XVARY Composite Score
41
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Sphere Entertainment runs a giant live venue in Las Vegas and a regional sports TV business.
How it gets paid
Last year Sphere Entertainment made $1.2B in revenue.
Why it's growing
Revenue grew 127.8% last year. EDGAR shows revenue up 215% vs. prior year.
What just happened
$824M of revenue still came with a $0.87 loss per share.
At a Glance
C++ balance sheet — some cracks in the foundation
-$4.41 fy2024 eps est
$1B fy2024 rev est
18.8% operating margin
1.7 beta
XVARY composite: 41/100 — below average
What They Do
Sphere Entertainment runs a giant live venue in Las Vegas and a regional sports TV business.
A 20,000-seat venue is hard to copy. Your rival can buy ads. It cannot buy a building that turns concerts into a screen the size of a small airport. The company is already building a second Sphere in Abu Dhabi, so the brand is not a one-city stunt.
How They Make Money
$1.2B
annual revenue · their business grew +127.8% last year
total revenue
$1.2B
+127.8%
The Products That Matter
Immersive live entertainment venue
the Sphere
$2.3B build cost · ~$732M segment revenue
it is the asset the entire investment case hangs on. the segment generated roughly $732M and grew 127.8%, which is why the market keeps giving this story more time.
growth engine
Regional sports television broadcasting
MSG Networks
~$488M revenue · flat growth
this business still matters because flat revenue is doing more balance-sheet work than excitement work. if it weakens, the Sphere has to carry even more of the load.
cash flow support
Key Numbers
$1.2B
annual revenue
That is the whole top line. Compare it with the $786M debt stack, and you see why financing matters.
$786M
long-term debt
Debt is 65.5% of annual revenue. That is a lot of leverage for a business with negative margins.
18.8%
operating margin
That means the business loses $18.80 for every $100 of sales. You need ticket growth to outrun that.
1.7
beta
That means the stock swings about 70% more than the market. Fine when the story is hot. Painful when it cools.
Financial Health
C++
Strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $786M (17% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total Return vs. Market
source: institutional data · return history unavailable
What Just Happened
missed estimates
$824M of revenue still came with a $0.87 loss per share.
EDGAR shows revenue up 215% vs. prior year. Web data puts gross margin at 52.17%, but the company still lost money on the quarter.
$824M
revenue
-$0.87
eps
52.17%
gross margin
the number that mattered
The $824M quarter matters because it was 215% above last year, yet the company still posted a $0.87 loss per share.
source: company earnings report, 2026
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What Could Go Wrong
The #1 risk is the Sphere never reaching attractive unit economics while the company still carries $786M in debt and depends on MSG Networks to help support the ride.
High
Single-asset concentration
the Sphere cost $2.3B to build and the Sphere segment generated roughly $732M. if attendance, pricing, or event cadence slips, the growth narrative loses its center of gravity fast.
this threatens the majority of the company’s growth story in one shot.
High
Operating losses plus leverage
latest EBIT margin was -12.6%, trailing net loss was $270.1M, and long-term debt stands at $786M. those numbers can coexist for a while. they do not coexist forever without consequences.
pressure builds on refinancing, capital allocation, and investor patience.
Med
Legacy media erosion
MSG Networks produced roughly $488M in revenue and was flat. flat is fine for one quarter. over time, a legacy sports network usually has to fight subscriber pressure and distribution churn.
if that support leg weakens, the company becomes even more dependent on one venue behaving perfectly.
between a -12.6% EBIT margin, a $270.1M trailing net loss, and $786M of debt, the margin for execution error is thin.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Metric
Sphere margin conversion
revenue growth already showed up at +127.8% for the Sphere segment. the next job is proving that growth can narrow a -12.6% EBIT margin.
Calendar
Q1 2026 earnings report
the estimated report date is may 7, 2026. you want the same story in smaller numbers: less loss, cleaner operating leverage, better segment disclosure.
Trend
MSG Networks stability
roughly $488M of revenue was flat. if flat turns into decline, the company loses the cash-flow ballast supporting the venue buildout story.
Risk
Debt flexibility
with $786M in long-term debt and a C++ balance sheet, every quarter of negative operating profit matters more than it would at a better-capitalized company.
Analyst Rankings
street coverage
thin
in human-speak: you do not have a deep analyst consensus to hide behind here.
signal quality
mixed
the stock has a clean narrative, but the underlying numbers are still noisy.
what matters more
execution
for SPHR, the next margin print matters more than another round of commentary.
Source: institutional data
Institutional Activity
institutional ownership data for SPHR is being compiled.
Source: institutional data
Price Targets
3-5 year target range
$93
Current price
Target midpoint · from current
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