Sphere Entertainment Co. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Sphere Entertainment Co. reported strong financial results for Q4 and full year 2025, with significant revenue growth and improved operating income, indicating a positive trajectory for the company's business model [1][2]. Financial Performance - For Q4 2025, the company achieved revenues of $394.3 million, an increase of $86.0 million or 28% compared to Q4 2024 [1]. - The operating income for Q4 2025 was $28.9 million, an improvement of $171.9 million from a loss of $142.9 million in Q4 2024 [1][2]. - Adjusted operating income for Q4 2025 reached $128.0 million, up $95.2 million from $32.9 million in Q4 2024, reflecting a 289% increase [1][2]. - For the full year 2025, total revenues were $1,220.0 million, an increase of $89.1 million or 8% from 2024 [1]. - The company reported an operating loss of $229.6 million for the full year, but this was an improvement of $142.8 million or 38% compared to the previous year [1][2]. Segment Performance - The Sphere segment generated revenues of $274.2 million in Q4 2025, a 62% increase from $169.0 million in Q4 2024, driven by the success of "The Wizard of Oz" experience [1][2]. - MSG Networks reported revenues of $120.1 million in Q4 2025, a decrease of $19.2 million or 14% compared to the prior year, primarily due to a 14.5% drop in total subscribers [2][4]. - The Sphere segment's direct operating expenses increased by 27% to $92.6 million in Q4 2025, attributed to higher costs associated with performances [1][2]. Strategic Developments - The company announced plans to develop a new Sphere venue at National Harbor, Maryland, which will be the second in the U.S. and the first to utilize a smaller-scale design model [1][5]. - Sphere Entertainment continues to expand its global footprint, with plans to bring Sphere to Abu Dhabi [1][2]. Sponsorship and Partnerships - The company secured multi-year sponsorship and advertising partnerships with major brands such as Anheuser-Busch and Delta Air Lines [1][2]. - The debut of a live interactive game experience on the Exosphere in collaboration with LEGO Group and Lucasfilm's Star Wars was also highlighted [1].