Forensic Analysis · Media / Entertainment / Streaming · as of Sep 25, 2026
Sphere Entertainment Co. (SPHR)
A forensic read on Sphere Entertainment Co. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Grey Zone
Financial health
2.2
Distress distance
Clean
Earnings quality
4
Forensic signals
-63.4
P / E (ttm)
1.5%
ROE
$4.9B
Market cap
0.00%
Dividend yield
23.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Sphere Entertainment Co. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 2.2, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-4.2%
FY2025
Return on invested capital.Return on invested capital is -4.2% in the latest fiscal year, against -4.2% in FY2023, having run between -6.8% and -4.2% across FY2023–FY2025 with no direction held. After-tax operating profit was ($177M) in FY2023 and ($149M) in FY2025, with operating income at -47.6% of revenue in FY2023, -33.2% in FY2024 and -18.8% in FY2025. The capital base behind it cannot be compared across FY2023–FY2025: cash is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged. FY2025's operating profit carried a $65M goodwill write-off and a $12M restructuring charge that alone took about 1.4 points off that year's return, so the return is unchanged across FY2023–FY2025 to one decimal only because that charge landed in the latest year: it offsets a rise of about 1.4 points in what the capital earned apart from it.
+13.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +30% over the last 2 years to FY2025 (+13.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~13.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~23%.
5% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 5% of revenue in FY2025 — about $1.30 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 14.7% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$1.22B
Revenue CAGR (2yr)+35.1%
Net Margin2.7%
Return on Equity1.5%
Debt / Equity0.37x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Sphere Entertainment Co.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
$65M
FY2025–FY2025
Goodwill impairments.Took $65M of goodwill writedowns across 1 year (FY2025 ($65M)) — about 196% of net income over the span. A large writedown means an acquisition turned out worth far less than was paid — a real mark against M&A discipline.
Sphere Entertainment Co. (SPHR) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy