Sirius XM beats third quarter 2026 estimates and raises full-year guidance on positive subscriber growth

Sirius XM reported third quarter 2026 results that slightly exceeded revenue and earnings expectations, highlighted by an unexpected turn to positive self-pay subscriber additions. While consolidated revenue was down marginally to $2.15 billion due to lower equipment sales, the company raised its full-year guidance for revenue, Adjusted EBITDA, and free cash flow by $25 million each, citing disciplined cost management and improving subscriber loyalty.

Key Highlights

• Subscriber Surprise: Self-pay net additions reached 5,000, significantly outperforming analyst expectations of a 126,000 contraction and improving by 45,000 year-over-year.
• Margin Expansion: Adjusted EBITDA margin expanded by one percentage point to 32%, supported by a 6% decline in programming costs and a 6% reduction in customer service and billing expenses through automation.
• Advertising Expansion: The YouTube Audio partnership helped expand the company's total advertising reach to 255 million unduplicated monthly listeners, up from 170 million in the prior year.
• Cash Flow Strength: Free cash flow advanced 14% year-over-year to $293 million, driven by favorable working capital and reduced capital expenditures.