$SIRI · SIRIUS XM HOLDINGS INC.
SiriusXM reported Q3 2026 results with revenue of $2.153 billion, essentially flat YoY, while net income rose 7% to $317 million. Adjusted EBITDA grew 3% to $694 million and free cash flow jumped 14% to $293 million. The company raised full-year 2026 guidance by $25 million across revenue (~$8.55B), Adjusted EBITDA (~$2.65B), and free cash flow (~$1.40B), citing disciplined cost management and improving subscriber trends.
- Q3 net income rose 7% YoY to $317 million; diluted EPS of $0.78 vs $0.84 prior year.
- Adjusted EBITDA grew 3% to $694 million with margin expanding one point to 32%.
- Free cash flow surged 14% YoY to $293 million; nine-month FCF reached $1.057 billion, up 48%.
- Self-pay churn improved to 1.5% from 1.6%; self-pay net adds of 5,000 improved by 45,000 YoY.
- Full-year 2026 guidance raised by $25 million each for revenue (~$8.55B), Adjusted EBITDA (~$2.65B), and free cash flow (~$1.40B).
Extended-hours trading shows SIRI at $26.90, down 1.54% from the regular close of $27.32, despite the guidance raise and improved churn metrics — suggesting the slight revenue miss ($2.153B vs $2.159B prior year) and 7% EPS decline may be weighing on initial after-hours sentiment.
A triple guidance raise paired with subscriber stabilization and 48% free cash flow growth signals a potential inflection point for a business long viewed as structurally declining.
SiriusXM's improving churn and subscriber stabilization contrast with broader audio streaming peers facing engagement headwinds. The YouTube Audio partnership expanding reach to ~255 million monthly listeners positions the company to capture shifting ad budgets toward digital audio.
Pandora ad-supported listener hours fell 10% YoY to 2.25 billion, signaling ongoing engagement erosion in the streaming segment. Equipment revenue dropped 16% due to higher memory costs, a headwind that may persist.