Sirius XM Holdings Inc. reported first‑quarter 2026 revenue of $2.09 billion, a 1% year‑over‑year increase that beat the consensus estimate of $2.07 billion by $20 million (0.9%). Diluted earnings per share rose to $0.72 from $0.59 a year earlier, exceeding the $0.70–$0.71 consensus by $0.01–$0.02 (1.4%–3.5%). The beat was driven by disciplined cost control and a favorable mix shift toward higher‑margin satellite‑radio and advertising‑driven Pandora revenue.
The satellite‑radio segment generated $1.590 billion, up 1% from $1.590 billion a year earlier, while the Pandora and off‑platform segment produced $501 million, a 3% increase from $486 million in Q1 2025. The stronger advertising mix, especially a 37% jump in podcasting ad revenue, offset modest growth in legacy subscription revenue and helped lift overall margins.
Operating income climbed to $409 million, and adjusted EBITDA reached $666 million, expanding to a 31.9% margin—140 basis points higher than the prior year. Free cash flow, however, was $171 million, more than tripling year‑over‑year from $56 million in Q1 2025, reflecting higher profitability and lower capital spending.
Sirius XM reaffirmed its full‑year 2026 guidance: revenue of $8.50 billion and adjusted EBITDA of $2.6 billion, unchanged from the previous outlook. The steady guidance signals management’s confidence in maintaining profitability while pursuing growth in its 360L streaming platform and podcasting business, even as subscriber growth remains modest.
Market reaction was muted, with the stock falling about 4% in pre‑market trading. Investors cited the flat revenue guidance and ongoing subscriber challenges as headwinds, tempering enthusiasm for the earnings beat.
Management highlighted the results: CEO Jennifer Witz said the company is “off to a strong start in 2026, executing with focus and discipline” and CFO Zachary Coughlin noted the financial highlights, including revenue of $2.09 billion, adjusted EBITDA of $666 million, net income of $245 million, EPS of $0.72, and free cash flow of $171 million. The executives emphasized continued cost‑control initiatives and a focus on expanding the 360L platform and podcasting revenue.
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