Posted on: February 12, 2026, 05:55h.
Last updated on: February 12, 2026, 06:00h.
- Sphere Entertainment reported record quarterly revenue of $394.3 million and major profits
- Its Wizard of Oz show generated $290 million in sales
- New expansion plans include venues in Abu Dhabi and a smaller Sphere in Maryland
Sphere Entertainment Co.’s (NYSE: SPHR) fourth‑quarter earnings delivered the company’s first definitive proof that its Las Vegas venue has shifted from an expensive experiment into a functioning revenue‑generator.
Revenue for the period ending December 31, 2025 hit $394.3 million, crushing analyst expectations across the board. Even more significantly, earnings per share swung to $1.23, a dramatic reversal from the losses projected by Wall Street.
On the Thursday, February 12 earnings call, CEO James Dolan framed the quarter as a “continued validation of the business model behind Sphere,” underscoring that the company is now operating from a position of strength rather than survival.
The company’s full-year revenue reached $1.22 billion, with adjusted operating income surging to $261.8 million (up 138% year-over-year) despite an operating loss of $229.6 million (improved 38% year-over-year).
The Financial Wizardry of Oz
The core driver was, unsurprisingly, The Wizard of Oz at Sphere, which has generated $290 million in revenue since its August debut. The show’s 245 Q4 performances pushed Sphere’s venue‑segment revenue up 62% year‑over‑year to $274.2 million, even as depreciation kept the segment at a modest operating loss.
Dolan confirmed that an “enhanced” version of Oz — featuring unspecified new scenes and expanded 4D effects — will debut later this year, despite demand for the current version remaining so strong.
“I’m not even sure, to be honest, whether we need Wizard of Oz 2.0,” Dolan said on the call. “But we’re gonna do it anyway.”
Orbi Getting Siblings
But the earnings call’s most consequential thread was expansion.
“As we begin 2026, we remain focused on expanding Sphere’s global footprint, including advancing our plans to bring Sphere to Abu Dhabi and National Harbor,” Dolan said.
Both the full-size Abu Dhabi Sphere and a 6,000-seat Sphere at National Harbor outside Washington, DC — a fun-size design meant to be easily copied in mid-sized cities — are currently in preconstruction. Dolan emphasized that the company is in “active discussions” with a significant number of domestic and international markets for both large and small Spheres.
This massive expansion is possible because the company recently “cleaned up” its books. While Oz provided the record-breaking cash flow, the company also renegotiated $800 million in old debt from its legacy cable TV business. By cutting that anchor and legally separating the two businesses, the company ensured that the Sphere’s profits stay with the Sphere. (it now has a war chest of $477 million in no-strings-attached cash ready to spend on building new venues.)
The market responded to the news instantly, with shares jumping around 20% (reaching highs near $117 and closing in the $113-$116 range), marking the first time the stock has ever cleared the $100 threshold.
Sphere’s stock price appreciation is now up 145% year-over-year, and an almost surreal 370% from its April 2025 bottom — a moment when the entire leisure sector was getting hammered by the trade war downturn and Sphere itself was staring down the possibility of an MSG Networks-driven bankruptcy.
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