Antares Tobelem

Antares Tobelem from Goldman Sachs asked about the company's approach to capital returns in fiscal 2026, questioning whether share buybacks would remain opportunistic or become more methodical.

Answer

David Collins, EVP & CFO, reiterated the company's three capital allocation priorities: maintaining a strong balance sheet, investing in the core business, and opportunistically returning capital to shareholders. He confirmed they repurchased $40 million of stock in fiscal 2025, have $70 million remaining on the authorization, and will continue to explore opportunistic ways to return capital.

Antares Tobelem, on behalf of Steven Lasik, asked about the outlook for concert genre diversification in 2026 and the potential upper limit for the number of concert residencies the venue could host annually.

Answer

Executive Chairman & CEO James Dolan explained that the venue's flexibility allows for Sphere Experience shows during the day and concerts at night. He highlighted that the business model intentionally creates 'contention' for dates between original content, concerts, and corporate events, with scheduling decisions driven by which event generates the best gross revenue. A highly successful original show could potentially displace concert dates if it proves more profitable.

Antares Tobelem inquired about the practical implementation of tariff mitigation efforts, particularly regarding price adjustments and the resulting changes in retailer sentiment. He also asked for an update on Point-of-Sale (POS) trends observed during the quarter.

Answer

CEO Cynthia Williams explained that the price increase for Pop! figures to a suggested retail price of $14.99 was planned since January and well-received by retail partners, who view the product as a strong value in the collectibles space. She noted the tariff situation has actually deepened these partnerships. CFO Yves Le Pendeven added that U.S. POS trends have recently improved to low-single-digit growth, while European POS remains strong with high single-digit growth, outperforming the broader toy market.