Sirius XM Holdings reported third-quarter 2026 results showing slightly lower revenue but higher net income, adjusted EBITDA and free cash flow. The company also raised its full-year 2026 guidance for revenue, adjusted EBITDA and free cash flow by $25 million each.
Subscriber trends improved: SiriusXM added 5,000 self-pay subscribers, a 45,000 improvement from the year-earlier quarter, while self-pay churn was 1.5%.
Key details
- Revenue: Third-quarter revenue was $2.15 billion, down slightly year over year. The company attributed the decline primarily to lower equipment revenue amid higher memory costs.
- Profitability: Net income rose 7% to $317 million. Adjusted EBITDA increased 3% to $694 million, and the adjusted EBITDA margin widened by one percentage point to 32%.
- Per-share earnings: Diluted earnings per share fell 7% to $0.78 from $0.84. Sirius XM said the decline reflected the accounting treatment of convertible notes, including fair-value adjustments and assumed share dilution.
- Cash flow: Free cash flow advanced 14% to $293 million. The company cited higher adjusted EBITDA, favorable working capital, lower interest expense and reduced capital expenditures.
- Costs: Adjusted EBITDA growth reflected lower programming expenses, more automation in customer care and reduced sales and marketing spending.
- Full-year outlook: Sirius XM raised its 2026 guidance for revenue, adjusted EBITDA and free cash flow by $25 million for each measure. The announcement did not provide the revised full-year target amounts in the supplied release text.
- Separate financial information: Sirius XM Radio LLC said it will post a reconciliation comparing its and the parent company’s balance sheets and operating statements for the period ended September 30, 2026. The subsidiary said the information relates to reporting requirements under its outstanding note agreements.
The quarter’s results show stronger operating profit and cash generation despite slightly lower revenue. The improved self-pay subscriber additions and 1.5% churn rate also point to better subscriber performance than a year earlier.