
| Quick Ratio | 1.07 | |
| Quick Ratio QoQ | 14.16 % | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | SPHR: 1.07 high: 0.671 median: 0.613 mean: 0.612 low: 0.157 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.31 | |
| Cost Of Debt | 0.731 % | |
| Interest Coverage Ratio | 3.472 | |
| Interest Coverage Ratio QoQ | -125.634 % | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | high: 9.336 median: 9.336 mean: 7.766 SPHR: 3.472 low: -3.425 |
|
| Operating Cash Flow Ratio | 0.189 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 18.445 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.724 % | |
| Revenue Growth | 50.197 % | |
| Revenue Growth QoQ | -803.631 % | |
| Revenue Growth YoY | -401.737 % | |
| Revenue Growth IPRWA | SPHR: 50.197 % high: 48.295 % mean: 18.434 % median: 15.656 % low: -80.322 % |
|
| Earnings Growth | -209.821 % | |
| Earnings Growth QoQ | 61.367 % | |
| Earnings Growth YoY | -1246.25 % | |
| Earnings Growth IPRWA | high: 58.333 % median: 46.847 % mean: 36.136 % SPHR: -209.821 % low: -433.333 % |
|
| MARGINS | ||
| Gross Margin | 58.569 % | |
| Gross Margin QoQ | 22.483 % | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | high: 96.553 % SPHR: 58.569 % median: 35.842 % mean: 35.792 % low: 12.615 % |
|
| EBIT Margin | 7.995 % | |
| EBIT Margin QoQ | -116.486 % | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | high: 16.408 % median: 15.919 % mean: 13.714 % SPHR: 7.995 % low: -67.927 % |
|
| Return On Sales (ROS) | 8.071 % | |
| Return On Sales QoQ | -136.362 % | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | high: 26.148 % median: 14.915 % mean: 13.217 % SPHR: 8.071 % low: -32.072 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 165.0 M | |
| Free Cash Flow Yield | 5.29 % | |
| Free Cash Flow Yield QoQ | -3.94 % | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | high: 5.538 % SPHR: 5.29 % mean: -0.821 % median: -1.15 % low: -4.51 % |
|
| Free Cash Growth | 48.869 % | |
| Free Cash Growth QoQ | -119.518 % | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | SPHR: 48.869 % high: 45.084 % mean: -167.986 % low: -189.054 % median: -189.054 % |
|
| Free Cash To Net Income | 2.549 | |
| Cash Flow Margin | 35.566 % | |
| Cash Flow To Earnings | 2.166 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.551 % | |
| Return On Assets QoQ | -163.906 % | |
| Return On Assets YoY | — | |
| Return On Assets IPRWA | high: 1.724 % SPHR: 1.551 % median: 1.202 % mean: 0.961 % low: -7.663 % |
|
| Return On Capital Employed (ROCE) | 0.909 % | |
| Return On Equity (ROE) | 0.029 | |
| Return On Equity QoQ | -161.733 % | |
| Return On Equity YoY | — | |
| Return On Equity IPRWA | high: 0.275 SPHR: 0.029 median: 0.022 mean: 0.016 low: -0.201 |
|
| DuPont ROE | 2.951 % | |
| Return On Invested Capital (ROIC) | 0.813 % | |
| Return On Invested Capital QoQ | -126.15 % | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | high: 4.176 % median: 1.793 % mean: 1.61 % SPHR: 0.813 % low: -6.421 % |
|