Sphere Entertainment Co. Reports Third Quarter 2026 Results
Q3 revenue $274.3M, up 4% y/y; operating loss widened to $240.6M on $173.6M MSG Networks impairments; Sphere adj. op income up 8%.
What this release says
Sphere Entertainment reported third quarter 2026 revenue of $274.3 million, up 4%, with Sphere segment revenue rising 14% on higher Exosphere advertising and concert income. The operating loss widened to $240.6 million, driven mainly by impairments and other losses in the MSG Networks segment, where subscriber declines also cut distribution revenue. For shareholders, the Sphere business is growing while the legacy networks business is shrinking and taking large charges.
Key figures
- Total revenues, Q3 2026
- $274.3 million
- Total operating loss, Q3 2026
- $240.6 million
- Sphere segment revenues, Q3 2026
- $198.9 million
- Sphere segment adjusted operating income
- $32.4 million
- Adjusted operating income, total
- $39.2 million
- Decline in total MSG Networks subscribers
- approximately 15.5%
Positive for shareholders
- Sphere segment revenues rose 14% year over year, to $198.9 million.
- Sphere segment operating loss narrowed by $17.5 million compared with the prior year quarter.
Negative for shareholders
- Total operating loss widened by $77.5 million, mainly from impairments at MSG Networks.
- MSG Networks revenue fell 15% as subscribers declined about 15.5%.
- Management says Sphere is on track for substantial growth, but that outlook is not quantified in the release.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Adjusted operating income:
- A company-defined profit measure that adds back items such as depreciation, impairments, share-based pay and merger costs, so it is not a standard accounting figure.
- Impairment:
- A write-down of an asset's book value when it is judged to be worth less than recorded.
- Exosphere:
- The large external screen on the outside of the Sphere venue in Las Vegas, which sells advertising.
- Concert residency:
- A series of repeated performances by one artist at the same venue over an extended period.
FAQ
Why did Sphere Entertainment's operating loss get bigger in Q3 2026?
The release attributes the increase mainly to higher impairments and other losses at the MSG Networks segment, partly offset by a small decline in revenue there.
How did the Sphere segment perform in the quarter?
Sphere revenue rose 14% to $198.9 million, and its operating loss shrank 21% to $67.0 million, helped by higher Exosphere advertising and concert revenue.
What is the Rocky Horror Picture Show at Sphere?
The release says it is a new Sphere Experience now in production, which the company expects will debut by the end of March 2027.
Historical context for SPHR
Across the 27 sessions after earlier SPHR headlines, the stock closed higher 15 times and lower 12 times, with a median move of 2.5% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | SPHR | SPY |
|---|---|---|---|
| Oct 30, 2026 | Sphere Entertainment Co. to Host Third Quarter 2026 Conference Call | -3.5% | -1.8% |
| Oct 5, 2026 | Sphere Entertainment Co. downgraded by Craig Hallum with a new price target | -13.6% | +0.7% |
| Sep 25, 2026 | Sphere Debuts Enhanced and Expanded 4D Effects for The Wizard of Oz at Sphere | +1.9% | +0.5% |
| Sep 23, 2026 | Sphere and Disguise Announce Multi-Year Technology Partnership to Advance the Future of Immersive Live Entertainment | -4.2% | -0.7% |
| Aug 31, 2026 | The Wizard of Oz at Sphere Unveils New & Expanded 4D Effects | -3.8% | -0.3% |
| Aug 20, 2026 | Piper Sandler initiated coverage on Sphere Entertainment Co. with a new price target | -2.2% | -0.8% |
- Market cap
- 30-day
- Sector
- Consumer Discretionary
- Industry
- Services-Misc. Amusement & Recreation
- Listed since
- 2020
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