10-Q · April 30, 2026
Sirius XM Holdings Inc. reported Q1 2026 revenues of $2.09 billion, a 1% increase from the prior year, while EPS reached $0.72, also surpassing estimates of $0.71. Management reaffirmed its guidance for revenue and…
Earnings analysis · 10-Q
SIRI earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Sirius XM delivered mixed Q3 results: revenue declined slightly to $2,153 million, operating income fell 3% to $479 million, and diluted EPS declined to $0.78 from $0.84, but adjusted EBITDA rose 3% to $694 million and…
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Sirius XM delivered mixed Q3 results: revenue declined slightly to $2,153 million, operating income fell 3% to $479 million, and diluted EPS declined to $0.78 from $0.84, but adjusted EBITDA rose 3% to $694 million and free cash flow rose 14% to $293 million. SiriusXM subscriber trends and churn improved, while Pandora engagement remained a material weakness, with monthly active users down 7% and listener hours down 10%. Liquidity improved as nine-month operating cash flow reached $1,450 million and total debt declined to $9,323 million, although the company retains substantial debt and contractual commitments.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.78
What stood out
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Revenue stable; net income increased
Q3 revenue was $2,153 million, down $6 million year over year, while net income increased 7% to $317 million. Diluted EPS declined to $0.78 from $0.84, reflecting higher diluted shares of 363 million versus 356 million.
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Adjusted EBITDA expanded 3%
Adjusted EBITDA increased 3% to $694 million from $676 million, supported by lower cost of services, lower sales and marketing expense, and continued cost efficiencies.
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Free cash flow strengthened
Free cash flow increased 14% to $293 million from $257 million. Nine-month free cash flow was $1,057 million, up 48% from $715 million.
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Cash generation improved
Operating cash flow for the first nine months rose to $1,450 million from $1,218 million, while additions to property and equipment declined to $401 million from $509 million. Q3 capex was $166 million versus $175 million.
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SiriusXM retention trends improved
SiriusXM subscriber revenue increased to $1,500 million from $1,497 million, and self-pay monthly churn improved to 1.5% from 1.6%. SiriusXM ending subscribers increased by 46,000 to 32.854 million.
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Liquidity and debt position improved
Cash and cash equivalents increased to $210 million from $94 million at December 31, 2025, while carrying-value total debt declined to $9,323 million from $9,717 million. The company also had $2,000 million available under its Credit Facility.
What to watch
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Pandora engagement continues to weaken
Pandora monthly active users declined 7% to 38.812 million from 41.562 million, while subscribers declined 3% to 5.514 million from 5.691 million. Ad-supported listener hours fell 10% to 2.248 billion.
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Hardware costs pressure equipment economics
SiriusXM equipment revenue declined 16% to $36 million from $43 million, driven by higher memory costs. Management expects equipment revenue to decline further, and SAC per installation increased 15% to $22.36.
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Leverage and fixed commitments remain material
The company remains exposed to substantial fixed obligations: total debt obligations were $9,326 million, cash interest commitments were $1,469 million, and total contractual cash commitments were $14,349 million. Current maturities of debt were $1,250 million at September 30, 2026.
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Pandora royalty litigation remains open
Pandora's music-royalty litigation remains unresolved: on September 30, 2026, the court denied both parties' summary-judgment motions in the Mechanical Licensing Collective case, and the MLC filed a reconsideration motion on October 14, 2026.
Management's outlook
The 10-Q provides no explicit full-year revenue or EPS guidance range. Management expects SiriusXM subscriber revenue and advertising revenue to remain relatively flat, equipment revenue to decline, and Pandora and Off-platform advertising revenue to increase; the quantitative full-year outlook was provided in the earnings release rather than the 10-Q.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.