Sphere Entertainment (US:SPHR)2025-11-04 12:37Financial Performance - For Q3 2025, Sphere Entertainment reported revenues of $262.5 million, a 15% increase from the prior year quarter, with an operating loss of $129.7 million, which is an increase of $12.1 million [3]. - The Sphere segment generated revenues of $174.1 million, up $47.0 million or 37% compared to the same quarter last year [6]. - Revenues for Q3 2025 reached $262.5 million, a 15.1% increase from $227.9 million in Q3 2024 [24]. - Total revenues for the nine months ended September 30, 2025, were $825.8 million, a marginal increase from $822.6 million in the same period of 2024 [24]. - The company reported an operating loss of $258.5 million for the nine months ended September 30, 2025, compared to a loss of $229.4 million in the same period of 2024 [24]. - Adjusted operating income for Q3 2025 was $36.4 million, compared to a loss of $10.2 million in Q3 2024 [27]. - The total adjusted operating income for the Company was $36.4 million, an increase of $46.6 million from an adjusted operating loss of $10.2 million in the prior year quarter [12]. - The net loss for Q3 2025 was $101.2 million, slightly improved from a net loss of $105.3 million in Q3 2024 [24]. - Basic loss per share from continuing operations was $2.80 in Q3 2025, compared to $2.95 in Q3 2024 [24]. Expenses and Costs - Direct operating expenses for the Sphere segment increased by $16.3 million, or 26%, to $78.7 million, mainly due to higher expenses associated with The Wizard of Oz at Sphere [10]. - Selling, general and administrative expenses decreased by $12.3 million, or 12%, to $92.7 million, primarily due to lower employee compensation [11]. - Direct operating expenses decreased to $137.0 million in Q3 2025 from $139.7 million in Q3 2024, reflecting a reduction of 1.2% [24]. - Share-based compensation for Q3 2025 amounted to $8.5 million, down from $15.6 million in Q3 2024 [27]. - Impairments and other losses for Q3 2025 were $65.5 million, significantly higher than $4.0 million in Q3 2024 [24]. Shareholder Actions - The Company repurchased approximately $50 million of its Class A common stock, reflecting confidence in long-term growth potential [2][17]. - The Company plans to continue evaluating additional opportunistic share repurchases, with approximately $300 million remaining under its existing share repurchase authorization [17]. Assets and Liabilities - Total assets decreased from $4,515,300 thousand as of December 31, 2024, to $4,138,568 thousand as of September 30, 2025, representing a decline of approximately 8.35% [34]. - Current liabilities significantly decreased from $1,371,667 thousand to $697,225 thousand, a reduction of about 49.1% [34]. - Cash, cash equivalents, and restricted cash at the end of the period decreased to $398,254 thousand from $553,217 thousand, a decline of approximately 28% [37]. - Total stockholders' equity decreased from $2,201,419 thousand as of December 31, 2024, to $2,155,101 thousand as of September 30, 2025, a decrease of about 2.1% [34]. - Long-term debt increased from $524,010 thousand to $786,069 thousand, reflecting a rise of approximately 50% [34]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(117,379) thousand for the nine months ended September 30, 2025 [37]. - Accounts receivable increased from $154,624 thousand to $170,965 thousand, an increase of about 10.5% [34]. - The company’s accumulated deficit increased from $(219,846) thousand to $(251,180) thousand, indicating a worsening financial position [34].