second quarter 2026
Filed Jul 30, 2026Second-quarter revenue increased 11%, led by 29% Sphere growth, while total adjusted operating income decreased 17% and total operating loss increased 22%.
Sphere delivered strong revenue and adjusted operating income growth, but MSG Networks revenue and adjusted operating income declined, resulting in a lower consolidated adjusted operating income and a wider consolidated operating loss.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended June 30, 2026GAAP | $313.6 million | – | 11% |
| Total operating loss, three months ended June 30, 2026GAAP | $61.3 million | – | (22)% |
| Total adjusted operating income, three months ended June 30, 2026non-GAAP | $50.9 million | – | (17)% |
| Sphere direct operating expenses, three months ended June 30, 2026GAAP | $87.7 million | – | 15% |
| Sphere selling, general and administrative expenses, three months ended June 30, 2026GAAP | $125.6 million | – | 30% |
| Sphere operating loss, three months ended June 30, 2026GAAP | $69.6 million | – | 17% |
| Sphere adjusted operating income, three months ended June 30, 2026non-GAAP | $39.9 million | – | 60% |
| MSG Networks direct operating expenses, three months ended June 30, 2026GAAP | $63.3 million | – | 15% |
| MSG Networks selling, general and administrative expenses, three months ended June 30, 2026GAAP | $13.6 million | – | (18)% |
| MSG Networks operating income, three months ended June 30, 2026GAAP | $8.3 million | – | (75)% |
| MSG Networks adjusted operating income, three months ended June 30, 2026non-GAAP | $11.0 million | – | (70)% |
| Total revenues, six months ended June 30, 2026GAAP | $700.1 million | – | 24% |
| Total operating loss, six months ended June 30, 2026GAAP | $54.1 million | – | 58% |
| Total adjusted operating income, six months ended June 30, 2026non-GAAP | $160.9 million | – | 65% |
| Sphere operating loss, six months ended June 30, 2026GAAP | $94.5 million | – | 47% |
| Sphere adjusted operating income, six months ended June 30, 2026non-GAAP | $114.2 million | – | 200% |
| MSG Networks operating income, six months ended June 30, 2026GAAP | $40.4 million | – | (17)% |
| MSG Networks adjusted operating income, six months ended June 30, 2026non-GAAP | $46.7 million | – | (21)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SphereRevenues related to The Sphere Experience increased $53.8 million, primarily reflecting higher per-show revenue for The Wizard of Oz at Sphere. Revenues from sponsorship, Exosphere advertising and suite license fees increased $10.5 million, while event-related revenues decreased $11.7 million. | $226.4 million | – | 29% |
| MSG NetworksDistribution revenue decreased $13.7 million, primarily reflecting a decrease in total subscribers of approximately 16.5%. Advertising revenue decreased $6.0 million, primarily due to fewer live postseason professional sports telecasts. | $87.3 million | – | (18)% |
What drove it
- The Sphere Experience reflected 220 performances of The Wizard of Oz at Sphere, compared with 215 performances of Postcard from Earth and V-U2 An Immersive Concert Film in the prior year quarter.
- The increase in concert revenue reflected six additional concert residency shows held at Sphere in Las Vegas, offset by lower per-concert revenue due to the mix of concerts.
- Sphere selling, general and administrative expenses increased primarily due to mark-to-market adjustments on certain share-based compensation awards, higher employee compensation and related benefits, and higher professional fees.
- MSG Networks rights fees expense increased $9.2 million, primarily reflecting retroactive reductions in media rights fees recorded in the prior year quarter.
Concerns
- MSG Networks total revenues decreased $19.8 million, or 18%, driven by lower distribution and advertising revenue.
- MSG Networks total subscribers decreased approximately 16.5%.
- Total adjusted operating income decreased $10.5 million, or 17%, despite revenue growth.
- Total operating loss increased $11.1 million, or 22%, as higher selling, general and administrative expenses and direct operating expenses more than offset revenue growth.
What to watch
- The Company expects construction of Sphere Abu Dhabi to be completed by the end of 2029.
- Plans to bring Sphere to National Harbor continue to move forward.
- The Rocky Horror Picture Show at Sphere is expected to open in 2027.
- The Company and Formula 1 Las Vegas Grand Prix announced a new five-year agreement extending their partnership through 2030.
- The trajectory of MSG Networks subscribers, distribution revenue, advertising revenue and rights fees expense.
Analysis
Sphere Entertainment reported $313.6 million of second-quarter revenue, up 11% from the prior year quarter. The consolidated revenue gain was entirely driven by Sphere, where revenue increased 29% to $226.4 million, more than offsetting an 18% decline at MSG Networks. For the six months ended June 30, 2026, total revenue increased 24% to $700.1 million, with Sphere revenue up 48% and MSG Networks revenue down 10%.
Management, verbatim
Today’s results reflect our continued execution in Las Vegas, as we remain on track to deliver substantial growth this calendar year. We are also advancing our long-term vision for a global network of Sphere venues, including in Abu Dhabi and National Harbor.
James L. Dolan, Executive Chairman and CEO
Not in the filing
stated, not guessed- Gross profit and gross margin
- Net income or loss
- GAAP and non-GAAP earnings per share
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt balances
- Share repurchases
- Dividends
- Tax rate
- Financial guidance for a future reporting period
- Prior-quarter comparisons
- Prior-year dollar values for segment direct operating expenses and selling, general and administrative expenses
- Adjusted operating income reconciliation
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.