Edward Pitoniak: Thank you, Samantha, and good morning, everyone. In the next few minutes, you will hear from John Payne on our growth outlook and David Kieske on our financial results and our 2026 guidance. To start, I would like to thank the members of the VICI team for their hard work and dedication. Their contributions are the foundation of our success and we are grateful for everything they do for our company and our shareholders. I would also like to thank our operating partners for all that they do i ...

Sphere Entertainment Co. (NYSE:SPHR) is among the 11 Best Entertainment Stocks to Buy According to Wall Street. Morgan Stanley Raises its Price Target on Sphere Entertainment Co. (SPHR) to $135 and Maintains an Overweight Rating On February 13, 2026, Morgan Stanley raised its price target on Sphere Entertainment Co. (NYSE:SPHR) to $135 from $105 and maintained an Overweight rating, citing stronger-than-expected results from The Wizard of Oz. The firm said the performance lifts its estimates for the Las V ...

Core Insights - Entertainment stocks are gaining attention as investors shift focus from previously dominant sectors, with an emphasis on digital engagement, streaming, gaming, and media platforms [1] - The communication services sector, which includes many entertainment companies, is expected to perform well, driven by advancements in AI and a shift towards high-margin business models [2] Industry Overview - Communication services stocks are projected to be the best-performing sector in 2025, primarily due to the AI trade, with AI expected to be a key driver in 2026 [2] - The sector is experiencing higher margins, reflecting a structural shift towards more efficient business models driven by innovation, scale, and automation [2] Company Highlights - **Live Nation Entertainment, Inc. (NYSE:LYV)**: - Potential upside of 7.41% with 61 hedge fund holders [7] - Price target lowered to $174 from $176 by Roth Capital, maintaining a Buy rating, citing resilience against AI disruption and renewed investor interest due to reduced antitrust concerns [8] - Announced acquisition of ForumNet Group, expected to enhance fan experience and sustainability initiatives [9][10] - **Sphere Entertainment Co. (NYSE:SPHR)**: - Potential upside of 11.50% with 1 hedge fund holder [11] - Price target raised to $135 from $105 by Morgan Stanley, maintaining an Overweight rating due to strong performance from The Wizard of Oz [11] - Reported fourth-quarter revenue of $394.28 million, exceeding consensus estimates, and plans for global expansion [13]

Core Insights - Sphere Entertainment has demonstrated resilience and strong growth despite challenges in Las Vegas, with management aggressively scheduling multiple shows to enhance daily revenue [1][3] - The company reported significant success with The Wizard of Oz, selling over 2.2 million tickets and generating approximately $290 million in ticket sales, contributing to a revenue increase of over 60% in the Sphere segment [2][6][12] Financial Performance - Total company revenues for the December quarter reached $394.3 million, with adjusted operating income of $128 million [11] - Sphere segment revenues were $274.2 million, up more than 60% year-over-year, driven by higher revenues from The Wizard of Oz and increased performances [12] - Sphere segment adjusted operating income was $89.4 million, a significant improvement from an operating loss of approximately $0.8 million in the prior-year quarter [13] Cost Management and Liquidity - The company maintained disciplined cost management, reducing SG&A by $14.9 million year-over-year, with total SG&A at $104.1 million [15][16] - As of December 31, Sphere had approximately $56 million in net debt and $477 million in unrestricted cash, reflecting a solid liquidity position [4][17] Expansion Plans - Sphere is accelerating its expansion with a new 6,000-seat venue planned for National Harbor, supported by approximately $200 million in incentives, with a potential opening in four years or less [5][7] - The company is in the final stages of pre-construction for a venue in Abu Dhabi and is exploring 5-6 projects concurrently [9][10] Sponsorship and Advertising - Sphere has seen strong sponsorship momentum, with partnerships including Google, Delta, and Lenovo, and is actively expanding its roster of official partners [17] - The company hosted its second CES keynote and introduced an interactive game experience in collaboration with LEGO and Lucasfilm's Star Wars [17] Content Pipeline and Residency Outlook - The next Sphere Experience, From the Edge, is expected to be completed later this year, with potential launch timing in the fourth quarter or early next year [19] - The venue is nearly fully booked for concert residencies through 2026, focusing on long weekends to align with Las Vegas market patterns [21]

Management attributes the 60% revenue growth in the Sphere segment primarily to the commercial success of 'The Wizard of Oz', which drove higher per-show revenue and increased performance frequency. The company is shifting toward a global network model, utilizing the Las Vegas venue as a blueprint for expansion into domestic and international markets. Strategic positioning is focused on a 'capital-light' expansion strategy, exemplified by the newly announced 6,000-seat venue in National Harbor, Maryla ...

Group 1 - Sphere Entertainment Co. (NYSE:SPHR) is recognized for creating high-tech, immersive live shows and multi-sensory experiences, alongside operating regional sports and entertainment networks [3] - The company has shown strong performance driven by solid business fundamentals and high demand for its production of The Wizard of Oz, which has exceeded expectations [3] - Sphere is expected to see financial growth as it scales concert residencies, launches the 'Sphere Network' of smaller immersive venues, and increases utilization across various show types [3] - Additional revenue growth is anticipated from advertising, sponsorship, and suite revenue, along with strategic international expansion plans beyond Abu Dhabi [3] - Sphere holds a 33% stake in Madison Square Garden Entertainment (MSGE), and the redevelopment plans for Penn Station in NYC could enhance the value of MSGE's real estate and air rights [3] - The Las Vegas venue and scalable franchise potential of Sphere are viewed as compelling long-term investment opportunities that are currently undervalued [3]

FEBRUARY 2026 FORWARD LOOKING STATEMENTS AND MARKET DATA Madison Square Garden Entertainment Corp. (the "Company" or "MSG Entertainment") has filed with the Securities and Exchange Commission an Annual Report on Form 10-K for the year ended June 30, 2025 (the "Annual Report") and Quarterly Reports (the "Quarterly Reports") on Form 10-Q for the quarters ended September 30, 2025 and December 31, 2025. The Annual Report and the Quarterly Reports contain extensive disclosure about the Company and its business, ...

Group 1: Economic Investments and Initiatives - The Maryland Marketing Partnership is driving branding and marketing efforts to attract businesses and grow the state's economy [1] - BGE announced a $250,000 grant for Civic Works' Baltimore Shines solar initiative, which will support solar installations for 30 homes, generating over 182,000 kWh of clean electricity annually [2] - Montgomery County Economic Development Corporation is facilitating business relocations and expansions, celebrating Samsung Biologics' expansion and awarding $7.5 million in grants to 55 early-stage companies [2] Group 2: Real Estate and Development - Peterson Companies and Sphere Entertainment Co. plan to develop a new Sphere venue at National Harbor, expected to create approximately 2,500 construction jobs and 4,750 operational jobs, with an economic impact exceeding $1 billion annually [3] - St. John Properties signed two new leases totaling over 310,000 square feet at Glen Burnie Business Center, with tenants planning to open early next year [5][6] Group 3: Education and Workforce Development - The University System of Maryland's HBCUs are expanding academic programs and partnerships, awarding 1,742 undergraduate degrees last year, and generating $351.3 million in economic impact [9] Group 4: Venture Capital and Innovation - TEDCO continues to support startups in technology and life sciences, announcing several agreements for investment capital and collaborations, including a potential $50 million investment from Taiwanese entities [7] Group 5: Financial Services - T. Rowe Price has formed a strategic collaboration with First Abu Dhabi Bank to provide a range of investment solutions, enhancing the bank's offerings and supporting sustainable growth in the GCC [8]

Core Insights - Infosys has extended its partnership with Madison Square Garden Entertainment Corp., Madison Square Garden Sports Corp., and Sphere Entertainment Co., reinforcing its role as the Official Digital Innovation Partner for key properties including the New York Knicks and New York Rangers [1][2] - The Theater at Madison Square Garden has been renamed the Infosys Theater at Madison Square Garden, enhancing brand visibility and engagement for Infosys [1][2] Partnership Details - The partnership includes two branded locations: the Infosys Theater and the Infosys Suite Level, with brand integration across 18 suites [2] - Infosys will enhance fan engagement through digital innovations, utilizing its AI-first offering, Infosys Topaz, to improve the fan experience for the Knicks and Rangers [2] Venue Information - The Infosys Theater at Madison Square Garden is a 5,600-seat venue recognized for hosting a variety of events, including concerts and sporting events, for nearly 60 years [3] - The venue has featured performances from notable artists and has been the site for significant sporting events, including the NBA and NFL Drafts [3] Company Background - Madison Square Garden Entertainment Corp. is a leader in live entertainment, operating renowned venues and delivering diverse experiences to millions of guests annually [4] - Madison Square Garden Sports Corp. manages professional sports teams, including the New York Knicks and New York Rangers, and operates a training center [6] - Sphere Entertainment Co. focuses on immersive experiences and technology, including the MSG Networks that provide live sports content [7] Infosys Overview - Infosys is a global leader in digital services and consulting, with over 330,000 employees and operations in 63 countries, focusing on digital transformation powered by cloud and AI [8]

Economic Indicators - The January S&P US manufacturing PMI is expected to increase by +0.2 to 52.0 [1] - The final University of Michigan January US consumer sentiment index is anticipated to remain unchanged at 54.0 [1] - Weekly initial unemployment claims rose by 1,000 to 200,000, better than the expected 209,000 [4] - Q3 GDP was revised upward by 0.1 to 4.4%, exceeding expectations of no change at 4.3% [4] - November personal spending increased by +0.5% month-over-month, aligning with expectations, while personal income rose by +0.3%, below the expected +0.4% [4] - The November core PCE price index rose by +0.2% month-over-month and +2.8% year-over-year, meeting expectations [4] Stock Market Performance - The S&P 500 Index closed up +0.55%, the Dow Jones closed up +0.63%, and the Nasdaq 100 closed up +0.76% [6] - The stock market rally was supported by President Trump's comments on Greenland and strength in chip makers and AI-infrastructure stocks [5][13] - 81% of the 38 S&P 500 companies that reported earnings have beaten expectations, with S&P earnings growth projected to rise by +8.4% in Q4 [7] Sector Movements - Chip makers and AI-infrastructure stocks saw significant gains, with Arista Networks up more than +8% and ARM Holdings up more than +5% [13] - The Magnificent Seven technology stocks also performed well, with Meta Platforms up more than +5% and Tesla up more than +4% [14] - Karman Holdings closed up more than +6% after a strong buy rating was reiterated, while Northern Trust reported Q4 net interest income above consensus [15] Bond Market - March 10-year T-notes closed down by -2 ticks, with the yield rising by +0.6 basis points to 4.249% [10] - European government bond yields increased, with the 10-year German bund yield rising by +0.5 basis points to 2.888% [12]