📊 SPHR Key Takeaways
Is Sphere Entertainment Co. (SPHR) a Good Investment?
Sphere Entertainment faces critical operational profitability challenges with negative operating income of -$229.6M on $1.2B revenue (-18.8% margin) and alarming free cash flow of -$318.5M annually. Capital expenditures of $561.8M far exceed operating cash flow of $243.3M, indicating an unsustainable cash burn dynamic that will force either business restructuring or capital raises. Flat revenue growth (+0.1% YoY) coupled with deteriorating liquidity (1.09x current ratio) and negative interest coverage signals fundamental structural issues in the business model.
Why Buy Sphere Entertainment Co. Stock? SPHR Key Strengths
- Positive net income of $33.4M demonstrates some accounting profitability
- Operating cash flow of $243.3M shows the core business generates some cash before capex
- Moderate leverage with 0.31x debt-to-equity ratio provides some financial flexibility
- Cash reserves of $521.3M provide a short-term buffer against operational challenges
SPHR Stock Risks: Sphere Entertainment Co. Investment Risks
- Negative free cash flow of -$318.5M annually is unsustainable and signals cash depletion risk
- Negative operating income of -$229.6M indicates core business operations are unprofitable
- Capital intensity ($561.8M capex) exceeds operating cash generation, creating structural cash burn
- Revenue growth is essentially flat (+0.1% YoY) with no organic sales momentum
- Liquidity ratios deteriorating (1.09x current ratio) leaving minimal cushion for operational disruptions
- Negative interest coverage of -75.0x means operating income cannot support debt service costs
Key Metrics to Watch
- Free cash flow trajectory—need path to positive FCF within 12-24 months
- Operating income and margin—must return to profitability to validate business model
- Cash balance—rate of depletion given -$318.5M annual FCF burn
- Revenue growth acceleration—current 0.1% growth insufficient to drive leverage improvements
- Capital expenditure plans—determining if capex moderates to match operating cash generation
Sphere Entertainment Co. (SPHR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Sphere Entertainment Co. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SPHR Profit Margin, ROE & Profitability Analysis
SPHR vs Services Sector: How Sphere Entertainment Co. Compares
How Sphere Entertainment Co. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sphere Entertainment Co. Stock Overvalued? SPHR Valuation Analysis 2026
Based on fundamental analysis, Sphere Entertainment Co. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sphere Entertainment Co. Balance Sheet: SPHR Debt, Cash & Liquidity
SPHR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sphere Entertainment Co.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $14.40 reflects profitable operations.
SPHR Revenue Growth, EPS Growth & YoY Performance
SPHR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $227.1M | -$31.3M | $-0.87 |
| Q2 2025 | $272.6M | -$46.6M | $-1.31 |
| Q1 2025 | $117.3M | -$47.2M | $-1.33 |
| Q3 2024 | $161.4M | -$34.0M | $-0.98 |
| Q2 2024 | $158.9M | $22.8M | $0.66 |
| Q1 2024 | $117.3M | -$44.8M | $-1.30 |
| Q3 2023 | $321.5M | -$17.5M | $-0.51 |
| Q2 2023 | $487.2M | $2.3M | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sphere Entertainment Co. Dividends, Buybacks & Capital Allocation
SPHR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sphere Entertainment Co. (CIK: 0001795250)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SPHR
What is the AI rating for SPHR?
Sphere Entertainment Co. (SPHR) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SPHR's key strengths?
Claude: Positive net income of $33.4M demonstrates some accounting profitability. Operating cash flow of $243.3M shows the core business generates some cash before capex.
What are the risks of investing in SPHR?
Claude: Negative free cash flow of -$318.5M annually is unsustainable and signals cash depletion risk. Negative operating income of -$229.6M indicates core business operations are unprofitable.
What is SPHR's revenue and growth?
Sphere Entertainment Co. reported revenue of $1.2B.
Does SPHR pay dividends?
Sphere Entertainment Co. does not currently pay dividends.
Where can I find SPHR SEC filings?
Official SEC filings for Sphere Entertainment Co. (CIK: 0001795250) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SPHR's EPS?
Sphere Entertainment Co. has a diluted EPS of $0.74.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SPHR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sphere Entertainment Co. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SPHR stock overvalued or undervalued?
Valuation metrics for SPHR: ROE of 1.5% (sector avg: 16%), net margin of 2.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy SPHR stock in 2026?
Our dual AI analysis gives Sphere Entertainment Co. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SPHR's free cash flow?
Sphere Entertainment Co.'s operating cash flow is $243.3M, with capital expenditures of $561.8M. FCF margin is -26.1%.
How does SPHR compare to other Services stocks?
Vs Services sector averages: Net margin 2.7% (avg: 10%), ROE 1.5% (avg: 16%), current ratio 1.09 (avg: 1.5).