We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sirius XM Q2 Earnings Miss Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
Key Takeaways
Sirius XM's Q2 earnings rose 22.8% YoY to 70 cents per share, while revenues increased 1% to $2.16 billion.
Advertising revenues grew 5.1% as podcasting and programmatic demand supported Sirius XM's sales.
Sirius XM raised 2026 revenue, adjusted EBITDA and free cash flow guidance by $25 million each.
Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2026 earnings of 70 cents per share, up 22.8% from 57 cents a year ago. However, the figure missed the Zacks Consensus Estimate of 78 cents by 10.26%.
The company reported total revenues of $2.16 billion, up 1.0% from $2.14 billion in the year-ago quarter and beat the Zacks Consensus Estimate of $2.14 billion by 0.91%. Higher subscription and continued advertising momentum, particularly in podcasting and programmatic advertising, drove the revenue increase, while self-pay churn improved to a record-low 1.4%.
SIRI's Q2 Revenue Mix Shows Broad-Based Growth
Subscriber revenues, representing 75.8% of total revenues, increased 0.6% year over year to $1.64 billion. The improvement reflected pricing actions and better subscriber trends.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Advertising revenues rose 5.1% to $454 million, supported by podcasting, programmatic advertising, technology fees and premium live sports.
Equipment revenues declined 21.7% to $36 million, while other revenues increased 3.2% to $32 million.
Sirius XM’s Subscriber Trends Improve in Q2
In the second quarter, the SiriusXM segment generated revenues of $1.62 billion, relatively unchanged year over year.
Subscriber revenues rose 1% to $1.51 billion as average revenue per user increased 1% to $15.32, benefiting from February pricing actions.
Self-pay subscribers increased by 22,000 during the quarter, an improvement of 90,000 from the year-ago period. Companion subscriptions contributed 123,000 incremental net additions, while continuous service and extended-duration automotive plans also supported performance.
Sirius XM ended the quarter with approximately 33 million total subscribers, broadly stable year over year while improving sequentially.
SIRI's Advertising Business Gains Momentum
In the second quarter, Pandora and Off-Platform revenues increased 4% year over year to $543 million. Advertising revenues advanced 5% to $413 million, driven by strength in podcasting, programmatic demand and technology fees, partly offset by weaker streaming music advertising.
Subscriber revenues were relatively flat at $130 million. Pandora Plus and Pandora Premium ended the quarter with approximately 5.6 million self-pay subscribers, while monthly active users totaled 39.8 million. Segment gross profit increased 6% to $163 million, and gross margin expanded one percentage point to 30%.
Ad-supported listener hours were 2.35 billion, down 9% from 2.58 billion in the year-ago quarter. Advertising revenue per thousand listener hours increased 2% year over year to $87.67.
Sirius XM Expands Margins Through Cost Control
In the second quarter, adjusted EBITDA increased 3.4% year over year to $691 million. The adjusted EBITDA margin expanded 80 basis points to 32%, aided by higher revenues and disciplined expense management, including lower programming, legal and personnel-related costs.
Reported operating expenses declined 4.8% to $1.69 billion, primarily because impairment, restructuring and other costs fell to $6 million from $107 million. However, depreciation and amortization increased 36.4% to $165 million. Other expense was $48 million against other income of $15 million a year earlier, weighing on reported earnings.
Balance Sheet & Cash Flow of SIRI
As of June 30, 2026, cash and cash equivalents were $174 million compared with $94 million as of Dec. 31, 2025.
Long-term debt as of June 30, 2026, was $9.45 billion compared with $8.65 billion as of Dec. 31, 2025. Total debt declined to $9.46 billion from $9.72 billion over the same period.
During the quarter, Sirius XM retired the remaining Delayed Draw Incremental Term Loan. The company also returned $97 million to its shareholders through $91 million in dividends and $6 million in share repurchases. It ended the quarter with a net debt-to-adjusted EBITDA ratio of 3.4 times.
In the second quarter, cash flow from operations was $722 million compared with $546 million in the year-ago quarter.
Free cash flow totaled $593 million in the second quarter, up 48% from $402 million in the prior-year period, driven by higher adjusted EBITDA, lower cash taxes and favorable timing of vendor payments and capital expenditures.
SIRI Raises Its 2026 Financial Outlook
Sirius XM raised its 2026 revenue guidance by $25 million to approximately $8.53 billion. The company also increased its adjusted EBITDA forecast by $25 million to approximately $2.63 billion.
Free cash flow guidance lifted by the same amount ($25 million) to approximately $1.38 billion. The increases reflect management’s confidence in first-half execution, improving subscriber trends and continued cost discipline. Sirius XM remains on pace to generate $100 million in incremental gross cost savings during 2026.
View the Zacks #1 Rank List
Image: Bigstock
Sirius XM Q2 Earnings Miss Estimates, Revenues Increase Y/Y
Key Takeaways
Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2026 earnings of 70 cents per share, up 22.8% from 57 cents a year ago. However, the figure missed the Zacks Consensus Estimate of 78 cents by 10.26%.
The company reported total revenues of $2.16 billion, up 1.0% from $2.14 billion in the year-ago quarter and beat the Zacks Consensus Estimate of $2.14 billion by 0.91%. Higher subscription and continued advertising momentum, particularly in podcasting and programmatic advertising, drove the revenue increase, while self-pay churn improved to a record-low 1.4%.
SIRI's Q2 Revenue Mix Shows Broad-Based Growth
Subscriber revenues, representing 75.8% of total revenues, increased 0.6% year over year to $1.64 billion. The improvement reflected pricing actions and better subscriber trends.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Advertising revenues rose 5.1% to $454 million, supported by podcasting, programmatic advertising, technology fees and premium live sports.
Equipment revenues declined 21.7% to $36 million, while other revenues increased 3.2% to $32 million.
Sirius XM’s Subscriber Trends Improve in Q2
In the second quarter, the SiriusXM segment generated revenues of $1.62 billion, relatively unchanged year over year.
Subscriber revenues rose 1% to $1.51 billion as average revenue per user increased 1% to $15.32, benefiting from February pricing actions.
Self-pay subscribers increased by 22,000 during the quarter, an improvement of 90,000 from the year-ago period. Companion subscriptions contributed 123,000 incremental net additions, while continuous service and extended-duration automotive plans also supported performance.
Sirius XM ended the quarter with approximately 33 million total subscribers, broadly stable year over year while improving sequentially.
SIRI's Advertising Business Gains Momentum
In the second quarter, Pandora and Off-Platform revenues increased 4% year over year to $543 million. Advertising revenues advanced 5% to $413 million, driven by strength in podcasting, programmatic demand and technology fees, partly offset by weaker streaming music advertising.
Subscriber revenues were relatively flat at $130 million. Pandora Plus and Pandora Premium ended the quarter with approximately 5.6 million self-pay subscribers, while monthly active users totaled 39.8 million. Segment gross profit increased 6% to $163 million, and gross margin expanded one percentage point to 30%.
Ad-supported listener hours were 2.35 billion, down 9% from 2.58 billion in the year-ago quarter. Advertising revenue per thousand listener hours increased 2% year over year to $87.67.
Sirius XM Expands Margins Through Cost Control
In the second quarter, adjusted EBITDA increased 3.4% year over year to $691 million. The adjusted EBITDA margin expanded 80 basis points to 32%, aided by higher revenues and disciplined expense management, including lower programming, legal and personnel-related costs.
Reported operating expenses declined 4.8% to $1.69 billion, primarily because impairment, restructuring and other costs fell to $6 million from $107 million. However, depreciation and amortization increased 36.4% to $165 million. Other expense was $48 million against other income of $15 million a year earlier, weighing on reported earnings.
Balance Sheet & Cash Flow of SIRI
As of June 30, 2026, cash and cash equivalents were $174 million compared with $94 million as of Dec. 31, 2025.
Long-term debt as of June 30, 2026, was $9.45 billion compared with $8.65 billion as of Dec. 31, 2025. Total debt declined to $9.46 billion from $9.72 billion over the same period.
During the quarter, Sirius XM retired the remaining Delayed Draw Incremental Term Loan. The company also returned $97 million to its shareholders through $91 million in dividends and $6 million in share repurchases. It ended the quarter with a net debt-to-adjusted EBITDA ratio of 3.4 times.
In the second quarter, cash flow from operations was $722 million compared with $546 million in the year-ago quarter.
Free cash flow totaled $593 million in the second quarter, up 48% from $402 million in the prior-year period, driven by higher adjusted EBITDA, lower cash taxes and favorable timing of vendor payments and capital expenditures.
SIRI Raises Its 2026 Financial Outlook
Sirius XM raised its 2026 revenue guidance by $25 million to approximately $8.53 billion. The company also increased its adjusted EBITDA forecast by $25 million to approximately $2.63 billion.
Free cash flow guidance lifted by the same amount ($25 million) to approximately $1.38 billion. The increases reflect management’s confidence in first-half execution, improving subscriber trends and continued cost discipline. Sirius XM remains on pace to generate $100 million in incremental gross cost savings during 2026.
SIRI’s Zacks Rank & Stocks to Consider
SIRI currently carries a Zacks Rank #3 (Hold).
Take-Two Interactive (TTWO - Free Report) , Fox Corporation (FOXA - Free Report) and Versant Media Group, Inc. (VSNT - Free Report) are some better-ranked stocks worth considering within the broader Consumer Discretionary sector. Take-Two Interactive currently sports a Zacks Rank #1 (Strong Buy), while Fox Corp and Versant Media Group carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Take-Two Interactive shares have gained 11.5% in the past six months. TTWO is set to report its first-quarter fiscal 2027 results on Aug. 7.
Fox Corp shares have fallen 18.7% in the past six months. FOXA is set to report its fourth-quarter fiscal 2026 results on Aug. 6.
Versant Media Group shares have returned 10.5% in the past six months. VSNT is set to report its second-quarter 2026 results on Aug. 6.