Sirius XM (SIRI) investor relations material

Executive summary

• Q2 2026 consolidated revenue rose 1% year-over-year to $2.16 billion, with net income up 17% to $239 million and diluted EPS up 23% to $0.70.

• Adjusted EBITDA increased 3% to $691 million, and free cash flow surged 48% to $593 million, reflecting strong operational execution and favorable vendor payment timing.

• Achieved positive net subscriber additions, with 22,000 self-pay net adds—the first positive Q2 in four years—and record-low churn of 1.4%.

• Raised full-year 2026 guidance for revenue, adjusted EBITDA, and free cash flow by $25 million each, citing confidence in business momentum.

• Strategic focus remains on subscription growth, advertising expansion, and leveraging portfolio scale for efficiency and shareholder value.

Financial highlights

• Q2 2026 consolidated revenue: $2.16 billion (+1% YoY); subscription revenue up 1% to $1.6 billion; advertising revenue up 5% to $454 million.

• Adjusted EBITDA reached $691 million (up 3%), with margin expanding to 32%.

• Net income climbed 17% to $239 million; diluted EPS up 23% to $0.70.

• Free cash flow totaled $593 million, up 48% year-over-year.

• Operating expenses decreased 5% year-over-year, driven by lower impairment, restructuring, and other costs.

Outlook and guidance

• Full-year 2026 guidance raised: revenue to $8.525 billion, adjusted EBITDA to $2.625 billion, free cash flow to $1.375 billion.

• Guidance incorporates higher memory costs expected in H2, partially offsetting strong operating performance.

• Expect modestly lower full-year self-pay net additions due to normalization of continuous service and reduced promotional offers.

• SiriusXM subscriber revenue is expected to remain flat as higher ARPU offsets a decline in average subscribers.

• Pandora and Off-platform advertising revenue is expected to grow, driven by podcast and off-platform monetization.