Key Highlights

  • Diluted EPS of USD 0.78 topped the consensus estimate of USD 0.77, though below USD 0.84 a year earlier.
  • Revenue of USD 2.15 billion landed slightly below the consensus estimate of USD 2.16 billion, nearly flat year over year.
  • Adjusted EBITDA rose 3% to USD 694 million, and free Cash Flow climbed 14% to USD 293 million.
  • 2026 guidance now stands at USD 8.55 billion revenue, USD 2.65 billion adjusted EBITDA, USD 1.4 billion free cash flow.

SiriusXM Holdings Inc. (NASDAQ:SIRI) reported third quarter 2026 Diluted Earnings per Share of USD 0.78, above the consensus estimate of USD 0.77 but below the USD 0.84 posted in the prior year quarter. Total Revenue was USD 2.15 billion against USD 2.16 billion a year earlier, slightly under the consensus estimate of USD 2.16 billion. Net Income increased 7% to USD 317 million from USD 297 million, while diluted shares outstanding rose to 363 million from 356 million.

Cost Cuts, Cash Flow and Subscriber Detail

Total operating expenses fell about USD 24 million, or 2%, as savings in programming, customer service, sales and marketing, and general and administrative lines more than covered higher revenue share costs tied to podcasting and off-platform activity. Adjusted EBITDA reached USD 694 million with the Margin widening one percentage point to 32%. The company has realized USD 96 million of its roughly USD 100 million gross cost savings target for 2026, split between USD 64 million in operating expenses and USD 32 million in capital expenditures.

Free cash flow of USD 293 million brought the nine month total to about USD 1.06 billion, up 48%. The company cut total Debt by USD 100 million and returned USD 124 million through dividends and repurchases.

The SiriusXM segment produced revenue of about USD 1.6 billion and Gross Profit of USD 963 million at a 60% margin. Self-pay net additions were 5,000, an improvement of roughly 45,000 from a year earlier, churn improved to about 1.5%, and average revenue per user held near USD 15.18. Companion plans added approximately 107,000 net additions. Chief Executive Officer Jennifer Witz said average listening time rose 5% and that sales from extended duration dealer programs grew more than 80%.

Pandora and Off Platform revenue was about USD 549 million, with Advertising revenue up 1% to USD 419 million. Podcasting advertising grew 20%, programmatic grew 21% and technology fees grew 11%, offsetting lower streaming music advertising.

Guidance Details and Fourth Quarter Cautions

The company raised each of its three full year guidance metrics by USD 25 million, to roughly USD 8.55 billion of revenue, USD 2.65 billion of adjusted EBITDA and USD 1.4 billion of free cash flow. Non-satellite capital spending is projected at USD 400 million to USD 415 million, and the SXM-12 satellite is scheduled to launch in 2027. Management described a more challenging fourth quarter for self-pay additions as Continuous Service benefits reach their first anniversary, while 2026 self-pay net additions are projected to be roughly flat with 2025.

Metrics to Follow Into Year End

Four items carry numbers or dates. Self-pay net additions, 5,000 in the third quarter, face the fourth quarter pressure management described. The full year targets of USD 8.55 billion revenue and USD 1.4 billion free cash flow can be measured against nine month free cash flow of about USD 1.06 billion. YouTube Audio, which lifted unduplicated monthly reach to about 255 million from 170 million, is described as a modest contributor in 2026 and a more meaningful one in the second half of 2027. Net Leverage of 3.3 times adjusted EBITDA sits within a target of low to mid three times, with about USD 1 billion left on the repurchase authorization.