Sphere Entertainment Co
SPHRBuild a strategy around SPHR
Sphere Entertainment Co AI Insights
Informational only. Not investment advice.Snapshot
- FCF of 110.8M TTM despite -101M net loss - non-cash depreciation on 2.9B PPE (Sphere venue) masks cash generation[Free Cash Flow]
- Operating margin -22.2% TTM vs industry median +3.7% - still in ramp phase with 262.5M revenue on 2.9B asset base[Operating Margin]
- Revenue down 18.3% YoY and -9.4% 3Y CAGR while industry grew 7.1% - post-launch normalization or demand weakness unclear[Total Revenue 1Y Growth]
Watch Triggers
- Asset Turnover: Rises above 15% (from 6.3%) — Signals venue utilization improving - path to profitability requires 3-4x current turnover
- Operating Margin: Improves to -10% or better — Operating leverage thesis requires margin expansion as revenue scales on fixed cost base
- Total Revenue 1Y Growth: Returns to positive growth — Current -18% decline must reverse to justify 3.3B market cap on 262M revenue
Bull Case
Irreplaceable asset: 2.9B venue with no comparable competitor globally. 48% gross margin TTM proves pricing power exists - operating leverage kicks in as fixed costs spread over more events.
Hidden cash machine: 110.8M FCF on -101M net income. Low capex (5M TTM) post-construction means cash accumulates - 385M cash vs 89M current debt provides runway.
Bear Case
Single-asset concentration: 2.9B PPE in one venue with -22% operating margin. If Vegas demand disappoints, no diversification. Revenue down 18% YoY suggests novelty wearing off.
Debt burden on unprofitable business: 1B total debt at 0.46 D/E with -3.2% ROIC. Interest expense 9.4M TTM consumes cash while business burns money operationally.
Bull vs Bear Balance
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Forward Thesis
Asset utilization inflection: 2.9B venue at 6.3% turnover has 5-8x upside to industry median 53%
- Sphere licensing/expansion to other cities
- Increased event frequency and premium pricing
- Advertising/sponsorship revenue scaling
Valuation Context
Caveats
SPHR Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$5.4B | — | ||
$5.71B | — | ||
51 | — | ||
$1.33B | +16.6% | — | |
$2.97 | — | ||
-4.62% | — | ||
9.04% | — | ||
$333.5M | +2003.0% | — | |
5.46% | — | ||
Beta 5Y (Monthly) | unknown | — |
SPHR Dividend History
SPHR Stock Splits
SPHR SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
05/05/26 | 03/31/26 | 10-Q | |
02/12/26 | 12/31/25 | Unknown | |
11/04/25 | 09/30/25 | 10-Q | |
08/11/25 | 06/30/25 | 10-Q | |
05/08/25 | 03/31/25 | 10-Q | |
11/12/24 | 09/30/24 | 10-Q | |
08/14/24 | 06/30/24 | 10-K | |
05/10/24 | 03/31/24 | 10-Q | |
02/05/24 | 12/31/23 | 10-Q | |
11/08/23 | 09/30/23 | 10-Q | |
03/03/25 | 06/30/23 | 10-KT | |
08/22/23 | 06/30/23 | 10-K | |
05/10/23 | 03/31/23 | 10-Q | |
02/09/23 | 12/31/22 | 10-Q | |
11/09/22 | 09/30/22 | 10-Q | |
03/03/25 | 06/30/22 | 10-KT | |
08/19/22 | 06/30/22 | 10-K | |
05/09/22 | 03/31/22 | 10-Q | |
02/09/22 | 12/31/21 | 10-Q | |
11/09/21 | 09/30/21 | 10-Q | |
08/23/21 | 06/30/21 | 10-K | |
05/07/21 | 03/31/21 | 10-Q | |
02/12/21 | 12/31/20 | 10-Q | |
11/16/20 | 09/30/20 | 10-Q | |
02/09/22 | 09/30/20 | 10-Q/A | |
08/31/20 | 06/30/20 | 10-K | |
05/18/20 | 03/31/20 | 10-Q | |
04/01/20 | 12/31/19 | 10-12B/A | |
11/16/20 | 09/30/19 | 10-Q | |
04/01/20 | 06/30/19 | 10-12B/A | |
02/09/22 | 06/30/19 | 10-K/A | |
05/18/20 | 03/31/19 | 10-Q |