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SIRI beat Q1 estimates with EPS of 72 cents and revenues rising 1.1% YoY.
Ad revenues climbed 3.3%, driving growth alongside modest gains in subscriber revenues.
Adjusted EBITDA rose 6% as cost cuts boosted margins and free cash flow more than tripled.
Sirius XM Holdings (SIRI - Free Report) stock edged up 1% after its April 30, 2026, earnings announcement, modestly outpacing the 1% drop seen across the Zacks Broadcast Radio and Television industry.
The company reported first-quarter 2026 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 70 cents by 2.86%. It reported earnings of 59 cents per share in the year-ago quarter.
The company reported total revenues of $2.09 billion, up 1.1% from $2.07 billion in the year-ago quarter and beat the Zacks Consensus Estimate by 0.89%.
Subscriber revenues (77% of total revenues) increased 0.62% from the year-ago quarter’s reported figure to $1.61 billion. The figure surpassed the Zacks Consensus Estimate by 0.39%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Advertisement revenues (19.5% of total revenues) increased 3.3% year over year to $407 million, surpassing the Zacks Consensus Estimate by 2.71%.
Equipment revenues (2.0% of total revenues) were flat year over year at $41 million, missing the Zacks Consensus Estimate by 3.59%.
Other revenues (1.5% of total revenues) were flat year over year at $31 million, surpassing the Zacks Consensus Estimate by 4.58%.
Sirius XM Standalone Segment’s Details
Sirius XM’s Standalone segment revenues (76.0% of total revenues) were $1.59 billion, up 1% year over year, driven by higher subscriber revenues from pricing actions.
Subscriber revenues increased 0.9% year over year to $1.48 billion, reflecting the impact of recent pricing actions, partially offset by a slightly lower average subscriber base.
Total subscriber base declined 0.3% year over year to 32.78 million.
Advertising revenues were $35 million, down 10% year over year, primarily due to softness in news channels.
Self-pay subscribers decreased 0.3% year over year to 31.23 million. Self-pay net subscriber loss in the reported quarter was 111K compared with a loss of 303K in the year-ago period. Average revenue per user amounted to $14.99, up from $14.86 year over year. Self-pay monthly churn improved to 1.5% from 1.6% in the year-ago period.
Net subscriber loss in the reported quarter was 148K compared with a net loss of 362K in the year-ago period.
Pandora & Off-Platform Details
The Pandora and Off-Platform segment continued to shoulder most of the company’s advertising mix. Segment revenues increased 3% year over year to $501 million, with advertising revenues rising 5% to $372 million, partially offset by a 2% decline in subscriber revenues to $129 million amid a smaller subscriber base.
Self-pay subscribers of Pandora ended the quarter at 5.6 million. Ad-supported listener hours were 2.22 billion in the first quarter, down 6% year over year. Advertising revenue per thousand listener hours decreased 4% year over year to $84.11.
SIRI's Q1 Operating Details
In the first quarter, total operating expenses decreased 3% year over year to $1.64 billion, primarily backed by impairment, restructuring and other costs of $6 million compared with $48 million in the prior-year period.
Profitability improved on a combination of modest top-line growth and cost control. Adjusted EBITDA increased 6% year over year to $666 million, and adjusted EBITDA margin expanded 140 basis points to 32.0%, reflecting lower customer service, product and technology, and general and administrative expenses.
Management also reiterated its 2026 focus on efficiency, noting $45 million of progress toward a targeted $100 million in incremental gross cost savings for the year. The cost program included $27 million in operating expense run-rate savings and $18 million in capital expenditure savings.
Balance Sheet & Cash Flow of SIRI
As of March 31, 2026, cash and cash equivalents were $75 million compared with $94 million as of Dec. 31, 2025, according to the company's consolidated balance sheet.
Long-term debt as of March 31, 2026, was $9.69 billion compared with $8.65 billion as of Dec. 31, 2025.
During the quarter, Sirius XM completed a $1.25 billion refinancing, retired all 2026 notes and redeemed $250 million of 2027 notes, while returning $113 million to its shareholders through $91 million in dividends and $22 million in share repurchases.
For the first quarter, cash flow from operations was $271 million compared with $242 million in the year-ago quarter.
Free cash flow totaled $171 million, more than tripling from $56 million in the prior-year period, driven by higher adjusted EBITDA and lower capital expenditures.
SIRI Reaffirms 2026 Guidance
SIRI reaffirmed its full-year 2026 outlook, projecting revenues of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.35 billion.
The company also reiterated its longer-term target of $1.5 billion in free cash flow in 2027, reflecting a continued focus on operational efficiency and cash flow conversion.
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Sirius XM Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Stock Up
Key Takeaways
Sirius XM Holdings (SIRI - Free Report) stock edged up 1% after its April 30, 2026, earnings announcement, modestly outpacing the 1% drop seen across the Zacks Broadcast Radio and Television industry.
The company reported first-quarter 2026 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 70 cents by 2.86%. It reported earnings of 59 cents per share in the year-ago quarter.
The company reported total revenues of $2.09 billion, up 1.1% from $2.07 billion in the year-ago quarter and beat the Zacks Consensus Estimate by 0.89%.
Subscriber revenues (77% of total revenues) increased 0.62% from the year-ago quarter’s reported figure to $1.61 billion. The figure surpassed the Zacks Consensus Estimate by 0.39%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Advertisement revenues (19.5% of total revenues) increased 3.3% year over year to $407 million, surpassing the Zacks Consensus Estimate by 2.71%.
Equipment revenues (2.0% of total revenues) were flat year over year at $41 million, missing the Zacks Consensus Estimate by 3.59%.
Other revenues (1.5% of total revenues) were flat year over year at $31 million, surpassing the Zacks Consensus Estimate by 4.58%.
Sirius XM Standalone Segment’s Details
Sirius XM’s Standalone segment revenues (76.0% of total revenues) were $1.59 billion, up 1% year over year, driven by higher subscriber revenues from pricing actions.
Subscriber revenues increased 0.9% year over year to $1.48 billion, reflecting the impact of recent pricing actions, partially offset by a slightly lower average subscriber base.
Total subscriber base declined 0.3% year over year to 32.78 million.
Advertising revenues were $35 million, down 10% year over year, primarily due to softness in news channels.
Self-pay subscribers decreased 0.3% year over year to 31.23 million. Self-pay net subscriber loss in the reported quarter was 111K compared with a loss of 303K in the year-ago period. Average revenue per user amounted to $14.99, up from $14.86 year over year. Self-pay monthly churn improved to 1.5% from 1.6% in the year-ago period.
Net subscriber loss in the reported quarter was 148K compared with a net loss of 362K in the year-ago period.
Pandora & Off-Platform Details
The Pandora and Off-Platform segment continued to shoulder most of the company’s advertising mix. Segment revenues increased 3% year over year to $501 million, with advertising revenues rising 5% to $372 million, partially offset by a 2% decline in subscriber revenues to $129 million amid a smaller subscriber base.
Self-pay subscribers of Pandora ended the quarter at 5.6 million. Ad-supported listener hours were 2.22 billion in the first quarter, down 6% year over year. Advertising revenue per thousand listener hours decreased 4% year over year to $84.11.
SIRI's Q1 Operating Details
In the first quarter, total operating expenses decreased 3% year over year to $1.64 billion, primarily backed by impairment, restructuring and other costs of $6 million compared with $48 million in the prior-year period.
Profitability improved on a combination of modest top-line growth and cost control. Adjusted EBITDA increased 6% year over year to $666 million, and adjusted EBITDA margin expanded 140 basis points to 32.0%, reflecting lower customer service, product and technology, and general and administrative expenses.
Management also reiterated its 2026 focus on efficiency, noting $45 million of progress toward a targeted $100 million in incremental gross cost savings for the year. The cost program included $27 million in operating expense run-rate savings and $18 million in capital expenditure savings.
Balance Sheet & Cash Flow of SIRI
As of March 31, 2026, cash and cash equivalents were $75 million compared with $94 million as of Dec. 31, 2025, according to the company's consolidated balance sheet.
Long-term debt as of March 31, 2026, was $9.69 billion compared with $8.65 billion as of Dec. 31, 2025.
During the quarter, Sirius XM completed a $1.25 billion refinancing, retired all 2026 notes and redeemed $250 million of 2027 notes, while returning $113 million to its shareholders through $91 million in dividends and $22 million in share repurchases.
For the first quarter, cash flow from operations was $271 million compared with $242 million in the year-ago quarter.
Free cash flow totaled $171 million, more than tripling from $56 million in the prior-year period, driven by higher adjusted EBITDA and lower capital expenditures.
SIRI Reaffirms 2026 Guidance
SIRI reaffirmed its full-year 2026 outlook, projecting revenues of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.35 billion.
The company also reiterated its longer-term target of $1.5 billion in free cash flow in 2027, reflecting a continued focus on operational efficiency and cash flow conversion.
SIRI’s Zacks Rank & Other Stocks to Consider
SIRI currently carries a Zacks Rank #2 (Buy).
Alto Ingredients (ALTO - Free Report) , Central Garden & Pet (CENT - Free Report) and Fox (FOX - Free Report) are some other top-ranked stocks that investors can consider in the broader Consumer Discretionary sector. While Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy), Central Garden & Pet and Fox carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alto Ingredients shares have surged 88.6% year to date. ALTO is set to report its first-quarter 2026 results on May 6.
Central Garden & Pet shares have gained 14.3% year to date. CENT is set to report its second-quarter fiscal 2026 results on May 6.
Fox shares have declined 12.3% year to date. FOX is set to report its third-quarter fiscal 2026 results on May 11.