Recent News
On March 30, 2026, a sell-side firm initiated coverage of the company with a Market Outperform recommendation; that same month the company named Allen Lo Executive Vice President and Chief Legal Officer for both Sphere and Madison Square Garden entities. Insider filings show an executive exercised restricted stock units with withholding for taxes recorded in recent SEC disclosures.
Technical Analysis
Directional indicators show rising bearish pressure: DI+ registered a peak-and-reversal, which signals bearish momentum, while DI- showed a dip-and-reversal, also consistent with bearish pressure; ADX at 21.25 signals only an emerging trend strength, so directional conviction remains moderate.
MACD sits at 3.48 with a peak-and-reversal pattern and the MACD line below its signal at 4.49, which denotes waning bullish momentum and confirms short-term bearish momentum rather than a bullish crossover.
MRO reads 30.12 (positive), indicating the price sits above the oscillator’s target and faces potential downward pressure; the MRO recently displayed a dip-and-reversal pattern, suggesting short-term oscillation rather than sustained breakout strength.
RSI at 58.88 and decreasing points to retreating short-term momentum from mildly overbought levels; that decline aligns with the MACD and MRO signals and raises the probability of consolidation or a pullback before a renewed advance.
Price closed at $135.96, essentially level with the 20-day average ($135.88) but well above the 50-day ($123.81) and 200-day ($86.64) averages, indicating a medium-term upward bias despite short-term exhaustion (12-day EMA shows a peak-and-reversal). Short-term volatility remains elevated (42-day beta 2.44), and the super-trend upper band sits near $144.48, which acts as a nearer resistance level for any bounce.
Fundamental Analysis
Profitability and margins: EBIT of $31,523,000 produces an EBIT margin of 7.995%, below the industry peer mean of 13.805% and the industry peer median of 15.919%, and well inside the industry peer range. QoQ change in EBIT margin reads -116.49% (a material contraction quarter-over-quarter), while YoY patterns show mixed results across other operating metrics.
Revenue and cash flow: Total revenue equals $394,283,000 with reported revenue growth at 50.20% and revenue growth year-over-year at -4.02%; quarter-over-quarter revenue change registers -8.04%. Operating cash flow reached $180,219,000 and free cash flow totaled $165,011,000, delivering a free cash flow yield of 5.29% and end-period cash of $507,776,000—ample liquidity to support capital initiatives and debt actions in the near term.
Capital structure and coverage: Total debt stands at $961,458,000 with net debt $322,672,000 and debt-to-EBITDA of 8.31x, indicating elevated leverage relative to operating cash generation. Interest coverage equals 3.47x, below the industry peer mean of 7.85x, which limits financial flexibility if operating performance weakens.
Market multiples and valuation context: Price-to-earnings sits at 71.44x, below the industry peer mean of 94.07x and slightly above the peer median of 68.45x. Price-to-book comes in at 1.40x, beneath the industry peer mean of 2.08x and median of 1.83x. Price-to-sales at 7.91x tracks under the peer mean of 8.81x and slightly above the peer median of 7.63x. WMDST values the stock as under-valued given current cash generation, free cash yield, and long-run venue economics, though valuation reflects growth expectations and residual risk from legacy media assets.
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: 44.369 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: 0.271 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: 2.943 SPHR: 0.431 median: 0.43 mean: 0.381 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: 5.197 mean: 2.077 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: 94.07 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: 15.244 mean: 8.81 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: 0.126 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: 3.124 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: 7.734 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: 89.678 median: 58.725 mean: 37.822 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: 1.462 SPHR: 1.09 mean: 0.794 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: 0.613 median: 0.613 mean: 0.611 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: 7.853 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: 18.762 % 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: 37.042 % 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: 35.307 % 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: 13.805 % 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: 14.915 % median: 14.915 % mean: 13.165 % 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: -0.895 % median: -1.15 % low: -6.212 % |
|
| 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: -170.585 % 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: 0.969 % 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: 1.599 % SPHR: 0.813 % low: -6.421 % |
|