Sphere Entertainment Co. Reports Second Quarter 2025 Results
Nice and tight — here are the headline takeaways from the numbers :
- Positive net income for Q2 2025: Net income of $151.8M in Q2 vs. a loss of $46.6M a year earlier — driven almost entirely by a one-time gain on extinguishment of debt of $346.1M.
- EPS turned positive: Diluted EPS of $3.39 in Q2 2025 vs. a loss of $1.31 in Q2 2024.
- Revenue — small overall gain for the quarter, decline YTD: Total revenues were $282.7M (up 3% YoY for the quarter), but six-month revenue fell to $563.3M (down 5% YoY).
- Sphere segment is improving: Sphere revenues grew 16% in the quarter to $175.6M, and its adjusted operating income swung positive (Sphere adjusted OI $24.9M vs. –$5.5M prior year). Operational losses narrowed (operating loss improved by $21.1M for the quarter).
- MSG Networks weakness: MSG Networks revenue and six-month profitability declined materially (revenue down 12% for the quarter and 16% YTD; adjusted OI down 26% YTD).
- Overall operating loss narrowed in the quarter: Total operating loss improved to –$50.2M from –$71.4M a year earlier (a $21.2M improvement).
- Adjusted operating income shows core improvement: Total adjusted operating income was $61.5M in Q2 vs. $25.7M prior year (big operational improvement once one-offs are excluded).
- Balance-sheet / capital structure signals: Interest expense slightly lower but important event was debt extinguishment (the $346M gain) — check management commentary for details. Weighted-average diluted shares increased significantly (from ~35.6M to 44.8M) — indicates dilution that investors should note.