Sphere Entertainment Co. (NYSE: SPHR) posted double-digit revenue growth in the third quarter of 2025, driven by strong demand for The Wizard of Oz at Sphere and the ongoing success of artist residencies including the Backstreet Boys and the Eagles.
For the three months ended September 30, the company reported $262.5 million in total revenue, up 15% from the prior year, with its flagship Sphere segment surging 37% to $174.1 million. Adjusted operating income climbed to $36.4 million from a loss of $10.2 million a year earlier — though the company still logged an overall operating loss of $129.7 million amid higher production and operating expenses tied to the expanded live slate.
“The Wizard of Oz at Sphere, which is the best example to-date of experiential storytelling in this new medium, has been met with strong consumer demand,” said Executive Chairman and CEO James L. Dolan, adding that the company “is well positioned for long-term growth as we continue to execute on our global vision for Sphere.”
Las Vegas Venue Anchors Growth
The Sphere’s latest immersive production — a reimagined, high-tech adaptation of the 1939 film — premiered August 28 and surpassed one million tickets sold by mid-October, generating more than $130 million in sales. It joins Postcard from Earth and V-U2: An Immersive Concert Film as part of the venue’s “Sphere Experience” programming, which blends cinematic production with live-event presentation.
The new show helped boost per-show revenue and expand the venue’s overall event mix. An additional 16 concert residency dates compared with the prior-year quarter added roughly $15 million in event-related income, while advertising on the venue’s Exosphere and sponsorship deals — including new multi-year partnerships with Zoox and Lenovo — contributed further upside. Lenovo is slated to deliver its Consumer Electronics Show keynote from the Sphere in January 2026.
Residencies from the Backstreet Boys, Eagles, and Insomniac/Tomorrowland’s new Unity event powered a steady stream of live traffic to the $2.3 billion venue. The Backstreet Boys recently extended their Into the Millennium run into February 2026, with DJ/producer Illenium and No Doubt confirmed for upcoming 2026 engagements.
Expenses Rise With Expanded Programming
More shows and film screenings also brought higher costs. Direct operating expenses for the Sphere segment rose 26% year-over-year to $78.7 million, primarily due to the launch of The Wizard of Oz at Sphere and additional residency dates. The segment still recorded a significantly narrowed operating loss of $84.4 million — a 32% improvement from 2024 — and $17.1 million in adjusted operating income.
The company repurchased approximately $50 million in Class A stock during the quarter, citing confidence in Sphere’s long-term growth trajectory.
Meanwhile, MSG Networks — Sphere’s legacy media arm — continued to decline, with revenues falling 12% to $88.4 million as subscriber counts dropped 13.5%.
Dolan’s Expanding Role Across MSG Companies
As noted by Sportico, Dolan’s leadership across the MSG family of companies continues to draw attention. His total compensation across MSG Sports, MSG Entertainment, and Sphere topped $38 million over the past year, with Sphere’s surging stock — up roughly 55% in 2025 — fueled in part by the success of The Wizard of Oz.
Sphere Entertainment, which plans a second venue in Abu Dhabi, has positioned its immersive model as the centerpiece of its global expansion strategy, combining artist residencies, branded experiences, and film licensing within a single entertainment ecosystem.
