Sirius XM (SIRI) investor relations material

Executive summary

• Revenue for Q1 2026 grew 1% year-over-year to $2.09 billion, with net income up 20% to $245 million and diluted EPS up 22% to $0.72.

• Adjusted EBITDA increased 6% to $666 million, with margin expanding 140 basis points to 31.9%–32%.

• Free cash flow more than tripled year-over-year to $171 million, driven by higher EBITDA and lower capital expenditures.

• Subscriber net additions improved, with self-pay net losses of 111,000, a 192,000 improvement from the prior year, and churn at a record low of 1.5%.

• Strategic partnerships, notably with YouTube, and expanded content offerings contributed to engagement and advertising growth.

Financial highlights

• Subscription revenue up 1% to $1.6–$1.61 billion; advertising revenue up 3% to $407 million, with podcasting ad revenue up 37%.

• SiriusXM segment revenue grew 1% to $1.59–$1.6 billion; Pandora and Off-Platform revenue up 3% to $501 million.

• SiriusXM gross profit rose 3% to $966 million, with gross margin expanding to 61%.

• Net income rose 20% to $245 million; EPS up 22% to $0.72.

• Free cash flow increased from $56 million to $171 million year-over-year.

Outlook and guidance

• Reaffirmed 2026 full-year guidance: total revenue ~$8.5 billion (flat vs. 2025), adjusted EBITDA ~$2.6 billion (flat), and free cash flow ~$1.35 billion (up vs. 2025).

• Targeting $1.5 billion in free cash flow for 2027.

• Fundamentals remain strong: durable subscription model, predictable cash generation, and leading ad technology.

• On track to achieve leverage ratio of low-to-mid 3x by end of 2026.

• SiriusXM subscriber revenue expected to remain flat as ARPU growth offsets subscriber declines.