Looking back on consumer discretionary - leisure facilities stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Sphere Entertainment (NYSE: SPHR) and its peers.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Leisure facilities companies own and operate theme parks, fitness centers, bowling alleys, and other venue-based entertainment destinations, generating revenue from admissions, memberships, and on-site spending. Tailwinds include consumer preference for experiential spending, tourism recovery, and technology-enhanced guest experiences that support premium pricing. Headwinds are notable: high fixed costs, such as real estate, labor, and maintenance, make profitability highly sensitive to attendance fluctuations during economic slowdowns. Weather, pandemics, and safety incidents can disrupt operations unpredictably. Rising construction and labor costs inflate expansion budgets, while competition from at-home entertainment alternatives and other experiential options limits pricing power in many markets.

The 10 consumer discretionary - leisure facilities stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.

Sphere Entertainment (NYSE: SPHR)

Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE: SPHR) hosts live entertainment events and distributes content across various media platforms.

Sphere Entertainment reported revenues of $394.3 million, up 27.9% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

Sphere Entertainment scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 16.6% since reporting and currently trades at $110.50.

Is now the time to buy Sphere Entertainment? Access our full analysis of the earnings results here, it’s free.

Best Q4: Live Nation (NYSE: LYV)

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Live Nation reported revenues of $6.31 billion, up 11.1% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.5% since reporting. It currently trades at $151.88.

Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.

Slowest Q4: United Parks & Resorts (NYSE: PRKS)

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

United Parks & Resorts reported revenues of $373.5 million, down 2.8% year on year, falling short of analysts’ expectations by 0.8%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 5.6% since the results and currently trades at $31.89.

Read our full analysis of United Parks & Resorts’s results here.

Lucky Strike (NYSE: LUCK)

Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.

Lucky Strike reported revenues of $306.9 million, up 2.3% year on year. This number lagged analysts' expectations by 2%. It was a slower quarter as it also logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Lucky Strike achieved the highest full-year guidance raise among its peers. The stock is up 7.7% since reporting and currently trades at $7.90.

Read our full, actionable report on Lucky Strike here, it’s free.

Xponential Fitness (NYSE: XPOF)

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE: XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Xponential Fitness reported revenues of $82.96 million, flat year on year. This result beat analysts’ expectations by 12.3%. Zooming out, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Xponential Fitness delivered the biggest analyst estimates beat among its peers. The stock is down 28.7% since reporting and currently trades at $5.74.

Read our full, actionable report on Xponential Fitness here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.