Second Quarter 2026
Filed Jul 30, 2026Sirius XM Holdings Reports Strong Second Quarter 2026 Results and Raises Full-Year Financial Guidance
Revenue increased 1% year-over-year to $2.16 billion, net income increased 17% to $239 million, Adjusted EBITDA grew 3% to $691 million, free cash flow advanced 48% to $593 million, and the company raised full-year revenue, Adjusted EBITDA and free cash flow guidance by $25 million each.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenueGAAP | $2.16 billion | – | 1% |
| Net incomeGAAP | $239 million | – | 17% |
| Earnings per diluted common shareGAAP | $0.70 | – | 23% |
| Adjusted EBITDAnon-GAAP | $691 million | – | 3% |
| Adjusted EBITDA marginnon-GAAP | 32% | – | expanded one percentage point year-over-year |
| Free cash flownon-GAAP | $593 million | – | 48% |
| SiriusXM total subscribersother | approximately 33 million | – | – |
| SiriusXM self-pay net additionsother | approximately 22,000 | – | an improvement of 90,000 |
| SiriusXM companion subscription incremental self-pay net additionsother | 123,000 | – | – |
| SiriusXM self-pay monthly churnother | approximately 1.4% | – | – |
| SiriusXM paid promotional subscriber net additionsother | 68,000 | – | improved year-over-year |
| SiriusXM total trial funnelother | 7.5 million | – | – |
| SiriusXM subscriber revenueother | $1.51 billion | – | 1% |
| SiriusXM Average Revenue Per User (ARPU)other | $15.32 | – | 1% |
| SiriusXM advertising revenueother | $41 million | – | 8% |
| SiriusXM equipment revenueother | – | declined 22% year-over-year | |
| SiriusXM total cost of servicesother | $636 million | – | improved 2% |
| SiriusXM gross profitother | $981 million | – | 2% |
| SiriusXM gross marginother | 61% | – | expanded one percentage point |
| Pandora Plus and Pandora Premium self-pay subscribersother | approximately 5.6 million | – | – |
| Pandora monthly active usersother | 39.8 million | – | – |
| Pandora and Off-Platform advertising revenueother | $413 million | – | 5% |
| Pandora and Off-Platform subscriber revenueother | $130 million | – | relatively unchanged from the prior year period |
| Pandora and Off-Platform total cost of servicesother | $380 million | – | 3% |
| Pandora and Off-Platform gross profitother | $163 million | – | 6% |
| Pandora and Off-Platform gross marginother | 30% | – | expanded one percentage point |
| Subscriber acquisition costs (SAC)other | $109 million | – | – |
| Sales and marketing expensesother | $176 million | – | 2% |
| Product and technology costsother | $47 million | – | declined 2% |
| General and administrative expensesother | $121 million | – | decreased 2% |
| Net debt-to-adjusted EBITDA ratioother | 3.4x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SiriusXMSubscriber revenue increased 1% to $1.51 billion as ARPU rose 1% to $15.32, benefiting from February pricing actions. Advertising revenue advanced 8% to $41 million, supported by robust advertiser demand across sports, partially offset by softer demand in news. Equipment revenue declined 22% year-over-year, primarily due to higher memory costs associated with hardware modules. | $1.62 billion | – | relatively flat year-over-year |
| Pandora and Off-PlatformAdvertising revenue increased 5% year-over-year to $413 million, driven by strength in podcasting, higher programmatic demand and technology fees, partially offset by softer streaming music advertising. Subscriber revenue was $130 million, relatively unchanged from the prior year period. | $543 million | – | 4% |
Full-year 2026 outlook
- RevenueTotal revenue of approximately $8.525 billion
- NoteAdjusted EBITDA of approximately $2.625 billion
- NoteFree cash flow of approximately $1.375 billion
Capital returns
- $91 million in dividends
- $6 million in share repurchases
What drove it
- Higher subscription and advertising revenue and disciplined expense management, including lower programming, legal and personnel-related costs, supported Adjusted EBITDA growth.
- Free cash flow growth reflected higher Adjusted EBITDA, lower cash taxes, favorable timing of vendor payments, and capital expenditures.
- Growing adoption of companion subscriptions, the continuous service initiative, and automotive dealer extended-duration plans supported SiriusXM self-pay net additions.
- SiriusXM advertising demand was robust across sports, particularly around the FIFA World Cup 2026 and college sports.
- Pandora and Off-Platform advertising benefited from podcasting strength, higher programmatic demand, and technology fees.
Concerns
- SiriusXM consolidated revenue was relatively flat year-over-year.
- SiriusXM gains more than offset slightly lower conversion rates.
- SiriusXM equipment revenue declined 22% year-over-year, primarily due to higher memory costs associated with hardware modules.
- SiriusXM advertising demand in news was softer.
- Pandora and Off-Platform streaming music advertising was softer.
- SiriusXM self-pay churn was partially offset by slightly higher voluntary churn.
- Pandora and Off-Platform cost of services increased 3%, primarily reflecting higher podcast revenue sharing.
What to watch
- Execution against full-year 2026 guidance of approximately $8.525 billion in total revenue, approximately $2.625 billion in Adjusted EBITDA, and approximately $1.375 billion in free cash flow.
- The durability of SiriusXM self-pay net additions, companion subscription adoption, conversion rates, and self-pay monthly churn.
- Whether February pricing actions continue to support ARPU.
- Advertising demand across sports, podcasting, programmatic advertising, news, and streaming music.
- The impact of higher memory costs on SiriusXM equipment revenue and podcast revenue sharing on Pandora and Off-Platform cost of services.
- Capital allocation following the achievement of the targeted leverage range and the reported 3.4x net debt-to-adjusted EBITDA ratio.
Balance sheet and cash flow
- Free cash flow totaled $593 million in the second quarter of 2026, increasing 48% from $402 million in the prior year period.
- The company ended the second quarter with a net debt-to-adjusted EBITDA ratio of 3.4x.
- The company achieved its targeted leverage range.
Analysis
Sirius XM reported a stronger second quarter, with consolidated revenue increasing 1% year-over-year to $2.16 billion, net income increasing 17% to $239 million, and earnings per diluted common share increasing 23% to $0.70 from $0.57. Adjusted EBITDA grew 3% to $691 million and its margin expanded one percentage point year-over-year to 32%. Management attributed the adjusted EBITDA improvement to higher subscription and advertising revenue and expense discipline, including lower programming, legal and personnel-related costs.
The SiriusXM segment generated $1.62 billion of revenue, relatively flat year-over-year. Subscriber revenue increased 1% to $1.51 billion as ARPU rose 1% to $15.32 following February pricing actions, while advertising revenue increased 8% to $41 million on sports demand. The segment's gross profit increased 2% to $981 million and gross margin expanded one percentage point to 61%, supported by a 2% improvement in total cost of services to $636 million. Subscriber trends improved materially: self-pay net additions were approximately 22,000, compared with an improvement of 90,000 versus the prior-year period, and self-pay monthly churn reached approximately 1.4%, the lowest level in SiriusXM history.
Pandora and Off-Platform provided the faster top-line contribution, with revenue increasing 4% to $543 million. Advertising revenue increased 5% to $413 million through podcasting, programmatic demand, and technology fees, though softer streaming music advertising partially offset that strength. Segment gross profit increased 6% to $163 million and gross margin expanded one percentage point to 30%, despite a 3% increase in cost of services attributed primarily to higher podcast revenue sharing.
Cash generation was the most pronounced financial improvement. Free cash flow increased 48% to $593 million from $402 million, reflecting higher Adjusted EBITDA, lower cash taxes, and favorable timing of vendor payments and capital expenditures. The company returned $91 million in dividends and $6 million through share repurchases. It also reported a 3.4x net debt-to-adjusted EBITDA ratio and said it achieved its targeted leverage range, which management described as providing greater financial flexibility for its capital allocation strategy.
Management raised full-year 2026 guidance by $25 million across revenue, Adjusted EBITDA, and free cash flow. The updated outlook calls for total revenue of approximately $8.525 billion, Adjusted EBITDA of approximately $2.625 billion, and free cash flow of approximately $1.375 billion. Attention remains on whether pricing and companion subscriptions can sustain subscriber metrics, and whether softer demand in news and streaming music advertising, lower conversion rates, and higher hardware memory costs persist.
Management, verbatim
Since resetting our strategy, we've been focused on building a stronger, more durable SiriusXM, and our second-quarter performance demonstrates that strategy is delivering meaningful results. We achieved positive second-quarter self-pay net additions for the first time in four years, strengthened engagement and retention across our subscriber base, and continue to build momentum by delivering premium content and experiences that deepen our connection with listeners while creating new opportunities for advertisers. These results reflect disciplined execution and give us the confidence to raise our full-year guidance for revenue, Adjusted EBITDA, and free cash flow. We remain focused on creating long-term value by investing in the areas that strengthen our listener relationships and further differentiate SiriusXM.
Jennifer Witz, Chief Executive Officer
Our financial performance in the first half of the year reflects the durability of our business model and our disciplined approach to execution. We grew ARPU, expanded margins, generated strong free cash flow, reduced debt and reached our long-term leverage target, demonstrating our ability to strengthen the business while continuing to invest in our strategic priorities. With a strong balance sheet and consistent cash generation, we are well positioned to execute our balanced capital allocation strategy—investing in the business, maintaining financial flexibility, and returning capital to shareholders.
Zac Coughlin, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-year consolidated revenue amount
- Prior-year net income amount
- GAAP gross profit and gross margin for consolidated operations
- GAAP operating income
- GAAP operating margin
- Non-GAAP earnings per share
- Operating cash flow
- Cash and cash equivalents balance
- Total debt balance
- Net debt balance
- Capital expenditures amount
- Equipment revenue amount
- Prior-year amount for SiriusXM segment revenue
- Prior-year amount for SiriusXM subscriber revenue
- Prior-year amount for SiriusXM advertising revenue
- Prior-year amount for Pandora and Off-Platform segment revenue
- Prior-year amounts for Pandora and Off-Platform advertising revenue and subscriber revenue
- Prior-year amount for Pandora and Off-Platform cost of services
- Prior-year gross profit and gross margin for Pandora and Off-Platform
- Prior-year amounts for sales and marketing expenses, product and technology costs, and general and administrative expenses
- Prior-quarter financial comparisons for reported income statement and cash flow metrics
- Full-year 2026 gross margin, operating expenses, and tax-rate guidance
- Previous-release outlook for comparison against reported results
AlphaAI 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.