Functional Brands closes $8 million private placement and completes Nasdaq listing
NEW YORK - On Tuesday, Sphere Entertainment Co. (NYSE:SPHR) reported third-quarter financial results that fell short of analyst expectations, despite strong ticket sales for its new Sphere Experience.
The company’s shares fell 6.15% in pre-market trading after the results.
The entertainment company posted a loss of $2.80 per share for the quarter ended September 30, significantly wider than the analyst estimate of $1.81 per share. Revenue came in at $262.5 million, missing the consensus forecast of $266.87 million, though it represented a 15% increase from the same period last year.
Sphere’s revenue rose 37% YoY to $174.1 million, driven by the debut of "The Wizard of Oz at Sphere" on August 28, which surpassed one million tickets sold by mid-October. However, this growth was offset by a 12% decline in MSG Networks revenue to $88.4 million, primarily due to a 13.5% decrease in subscribers.
"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," said Executive Chairman and CEO James L. Dolan. "Looking ahead, we believe our Company is well positioned for long-term growth as we continue to execute on our global vision for Sphere."
The company reported an adjusted operating income of $36.4 million, a significant improvement from the $10.2 million loss in the prior year quarter. During the quarter, Sphere Entertainment repurchased approximately $50 million of its Class A common stock, reflecting confidence in its long-term growth prospects.
The company also announced multi-year sponsorship agreements with Zoox and Lenovo, with Lenovo slated to hold a Consumer Electronics Show keynote at Sphere in January 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.