Sphere Entertainment Co. reported its third‑quarter 2025 earnings, posting total revenue of $262.5 million, a 15% year‑over‑year increase from $227.9 million in Q3 2024.
The company recorded an operating loss of $129.7 million, up 10% from the $117.6 million loss in the same quarter last year, but adjusted operating income rose to $36.4 million, a $46.6 million improvement over the $10.2 million loss reported in Q3 2024.
In the flagship Sphere segment, revenue reached $174.1 million, up 37% YoY, while the operating loss narrowed to $84.4 million from $125 million. Adjusted operating income for the segment was $17.1 million, up $43.4 million from a $26.3 million loss. The MSG Networks segment generated $88.4 million in revenue, down 12.4% YoY, and an operating loss of $45.3 million; its adjusted operating income was $19.3 million.
Comparing to the immediately preceding quarter, Q2 2025 total revenue was $282.7 million, the operating loss was $50.2 million, and adjusted operating income was $61.5 million. The increase in Q3 operating loss is largely attributable to a $16.3 million rise in direct operating expenses for the Sphere segment, driven by the high‑attendance “The Wizard of Oz at Sphere” event, which sold over one million tickets by mid‑October 2025. MSG Networks revenue decline was driven by a 13.5% drop in total subscribers and lower advertising revenue due to fewer live sports telecasts.
The company completed a share‑repurchase program of $50 million during the quarter, buying back 1,054,247 Class A shares at an average price of $47.43 per share. Repurchases were executed between August 21‑29 and September 3‑11, 2025. Sphere still has approximately $300 million remaining under its existing share‑repurchase authorization, and had repurchased $27.5 million of Class A stock between August 21‑29, 2025.
Management expressed confidence in the long‑term value of the business, citing strong demand for its entertainment venues and the momentum from recent sponsorship agreements with Zoox and Lenovo. The company also highlighted the successful restructuring of MSG Networks’ credit facilities in Q2 2025, which included a $346.1 million gain on debt extinguishment that helped offset the Q3 loss.
Revenue of $262.5 million was below consensus estimates of $320 million but above estimates of $259.3 million. The basic loss per common share of $2.80 was higher than the prior‑year quarter’s $2.95 but lower than the consensus estimate of $1.88.
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