Sphere Entertainment Co. (SPHR) FY2025 10-K Annual Report

Filed: Feb 12, 2026
Communication Services
Services-Amusement & Recreation ServicesSEC EDGAR

Sphere Entertainment Co. (SPHR) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 12, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Sphere Entertainment Co. FY2025 10-K Analysis

Business Overview

  • Core business model: Development and operation of immersive Sphere entertainment venues leveraging proprietary content and intellectual property
  • New international expansion: Franchise and development agreements signed with DCT Abu Dhabi to build Sphere Abu Dhabi, including franchise fees and royalties
  • Strategic shift: Increased focus on franchise, joint venture, and managed venue models for global expansion including sale-leaseback and debt financing options
  • Quantitative metric: Initiated development for a new venue at National Harbor, Maryland with government and private partners, subject to approvals and incentives
  • Noteworthy: First detailed disclosure of multi-tiered agreements (Franchise, Joint Development, Pre-Opening Services) with a major international partner for venue construction and operation

Management Discussion & Analysis

  • Unrestricted cash $508M as of Dec 31, 2025, up from $385M on Sept 30, 2025
  • Total debt outstanding $830M as of Dec 31, 2025
  • Accounts payable $24.6M, accrued expenses $431.5M including $130.1M disputed Sphere construction accruals
  • Liquidity sources include cash, operations cash flow, LV Sphere Revolving Credit Facility borrowings
  • Management expects substantial future revenue and operating income from Sphere but notes risk of not achieving expected cash flow, potential need for expense cuts or capex deferrals

Risk Factors

  • Impairment risk for intangible assets from Holoplot acquisition with finite lives requires future cash flow estimates
  • Exposure to potential impairment losses if carrying value exceeds undiscounted future cash flows from asset groups
  • No mention of specific regulatory, geopolitical, competitive, or financial risks detailed in text

Sphere Entertainment Co. FY2025 Key Financial Metrics
XBRL

Revenue

$1.2B

+19.0% YoY

Net Income

$33M

+116.6% YoY

Operating Margin

-18.8%

+1448bp YoY

Net Margin

2.7%

+2234bp YoY

ROE

1.5%

+1061bp YoY

Total Assets

$4.2B

-6.8% YoY

EPS (Diluted)

$0.74

+113.0% YoY

Operating Cash Flow

$243M

+1337.9% YoY

Source: XBRL data from Sphere Entertainment Co. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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