Sphere Entertainment (SPHR) investor relations material

Executive summary

• Q2 2026 revenues increased 11% year-over-year to $313.6 million, driven by strong performance at Sphere Las Vegas and higher per-show revenue from The Wizard of Oz immersive production.

• Net loss attributable to stockholders was $38.8 million for Q2 2026, compared to net income of $151.8 million in Q2 2025, reflecting higher operating expenses and the absence of a prior-year debt extinguishment gain.

• Major milestones included the announcement of Sphere Abu Dhabi, surpassing $400 million in ticket sales for The Wizard of Oz at Sphere, and a new five-year partnership with Formula 1 Las Vegas Grand Prix.

• Progress made on expanding the Sphere venue footprint globally, with construction underway in Abu Dhabi and advanced planning for National Harbor in the U.S.

• Diverse original content slate growing, including the upcoming Rocky Horror Picture Show and continued strong performance of The Wizard of Oz at Sphere.

Financial highlights

• Q2 2026 revenues: $313.6 million (up 11% YoY); six months: $700.1 million (up 24% YoY).

• Q2 2026 net loss: $38.8 million; six months: $40.4 million net loss.

• Q2 2026 adjusted operating income: $50.9 million (down 17% YoY); six months: $160.9 million (up 65% YoY).

• Sphere segment revenues were $226.4 million, up 29% year-over-year, driven by higher per-show revenues for The Wizard of Oz.

• MSG Networks segment revenues were $87.3 million, down 18% year-over-year, reflecting a 16.5% decrease in subscribers and lower advertising revenue.

Outlook and guidance

• Management expects substantial growth for the calendar year, with continued expansion of Sphere venues globally, including Abu Dhabi and National Harbor.

• Sphere at National Harbor expected to open in under four years, with third-party financing anticipated soon.

• Additional Sphere experiences, including Rocky Horror Picture Show, expected to debut in 2027, with three to four original experiences projected by end of 2027.

• Strong pipeline of sponsorship and Exosphere deals expected to drive growth into 2026 and 2027.

• Company believes it has sufficient liquidity to fund operations and service debt for the foreseeable future, but warns of risks if Sphere does not meet cash flow expectations.