Key Financial Highlights
| Metric | Q3 2025 Value (in millions) | Change vs. Prior Year Quarter | Commentary |
|---|---|---|---|
| Total Revenues | $262.5 | $34.6 increase, or 15% | Driven by the growth in the Sphere segment. |
| Operating Loss | $129.7 | $12.1 increase, or 10% | The overall loss increased. |
| Adjusted Operating Income (AOI) | $36.4 | $46.6 increase | A significant swing from an adjusted operating loss of $10.2 million in the prior year quarter. |
🏟️ Sphere Segment Performance
The Sphere segment saw substantial growth, primarily driven by the new Sphere Experience, “The Wizard of Oz at Sphere.”
- Revenues: $174.1 million, a 37% increase ($47.0 million) compared to the prior year quarter.
- Sphere Experience Revenues increased by $28.3 million, reflecting the debut of The Wizard of Oz at Sphere and higher average per-show revenue.
- Event-related revenues increased by $15.0 million due to 16 additional concert residency shows (Backstreet Boys, Eagles).
- Adjusted Operating Income (AOI): $17.1 million, a significant improvement of $43.4 million from an AOI loss of $26.3 million in the prior year quarter.
- Operating Loss: $84.4 million, an improvement of $40.6 million, or 32%, compared to the prior year’s loss.
📺 MSG Networks Segment Performance
The MSG Networks segment faced challenges related to subscribers but achieved higher adjusted operating income through cost control.
- Revenues: $88.4 million, a 12% decrease ($12.4 million) compared to the prior year quarter.
- Distribution revenue decreased due to a decline in total subscribers of approximately 13.5%.
- Adjusted Operating Income (AOI): $19.3 million, a 20% increase ($3.2 million) compared to the prior year quarter, mainly due to lower direct operating expenses (especially rights fees).
- Operating Loss: $45.3 million, a decrease of $52.7 million from an operating income in the prior year, primarily due to higher impairments and other losses.
✨ Other Key Business Highlights
- The Wizard of Oz at Sphere debuted on August 28th and surpassed one million tickets sold by mid-October.
- The venue hosted its first pop act, Backstreet Boys, and continued the Eagles’ residency.
- New multi-year sponsorship deals were announced with Zoox and Lenovo.
- The Company repurchased approximately $50 million of its Class A common stock, demonstrating confidence in the Sphere business’s long-term growth.