Recent News
On July 30, 2026 the company announced a multi-year extension with the Formula 1 Las Vegas Grand Prix through 2030 and reiterated plans to expand the Sphere venue model internationally, naming Abu Dhabi and National Harbor among development targets; the release also highlighted upcoming programming and partnership activity.
Technical Analysis
Directional indicators present clear short-term bearish signals: DI+ registered a peak-and-reversal, a bearish indicator, while DI- showed a dip-and-reversal that also signals bearish pressure; ADX at 20.1 sits at the threshold of an emerging trend, implying limited trend strength despite the directional signals.
MACD displays a peak-and-reversal pattern and trades below its signal line (MACD 3.37 vs signal 3.80), indicating bearish momentum and no confirmed bullish crossover; momentum structure therefore favors further near-term downside unless MACD turns back above the signal line.
MRO reads positive at 22.58, which indicates the current price remains above the model target and, per the oscillator’s interpretation, that downward pressure toward the target likely exists; the peak-and-reversal on MRO reinforces the near-term negative bias.
RSI at 52.46 shows a peak-and-reversal pattern, signaling loss of short-term upside breadth even though RSI sits near neutral; the combination of RSI and MACD actions points to weakening momentum rather than oversold reversal conditions.
Price sits below short-term averages and tone indicators: the 12-day EMA peaked and reversed while the 20-day average ($163.30) exceeds the last close ($157.31), confirming short-term weakness; the 200-day average ($120.49) remains far below price, preserving a longer-term support narrative.
Bollinger bands place the close near the 1x lower band ($155.51), suggesting proximity to short-term volatility support, but average daily volume runs below recent ten- and fifty-day norms, reducing conviction for immediate mean-reversion rallies; 42-day beta at 1.87 signals elevated responsiveness to market moves.
Fundamental Analysis
Profitability displays mixed operational signals. YoY revenue contracted by 26.11% while revenue improved QoQ by 8.44%, showing sequential recovery after a large annual decline. Gross margin stands at 51.84%, supporting strong gross profitability, yet EBIT margin registered -18.17%, well below the industry peer mean of 14.718% and below the industry peer low of -0.565%, reflecting substantial operating overhead and depreciation loadings tied to large venue investments.
EBITDA totaled $27.33M while operating cash flow delivered $53.32M for the period; free cash flow remained negative at -$48.13M. Cash and short-term investments total $550.97M, delivering a cash ratio of 0.86 and a current ratio of 1.22, positioning liquidity to cover near-term obligations despite negative net income ($-38.33M) and negative EBIT ($-56.98M).
EPS outperformed expectations: actual EPS of -$0.62 exceeded the estimate of -$1.39, yielding an EPS surprise of +55.40%, a material beat that narrowed forward loss projections (forward EPS -$0.535). WMDST notes the EPS beat as evidence of margin progress versus estimates, not as proof of sustained profitability.
Leverage metrics present risk: total debt stands at $913.31M with net debt of $229.43M and a debt-to-EBITDA ratio near 33.4, while interest coverage remains negative at -6.89, reflecting earnings shortfalls versus interest burden. Enterprise multiple measures at ~199.4, substantially above the industry peer mean of ~59.50, indicating an implied premium in enterprise valuation despite operating losses.
Other valuation and market metrics: price-to-sales sits at 16.22 with QoQ sales multiple expansion of ~47.72%; price targets among analysts range widely (mean ~$214.13, high ~$304.76, low ~$102.60), reflecting divergent views on venue scaling and content monetization. The current valuation as determined by WMDST: under-valued, based on cash reserves, positive operating cash flow, and asset-backed growth optionality relative to downside operating assumptions.
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: 195.659 mean: 59.499 median: 38.756 low: 20.96 |
|
| 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: 0.694 mean: 0.261 SPHR: 0.226 low: 0.225 median: 0.225 |
|
| Debt To Equity | 0.41 | |
| Debt To Equity QoQ | -1.794 % | |
| Debt To Equity YoY | -6.882 % | |
| Debt To Equity IPRWA | high: 5.987 mean: 0.588 low: 0.418 median: 0.418 SPHR: 0.41 |
|
| 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: 7.128 SPHR: 2.283 mean: 2.087 median: 1.574 low: 1.449 |
|
| Price To Earnings (P/E) | -228.425 | |
| Price To Earnings QoQ | -126.939 % | |
| Price To Earnings YoY | -2202.463 % | |
| Price To Earnings IPRWA | high: 47.977 median: 47.977 mean: 41.361 SPHR: -228.425 low: -263.87 |
|
| 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: 25.466 SPHR: 16.217 mean: 10.344 median: 6.858 low: 2.279 |
|
| 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: 0.244 median: 0.123 mean: 0.114 SPHR: 0.076 low: 0.059 |
|
| Receivables Turnover | 1.879 | |
| Receivables Turnover Ratio QoQ | -14.137 % | |
| Receivables Turnover Ratio YoY | 4.169 % | |
| Receivables Turnover Ratio IPRWA | high: 12.742 mean: 2.424 SPHR: 1.879 low: 1.745 median: 1.745 |
|
| Inventory Turnover | 8.399 | |
| Inventory Turnover Ratio QoQ | -18.814 % | |
| Inventory Turnover Ratio YoY | -16.907 % | |
| Inventory Turnover Ratio IPRWA | high: 12.157 SPHR: 8.399 mean: 7.288 median: 7.261 low: 0.993 |
|
| 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 | SPHR: 44.696 high: -25.689 median: -78.699 mean: -98.394 low: -277.48 |
|
| 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: 1.267 SPHR: 1.224 mean: 0.811 median: 0.709 low: 0.42 |
|
| Quick Ratio | 1.197 | |
| Quick Ratio QoQ | 0.402 % | |
| Quick Ratio YoY | 8.24 % | |
| Quick Ratio IPRWA | SPHR: 1.197 high: 0.809 median: 0.65 mean: 0.65 low: 0.359 |
|
| 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: 9.775 median: 8.873 mean: 7.069 low: -0.149 SPHR: -6.887 |
|
| 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: 323.735 % mean: 19.393 % low: 0.318 % median: 0.318 % SPHR: -18.833 % |
|
| Earnings Growth | -542.857 % | |
| Earnings Growth QoQ | 496.756 % | |
| Earnings Growth YoY | 62.959 % | |
| Earnings Growth IPRWA | high: 31.21 % median: 31.21 % mean: -13.027 % SPHR: -542.857 % low: -2083.333 % |
|
| MARGINS | ||
| Gross Margin | 51.835 % | |
| Gross Margin QoQ | -7.598 % | |
| Gross Margin YoY | -3.194 % | |
| Gross Margin IPRWA | high: 91.297 % SPHR: 51.835 % median: 40.17 % mean: 39.291 % low: 15.903 % |
|
| EBIT Margin | -18.167 % | |
| EBIT Margin QoQ | -1016.599 % | |
| EBIT Margin YoY | -117.14 % | |
| EBIT Margin IPRWA | high: 21.585 % median: 16.271 % mean: 14.718 % low: -0.565 % SPHR: -18.167 % |
|
| Return On Sales (ROS) | -19.43 % | |
| Return On Sales QoQ | -801.951 % | |
| Return On Sales YoY | 20.526 % | |
| Return On Sales IPRWA | high: 21.705 % median: 18.853 % mean: 16.247 % low: -6.077 % 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: 8.448 % median: 1.774 % mean: 1.707 % SPHR: -0.946 % low: -2.219 % |
|
| Free Cash Growth | -136.645 % | |
| Free Cash Growth QoQ | 569.894 % | |
| Free Cash Growth YoY | -124.338 % | |
| Free Cash Growth IPRWA | high: -19.585 % median: -37.826 % mean: -50.804 % SPHR: -136.645 % low: -613.769 % |
|
| 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: 3.133 % median: 1.287 % mean: 0.98 % SPHR: -0.928 % low: -2.345 % |
|
| 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: 0.035 median: 0.024 mean: 0.018 SPHR: -0.017 low: -0.024 |
|
| 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: 6.849 % median: 2.054 % mean: 1.748 % low: -0.12 % SPHR: -1.136 % |
|