0001628280-26-007760
SEC filingSphere Entertainment Co. (SPHR) reported FY 2025 revenues of $1.22B, reflecting its entertainment venue operations amid high fixed costs. Despite robust top-line growth, the company posted an operating loss of -$229.6M, driven by elevated direct operating expenses of $590.0M, SG&A of $441.9M, depreciation and amortization of $336.4M, and restructuring charges of $11.5M. A significant gain on extinguishment of debt totaling $346.1M, partially offset by interest expense of $70.5M, propelled income from continuing operations before taxes to $57.2M. After a $23.8M tax benefit, net income from continuing operations reached $33.4M, equating to $1 per diluted share on 45.3M shares. Balance sheet remains strong with $4.21B total assets, including $2.71B property and equipment, $521.3M cash, and $2.23B stockholders' equity. Operating cash flow of $243.3M supported debt reduction and $50.0M stock repurchases, with net cash increase of $5.6M. No prior year figures disclosed limits direct comparisons, but debt extinguishment and cash generation signal improved financial flexibility for future venue expansions and content investments.
Sphere Entertainment Co. reported FY 2025 results with revenues of $1.22B and net income attributable to stockholders of $33.4M ($1 per basic and diluted share). Operating loss stood at -$229.6M, reflecting high depreciation of $336.4M and direct costs of $590.0M against $1.22B revenue. Key non-operating boost came from $346.1M gain on debt extinguishment, leading to $57.2M pre-tax income from continuing operations and $33.4M after $23.8M tax benefit. No discontinued operations contribution. Balance sheet shows $4.21B assets with $2.71B property and equipment, $810.2M current assets including $521.3M cash, and $2.23B equity. Total liabilities $1.98B, with long-term debt at $767.4M. No prior year comparative figures provided in the filing.
Revenues totaled $1.22B for the fiscal year ended December 31, 2025. No segment breakdown or geographic mix disclosed in the provided data. Direct operating expenses consumed $590.0M (48.4% of revenue), indicating heavy cost structure tied to venue operations. Selling, general, and administrative expenses reached $441.9M. No specific growth drivers or YoY revenue changes detailed in the XBRL extracts.
Operating margin was deeply negative at approximately -18.8%, calculated as -$229.6M operating loss on $1.22B revenue, pressured by depreciation and amortization ($336.4M), impairments (-$69.8M net losses), and restructuring ($11.5M). No gross profit explicitly stated, but revenues minus direct operating expenses imply ~$630M contribution before other costs. Profitability improved post-operating via debt gain, yielding 2.7% net margin from continuing operations. SG&A at 36.2% of revenue highlights overhead intensity. No prior period margins for comparison.
Operating activities generated $243.3M, driven by $33.4M net income, $336.4M depreciation, $59.0M share-based comp, offset by $360.2M debt gain (cash flow note). Investing used -$3.9M net (capex $52.3M offset by $48.8M dispositions). Financing consumed -$233.3M (debt repayments $165.3M, stock repurchases $50.0M). Net cash increase $5.6M; ending cash $521.3M (continuing ops). Liquidity solid with current assets $810.2M vs. $743.4M current liabilities. Debt profile: $830.4M total (current $63.0M + LT $767.4M). Equity $2.23B with accumulated deficit -$186.4M.
No management guidance, strategic priorities, or specific risk factors disclosed in the provided XBRL data or document extracts. Commitments noted in Note 13 (not detailed). Focus appears on debt reduction and cash preservation as evidenced by financing activities.