Sphere Entertainment reported higher third-quarter revenue and adjusted operating income, but its GAAP operating loss widened. Growth at the Sphere venue was offset by weaker results at MSG Networks, which recorded a substantially larger operating loss than a year earlier.
The company also highlighted a growing slate of Sphere shows and events, including a new Metallica residency and productions planned for 2027. CEO James Dolan said the Sphere segment remained on track to deliver “substantial growth” for the calendar year and reiterated the company’s long-term ambition to build a global network of venues and expand its original content.
Financial results
- Third-quarter revenue rose 4% to $274.3 million, up $11.7 million from a year earlier.
- Operating loss widened to $240.6 million from $163.1 million. The company reported adjusted operating income of $39.2 million, up 8% from $36.4 million. The adjusted figure is a separate measure from operating income reported under standard accounting rules.
- Sphere revenue increased 14% to $198.9 million. Its operating loss narrowed to $67.0 million from $84.4 million, while adjusted operating income rose to $32.4 million from $17.1 million.
- MSG Networks revenue fell 15% to $75.4 million. Its operating loss increased to $173.6 million from $78.7 million, and adjusted operating income declined to $6.8 million from $19.3 million.
- For the first nine months of 2026, total revenue was $974.3 million, up 18%. The operating loss was $294.6 million, roughly in line with $291.9 million a year earlier. Adjusted operating income increased 50% to $200.1 million.
- Over those nine months, Sphere revenue rose 36% to $691.2 million, and its adjusted operating income climbed to $146.6 million from $55.2 million. MSG Networks revenue fell 11% to $283.1 million, and adjusted operating income declined to $53.5 million from $78.6 million.
Sphere programming and commercial updates
- The Wizard of Oz at Sphere surpassed $500 million in ticket sales, with more than 4 million tickets sold since its August 2025 debut. Enhanced and expanded 4D effects were introduced in late September, and the show passed its 1,000th performance in early October.
- Production is underway on The Rocky Horror Picture Show, a new Sphere Experience that the company expects to debut by the end of March 2027.
- Metallica began a Sphere concert residency in October, with 24 performances planned through March 2027.
- Backstreet Boys and the Eagles have extended their residencies to 63 and 74 planned performances, respectively. Oprah Winfrey and John Mayer have each announced Sphere residencies for 2027.
- Sphere Entertainment announced a new multi-year sponsorship agreement with Lyft.
The quarter showed stronger revenue and adjusted operating income at Sphere, alongside a larger overall operating loss. MSG Networks’ weaker results contrasted with the improvement in Sphere’s operating performance.