Recent News
On November 4, 2025, Sphere Entertainment reported third-quarter results for the period ended September 30, 2025, noting total revenue of $262.5 million and segment highlights including the August 28 debut of The Wizard of Oz at Sphere and sponsorship agreements with Zoox and Lenovo; the release also disclosed $50 million of share repurchases year-to-date. On September 12, 2025, the company announced an additional $22.5 million repurchase of Class A shares, bringing 2025 buybacks to $50 million. On November 5, 2025, a major bank maintained an Overweight rating on the stock. On November 17, 2025, aggregate analyst targets shifted, producing a revised average one-year price target near the mid-$60s to $70s range.
Technical Analysis
ADX reads 42.66, indicating a very strong directional environment; strength does not imply direction but signals that price moves possess notable momentum.
DI+ shows a decreasing trend while DI- shows an increasing trend, which signals rising selling pressure against previously stronger buying pressure and biases near-term directional odds toward downside pressure.
MACD currently at 3.57 and the MACD signal at 3.82, with the MACD trend decreasing, indicates bearish momentum; the indicator sits below its signal line, reinforcing waning upside momentum.
MRO at 34.42 and trending higher signals price sits above the model target and carries elevated downside potential as momentum mean-reverts toward target levels.
RSI at 64.26 and trending down indicates reduced upward stamina after a recent push; the indicator remains below classic overbought thresholds but shows momentum cooling.
Price sits at $76.00 with the 12-day EMA increasing and the 20-day average at $76.00; the 50-day ($66.16) and 200-day ($45.53) averages lie well below current price, indicating a persistent longer-term upward tilt even as short-term momentum softens.
Ichimoku components display TenkanSen (72.73) above KijunSen (69.83), a bullish configuration that supports continuation of the multi-week trend, while price remains inside the upper Bollinger band range below the 1x upper band ($78.97), leaving limited short-term upside before volatility expands.
Fundamental Analysis
Revenue totaled $282.7 million for the indicated period; reported EBIT reached $299,617,000, producing an EBIT margin of 105.99%, well above the industry peer mean EBIT margin of 18.37% and above the industry peer median of 15.43%.
Operating income registered a loss of $45,571,000, yielding an operating margin of -16.12%, below the industry peer mean operating margin of 15.66% and indicating material operating-level expense absorption despite strong top-line performance.
Net income reported at $151,816,000 contrasts with an operating loss, reflecting non-operating gains or adjustments. EPS came in at -$1.12 versus an estimate of -$1.87, producing an EPS surprise of +40.11% relative to the estimate.
Gross margin stands at 53.55% with QoQ improvement of 22.889% and YoY improvement of 18.175%, showing strong margin generation at the gross level. Cash on hand totals $355,661,000 with a cash ratio near 67.50% and a current ratio of 1.13, providing liquidity buffers while operating cash flow swung negative at -$59,059,000 for the period and free cash flow finished at -$73,711,000, yielding a free cash flow yield of -4.97%.
Leverage metrics show total debt of $1,018,612,000, debt to EBITDA of 2.66x and net debt around $533,673,000; interest coverage sits at 11.59x but trended lower QoQ and YoY, reflecting higher interest or lower operating income pressure. Debt-to-assets sits at 24.26% and debt-to-equity at 0.44, within the provided industry peer range on the lower side of leverage extremes.
Return metrics: return on equity at 6.56% and return on assets at 3.51% both exceed the industry peer means provided, signaling reasonable capital returns given current net income. Revenue growth shows modest YoY movement (≈0.75% reported elsewhere but YoY revenue change -1.05%), while earnings growth shows a large YoY jump of +220.49% driven by comparatives.
Valuation multiples display a trailing P/E of 10.86; forward EPS sits negative at -$1.545 producing a negative forward P/E. Price-to-book at 0.64 sits below the industry peer mean book multiple of 1.82. EV/Revenue and enterprise multiples remain moderate with an enterprise multiple near 5.60 and enterprise value near $2.147 billion. WMDST values the stock as over-valued based on the combined cash-flow profile, negative near-term free cash flow, and market multiple dynamics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 478.2 M |
| Operating Cash Flow | $ -59.06 M | |
| Capital Expenditures | $ -14.65 M | |
| Change In Working Capital | $ -81.04 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -109.28 M | |
| End Period Cash Flow | $ 368.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 282.7 M | |
| Forward Revenue | $ -25.89 M | |
| COSTS | ||
| Cost Of Revenue | $ 131.3 M | |
| Depreciation | $ 82.3 M | |
| Depreciation and Amortization | $ 83.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 328.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 151.4 M | |
| EBITDA | $ 383.5 M | |
| EBIT | $ 299.6 M | |
| Operating Income | $ -45.57 M | |
| Interest Income | $ 4.1 M | |
| Interest Expense | $ 25.9 M | |
| Net Interest Income | $ -21.78 M | |
| Income Before Tax | $ 273.8 M | |
| Tax Provision | $ 121.9 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 151.8 M | |
| Net Income From Continuing Operations | $ 151.8 M | |
| EARNINGS | ||
| EPS Estimate | $ -1.87 | |
| EPS Actual | $ -1.12 | |
| EPS Difference | $ 0.75 | |
| EPS Surprise | 40.107 % | |
| Forward EPS | $ -1.54 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.2 B | |
| Intangible Assets | $ 435.3 M | |
| Net Tangible Assets | $ 1.9 B | |
| Total Current Assets | $ 595.4 M | |
| Cash and Short-Term Investments | $ 355.7 M | |
| Cash | $ 355.7 M | |
| Net Receivables | $ 151.2 M | |
| Inventory | $ 12.8 M | |
| Long-Term Investments | $ 190.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 14.8 M | |
| Short-Term Debt | $ 58.8 M | |
| Total Current Liabilities | $ 526.9 M | |
| Net Debt | $ 533.7 M | |
| Total Debt | $ 1.0 B | |
| Total Liabilities | $ 1.9 B | |
| EQUITY | ||
| Total Equity | $ 2.3 B | |
| Retained Earnings | $ -149.98 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 64.27 | |
| Shares Outstanding | 35.999 M | |
| Revenue Per-Share | $ 7.85 | |
| VALUATION | Market Capitalization | $ 1.5 B |
| Enterprise Value | $ 2.1 B | |
| Enterprise Multiple | 5.597 | |
| Enterprise Multiple QoQ | -97.888 % | |
| Enterprise Multiple YoY | -94.73 % | |
| Enterprise Multiple IPRWA | high: 93.343 median: 49.238 mean: 47.084 SPHR: 5.597 low: -186.007 |
|
| EV/R | 7.594 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.815 | |
| Asset To Liability | 2.227 | |
| Debt To Capital | 0.306 | |
| Debt To Assets | 0.243 | |
| Debt To Assets QoQ | -26.196 % | |
| Debt To Assets YoY | 36.734 % | |
| Debt To Assets IPRWA | high: 0.821 mean: 0.248 SPHR: 0.243 median: 0.215 low: 0.052 |
|
| Debt To Equity | 0.44 | |
| Debt To Equity QoQ | -35.489 % | |
| Debt To Equity YoY | 25.196 % | |
| Debt To Equity IPRWA | high: 5.795 SPHR: 0.44 mean: 0.41 median: 0.387 low: -4.209 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.641 | |
| Price To Book QoQ | 17.928 % | |
| Price To Book YoY | 9.267 % | |
| Price To Book IPRWA | high: 5.639 median: 1.909 mean: 1.821 SPHR: 0.641 low: -16.988 |
|
| Price To Earnings (P/E) | 10.865 | |
| Price To Earnings QoQ | -175.572 % | |
| Price To Earnings YoY | -135.502 % | |
| Price To Earnings IPRWA | high: 154.782 median: 71.746 mean: 71.579 SPHR: 10.865 low: -45.988 |
|
| PE/G Ratio | -0.033 | |
| Price To Sales (P/S) | 5.248 | |
| Price To Sales QoQ | 26.428 % | |
| Price To Sales YoY | 1.222 % | |
| Price To Sales IPRWA | high: 23.442 mean: 10.211 median: 8.81 SPHR: 5.248 low: 0.515 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -23.697 | |
| Forward PE/G | 0.071 | |
| Forward P/S | -57.303 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -658.895 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.065 | |
| Asset Turnover Ratio QoQ | — | |
| Asset Turnover Ratio YoY | 15.472 % | |
| Asset Turnover Ratio IPRWA | high: 0.24 mean: 0.122 median: 0.121 SPHR: 0.065 low: 0.012 |
|
| Receivables Turnover | 1.804 | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | 34.23 % | |
| Receivables Turnover Ratio IPRWA | high: 10.057 mean: 3.287 median: 1.821 SPHR: 1.804 low: 0.522 |
|
| Inventory Turnover | 10.108 | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | -54.106 % | |
| Inventory Turnover Ratio IPRWA | high: 32.888 SPHR: 10.108 median: 7.125 mean: 6.95 low: 0.88 |
|
| Days Sales Outstanding (DSO) | 50.592 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 44.063 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -1.028 % | |
| Cash Conversion Cycle Days IPRWA | high: 190.646 median: 96.783 SPHR: 44.063 mean: -11.918 low: -217.211 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 4.128 | |
| CapEx To Revenue | -0.052 | |
| CapEx To Depreciation | -0.178 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.1 B | |
| Net Invested Capital | $ 3.2 B | |
| Invested Capital | $ 3.2 B | |
| Net Tangible Assets | $ 1.9 B | |
| Net Working Capital | $ 68.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.675 | |
| Current Ratio | 1.13 | |
| Current Ratio QoQ | 112.297 % | |
| Current Ratio YoY | 79.303 % | |
| Current Ratio IPRWA | high: 2.845 SPHR: 1.13 mean: 1.105 median: 0.722 low: 0.163 |
|
| Quick Ratio | 1.106 | |
| Quick Ratio QoQ | 111.513 % | |
| Quick Ratio YoY | 77.884 % | |
| Quick Ratio IPRWA | high: 2.058 SPHR: 1.106 mean: 0.698 median: 0.659 low: 0.151 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.656 | |
| Cost Of Debt | 1.647 % | |
| Interest Coverage Ratio | 11.585 | |
| Interest Coverage Ratio QoQ | -499.104 % | |
| Interest Coverage Ratio YoY | -570.693 % | |
| Interest Coverage Ratio IPRWA | SPHR: 11.585 high: 10.286 median: 8.331 mean: 8.016 low: -4.435 |
|
| Operating Cash Flow Ratio | 0.433 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 14.017 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -5.589 % | |
| Revenue Growth | 0.75 % | |
| Revenue Growth QoQ | — | |
| Revenue Growth YoY | -105.027 % | |
| Revenue Growth IPRWA | high: 561.795 % mean: 48.414 % SPHR: 0.75 % median: 0.123 % low: -51.919 % |
|
| Earnings Growth | -333.125 % | |
| Earnings Growth QoQ | 845.196 % | |
| Earnings Growth YoY | 22049.269 % | |
| Earnings Growth IPRWA | high: 100.0 % median: 11.034 % mean: -1.342 % low: -296.875 % SPHR: -333.125 % |
|
| MARGINS | ||
| Gross Margin | 53.545 % | |
| Gross Margin QoQ | 22.889 % | |
| Gross Margin YoY | 18.175 % | |
| Gross Margin IPRWA | high: 94.732 % SPHR: 53.545 % median: 38.554 % mean: 38.364 % low: 19.303 % |
|
| EBIT Margin | 105.993 % | |
| EBIT Margin QoQ | -490.931 % | |
| EBIT Margin YoY | -537.337 % | |
| EBIT Margin IPRWA | SPHR: 105.993 % high: 37.584 % mean: 18.368 % median: 15.429 % low: -10.851 % |
|
| Return On Sales (ROS) | -16.121 % | |
| Return On Sales QoQ | -40.541 % | |
| Return On Sales YoY | -33.483 % | |
| Return On Sales IPRWA | high: 21.104 % mean: 15.662 % median: 15.412 % SPHR: -16.121 % low: -31.277 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -73.71 M | |
| Free Cash Flow Yield | -4.968 % | |
| Free Cash Flow Yield QoQ | 419.122 % | |
| Free Cash Flow Yield YoY | 13.321 % | |
| Free Cash Flow Yield IPRWA | high: 7.703 % mean: 0.962 % median: 0.907 % low: -1.643 % SPHR: -4.968 % |
|
| Free Cash Growth | 561.441 % | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | -418.635 % | |
| Free Cash Growth IPRWA | SPHR: 561.441 % high: 209.793 % median: -61.378 % mean: -61.663 % low: -305.995 % |
|
| Free Cash To Net Income | -0.486 | |
| Cash Flow Margin | 80.651 % | |
| Cash Flow To Earnings | 1.502 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 3.512 % | |
| Return On Assets QoQ | — | |
| Return On Assets YoY | -463.938 % | |
| Return On Assets IPRWA | SPHR: 3.512 % high: 3.109 % median: 2.682 % mean: 2.546 % low: -8.698 % |
|
| Return On Capital Employed (ROCE) | 8.159 % | |
| Return On Equity (ROE) | 0.066 | |
| Return On Equity QoQ | -271.511 % | |
| Return On Equity YoY | -440.176 % | |
| Return On Equity IPRWA | high: 0.347 SPHR: 0.066 median: 0.048 mean: 0.046 low: -0.26 |
|
| DuPont ROE | 6.814 % | |
| Return On Invested Capital (ROIC) | 7.39 % | |
| Return On Invested Capital QoQ | -520.843 % | |
| Return On Invested Capital YoY | -142.272 % | |
| Return On Invested Capital IPRWA | SPHR: 7.39 % high: 4.377 % mean: 2.252 % median: 1.904 % low: -2.034 % |
|