Sphere Entertainment Q1 2026 Earnings Report

Sphere Entertainment EPS Results

• Actual EPS: -$0.04
• Consensus EPS: -$0.31
• Beat/Miss: Beat by +$0.27
• One Year Ago EPS: -$2.27

Sphere Entertainment Revenue Results

• Actual Revenue: $386.41 million
• Expected Revenue: $313.41 million
• Beat/Miss: Beat by +$73.00 million
• YoY Revenue Growth: +37.70%

Sphere Entertainment Announcement Details

• Quarter: Q1 2026
• Date: 5/5/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, May 5, 2026
• Conference Call Time: 10:00AM ET

Sphere Entertainment (NYSE:SPHR) Co. (NYSE: SPHR) is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world.

At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems. This venue hosts live concerts, film premieres, sporting spectacles and bespoke multimedia shows, collaborating with leading artists, production studios and event promoters. In addition to ticketed performances, the Sphere offers customized corporate and brand activations designed to engage audiences through fully integrated digital environments.

Beyond Nevada, Sphere Entertainment is advancing a second venue project in London’s Battersea district, with further site selections under consideration in Asia and Europe. These expansions are intended to replicate the immersive framework of the Las Vegas Sphere while tailoring content and technical specifications to local markets. Each new Sphere is planned to include adaptable stage configurations, high-fidelity audio arrays and flexible programming capabilities to accommodate a broad range of entertainment formats.

Underpinning its venue operations is a strategic emphasis on proprietary technology development and content partnerships. Sphere Entertainment collaborates with software designers, multimedia artists and technology integrators to refine its visual and acoustic platforms. By combining venue ownership with in-house content production and third-party programming, the company aims to establish a sustainable model for immersive live entertainment on a global scale.

Sphere Entertainment Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q1 consolidated results were strong — $386.4M in revenue and $110M adjusted operating income, while the Sphere segment grew ~70% y/y to $266M in revenue with AOI rising to $74.3M from $13.1M.
• Positive Sentiment: The Wizard of Oz remains a durable revenue driver (nearly 3 million tickets sold and >$370M in ticket revenue to date), enabling multiple same‑day shows and helping drive incremental Las Vegas visitation.
• Neutral Sentiment: Global expansion progress continues — Abu Dhabi site selected with early procurement under way, National Harbor (6,000 seats) advancing financing/design with a ~4‑year target, and multiple other markets in discussions, but projects remain long and conditional.
• Positive Sentiment: The Exosphere advertising/art platform is gaining momentum (50/50 art vs. advertising), attracting repeat major advertisers and management expects strong double‑digit growth in repeat Exosphere advertisers in 2026.
• Negative Sentiment: SG&A rose 11% y/y to $106.6M primarily from mark‑to‑market share‑based compensation tied to the stock price, and Sphere carries material debt (≈$259M convertible + $275M term loan) despite ≈$596M cash, creating leverage and expense volatility risks.

Presentation

[Operator]

Good morning, and thank you for standing by. Welcome to the Sphere Entertainment Co First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I would now like to turn the call over to Ari Danes, Investor Relations. Please go ahead.

[Ari Danes, Head of Investor Relations at Sphere Entertainment Co]

Thank you. Good morning, and welcome to Sphere Entertainment's first quarter 2026 earnings conference call. Today's call will begin with our Executive Chairman and CEO, Jim Dolan, who will provide an update on our business. Robert Langer, our Executive Vice President, Chief Financial Officer, and Treasurer, will then review our financial results for the period. After our prepared remarks, we will open up the call for questions. If you do not have a copy of today's earnings release, it is available in the Investors section of our corporate website. Please take note of the following. Today's discussion may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

[Ari Danes, Head of Investor Relations at Sphere Entertainment Co]

Please refer to the company's filings with the SEC for a discussion of risks and uncertainties. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call. On pages four and five of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or AOI, a non-GAAP financial measure. With that, I'll now turn the call over to Jim.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Thank you, Ari, and good morning, everyone. Today's financial results demonstrate our continued success proving out Sphere's business model. We remain focused on maximizing the model's full potential in Las Vegas while executing on our long-term vision for a global network of sphere venues. In Abu Dhabi, the project has been minimally impacted to date by the conflict in the wider region. The Department of Culture and Tourism has selected the venue site, which will be announced at the appropriate time. In addition, early-stage procurement work with contractors and vendors is now taking place. We look forward to the groundbreaking in Abu Dhabi. In January, we announced that we will bring the second sphere in the U.S. to National Harbor. National Harbor welcomes over 15 million annual visitors and is just minutes from Washington, D.C. Financing discussions for this 6,000 seat sphere are progressing as planned.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

We are also finalizing the venue design, which we coordinate with Peterson Company on the site master plan and the pre-construction planning. In addition, we're working together with the state and the county on the various legislative approvals and incentives for the project. We continue to believe the venue could be open in four years or less. At the same time, we remain in discussion with a significant number of markets around the world regarding large and smaller scale spheres, and we're confident about the path towards global expansion. We continue to demonstrate the power of Sphere's business model in Las Vegas to our potential expansion partners. Calendar 2026 marks our third full year of operation in the market with our business on track for substantial growth. This is led by The Wizard of Oz at Sphere, which continues to perform well.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

The production's results reinforce our confidence that The Wizard of Oz will remain a strong performer in 2026 and beyond. At the same time, we are continuing to work on our next Sphere Experience From the Edge, as well as developing other projects in our pipeline. That includes the progress we are making with IP holders for additional Sphere Experiences as we build out a diverse slate of content. We also continue to see increasing demand from artists and brands to utilize this new medium. This is evidenced by ongoing growth in the number of concerts and brand events, as well as an expanding roster of advertisers and sponsors.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

In summary, we continue to successfully prove out the Sphere business model in Las Vegas, which is now serving as a blueprint for our long-term vision, a global network of Sphere venues powered by our proprietary technology and immersive content. With that, I will turn the call over to Robert, who will take you through our financial results.

[Robert Langer, EVP, CFO, and Treasurer at Sphere Entertainment Co]

Thank you, Jim, and good morning, everyone. For the March quarter, we generated total company revenues of $386.4 million and adjusted operating income of $110 million. Our Sphere segment generated revenues of $266 million, an increase of nearly 70% compared to the prior year period. This growth was mainly driven by The Sphere Experience, primarily reflecting higher per-show revenues for The Wizard of Oz at Sphere. In addition to higher revenues from The Sphere Experience, we also saw revenue growth in brand events, concert residencies, and sponsorship and suite license fees. First quarter adjusted operating income for our Sphere segment was $74.3 million as compared to $13.1 million in the prior year quarter. This reflected the increase in revenues, partially offset by higher direct operating and SG&A expenses.

[Robert Langer, EVP, CFO, and Treasurer at Sphere Entertainment Co]

The increase in direct operating expenses includes the impact of The Wizard of Oz at Sphere, as well as higher expenses from brand events and concerts, primarily due to more events held in the current year quarter. SG&A expenses for the March quarter were $106.6 million, an increase of $10.2 million or 11% year-over-year. The increase was primarily due to the impact of mark-to-market adjustments on certain share-based compensation awards driven by the appreciation in the company's stock price during the quarter.

[Robert Langer, EVP, CFO, and Treasurer at Sphere Entertainment Co]

Excluding these mark-to-market adjustment, SG&A expenses would essentially have been in line with prior year quarter. Turning to MSG Networks, the segment generated $120.4 million in revenues and $35.7 million in AOI in the March quarter. This compares to $123 million in revenues and $22.8 million in AOI in the prior year period. These year-over-year results reflect a decrease in advertising revenues and an approximately 16% decrease in subscribers. This was partially offset by the impact of MSG Networks' non-carriage period without peace, which resulted in the absence of revenues for approximately seven weeks in the prior year quarter. These results also reflect the amendments to MSG Networks media rights agreements with MSG Sports and certain other professional teams.

[Robert Langer, EVP, CFO, and Treasurer at Sphere Entertainment Co]

Turning to our balance sheet as of March 31st, our Sphere business had approximately $596 million of unrestricted cash and cash equivalents, $259 million in convertible debt, and a $275 million term loan related to Sphere in Las Vegas. At MSG Networks, as of March 31st, net debt was approximately $110 million. This included $143 million outstanding on the MSG Networks term loan, which, as a reminder, is debt that is recourse only to MSG Networks. Following the end of the quarter, MSG Networks repaid an additional $17.8 million on the term loan using cash on hand at MSG Networks, bringing the current principal outstanding to approximately $126 million. With that, we'll now open the call for questions.

[Operator]

Thank you. We will now begin the question-and-answer session. We'll go to our first question from Brandon Ross at LightShed.

[Brandon Ross, Analyst at LightShed Partners]

Thanks for taking the questions. Hi, Jim. You mentioned the significant discussions that you're having on future Spheres. We're wondering if, just given how profitable Vegas has become, it makes sense to own or at least operate and consolidate some of those venues instead of doing a franchise model like you have with Abu Dhabi.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Hi, Brandon. You know, I wouldn't discount that. I think that, you know, you're right that the strength of the performance of Vegas is important and it impacts the equation. For us, we like to move as quickly as we can to building multiple Spheres. The capital life, you know, tactic is one of the ways to help speed it up. With the strength of the operating model in Vegas, it does give us more options, we can go probably either way.

[Brandon Ross, Analyst at LightShed Partners]

Got it. Then as you think about expanding the footprint, can you just give us a little insight into how you think about choosing locations and ensuring there isn't cannibalization between the future Spheres that get built?

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Sure. Well, A, we're not worrying about cannibalization so much because, I mean, you know, like Washington is a long way away from Vegas. We'd like to be a global company. We ultimately like to be on all, you know, all five continents. I don't think that includes Antarctica. Anyway. Let's be clear about this. We do not wish to build a Sphere in Antarctica. We do wanna be global. We think, you know, it's not just the building itself, it's the medium. You know, we're looking to proliferate the medium, you know, we're gonna go wide, it's not because we're worried about audiences cannibalizing, you know, one place versus the other. It's a big world and I think there's a lot of opportunity and not many people have seen the Sphere.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

I mean, I think to date, I'll bet it's well under 10 million people. You know, we need more of 'em.

[Brandon Ross, Analyst at LightShed Partners]

Sounds good. Thanks.

[Operator]

We'll move next to David Karnovsky at JPMorgan.

[David Karnovsky, Analyst at JPMorgan]

Hey, thank you. Maybe just following up on the conversations on the large and small market spheres, Jim, just wanted to see if you could expand on the progress there and just whether there's been any impact generally from the macro volatility we've seen, you know, either to the pace or focus of those discussions.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Not seeing any impact from global, I guess the conflicts that are going on. I think pretty much many people think this is not a long-term thing. In terms of, you know, we have a lot of markets that are reaching out to us. We have, we're continuing to look ourselves. There are quite a few markets that we think that the Sphere would do well, either full-size Vegas one or the National Harbor size one, the 6,000-seater. I really think it's just, you know, the process itself is a little involved, you know, involving, you know, land, you know, use of land and governments, et cetera. It takes a lot longer than I'd like. You know, the prospects look good.

[David Karnovsky, Analyst at JPMorgan]

Okay. Maybe just staying on the macro, but shifting it to Vegas. Curious what you're seeing there right now as it relates to visitor trends broadly and whether there's been any read-through to Wizard of Oz or residency demand at the Sphere specifically. Thanks.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Okay. I think Jennifer Koester, you're on this call, are you not?

[Jennifer Koester, President and COO at Sphere Entertainment Co]

I am, Jim. I can take this one.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Thank you.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

Sure. While we're mindful of the macro environment, we're not overly concerned at this point. As you may know, Vegas visitation was down last year. That continued into January, but we've seen a shift and return to growth in visitation in February and March. Despite some recent market softness, our product still remains resilient. In fact, one of the phenomenons we're seeing is that Sphere's actually driving incremental visitation to the market. We all know concerts are a big driver of that. Interesting, we're also seeing that Wizard of Oz is playing a role in that. I think that speaks to the quality of our content offerings. We're seeing solid demand for Wizard of Oz from all segments of the market, and that includes our cost-conscious consumers. Again, suggesting that that value proposition for Wizard of Oz really resonating with consumers.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

In terms of residencies, again, strong demand. Phish just completed nine sold-out shows. Backstreet Boys is returning this summer for another 21 nights. Metallica sold out 24 nights after initially announcing only eight. That demand's also extending into our seat sales. We've got robust single night sales for Phish and Metallica's residencies. We're gonna keep a close eye on tourism, but you know, the demand for our experiences remains strong and resilient.

[Operator]

We'll go next to Peter Supino at Wolfe Research.

[Peter Supino, Analyst at Wolfe Research]

Good morning. A couple of questions on the experiences. Now that The Wizard has been out for over six months, what have your learnings been, and what do you hope from From the Edge and content that comes after that will do for the business that maybe you didn't do with The Wizard of Oz? Then a second question on experiences. As you ramp your catalog beyond The Wizard of Oz, what do you think the main drivers of revenue growth will be? We're wondering if you envision running more shows than you're running today with just The Wizard or whether revenue growth might come from better sell-out or higher pricing. Love to know more about that business model. Thanks.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Okay. I love it when people ask multiple questions and then I have to remember your first question.

[Peter Supino, Analyst at Wolfe Research]

The first one was.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Wizard of Oz.

[Peter Supino, Analyst at Wolfe Research]

the Wizard and, yeah, what you might do differently.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Well, the biggest learning from Wizard of Oz is that there's no place like home. You know, I mean, when we started off with Wizard of Oz, you know, we were doing a show or two shows a day. We did, if we were lucky, one show in conjunction with concerts. I think the biggest learning that we've come up with the Wizard experience is that you can do mult. Can you hear me?

[Peter Supino, Analyst at Wolfe Research]

Yes.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

I think the biggest learning is that we can do multiple shows, even different shows, a concert and features like The Wizard of Oz all on the same day. That the building can handle it, that the market can handle it, and of course, you know, having multiple shows in a day, it really is pretty good for the bottom line. As far as growth goes, look, I wouldn't mind if The Wizard of Oz stayed the way it is for quite some time. It's a pretty fantastic product and quite resilient. I think, you know, we'll continue to refine the model.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

I think when you take a look at these products out in the future, you know, we're gonna explore it, but I also think that you're gonna see things like, you know, at 11:00 A.M. or 10:00 A.M. in the morning, The Wizard of Oz, at 2:00 P.M. From the Edge, you know, at 4:00 P.M., you know, a different fee. You can have multiple, you know, views a day because the building is built that way. I mean, there's literally very little changeover from one show to the other. The biggest changeover is when we do concerts. Even that, we were able to accomplish the changeover in under an hour. We're gonna keep pushing on that model.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

I think it's gonna produce, you know, more revenue. We're gonna get more efficient with how we operate. I think then really primarily it's more Spheres. That's gonna be big part of the growth.

[Operator]

We'll take our next question from Stephen Laszczyk at Goldman Sachs.

[Stephen Laszczyk, Analyst at Goldman Sachs]

Hey, great. Thanks for taking the questions. Jim, just to follow up on Wizard of Oz, I'm curious if you could talk a little bit more about how attendance and sell-through have trended coming out of the first quarter and what you think that momentum might mean for ticket sales as you look out into later parts in the spring and then the summer seasons in Vegas.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Okay. Well, the real expert on this is my Chief Operating Officer, Jennifer Koester, so I'm throwing this one to her.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

Thank you. As you saw it in today's results, Wizard of Oz continues to perform well. Our March quarter reflects, you know, we've got robust per-show attendance, average ticket prices, and per cap spending that's consistent with our December quarter results. As of today, we've sold nearly three million tickets, with over $370 million in ticket revenue for Wizard of Oz. Like any other market, seasonality is gonna be a factor, so we're gonna have ebbs and flows of visitors in the market. But as I've said before, you know, we continue to maintain a relatively consistent market share of visitors since the debut. We remain confident that we're gonna continue to have a high performer through 2026 and beyond, and we really believe that there's a long life for Wizard of Oz.

[Stephen Laszczyk, Analyst at Goldman Sachs]

Great. Thanks for that. Jim, I'm just curious, just given this momentum in Wizard of Oz that you're seeing, what leverage do you feel like Sphere has now to negotiate maybe more favorable royalty rates with potential new studio partners for new IP? How have those conversations been progressing?

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

I think the leverage is that we're the only venue that does this. It's not like somebody else can take their product and go, you know, put it into a big immersive environment like a Sphere. That the, so it's really up to us which ones we choose. We obviously try and make the best deal that we can. There's a tremendous amount of IP product out there that none of which has been, you know, has obviously been seen in the Sphere and none of which has been, you know, has utilized this medium.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

So, you know, I think we have a wide choice of product, and we're really mostly focused on what will, you know, convert well with the medium, what really does well in an immersive environment. From the Edge is, you know, our own product, obviously. You know, the thing about From the Edge is that we're trying very hard to make that feature extremely experiential. And we're right in the middle of making it. But, you know, it's extreme sports and so when we go down a big wave, a 60-foot wave, we're really trying to make you feel like you're going down a 60-foot wave without making you get sick. You know, you know, we're not gonna get that product for nothing. It is up to us which ones we choose.

[Stephen Laszczyk, Analyst at Goldman Sachs]

That's great. Thank you very much.

[Operator]

We'll take our next question from Ryan Sigdahl at Craig-Hallum Capital Group.

[Ryan Sigdahl, Analyst at Craig-Hallum Capital Group]

Hey, good morning, guys. It's nice to see the additional Exosphere advertising partners. You have Delta, you have Anheuser-Busch, Evian recently. Jim or maybe Jen, can you give an update on the Exosphere? Really curious on if you can quantify what the net retention is and utilization, and then maybe how you think about that business going forward.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Jen.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

Sure. Momentum in this business is really continuing, and we're well positioned for growth in 2026. In terms of utilization, which I think was the first part of your question, you know, we have a strategy where 50% of the Exosphere time is advertising and 50% is art and promotion. You know, this strategy is really a valuable differentiator for the Exosphere brand from more of the traditional out-of-home assets. It helps us drive social engagement when we put our Exosphere art up there. I mean, our artist program, we're averaging about one million social media impressions per artist launch. It's also an important lever for us when we promote Sphere Experience ticket sales. On the other 50%, which is the advertising side, brands are also viewing the Exosphere as a leader in driving cultural moments. You mentioned Anheuser-Busch before.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

You know, they use Sphere to highlight the U.S. Men's Olympic Ice Hockey Team winning the gold. Coinbase used Sphere to amplify their Super Bowl commercial. TikTok used it as a place to celebrate their creators during TikTok global live festivals. I mean, those are just a few examples in Q1 of the types of moments and brand advertisers that we're getting. You know, when we think about the utilization question, we're consistently evaluating our inventory, we're utilizing premium pricing on the higher demand periods. We've also created diverse offerings so that we can have some solutions that help us capitalize more on the Vegas conferences. We're investing in technology on the studio capability side, that allows us to have quicker production and turnaround times, that gives us access to, you know, some of those dollars that are just shorter-term brand campaigns.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

Going back to your question, repeat advertisers, we're continuing to see returning brands like Adobe, Google, Amazon, MGM, and others. Right now, we're currently on track to grow the number of repeat Exosphere advertisers by strong double-digit percentage in 2026. Overall, I think we're really pleased with the progress on our utilization of the Exosphere and some of the new strategies that are really helping us to continue to drive that repeat business.

[Ryan Sigdahl, Analyst at Craig-Hallum Capital Group]

Helpful. Thanks, Jen. Maybe just a clarification. You target 50/50 art versus advertising. Are you willing to quantify if you're at that 50% today or where you're at? Thanks. Good luck, guys.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

Yeah, I mean, that's how we operate it today. 50% time advertising, 50% art and promotion.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

I think he wants to know if you're sold out, Jen.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

During peak times, right, over the past year, we have experienced times of sellout. CES was a sellout period for us, and we anticipate, you know, that to be the phenomenon going through the rest of the year.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

My answer would be the, you're not doing your job well if you're sold out.

[Jennifer Koester, President and COO at Sphere Entertainment Co]

Well, I did say we're using pricing tactics during times of peak demand.

[Operator]

We'll move to our next question from Peter Henderson at Bank of America.

[Peter Henderson, Analyst at Bank of America]

Hey, good morning. Thank you for taking the question. Just wondering if you can provide maybe any insight on how we should think about SG&A for the remainder of the year, I mean, especially considering the impact of, you know, the stock's appreciation on share base comp. Thank you.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Okay. Boy, I'm really tempted to crack a joke here with the. I guess I will. SG&A is a great basketball player, and when we get to the finals, I'm sure we're gonna beat them. Having said that, I think I'll turn the real question over to Robert.

[Robert Langer, EVP, CFO, and Treasurer at Sphere Entertainment Co]

Thank you, Jim, and thank you, Peter. You know, let me start by reiterating that we are extremely focused on managing our infrastructure and SG&A cost base as efficiently as possible. We have identified a number of cost-savings opportunities in 2025 and brought SG&A costs meaningfully down versus the prior in that period. Our SG&A numbers in this quarter, as you alluded to, didn't include certain expenses which are related to share-based awards. These awards are marked to market on our stock price and will be cash settled once exercised. That's why they show up here. Adjusting for these items though, our SG&A expenses in the quarter would essentially have been flat on a year-over-year basis.

[Robert Langer, EVP, CFO, and Treasurer at Sphere Entertainment Co]

Looking out for the remainder of 2026, we will likely continue to see quarter-over-quarter fluctuations, which will include mark-to-market impacts of these awards in light of our stock price performance. We will also look for further cost savings opportunities wherever it makes sense. We will balance that with ensuring that we have an infrastructure in place that supports the global vision, you know, for Sphere, which Jim has laid out in his prepared remarks.

[Peter Henderson, Analyst at Bank of America]

Thank you.

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

Thanks, Peter. Operator, we'll take one last caller.

[Operator]

We'll take that question from Joe Stauff at Susquehanna.

[Joe Stauff, Analyst at Susquehanna]

Thanks. Good morning, Jim and Jen. I was just wondering if you could update us on your residency strategy. In the nearer term, you know, we could see that the Friday, Saturday windows are pretty much locked up through this end of September. There is some availability in Wednesday and Thursday. Just wondering, Jim, you know, with your comment that, hey, it only takes an hour to set it up, if you think about, you know, how you use residencies differently going forward and what the outlook may look like?

[Jim Dolan, Executive Chairman and CEO at Sphere Entertainment Co]

You know, look, I think you actually answered your question yourself. With the, you know, we don't announce everything, you know, the, you know, as soon as it gets agreed upon, et cetera, with our acts. I would say that we're pretty much out of dates for this year. We are seeing some expansion into Wednesdays and Thursdays. No Doubt is actually playing tomorrow. They're opening a show, I believe. That's, you know, that's good. I don't see us going to a concert model seven days a week, anything like that. The demand is high, and I don't see it abating at all. The demand from the acts, at least.

[Operator]

That concludes our Q&A session. I will now turn the conference back over to Ari Danes for closing remarks.

[Ari Danes, Head of Investor Relations at Sphere Entertainment Co]

Thank you all for joining us. We'll speak with you on our next earnings call. Have a good day.

[Operator]

This concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Ari Danes, Head of Investor Relations
• Jennifer Koester, President and COO
• Jim Dolan, Executive Chairman and CEO
• Robert Langer, EVP, CFO, and Treasurer

Analysts

• Brandon Ross, Analyst at LightShed Partners
• David Karnovsky, Analyst at JPMorgan
• Joe Stauff, Analyst at Susquehanna
• Peter Henderson, Analyst at Bank of America
• Peter Supino, Analyst at Wolfe Research
• Ryan Sigdahl, Analyst at Craig-Hallum Capital Group
• Stephen Laszczyk, Analyst at Goldman Sachs