Sirius XM Returns to Positive Subscriber Growth
The satellite radio provider raised its full-year revenue and adjusted EBITDA guidance by $25 million each after a quarter of steady growth.
Sirius XM Holdings (SIRI) reported a return to positive self-pay net additions for the first time in four years.
The satellite radio provider saw a shift in subscriber momentum during the second quarter of 2026, ending a multi-year streak of losses in its self-pay segment. The company added 22,000 self-pay subscribers, a reversal from the 111,000 loss recorded in the first quarter.
Consolidated revenue rose 1% year-over-year to $2.16 billion, matching the growth rate from the previous quarter. Net income increased 17% year-over-year to $239 million, though this represented a slight deceleration from the 20% increase reported in the first quarter.
Adjusted EBITDA grew 3% year-over-year to $691 million, slowing from the 6% growth rate seen in the prior quarter. The adjusted EBITDA margin expanded one percentage point year-over-year to 32%. Free cash flow rose 48% year-over-year to $593 million.
Growth was supported by a record low self-pay monthly churn rate of 1.4% and a 1% increase in average revenue per user to $15.32, resulting from pricing actions taken in February. Within the SiriusXM segment, advertising revenue rose 8% year-over-year to $41 million, while equipment revenue fell 22% due to higher memory costs for hardware modules.
Pandora and Off-Platform revenue increased 4% year-over-year to $543 million. Advertising revenue for that segment rose 5% to $413 million, and the gross margin expanded one percentage point year-over-year to 30%.
Sirius XM raised its full-year 2026 guidance for revenue, adjusted EBITDA, and free cash flow by $25 million each.
The company ended the second quarter with a net debt-to-adjusted EBITDA ratio of 3.4x. This figure meets the company's long-term leverage target of low-to-mid 3x.