SiriusXM Holdings Inc. (NASDAQ:SIRI) stock fell in Thursday’s premarket trading after the satellite radio company reported mixed third-quarter 2026 results, with earnings beating Wall Street expectations but revenue falling short.
SiriusXM Earnings Beat Estimates
SiriusXM reported adjusted earnings of 78 cents per share, beating analysts’ consensus estimate of 77 cents.
The company reported revenue of $2.153 billion, down slightly from $2.159 billion a year earlier and narrowly missing analysts’ consensus estimate of $2.159 billion.
Net income increased 7% to $317 million, although diluted earnings per share declined to 78 cents from 84 cents a year earlier.
Subscriber Growth and Advertising Performance
Subscriber revenue remained largely unchanged at $1.63 billion, while advertising revenue held steady at $456 million.
Equipment revenue declined to $36 million from $43 million, reflecting higher memory costs associated with satellite radio hardware.
The SiriusXM segment generated $1.60 billion in revenue. Average revenue per user remained stable at $15.18 following earlier pricing changes.
Self-pay monthly churn improved to approximately 1.5%. The company added 5,000 self-pay subscribers, an improvement of 45,000 from a year earlier.
Pandora and Off-Platform revenue increased modestly to $549 million.
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Profitability and Cash Flow Improve
Adjusted EBITDA rose 3% year over year to $694 million, supported by lower programming expenses, increased customer service automation and reduced marketing spending.
Free cash flow climbed 14% to $293 million, benefiting from higher earnings, favorable working capital and lower interest and capital expenditures.
Total cost of services declined 1% to $1.02 billion. Gross profit increased approximately 0.7% to $1.14 billion, while gross margin improved to approximately 52.8%.
CEO Jennifer Witz highlighted improving subscriber trends, customer engagement and retention, alongside continued investment in premium content.
CFO Zac Coughlin emphasized stronger cash generation, debt reduction and the company’s focus on maintaining financial flexibility while returning capital to shareholders.
SiriusXM Raises 2026 Revenue Forecast
SiriusXM raised its full-year revenue forecast to approximately $8.55 billion from its previous outlook of $8.525 billion.
However, the revised forecast remains below Wall Street’s consensus estimate of $8.627 billion.
As of Sept. 30, cash and cash equivalents totaled $210 million, up from $94 million at the end of 2025.
Total assets stood at $27.19 billion, while long-term debt declined to $8.07 billion from $8.65 billion at year-end.
SIRI Price Action
SIRI Price Action: Sirius XM Holdings shares were down 2.34% at $26.68 during premarket trading on Thursday, according to Benzinga Pro data.
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