Sphere Entertainment Co.
SPHR Communication Services Entertainment
Sphere Entertainment Co.’s revenue for fiscal 2025 (year ended December 2025) was $1.2 billion, up 18.8% from fiscal 2024. In the quarter to June 2026, revenue grew 11.0%, EPS fell 125.6%, free cash flow fell 92.9% and total debt fell 12.3%, each against the same quarter a year earlier. Revenue growth for three consecutive years.
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Sphere Entertainment Co. (SPHR) Altman Z-score
Sphere Entertainment Co.'s Altman Z-score for fiscal 2025 is 1.11, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.11 | 0.94 |
| FY2024 | 0.17 | (0.05) |
| FY2023 | 0.22 | 0.08 |
| FY2022 | 0.13 | (0.52) |
| FY2021 | 0.65 | (1.13) |
| FY2020 | 1.78 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.02 | — | 0.02 | |
| Retained earnings / total assets | (0.04) | — | −0.06 | |
| EBIT / total assets | (0.05) | — | −0.18 | |
| Market value of equity / total liabilities | 1.73 | — | 1.04 | |
| Sales / total assets | 0.29 | — | 0.29 | |
| Altman Z-score | Distress zone | 1.11 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.78 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| IMAX IMAX Corporation compare | 3.1× |
| MSGE Madison Square Garden Entertainment Corp. compare | 2.0× |
| CNK Cinemark Holdings Inc compare | 1.3× |
| BATRA Atlanta Braves Holdings, Inc. compare | 1.2× |
| SPHR Sphere Entertainment Co. | 1.1× |
| MANU Manchester United Ltd. compare | 1.1× |
| BATRK Atlanta Braves Holdings, Inc. compare | 0.9× |
| AMC AMC Entertainment Holdings, Inc. compare | −1.1× |
| VSNT Versant Media Group, Inc. compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets