Sirius XM Holdings Reports Third Quarter 2026 Results and Raises Full-Year Financial Guidance
SIRIUS XM HOLDINGS INC. (SIRI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Sirius XM Holdings Reports Third Quarter 2026 Results and Raises Full-Year Financial Guidance • Third Quarter Consolidated Revenue was down slightly year-over-year to $2.15 billion • Net Income increased 7% to $317 million from the prior year period • Adjusted EBITDA
How this was made
The 30-second read
Why it matters
The raised guidance may attract new buying, but investors will watch subscriber growth and cost trends.
Market read
First report of earnings and guidance raise for a large‑cap media company; likely to move the stock in after‑hours trading.
What to watch
Higher memory costs could pressure equipment margins despite revenue growth.
Sirius XM Holdings Reports Third Quarter 2026 Results and Raises Full-Year Financial Guidance
Adjusted EBITDA grew 3% to $694 million, free cash flow increased 14% to $293 million, SiriusXM self-pay net additions improved to 5,000, and the company raised each of its three full-year financial targets by $25 million. Consolidated revenue declined slightly year-over-year and SiriusXM equipment revenue fell 16%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $2.15B | – | — % |
| Subscriber revenue, three months ended September 30GAAP | $1.63B | – | – |
| Advertising revenue, three months ended September 30GAAP | $456M | – | – |
| Equipment revenue, three months ended September 30GAAP | $36M | – | – |
| Other revenue, three months ended September 30GAAP | $31M | – | – |
| Total operating expenses, three months ended September 30GAAP | $1.67B | – | — % |
| Total cost of services, three months ended September 30GAAP | $1.02B | – | (1) % |
| Subscriber acquisition costs, three months ended September 30GAAP | $107M | – | — % |
| Sales and marketing, three months ended September 30GAAP | $179M | – | – |
| Product and technology, three months ended September 30GAAP | $64M | – | – |
| General and administrative, three months ended September 30GAAP | $121M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $166M | – | 18 % |
| Impairment, restructuring and other costs, three months ended September 30GAAP | $10M | – | 11 % |
| Income from operations, three months ended September 30GAAP | $479M | – | (3) % |
| Interest expense, three months ended September 30GAAP | −$109M | – | 5 % |
| Income before income taxes, three months ended September 30GAAP | $416M | – | 7 % |
| Income tax expense, three months ended September 30GAAP | −$99M | – | (9) % |
| Net income, three months ended September 30GAAP | $317M | – | 7 % |
| Basic net income per common share, three months ended September 30GAAP | $0.94 | – | – |
| Diluted net income per common share, three months ended September 30GAAP | $0.78 | – | (7) % |
| Adjusted EBITDA, three months ended September 30non-GAAP | $694M | – | 3 % |
| Free cash flow, three months ended September 30non-GAAP | $293M | – | 14 % |
| Net cash provided by operating activities, three months ended September 30GAAP | $457M | – | – |
| Additions to property and equipment, three months ended September 30GAAP | −$166M | – | – |
| Total revenue, nine months ended September 30GAAP | $6.40B | – | 1 % |
| Subscriber revenue, nine months ended September 30GAAP | $4.88B | – | – |
| Advertising revenue, nine months ended September 30GAAP | $1.32B | – | – |
| Equipment revenue, nine months ended September 30GAAP | $113M | – | – |
| Other revenue, nine months ended September 30GAAP | $94M | – | – |
| Total operating expenses, nine months ended September 30GAAP | $5.00B | – | (2) % |
| Income from operations, nine months ended September 30GAAP | $1.41B | – | 13 % |
| Net income, nine months ended September 30GAAP | $801M | – | 13 % |
| Basic net income per common share, nine months ended September 30GAAP | $2.38 | – | – |
| Diluted net income per common share, nine months ended September 30GAAP | $2.32 | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $2.05B | – | 4 % |
| Free cash flow, nine months ended September 30non-GAAP | $1.06B | – | 48 % |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.45B | – | – |
| Additions to property and equipment, nine months ended September 30GAAP | −$401M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $210M | – | – |
| Long-term debt, September 30, 2026GAAP | $8.07B | – | – |
| Current maturities of debt, September 30, 2026GAAP | $1.25B | – | – |
| Net debt-to-adjusted EBITDA ratio, September 30, 2026non-GAAP | 3.3x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SiriusXM, three months ended September 30Subscriber revenue was $1,500 million, advertising revenue was $37 million and declined 5%, equipment revenue was $36 million and declined 16%, and other revenue was $31 million. Higher memory costs associated with hardware modules affected equipment revenue. | $1.60B | – | — % |
| Pandora and Off-platform, three months ended September 30Advertising revenue was $419 million and grew 1%, driven by podcasting, programmatic advertising and technology fees, partially offset by softer streaming music advertising reflecting lower listening hours. Subscriber revenue was $130 million and declined 2% due to lower subscriber volumes. | $549M | – | — % |
Full-year 2026 outlook
- RevenueApproximately $8.55 billion
- NoteAdjusted EBITDA: Approximately $2.65 billion
- NoteFree cash flow: Approximately $1.40 billion
Capital returns
- During the quarter, SiriusXM returned capital to shareholders through $91 million in dividends and $33 million in share repurchases.
- For the nine months ended September 30, 2026, common stock repurchased and retired was $(61) million.
- For the nine months ended September 30, 2026, dividends paid were $(273) million.
- Dividends declared per common share were $0.27 for the three months ended September 30, 2026 and $0.81 for the nine months ended September 30, 2026.
What drove it
- Adjusted EBITDA growth reflected stable revenue and disciplined expense management, including lower programming expenses, greater automation in customer care and reduced sales and marketing spending.
- Free cash flow growth reflected higher Adjusted EBITDA, favorable working capital, lower interest expense and reduced capital expenditures.
- SiriusXM companion subscriptions added 107,000 incremental self-pay net additions in the quarter. Continuous service and automotive dealer extended-duration plans also supported subscriber performance.
- SiriusXM gross profit was $963 million, up 1%, and gross margin was 60%, compared with 59% in the prior-year period.
- Pandora and Off-platform gross profit was $173 million, up 2%, and gross margin was 32%, compared with 31% in the prior-year period.
- Third-quarter average listening time increased approximately 5% year-over-year, and monthly active sports listeners increased 4% year-over-year.
Concerns
- Consolidated revenue was $2,153 million, compared with $2,159 million in the prior-year period.
- SiriusXM equipment revenue declined 16% to $36 million, primarily reflecting higher memory costs associated with hardware modules.
- SiriusXM advertising revenue declined 5% to $37 million, reflecting softer demand across news programming and direct-to-consumer advertisers.
- Pandora and Off-platform subscriber revenue declined 2% to $130 million, primarily due to lower subscriber volumes.
- Pandora and Off-platform monthly active users were 38,812 thousand, down 7%, and self-pay subscribers were 5,514 thousand, down 3%.
- Pandora and Off-platform ad supported listener hours were 2.25 billion, down 10% year-over-year.
What to watch
- Execution against raised full-year 2026 guidance of approximately $8.55 billion in total revenue, approximately $2.65 billion in Adjusted EBITDA and approximately $1.40 billion in free cash flow.
- SiriusXM self-pay churn, which was 1.5% in the third quarter, compared with 1.6% in the prior-year period.
- SiriusXM conversion rates, which were more than offset by companion subscription adoption, continuous service and extended-duration dealer plans during the quarter.
- The effect of higher memory costs on SiriusXM equipment revenue.
- Pandora listener hours, monthly active users, subscriber volumes and streaming music advertising demand.
- Capital allocation following achievement of the long-term leverage target and management's stated intention to meaningfully accelerate share repurchases in 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $210 million at September 30, 2026, compared with $94 million at December 31, 2025.
- Long-term debt was $8,066 million and current maturities of debt were $1,250 million at September 30, 2026.
- Net cash provided by operating activities was $1,450 million for the nine months ended September 30, 2026, compared with $1,218 million in the prior-year period.
- Net cash used in investing activities was $(509) million for the nine months ended September 30, 2026, compared with $(588) million in the prior-year period.
- Net cash used in financing activities was $(825) million for the nine months ended September 30, 2026, compared with $(713) million in the prior-year period.
- Cash, cash equivalents and restricted cash at end of period was $218 million at September 30, 2026, compared with $87 million at September 30, 2025.
Analysis
Third-quarter results showed stable top-line performance alongside better cash generation and operating discipline. Total revenue was $2,153 million versus $2,159 million in the prior-year period, while adjusted EBITDA increased 3% to $694 million and free cash flow increased 14% to $293 million. Net income rose 7% to $317 million, although diluted net income per common share declined 7% to $0.78 from $0.84, reflecting the accounting treatment of convertible notes, including fair value gains and assumed share dilution.
The SiriusXM segment was relatively flat, with revenue of $1,604 million compared with $1,611 million. Subscriber revenue increased to $1,500 million, but advertising revenue declined 5% to $37 million and equipment revenue declined 16% to $36 million as higher memory costs affected hardware modules. SiriusXM self-pay subscribers increased by 5,000, an improvement of 45,000 from the prior-year period, and average self-pay monthly churn improved to 1.5% from 1.6%. Companion subscriptions added 107,000 incremental self-pay net additions, helping offset lower conversion rates.
Pandora and Off-platform revenue was $549 million compared with $548 million. Advertising revenue increased 1% to $419 million on podcasting, programmatic advertising and technology fees, while subscriber revenue declined 2% to $130 million on lower subscriber volumes. The segment's monthly active users declined 7% to 38,812 thousand, self-pay subscribers declined 3% to 5,514 thousand, and ad supported listener hours declined 10% to 2.25 billion. These audience metrics contrast with the growth in SiriusXM average listening time and sports listener engagement.
Margins benefited from lower costs in key areas. SiriusXM gross profit increased 1% to $963 million and gross margin expanded to 60% from 59%, while Pandora and Off-platform gross profit increased 2% to $173 million and gross margin expanded to 32% from 31%. The company cited lower programming expenses, greater automation in customer care and reduced sales and marketing spending. At the consolidated level, sales and marketing expense was $179 million versus $186 million, while depreciation and amortization increased to $166 million from $141 million.
Capital returns in the quarter were $91 million of dividends and $33 million of share repurchases. The company ended the quarter with a net debt-to-adjusted EBITDA ratio of 3.3x and said it had achieved its long-term leverage target. Management raised full-year 2026 total revenue, Adjusted EBITDA and free cash flow guidance by $25 million each, to approximately $8.55 billion, approximately $2.65 billion and approximately $1.40 billion, respectively. The raised outlook rests on continued operating momentum, improved profitability and strong cash flow generation.
Management, verbatim
We're stabilizing our subscriber base, deepening engagement through differentiated content and experiences, and expanding the reach and capabilities of our advertising platform.
Jennifer Witz, Chief Executive Officer
Disciplined cost management and structural operating improvements drove Adjusted EBITDA growth, margin expansion and stronger profitability in the third quarter.
Zac Coughlin, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Quarter-over-quarter comparisons were not reported for the consolidated financial metrics.
- Consolidated gross profit and consolidated gross margin were not reported.
- Forward guidance for gross margin, operating expenses and tax rate was not reported.
- A GAAP reconciliation for projected Adjusted EBITDA and projected free cash flow was not provided because the company stated it could not be reconciled without unreasonable effort.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sirius XM filed a Form 8‑K with Q3 2026 results, showing modest revenue dip, earnings beat, and a raise in full-year guidance.
Ticker impact
Sirius XM reported Q3 2026 results and raised full-year 2026 revenue, Adjusted EBITDA and free cash flow guidance.
likely upward pressure as investors price in the raised guidance
The company increased its full-year financial targets, indicating improved performance and may trigger buying interest.
Market effects
Positive for satellite radio and audio streaming sector, may lift peers.
U.S. media and entertainment market may see modest uplift.
Limited to North American investors focused on subscription media.
Counterpoint
Guidance raise may already be priced in; growth could slow if subscriber additions plateau.
Key entities
- ExecutiveJennifer Witz
CEO of Sirius XM, quoted on performance and guidance.
- ExecutiveZac Coughlin
CFO of Sirius XM, discussed cash flow and future share repurchases.
