# EDGAR Filing Document

**Accession Number:** 0001795250
**File Stem:** 0001628280-25-048533
**Filing Date:** 2025-11
**Character Count:** 36102
**Document Hash:** 9f5c87fcd61576324b02555cfceca050
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-048533.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001628280-25-048533

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251104

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sphere Entertainment Co.
- **CENTRAL INDEX KEY:** 0001795250
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-AMUSEMENT & RECREATION SERVICES [7900]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 843755666
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39245
- **FILM NUMBER:** 251446474

**BUSINESS ADDRESS:**
- **STREET 1:** TWO PENNSYLVANIA PLAZA
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10121
- **BUSINESS PHONE:** (212) 465-6000

**MAIL ADDRESS:**
- **STREET 1:** TWO PENNSYLVANIA PLAZA
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Madison Square Garden Entertainment Corp.
- **DATE OF NAME CHANGE:** 20200417

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MSG ENTERTAINMENT SPINCO, INC.
- **DATE OF NAME CHANGE:** 20191126

?xml version='1.0' encoding='ASCII'? sphr-20251104

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**WASHINGTON, DC 20549**<br>

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of The Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported): November 4, 2025**

**SPHERE ENTERTAINMENT CO.**

**(Exact Name of Registrant as Specified in Charter)**

---

| | | |
|:---|:---|:---|
| **Nevada** | **001-39245** | **84-3755666** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Two Pennsylvania Plaza,** | **New York,** | **New York** | **10121** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (725) 258-0001**

**Not Applicable**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240-14d-2(b)).

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240-13e-4(c)).

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading**<br>**Symbol(s)** | **Name of Each Exchange**<br>**on Which Registered** |
| **Class A Common Stock** | **SPHR** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On November 4, 2025, Sphere Entertainment Co. (the "Company") announced its financial results for its third quarter ended September 30, 2025. A copy of the press release containing the announcement is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.

------

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1&nbsp;&nbsp;&nbsp;&nbsp;<u>[Press Release dated November 4, 2025.](sphrex991-earningsrelease9.htm)</u>

104&nbsp;&nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document).

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| **SPHERE ENTERTAINMENT CO.** | **SPHERE ENTERTAINMENT CO.** |
| (Registrant) | (Registrant) |
| By: | /s/ Robert H. Langer  |
| Name: | Robert H. Langer |
| Title: | Executive Vice President, Chief Financial Officer and Treasurer |

---

Dated: November 4, 2025

## Exhibit 99.1

**Exhibit 99.1**

![image.jpg](image.jpg)

**SPHERE ENTERTAINMENT CO. REPORTS**

**THIRD QUARTER 2025 RESULTS**

**NEW YORK, N.Y., November 4, 2025** - Sphere Entertainment Co. (NYSE: SPHR) ("Sphere Entertainment" or the "Company") today reported financial results for the third quarter ended September 30, 2025.

Recent highlights for the Company's Sphere segment include:

• The Company's new Sphere Experience, *The Wizard of Oz at Sphere,* debuted on August 28<sup>th</sup> and surpassed one million tickets sold in mid-October;

• Backstreet Boys – the venue's first pop act – completed the initial 21 shows of a 35-show run, which was followed by the start of Insomniac and Tomorrowland's electronic dance music event, 'Unity', and the continuation of the Eagles' residency; and

• The Company announced multi-year sponsorship agreements with Zoox and Lenovo, with Lenovo also slated to hold a Consumer Electronics Show keynote at Sphere in January 2026.

In addition, during the third quarter, the Company repurchased approximately $50 million of its Class A common stock, reflecting the Company's confidence in the long-term growth potential of its Sphere business.

For the three months ended September 30, 2025, the Company reported revenues of $262.5 million, an increase of $34.6 million, or 15%, as compared to the prior year quarter. In addition, the Company reported an operating loss of $129.7 million, an increase of $12.1 million, and adjusted operating income of $36.4 million, an increase of $46.6 million, both as compared to the prior year quarter.<sup>(1)</sup>

Executive Chairman and CEO James L. Dolan said, "*The Wizard of Oz at Sphere*, which is the best example to-date of experiential storytelling in this new medium, has been met with strong consumer demand. Looking ahead, we believe our Company is well positioned for long-term growth as we continue to execute on our global vision for Sphere."

**Segment Results for the Three and Nine Months Ended September 30, 2025 and 2024:**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (In millions) | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **Change** | **September 30,** | **September 30,** | **Change** |
|  | **2025** | **2024** | $**%** | **2025** | **2024** | $**%** |
| **<u>Revenues:</u>** |  |  |  |  |  |  |
| **Sphere** | $**174.1** | $**127.1** | **37%** | $**507.2** | $**448.7** | **13%** |
| **MSG Networks** | **88.4** | **100.8** | **(12)%** | **318.5** | **374.0** | **(15)%** |
| **Total Revenues** | $**262.5** | $**227.9** | **15%** | $**825.8** | $**822.6** | **— %** |
| **<u>Operating Income (Loss)</u>** |  |  |  |  |  |  |
| **Sphere** | $**(84.4)** | $**(125.1)** | **32%** | $**(261.6)** | $**(313.1)** | **16%** |
| **MSG Networks** | **(45.3)** | **7.5** | **NM** | **3.2** | **83.7** | **(96)%** |
| **Total Operating Loss** | $**(129.7)** | $**(117.6)** | **(10)%** | $**(258.5)** | $**(229.4)** | **(13)%** |
| **<u>Adjusted Operating Income (Loss):</u>**<sup>(1)</sup> | **<u>Adjusted Operating Income (Loss):</u>**<sup>(1)</sup> | **<u>Adjusted Operating Income (Loss):</u>**<sup>(1)</sup> | **<u>Adjusted Operating Income (Loss):</u>**<sup>(1)</sup> |  |  |  |
| **Sphere** | $**17.1** | $**(26.3)** | **NM** | $**55.2** | $**(18.9)** | **NM** |
| **MSG Networks** | **19.3** | **16.1** | **20%** | **78.6** | **95.8** | **(18)%** |
| **Total Adjusted Operating Income (Loss)** | $**36.4** | $**(10.2)** | **NM** | $**133.8** | $**77.0** | **74%** |

---

Note: Does not foot due to rounding. NM — Absolute percentages greater than 200% and comparisons from positive to negative values or to zero values are considered not meaningful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)See page 4 of this earnings release for the definition of adjusted operating income (loss) included in the discussion of non-GAAP financial measures.

------

**<u>Sphere</u>**

For the three months ended September 30, 2025, the Sphere segment generated revenues of $174.1 million, an increase of $47.0 million, or 37%, as compared to the prior year quarter.

Revenues related to The Sphere Experience increased $28.3 million as compared to the prior year quarter, primarily reflecting higher average per-show revenue due to the impact of *The Wizard of Oz at Sphere*, which debuted on August 28, 2025. In the current year quarter, The Sphere Experience included 220 performances of *Postcard from Earth, V-U2 An Immersive Concert Film* and *The Wizard of Oz at Sphere* as compared to 207 performances of *Postcard from Earth* and *V-U2 An Immersive Concert Film* in the prior year quarter.

Event-related revenues increased $15.0 million as compared to the prior year quarter, primarily due to 16 additional concert residency shows held at Sphere as compared to the prior year quarter. This increase was partially offset by lower average per-concert revenue due to the mix of concerts as compared to the prior year quarter, as well as the absence of one marquee sporting event and one corporate event held in the prior year quarter.

Revenues from sponsorship, Exosphere advertising and suite license fees increased $2.7 million as compared to the prior year quarter due to an increase in Exosphere advertising revenues, sponsorship revenues and, to a lesser extent, suite license fee revenues.

For the three months ended September 30, 2025, the Sphere segment had direct operating expenses of $78.7 million, an increase of $16.3 million, or 26%, as compared to the prior year quarter. Expenses associated with The Sphere Experience increased $10.1 million as compared to the prior year quarter, primarily due to higher average per-show expenses for *The Wizard of Oz at Sphere*, which debuted on August 28, 2025. Event-related expenses increased $3.9 million, primarily due to an increase in the number of concert residency shows, partially offset by lower average per-concert expenses and the absence of one marquee sporting event held in the prior year quarter. In addition, venue operating expenses increased $2.1 million as compared to the prior year quarter due to an increase in repairs and maintenance expenses and other net cost increases.

For the three months ended September 30, 2025, selling, general and administrative expenses of $92.7 million decreased $12.3 million, or 12%, as compared to the prior year quarter, primarily due to lower employee compensation and related benefits of $12.4 million, partially offset by other cost increases.

For the three months ended September 30, 2025, operating loss of $84.4 million improved by $40.6 million, or 32%, as compared to the prior year quarter, and adjusted operating income of $17.1 million increased $43.4 million from an adjusted operating loss of $26.3 million in the prior year quarter, both primarily due to the increase in revenues and lower selling, general and administrative expenses, partially offset by higher direct operating expenses.

**<u>MSG Networks</u>**

For the three months ended September 30, 2025, the MSG Networks segment generated total revenues of $88.4 million, a decrease of $12.4 million, or 12%, as compared to the prior year quarter.

Distribution revenue decreased $12.7 million, primarily due to a decrease in total subscribers of approximately 13.5%.

For the three months ended September 30, 2025, direct operating expenses of $58.3 million decreased $19.0 million, or 25%, as compared to the prior year quarter due to lower rights fees expense of $17.6 million and lower other programming and production content costs of $1.4 million. The decrease in rights fees expense primarily reflects reductions in media rights fees as a result of recent amendments to MSG Networks' media rights agreements with certain professional sports teams.

For the three months ended September 30, 2025, selling, general and administrative expenses of $7.0 million decreased $7.0 million, or 50%, as compared to the prior year quarter. The decrease was primarily due to (i) lower employee compensation and related benefits of $7.5 million, and (ii) lower professional fees of $4.0 million, mainly due to the absence of costs associated with pursuing a work-out of MSG Networks' credit facilities with its syndicate of lenders recorded in the prior year quarter, partially offset by (iii) higher advertising and marketing costs of $4.2 million.

For the three months ended September 30, 2025, operating income decreased by $52.7 million to an operating loss of $45.3 million as compared to the prior year quarter, primarily due to higher impairments and other losses and, to a lesser extent, the decrease in revenues, partially offset by lower direct operating expenses and lower selling, general and administrative expenses. Adjusted operating income increased by $3.2 million to $19.3 million as compared to the prior year quarter, primarily due to lower direct operating expenses, partially offset by the decrease in revenues and, to a lesser extent, higher selling, general and administrative expenses (excluding share-based compensation and merger, debt work-out and acquisition related costs, net of insurance recoveries).

------

**<u>Other Matters</u>**

During the three months ended September 30, 2025, the Company repurchased 1,054,247 shares of its Class A common stock at an average price of $47.43 per share for an aggregate purchase price of approximately $50 million in 2025 to-date. The share repurchases were funded using cash on hand. The Company will continue to evaluate additional opportunistic share repurchases going forward and has approximately $300 million remaining under its existing share repurchase authorization.

**About Sphere Entertainment Co.**

------

**Non-GAAP Financial Measures**

*We define adjusted operating income (loss), which is a non-GAAP financial measure, as operating income (loss) before (i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger, debt work-out and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (viii) gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan. We believe that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of our business without regard to the settlement of an obligation that is not expected to be made in cash. We eliminate merger, debt work-out and acquisition-related costs, including merger related litigation expenses, net of insurance recoveries, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan, provides investors with a clearer picture of the Company's operating performance given that, in accordance with U.S. generally accepted accounting principles ("GAAP"), gains and losses related to the remeasurement of liabilities under the Company's Executive Deferred Compensation Plan are recognized in Operating income (loss) whereas gains and losses related to the remeasurement of the assets under the Company's Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating income (loss).*

*We believe adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of our business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze our performance. Internally, we use revenues and adjusted operating income (loss) as the most important indicators of our business performance, and evaluate management's effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to adjusted operating income (loss), please see page 6 of this release.*

**Forward-Looking Statements**

*This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.*

\# \# \#

**Contacts**:

Ari Danes, CFA<br>Investor Relations<br>(212) 465-6072 <br> Grace Kaminer<br>Investor Relations<br>(212) 631-5076

**Conference Call Information:**

*The conference call will be Webcast live today at 10:00 a.m. ET at investor.sphereentertainmentco.com* 

*Conference call dial-in number is 888-800-3155 / Conference ID Number 8089430*

*Conference call replay number is 800-770-2030 / Conference ID Number 8089430 until November 11, 2025*

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**SPHERE ENTERTAINMENT CO.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except per share data)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenues | $262511 | $227913 | $825762 | $822638 |
| Direct operating expenses | (136984) | (139696) | (426625) | (443255) |
| Selling, general and administrative expenses | (99692) | (118977) | (326984) | (349166) |
| Depreciation and amortization | (84102) | (81913) | (252238) | (244117) |
| Impairments and other losses, net | (65457) | (4033) | (69619) | (9768) |
| Restructuring charges | (5993) | (913) | (8781) | (5721) |
| Operating loss | (129717) | (117619) | (258485) | (229389) |
| Gain on extinguishment of debt |  |  | 346092 |  |
| Interest income | 2737 | 7039 | 10699 | 22422 |
| Interest expense | (9399) | (26974) | (61467) | (81014) |
| Other expense, net | (328) | (695) | (2068) | (6564) |
| (Loss) income from continuing operations before income taxes | (136707) | (138249) | 34771 | (294545) |
| Income tax benefit (expense) | 35511 | 32966 | (66105) | 70805 |
| Loss from continuing operations | (101196) | (105283) | (31334) | (223740) |
| Income from discontinued operations, net of taxes |  |  |  | 24631 |
| Net loss | $(101196) | $(105283) | (31334) | (199109) |
| **Basic loss per common share** |  |  |  |  |
| Continuing operations | $(2.80) | $(2.95) | $(0.87) | $(6.29) |
| Discontinued operations |  |  |  | 0.69 |
| Basic loss per common share attributable to Sphere Entertainment Co.'s stockholders | $(2.80) | $(2.95) | $(0.87) | $(5.60) |
| **Diluted loss per common share** |  |  |  |  |
| Continuing operations | $(2.80) | $(2.95) | $(0.87) | $(6.29) |
| Discontinued operations |  |  |  | 0.69 |
| Diluted loss per common share attributable to Sphere Entertainment Co.'s stockholders | $(2.80) | $(2.95) | $(0.87) | $(5.60) |
| **Weighted-average number of common shares outstanding:** |  |  |  |  |
| Basic | 36200 | 35663 | 36197 | 35551 |
| Diluted | 36200 | 35663 | 36197 | 35551 |

---

------

**SPHERE ENTERTAINMENT CO.**

**ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO**

**ADJUSTED OPERATING INCOME (LOSS)**

**(In thousands)**

**(Unaudited)**

The following is a description of the adjustments to operating loss in arriving at adjusted operating income (loss) as described in this earnings release:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** <u>Share-based compensation</u>. This adjustment eliminates the compensation expense relating to restricted stock units, performance stock units and stock options granted under the Sphere Entertainment Employee Stock Plan, MSG Sports Employee Stock Plan, MSG Networks Employee Stock Plan, as amended and assumed by Sphere Entertainment, and Sphere Entertainment Non-Employee Director Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Depreciation and amortization.</u> This adjustment eliminates depreciation and amortization of property and equipment and intangible assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Restructuring charges.</u> This adjustment eliminates costs related to termination benefits provided to employees as part of the Company's full-time workforce reductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Impairment and other losses (gains), net.</u> This adjustment eliminates non-cash impairment charges and the impact of gains or losses from the disposition of assets or businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Merger, debt work-out, and acquisition-related costs, including merger-related litigation expenses, net of insurance recoveries.</u> This adjustment eliminates costs related to mergers, debt work-outs and acquisitions, including litigation expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Amortization for capitalized cloud computing arrangement costs.</u> This adjustment eliminates amortization of capitalized cloud computing arrangement costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Remeasurement of deferred compensation plan liabilities.</u> This adjustment eliminates the impact of gains and losses related to the remeasurement of liabilities under the Company's executive deferred compensation plan.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Operating loss | $(129717) | $(117619) | $(258485) | $(229389) |
| Share-based compensation | 8533 | 15567 | 48978 | 45612 |
| Depreciation and amortization | 84102 | 81913 | 252238 | 244117 |
| Restructuring charges | 5993 | 913 | 8781 | 5721 |
| Impairments and other losses, net | 65457 | 4033 | 69619 | 9768 |
| Merger, debt work-out, and acquisition related costs, net of insurance recoveries | 257 | 4820 | 7530 | 765 |
| Amortization for capitalized cloud computing arrangement costs | 1579 | 22 | 4737 | 65 |
| Remeasurement of deferred compensation plan liabilities | 160 | 157 | 400 | 325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating income (loss) | $36364 | $(10194) | $133798 | $76984 |

---

------

**SPHERE ENTERTAINMENT CO.**

**SEGMENT RESULTS**

**(In thousands)**

**(Unaudited)**

**BUSINESS SEGMENT RESULTS** 

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | **Sphere** | **MSG Networks** | **Total** |
| Revenues | $174090 | $88421 | $262511 |
| Direct operating expenses | (78733) | (58251) | (136984) |
| Selling, general and administrative expenses | (92697) | (6995) | (99692) |
| Depreciation and amortization | (81996) | (2106) | (84102) |
| Impairments and other losses, net | (57) | (65400) | (65457) |
| Restructuring charges | (5041) | (952) | (5993) |
| &nbsp;&nbsp;Operating loss | $(84434) | $(45283) | $(129717) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reconciliation to adjusted operating income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 12409 | (3876) | 8533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 81996 | 2106 | 84102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 5041 | 952 | 5993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments and other losses, net | 57 | 65400 | 65457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger, debt work-out, and acquisition related costs, net of insurance recoveries | 257 |  | 257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization for capitalized cloud computing arrangement costs | 1579 |  | 1579 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of deferred compensation plan liabilities | 160 |  | 160 |
| &nbsp;&nbsp;&nbsp;Adjusted operating income | $17065 | $19299 | $36364 |
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** |
|  | **Sphere** | **MSG Networks** | **Total** |
| Revenues | $127072 | $100841 | $227913 |
| Direct operating expenses | (62449) | (77247) | (139696) |
| Selling, general and administrative expenses | (104950) | (14027) | (118977) |
| Depreciation and amortization | (79838) | (2075) | (81913) |
| Impairments and other losses, net | (4033) |  | (4033) |
| Restructuring charges | (883) | (30) | (913) |
| &nbsp;&nbsp;Operating (loss) income | $(125081) | $7462 | $(117619) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reconciliation to adjusted operating (loss) income: .............................. |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 13180 | 2387 | 15567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 79838 | 2075 | 81913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 883 | 30 | 913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments and other losses, net | 4033 |  | 4033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger, debt work-out, and acquisition related costs, net of insurance recoveries | 692 | 4128 | 4820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization for capitalized cloud computing arrangement costs |  | 22 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of deferred compensation plan liabilities | 157 |  | 157 |
| &nbsp;&nbsp;&nbsp;Adjusted operating (loss) income............................................................. | $(26298) | $16104 | $(10194) |

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**SPHERE ENTERTAINMENT CO.**

**SEGMENT RESULTS (Continued)**

**(In thousands)**

**(Unaudited)**

---

| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| | **Sphere** | **MSG Networks** | **Total** |
| Revenues | $507222 | $318540 | $825762 |
| Direct operating expenses | (225620) | (201005) | (426625) |
| Selling, general and administrative expenses | (285490) | (41494) | (326984) |
| Depreciation and amortization | (245708) | (6530) | (252238) |
| Impairments and other losses, net | (4219) | (65400) | (69619) |
| Restructuring charges | (7829) | (952) | (8781) |
| &nbsp;&nbsp;Operating (loss) income | $(261644) | $3159 | $(258485) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reconciliation to adjusted operating income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 50316 | (1338) | 48978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 245708 | 6530 | 252238 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 7829 | 952 | 8781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments and other losses, net | 4219 | 65400 | 69619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger, debt work-out, and acquisition related costs, net of insurance recoveries | 3596 | 3934 | 7530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization for capitalized cloud computing costs | 4737 |  | 4737 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of deferred compensation plan liabilities | 400 |  | 400 |
| &nbsp;&nbsp;&nbsp;Adjusted operating income | $55161 | $78637 | $133798 |
|  | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
|  | **Sphere** | **MSG Networks** | **Total** |
| Revenues | $448653 | $373985 | $822638 |
| Direct operating expenses | (192613) | (250642) | (443255) |
| Selling, general and administrative expenses | (316035) | (33131) | (349166) |
| Depreciation and amortization | (237665) | (6452) | (244117) |
| Impairments and other losses, net | (9768) |  | (9768) |
| Restructuring charges | (5681) | (40) | (5721) |
| &nbsp;&nbsp;Operating (loss) income | $(313109) | $83720 | $(229389) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reconciliation to adjusted operating (loss) income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 38790 | 6822 | 45612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 237665 | 6452 | 244117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 5681 | 40 | 5721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairments and other losses, net | 9768 |  | 9768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger, debt work-out, and acquisition related costs, net of insurance recoveries | 2018 | (1253) | 765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization for capitalized cloud computing costs |  | 65 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of deferred compensation plan liabilities | 325 |  | 325 |
| &nbsp;&nbsp;&nbsp;Adjusted operating (loss) income | $(18862) | $95846 | $76984 |

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------

**SPHERE ENTERTAINMENT CO.**

**CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(In thousands, except per share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **September 30,** | **December 31,** |
| | **2025** | **2024** |
| **ASSETS** |  |  |
| **Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash, cash equivalents, and restricted cash | $398254 | $515633 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 170965 | 154624 |
| &nbsp;&nbsp;&nbsp;Related party receivables, current | 10270 | 25729 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 86895 | 65007 |
| Total current assets | 666384 | 760993 |
| **Non-Current Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Investments | 40373 | 40396 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 2777292 | 3035730 |
| &nbsp;&nbsp;&nbsp;Right-of-use lease assets | 85910 | 93920 |
| &nbsp;&nbsp;&nbsp;Goodwill | 344772 | 410172 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 23473 | 28383 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 200364 | 145706 |
| Total assets | $4138568 | $4515300 |
| **LIABILITIES AND EQUITY** |  |  |
| **Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $30787 | $33606 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 385563 | 388370 |
| &nbsp;&nbsp;&nbsp;Related party payables, current | 16764 | 9504 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt, net | 88788 | 829125 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 16178 | 19268 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 159145 | 91794 |
| Total current liabilities | 697225 | 1371667 |
| **Non-Current Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt, net | 786069 | 524010 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, non-current | 109750 | 116668 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities, net | 215125 | 148870 |
| &nbsp;&nbsp;&nbsp;Other non-current liabilities | 175298 | 152666 |
| Total liabilities | 1983467 | 2313881 |
| Commitments and contingencies |  |  |
| **Equity:** |  |  |
| Class A Common Stock <sup>(1)</sup> | 295 | 290 |
| Class B Common Stock <sup>(2)</sup> | 69 | 69 |
| Additional paid-in capital | 2456237 | 2428414 |
| Treasury stock, at cost, 1,054 and 0 shares as of September 30, 2025 and December 31, 2024 | (50040) |  |
| Accumulated deficit | (251180) | (219846) |
| Accumulated other comprehensive loss | (280) | (7508) |
| Total stockholders' equity | 2155101 | 2201419 |
| Total liabilities and equity | $4138568 | $4515300 |

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_________________

*(1)&nbsp;&nbsp;&nbsp;&nbsp;Class A Common Stock, $0.01 par value per share, 120,000 shares authorized; 28,434 and 28,960 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.*

*(2)&nbsp;&nbsp;&nbsp;&nbsp;Class B Common Stock, $0.01 par value per share, 30,000 shares authorized; 6,867 shares issued and outstanding as of September 30, 2025 and December 31, 2024.*

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**SPHERE ENTERTAINMENT CO.**

**SELECTED CASH FLOW INFORMATION**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| | **September 30,** | **September 30,** |
| | **2025** | **2024** |
| Net cash provided by operating activities | $63127 | $62674 |
| Net cash provided by (used in) investing activities | 11382 | (65742) |
| Net cash used in financing activities | (192080) | (71864) |
| Effect of exchange rates on cash, cash equivalents, and restricted cash | 192 | 322 |
| Net decrease in cash, cash equivalents, and restricted cash | $(117379) | $(74610) |
| Cash, cash equivalents, and restricted cash at beginning of period | 515633 | 627827 |
| Cash, cash equivalents, and restricted cash at end of period | $398254 | $553217 |

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