Published on: February 12, 2026, 05:55h.

Updated on: February 12, 2026, 06:00h.

• Sphere Entertainment announced a record-breaking quarterly revenue of $394.3 million along with substantial profits
• The Wizard of Oz performance alone generated $290 million in ticket sales
• Ambitious plans include new venues in Abu Dhabi and a smaller Sphere location in Maryland

Sphere Entertainment Co. (NYSE: SPHR) reported its fourth-quarter earnings, showcasing definitive evidence that its Las Vegas venue has transitioned from a costly venture to a viable profit-generating enterprise.

For the quarter ending December 31, 2025, the revenue reached $394.3 million, far exceeding analyst forecasts. Even more notably, earnings per share increased to $1.23, a striking turnaround from the anticipated losses by Wall Street.

During the earnings call on February 12, CEO James Dolan described this quarter as a “continued confirmation of the business model driving Sphere,” emphasizing that the company is now operating from a foundation of strength instead of merely surviving.

Total revenue for the year amounted to $1.22 billion, with adjusted operating income skyrocketing to $261.8 million (a 138% increase year-over-year), despite an operating loss of $229.6 million (an improvement of 38% year-over-year).

The Financial Magic of Oz

Unsurprisingly, the primary contributor to this success was The Wizard of Oz at Sphere, which has raked in $290 million since its debut in August. The show’s 245 performances in Q4 propelled Sphere’s venue-segment revenue to rise 62% year-over-year, reaching $274.2 million, even with depreciation causing a slight operating loss in this segment.

Dolan mentioned that an “enhanced” version of Oz—featuring new scenes and additional 4D effects—will launch later this year, despite the current version’s ongoing demand being exceptionally high.

“To be honest, I’m not even sure we need Wizard of Oz 2.0,” Dolan noted on the call. “But we are going to proceed with it regardless.”

Expanding the Orbi Family

However, the most critical aspect of the earnings call focused on expansion plans.

“As we kick off 2026, we are focused on expanding Sphere’s global presence, including advancing our initiatives for locations in Abu Dhabi and National Harbor,” Dolan stated.

Both the full-scale Abu Dhabi Sphere and a 6,000-seat facility at National Harbor outside Washington, DC—a design intended to be easily replicable in medium-sized cities—are currently in preconstruction. Dolan stressed that the company is in “active negotiations” with various domestic and international markets for both large and small Sphere projects.

This major expansion is feasible thanks to the company recently “cleaning up” its financials. While Oz provided exceptional cash flow, the company also renegotiated $800 million in legacy cable TV debt. By resolving this burden and legally separating the two enterprises, profits from Sphere will remain with it. The company now possesses a cash reserve of $477 million available for venue development.

The market reacted swiftly, with stocks surging nearly 20% (hitting peaks close to $117 and settling between the $113-$116 range), marking the first instance of the stock surpassing the $100 mark.

Sphere’s stock has risen 145% year-over-year and an astonishing 370% since its April 2025 low—a time when the leisure sector faced challenges due to the trade war, and Sphere was on the brink of financial trouble related to MSG Networks.