SIRI · Sirius XM Holdings Inc.

Sirius XM Holdings reported solid first-quarter 2026 results, with revenue increasing 1% year-over-year to $2.09 billion, driven by higher subscriber revenue from pricing actions and advertising revenue growth, particularly in podcasting. Net income rose 20% to $245 million, and diluted EPS increased 22% to $0.72, reflecting operating leverage and lower expenses. Adjusted EBITDA grew 6% to $666 million, with margin expanding 140 basis points to 32%, aided by lower customer service, product and technology, and general and administrative costs. Free cash flow more than tripled to $171 million, benefiting from higher EBITDA and reduced capital expenditures. Subscriber trends improved significantly: self-pay net additions were negative 111,000, but that marked a 192,000 improvement year-over-year, driven by companion subscriptions and extended-duration plans. Self-pay churn fell to a record low of 1.5%. The Pandora and Off-Platform segment saw revenue up 3% to $501 million, with advertising revenue up 5% to $372 million, led by podcasting strength. Management reaffirmed full-year 2026 guidance of approximately $8.5 billion in revenue, $2.6 billion in adjusted EBITDA, and $1.35 billion in free cash flow. The company also highlighted its partnership with YouTube for exclusive U.S. audio inventory advertising representation, expected to expand reach to ~255 million monthly listeners. With a net debt-to-adjusted EBITDA ratio of 3.6x, SiriusXM continues to target a leverage ratio in the low-to-mid 3x range by year-end. The results demonstrate resilient subscriber monetization, cost discipline, and strong cash generation, positioning the company to meet its long-term free cash flow target of $1.5 billion by 2027.