Financial Data and Key Metrics Changes - For the fourth quarter, the company reported total revenues of $394.3 million and adjusted operating income of $128 million [9] - The Sphere segment generated revenues of $274.2 million, an increase of over 60% compared to the prior year period, driven by higher revenues from the Sphere Experience [9] - Fourth quarter adjusted operating income for the Sphere segment was $89.4 million, compared to an adjusted operating loss of approximately $800,000 in the prior year quarter [10] Business Line Data and Key Metrics Changes - The Sphere Experience saw significant revenue growth due to The Wizard of Oz, with over 2.2 million tickets sold and approximately $290 million in ticket sales [8] - MSG Networks generated $120.1 million in revenues and $38.6 million in adjusted operating income, reflecting a decrease in subscribers and lower affiliate rates [11][12] Market Data and Key Metrics Changes - The company is expanding its Sphere venues, with a new 6,000-seat Sphere planned for National Harbor, Maryland, expected to open in four years or less [5][6] - The company is in discussions for additional Sphere projects in both domestic and international markets [7] Company Strategy and Development Direction - The company aims to create a global network of Sphere venues powered by proprietary technology and immersive content [5] - Continued investment in immersive technology and experiential content is a priority to maintain leadership in the market [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model, citing strong ticket sales and positive discussions with IP holders for future projects [8][44] - The company anticipates a strong convention season next year, which will influence show scheduling and revenue growth [28] Other Important Information - The company has refinanced its credit facility related to Sphere in Las Vegas, extending the maturity for a new five-year term [12] - The company is focused on managing SG&A expenses efficiently while supporting growth initiatives [32] Q&A Session Summary Question: How many sphere expansion projects are expected in the next few years? - Management indicated they could handle 5 to 6 projects simultaneously, assuming they are profitable [15][16] Question: Have elevated construction costs impacted conversations with potential partners? - Management stated that the investment model remains viable despite increased costs, and they are exploring new construction methods to lower expenses [17] Question: Can you provide more details on the National Harbor location selection? - The location was chosen due to competitive offers and a favorable site, which expedited the decision-making process [21] Question: How are ticket sales for The Wizard of Oz trending during the winter? - Management noted strong growth despite seasonal headwinds and is confident in future demand [28] Question: What is the outlook for SG&A expenses in 2026? - Management is focused on cost-saving opportunities while ensuring infrastructure supports growth, with fluctuations expected due to non-recurring expenses [32] Question: What is the status of the residency pipeline through 2027? - The company is nearly fully booked for 2026 and has limited availability in 2027, focusing on long weekends to maximize attendance [48] Question: Can you update on the sponsorship strategy and Exosphere progress? - The company is seeing strong growth in sponsorships and has debuted interactive experiences, with plans for more announcements throughout the year [56][57]