Recent News
July 23, 2026 — Sphere announced that the Backstreet Boys will headline the official F1 afterparty at Sphere during the Formula 1 Heineken Las Vegas Grand Prix.
July 30, 2026 — The company scheduled its second-quarter 2026 conference call to discuss results for the period ended June 30, 2026.
June 16, 2026 — Sphere Studios revealed a special-run engagement of The Rocky Horror Picture Show at Sphere.
Technical Analysis
Directional indicators show an emerging trend: ADX at 21.19 signals an emerging trend strength without direction; DI+ increasing to 18.47 while DI- falls to 16.63 indicates bullish directional pressure that supports the near-term upside bias.
MACD sits at 0.92 and trends higher while the MACD signal equals -0.79; MACD trading above its signal line confirms bullish momentum and aligns with the price push above short-term averages.
MRO reads 20.31 and climbs; the positive value indicates price presently sits above the model target, implying mean reversion risk to the downside after the current extension.
RSI at 51.17 and rising reflects neutral-to-mild bullish momentum, consistent with price holding above the 20- and 50-day averages rather than an overbought condition.
Price structure favors continuation: close at $154.23 trades above the 12-day EMA ($148.86), the 20-day average ($144.38) and the 200-day average ($114.64); Ichimoku Kijun-sen at $153.69 sits just below price, offering nearby technical support, while the upper Bollinger band (~$153.75) lies nearly at the last close, indicating short-term upside space but limited cushion. Volume on the latest print (632,394) runs below the 10-, 50- and 200-day averages, suggesting weaker participation on the most recent move and reducing conviction for a sustained breakout.
Fundamental Analysis
Profitability and margins: EBIT equals -$56,980,000 and operating income equals -$60,939,000, producing an EBIT margin of -18.17%. EBIT margin dropped ~10.17% QoQ and fell 1.17% YoY; the margin sits well below the industry peer mean of 26.12% and the industry peer median of 26.74%.
Top-line trends: total revenue reached $313,639,000 with YoY revenue growth of -26.11% and QoQ growth of +8.44%, showing a recovery quarter-over-quarter but a significant contraction year-over-year.
Earnings and cash flow: EPS actual equaled -$0.62 versus an estimate of -$1.39, yielding a positive EPS surprise of 55.40%. Operating cash flow came in at $53,324,000 while free cash flow was negative $48,134,000; cash and short-term investments total $550,974,000, providing a large liquidity buffer versus net debt of $229,431,000.
Leverage and coverage: total debt stands at $913,306,000 and debt-to-EBITDA equals 33.42, reflecting heavy leverage relative to current EBITDA. Interest coverage reads -6.89, indicating operating losses dominate interest obligations.
Valuation signals: price-to-book equals 2.28x, below the industry peer mean of 6.99 and the industry peer median of 6.96. Price-to-sales equals 16.22x, below the industry peer mean of 35.72. Enterprise multiple at ~199.37 far exceeds the industry peer mean of 33.94, creating a notable divergence between market-implied value and balance-sheet liquidity.
Margins and efficiency: gross margin remained strong at 51.84% while asset turnover sits low at 0.076, indicating substantial asset base relative to revenue generation. Return on equity equals -1.72% and return on assets equals -0.93%, reflecting current unprofitability despite operating leverage of 44.82.
Valuation summary: WMDST values the stock as under-valued; that view balances a robust cash position and recent operational revenue improvement QoQ against negative margins, weak interest coverage and an outsized enterprise multiple that demands profitable scale to justify market prices.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-30 |
| NEXT REPORT DATE: | 2026-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 630.2 M |
| Operating Cash Flow | $ 53.3 M | |
| Capital Expenditures | $ -14.48 M | |
| Change In Working Capital | $ -79.96 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -78.13 M | |
| End Period Cash Flow | $ 552.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 313.6 M | |
| Forward Revenue | $ 39.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 151.1 M | |
| Depreciation | $ 82.7 M | |
| Depreciation and Amortization | $ 84.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 374.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 162.6 M | |
| EBITDA | $ 27.3 M | |
| EBIT | $ -56.98 M | |
| Operating Income | $ -60.94 M | |
| Interest Income | $ 4.8 M | |
| Interest Expense | $ 8.3 M | |
| Net Interest Income | $ -3.49 M | |
| Income Before Tax | $ -65.25 M | |
| Tax Provision | $ -26.93 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ -38.33 M | |
| Net Income From Continuing Operations | $ -38.33 M | |
| EARNINGS | ||
| EPS Estimate | $ -1.39 | |
| EPS Actual | $ -0.62 | |
| EPS Difference | $ 0.77 | |
| EPS Surprise | 55.396 % | |
| Forward EPS | $ -0.54 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.0 B | |
| Intangible Assets | $ 363.3 M | |
| Net Tangible Assets | $ 1.9 B | |
| Total Current Assets | $ 784.0 M | |
| Cash and Short-Term Investments | $ 551.0 M | |
| Cash | $ 551.0 M | |
| Net Receivables | $ 152.3 M | |
| Inventory | $ 17.6 M | |
| Long-Term Investments | $ 208.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 13.9 M | |
| Short-Term Debt | $ 58.3 M | |
| Total Current Liabilities | $ 640.4 M | |
| Net Debt | $ 229.4 M | |
| Total Debt | $ 913.3 M | |
| Total Liabilities | $ 1.8 B | |
| EQUITY | ||
| Total Equity | $ 2.2 B | |
| Retained Earnings | $ -220.31 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 62.03 | |
| Shares Outstanding | 35.913 M | |
| Revenue Per-Share | $ 8.73 | |
| VALUATION | Market Capitalization | $ 5.1 B |
| Enterprise Value | $ 5.4 B | |
| Enterprise Multiple | 199.373 | |
| Enterprise Multiple QoQ | 303.132 % | |
| Enterprise Multiple YoY | 3462.218 % | |
| Enterprise Multiple IPRWA | SPHR: 199.373 high: 100.561 mean: 33.941 median: 28.715 low: -8.51 |
|
| EV/R | 17.372 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.812 | |
| Asset To Liability | 2.232 | |
| Debt To Capital | 0.291 | |
| Debt To Assets | 0.226 | |
| Debt To Assets QoQ | 1.832 % | |
| Debt To Assets YoY | -6.715 % | |
| Debt To Assets IPRWA | high: 0.959 SPHR: 0.226 mean: 0.167 median: 0.122 low: 0.001 |
|
| Debt To Equity | 0.41 | |
| Debt To Equity QoQ | -1.794 % | |
| Debt To Equity YoY | -6.882 % | |
| Debt To Equity IPRWA | high: 6.22 SPHR: 0.41 mean: 0.295 median: 0.181 low: -5.311 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.283 | |
| Price To Book QoQ | 20.982 % | |
| Price To Book YoY | 256.035 % | |
| Price To Book IPRWA | high: 11.325 mean: 6.992 median: 6.956 SPHR: 2.283 low: -1.13 |
|
| Price To Earnings (P/E) | -228.425 | |
| Price To Earnings QoQ | -126.939 % | |
| Price To Earnings YoY | -2202.463 % | |
| Price To Earnings IPRWA | high: 164.433 mean: 46.478 median: 25.615 low: -47.824 SPHR: -228.425 |
|
| PE/G Ratio | 0.421 | |
| Price To Sales (P/S) | 16.217 | |
| Price To Sales QoQ | 47.722 % | |
| Price To Sales YoY | 208.984 % | |
| Price To Sales IPRWA | high: 60.439 median: 36.141 mean: 35.723 SPHR: 16.217 low: 0.265 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -258.656 | |
| Forward PE/G | 0.476 | |
| Forward P/S | 129.395 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 44.818 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.076 | |
| Asset Turnover Ratio QoQ | -17.13 % | |
| Asset Turnover Ratio YoY | 16.167 % | |
| Asset Turnover Ratio IPRWA | high: 0.283 median: 0.144 mean: 0.142 SPHR: 0.076 low: 0.002 |
|
| Receivables Turnover | 1.879 | |
| Receivables Turnover Ratio QoQ | -14.137 % | |
| Receivables Turnover Ratio YoY | 4.169 % | |
| Receivables Turnover Ratio IPRWA | high: 14.815 mean: 2.2 SPHR: 1.879 median: 1.813 low: 0.997 |
|
| Inventory Turnover | 8.399 | |
| Inventory Turnover Ratio QoQ | -18.814 % | |
| Inventory Turnover Ratio YoY | -16.907 % | |
| Inventory Turnover Ratio IPRWA | high: 15.849 median: 15.849 mean: 15.363 SPHR: 8.399 low: 0.696 |
|
| Days Sales Outstanding (DSO) | 48.567 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 44.696 | |
| Cash Conversion Cycle Days QoQ | 32.23 % | |
| Cash Conversion Cycle Days YoY | 1.437 % | |
| Cash Conversion Cycle Days IPRWA | high: 129.867 SPHR: 44.696 median: 7.736 mean: -15.668 low: -110.02 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.184 | |
| CapEx To Revenue | -0.046 | |
| CapEx To Depreciation | -0.175 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.0 B | |
| Net Invested Capital | $ 3.0 B | |
| Invested Capital | $ 3.0 B | |
| Net Tangible Assets | $ 1.9 B | |
| Net Working Capital | $ 143.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.86 | |
| Current Ratio | 1.224 | |
| Current Ratio QoQ | 0.626 % | |
| Current Ratio YoY | 8.346 % | |
| Current Ratio IPRWA | high: 5.201 mean: 2.555 median: 2.399 SPHR: 1.224 low: 0.088 |
|
| Quick Ratio | 1.197 | |
| Quick Ratio QoQ | 0.402 % | |
| Quick Ratio YoY | 8.24 % | |
| Quick Ratio IPRWA | high: 5.116 median: 2.645 mean: 2.627 SPHR: 1.197 low: 0.514 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 33.42 | |
| Cost Of Debt | 0.536 % | |
| Interest Coverage Ratio | -6.887 | |
| Interest Coverage Ratio QoQ | -823.01 % | |
| Interest Coverage Ratio YoY | -159.45 % | |
| Interest Coverage Ratio IPRWA | high: 28.659 median: 24.158 mean: 16.712 SPHR: -6.887 low: -39.573 |
|
| Operating Cash Flow Ratio | 0.083 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 13.545 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -4.422 % | |
| Revenue Growth | -18.833 % | |
| Revenue Growth QoQ | 843.537 % | |
| Revenue Growth YoY | -2611.067 % | |
| Revenue Growth IPRWA | high: 102.13 % mean: 8.008 % median: 7.974 % low: -8.05 % SPHR: -18.833 % |
|
| Earnings Growth | -542.857 % | |
| Earnings Growth QoQ | 496.756 % | |
| Earnings Growth YoY | 62.959 % | |
| Earnings Growth IPRWA | high: 78.278 % mean: 40.47 % median: 31.646 % low: -450.0 % SPHR: -542.857 % |
|
| MARGINS | ||
| Gross Margin | 51.835 % | |
| Gross Margin QoQ | -7.598 % | |
| Gross Margin YoY | -3.194 % | |
| Gross Margin IPRWA | high: 93.118 % mean: 62.238 % median: 61.649 % SPHR: 51.835 % low: 14.256 % |
|
| EBIT Margin | -18.167 % | |
| EBIT Margin QoQ | -1016.599 % | |
| EBIT Margin YoY | -117.14 % | |
| EBIT Margin IPRWA | high: 33.792 % median: 26.737 % mean: 26.122 % SPHR: -18.167 % low: -18.695 % |
|
| Return On Sales (ROS) | -19.43 % | |
| Return On Sales QoQ | -801.951 % | |
| Return On Sales YoY | 20.526 % | |
| Return On Sales IPRWA | high: 34.033 % median: 33.381 % mean: 31.524 % low: -4.845 % SPHR: -19.43 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -48.13 M | |
| Free Cash Flow Yield | -0.946 % | |
| Free Cash Flow Yield QoQ | -130.546 % | |
| Free Cash Flow Yield YoY | -80.958 % | |
| Free Cash Flow Yield IPRWA | high: 11.579 % mean: 0.0 % median: -0.134 % SPHR: -0.946 % low: -10.34 % |
|
| Free Cash Growth | -136.645 % | |
| Free Cash Growth QoQ | 569.894 % | |
| Free Cash Growth YoY | -124.338 % | |
| Free Cash Growth IPRWA | high: 49.364 % mean: -131.262 % SPHR: -136.645 % median: -157.879 % low: -301.024 % |
|
| Free Cash To Net Income | 1.256 | |
| Cash Flow Margin | 17.002 % | |
| Cash Flow To Earnings | -1.391 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.928 % | |
| Return On Assets QoQ | -975.472 % | |
| Return On Assets YoY | -126.424 % | |
| Return On Assets IPRWA | high: 13.801 % mean: 10.936 % median: 10.842 % SPHR: -0.928 % low: -9.378 % |
|
| Return On Capital Employed (ROCE) | -1.678 % | |
| Return On Equity (ROE) | -0.017 | |
| Return On Equity QoQ | -968.687 % | |
| Return On Equity YoY | -126.212 % | |
| Return On Equity IPRWA | high: 0.598 median: 0.16 mean: 0.148 SPHR: -0.017 low: -0.434 |
|
| DuPont ROE | -1.713 % | |
| Return On Invested Capital (ROIC) | -1.136 % | |
| Return On Invested Capital QoQ | -857.333 % | |
| Return On Invested Capital YoY | -115.372 % | |
| Return On Invested Capital IPRWA | high: 21.396 % mean: 12.661 % median: 9.834 % SPHR: -1.136 % low: -1.22 % |
|