Sphere Entertainment Co. Class A Common Stock (SPHR)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Sphere Entertainment operates the Sphere venue and MSG Networks sports channels. I am wary when a business's earnings are as erratic as this one. FairStock classifies it as a TURNAROUND because it returned to profit after a loss within the last three years, and indeed in fiscal 2025, the year ended 2025-12-31, revenue was $1.2B with net income of $33.4M, compared with fiscal 2024, the year ended 2024-06-30, revenue of $1.0B and a net loss of $200.6M. But the quarterly path is not smooth: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $313.2M and net loss was $38.3M, or diluted EPS -$1.07; in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $386.0M and net income was $4.5M. Earlier, in fiscal Q3 2025, the quarter ended 2025-09-30, net loss was $101.2M, while in fiscal Q2 2025, the quarter ended 2025-06-30, net income was $151.8M. That is not the stable earning power Graham demanded. The most attractive figure is cash: TTM free cash flow of $359.1M and a FairStock FCF yield of 9.7%. Still, at the 2026-10-13 close of $102.46, FairStock's P/E is -48.33, P/B is 1.65, and EV/EBITDA is 21.20. The FairStock Score is 25/100. Piotroski F-Score 2/9 and Altman Z-Score 1.22 signal weak financial footing, though D/E 0.41 is manageable. The Sphere venue may have scarcity, but I cannot underwrite a durable moat from these numbers. This is a speculative turnaround, not a bargain with a margin of safety.

In plain English: Sphere Entertainment runs the Sphere live-entertainment venue and MSG Networks sports channels. Its business is uneven: it made money in fiscal 2025 but lost money in the latest quarter, and results swing a lot. At the recent price, the stock does not look clearly cheap because current earnings are negative, though the company does produce positive cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-06-30) · FY2023 10-K (period ended 2023-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer