Sirius XM (NASDAQ:SIRI) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Q1 beat and stronger cash flow — Sirius XM reported EPS of $0.72 vs. $0.70 expected and revenue of $2.09B (+1.1% YoY), with adjusted EBITDA up 6%, net income +20% and free cash flow tripling to $171M while reaffirming a path to ~$1.35B FCF in 2026 and ~$1.5B in 2027.
• Subscriber and advertising momentum plus YouTube deal — Self‑pay net losses narrowed significantly with record low churn (1.5%) and ARPU up to $14.99, while advertising rose ~3% (podcast ads +37%) and SiriusXM secured exclusive U.S. audio ad representation for YouTube, extending reach to ~255M monthly listeners.
• Near‑term EPS headwind from non‑cash depreciation — Decommissioning the FM‑6 satellite will add roughly $60M of incremental non‑cash depreciation in 2026 (≈$3M in Q1), depressing reported net income/EPS despite no cash impact, and spectrum monetization remains a multi‑year, uncertain opportunity.

Sirius XM (NASDAQ:SIRI - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.72 earnings per share for the quarter, topping analysts' consensus estimates of $0.70 by $0.02, Zacks reports. The firm had revenue of $2.09 billion for the quarter, compared to analysts' expectations of $2.07 billion. Sirius XM had a return on equity of 8.93% and a net margin of 9.41%.Sirius XM's revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business posted $0.59 EPS.

Here are the key takeaways from Sirius XM's conference call:

• Subscription momentum — Self‑pay net additions improved to negative 111k (a 192k YoY improvement) with companion plans adding ~124k, first‑quarter churn at a record low 1.5%, and ARPU up 1% to $14.99.
• Advertising acceleration & YouTube deal — Advertising revenue rose 3% to ~$407M (podcast ads +37%), and SiriusXM will be YouTube’s exclusive U.S. audio ad representative, expanding reach to ~255M monthly listeners with a fall launch and a broader ramp into 2027.
• Improving profitability and cash flow — Revenue of $2.09B (+1%), adjusted EBITDA of $666M (+6%), net income +20% and FCF tripled to $171M; company captured $45M toward a $100M 2026 cost‑savings target and reaffirmed 2026 guidance with FCF ~$1.35B and a path to $1.5B in 2027.
• Higher non‑cash depreciation — Decommissioning the FM‑6 satellite shortens its useful life and will drive roughly $60M of incremental non‑cash depreciation in 2026 (about $3M in Q1), which will depress reported net income and EPS despite no cash impact.
• Spectrum optionality under evaluation — Management is pursuing partnership‑first paths to monetize 35 MHz of contiguous 2 GHz spectrum (including 10 MHz WCS blocks), but any monetization is multi‑year, must protect core services and regulatory/OEM commitments, and timing/economics remain uncertain.

Sirius XM Stock Up 0.7%

NASDAQ:SIRI traded up $0.18 on Thursday, hitting $26.94. 8,973,143 shares of the company's stock traded hands, compared to its average volume of 5,985,779. The company has a current ratio of 0.30, a quick ratio of 0.30 and a debt-to-equity ratio of 0.75. Sirius XM has a 1 year low of $19.41 and a 1 year high of $28.77. The firm has a 50-day moving average price of $23.48 and a 200-day moving average price of $21.97. The company has a market cap of $9.07 billion, a PE ratio of 12.03, a price-to-earnings-growth ratio of 0.71 and a beta of 0.85.

Sirius XM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Monday, May 11th will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Monday, May 11th. Sirius XM's payout ratio is 48.21%.

Hedge Funds Weigh In On Sirius XM

Several institutional investors and hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. grew its stake in Sirius XM by 36.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,836 shares of the company's stock valued at $41,000 after acquiring an additional 493 shares in the last quarter. Rossby Financial LCC lifted its holdings in shares of Sirius XM by 57.7% during the 4th quarter. Rossby Financial LCC now owns 1,621 shares of the company's stock valued at $32,000 after buying an additional 593 shares during the last quarter. Itau Unibanco Holding S.A. lifted its holdings in shares of Sirius XM by 31.4% during the 4th quarter. Itau Unibanco Holding S.A. now owns 2,625 shares of the company's stock valued at $52,000 after buying an additional 627 shares during the last quarter. Focus Partners Wealth lifted its holdings in shares of Sirius XM by 5.2% during the 1st quarter. Focus Partners Wealth now owns 16,273 shares of the company's stock valued at $367,000 after buying an additional 800 shares during the last quarter. Finally, Federated Hermes Inc. lifted its holdings in shares of Sirius XM by 2.0% during the 2nd quarter. Federated Hermes Inc. now owns 54,122 shares of the company's stock valued at $1,243,000 after buying an additional 1,059 shares during the last quarter. Hedge funds and other institutional investors own 10.69% of the company's stock.

Analyst Ratings Changes

SIRI has been the topic of a number of analyst reports. Guggenheim reissued a "buy" rating and issued a $34.00 price target (up from $29.00) on shares of Sirius XM in a research note on Friday, April 24th. Weiss Ratings cut Sirius XM from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, February 6th. Rosenblatt Securities raised Sirius XM from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $24.00 to $46.00 in a research note on Thursday, April 23rd. JPMorgan Chase & Co. raised Sirius XM from an "underweight" rating to a "neutral" rating and lifted their price target for the stock from $20.00 to $24.00 in a research note on Tuesday, February 10th. Finally, Barrington Research reissued an "outperform" rating and issued a $28.00 price target on shares of Sirius XM in a research note on Thursday, February 5th. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $27.44.

Sirius XM News Roundup

Here are the key news stories impacting Sirius XM this week:

• Positive Sentiment: Q1 results beat expectations: Sirius XM reported revenue of $2.09B (+1.1% YoY) and GAAP EPS of $0.72, topping consensus by a slight margin — revenue and EPS beats are the primary near‑term catalyst supporting the stock. Article Title
• Positive Sentiment: Heavy bullish options activity: Traders bought ~62,343 call options today (≈+222% vs. typical daily call volume), signaling short‑term bullish positioning by some market participants.
• Neutral Sentiment: Company released its Q1 press release and investor materials (slides/transcript available) — useful for digging into subscriber, advertising, and content trends but not changing the headline beat. Press Release
• Neutral Sentiment: Early merger talks reported with iHeartMedia — a potential strategic consolidation that could materially change long‑term value if it progresses, but currently remains preliminary and uncertain. Article Title
• Neutral Sentiment: Analyst and media pieces compare SIRI to peers (e.g., NFLX) on valuation and growth — these put the Q1 print in context but offer divergent takeaways depending on investor time horizon. Article Title
• Negative Sentiment: Growth remains modest: revenue rose just 1.1% year‑over‑year and the EPS beat was small — that modest top‑line growth may limit multiple expansion versus higher‑growth media peers. Article Title

About Sirius XM

Sirius XM Holdings Inc is a leading audio entertainment company specializing in subscription-based satellite and streaming radio services. Formed in 2008 through the merger of Sirius Satellite Radio and XM Satellite Radio, the company delivers a broad range of programming across music, sports, news, talk and comedy channels. Sirius XM's offerings include exclusive live sports play-by-play, artist-curated music channels, news coverage from major networks and original talk and entertainment series.

Headquartered in New York City, Sirius XM serves listeners throughout the United States and Canada, reaching tens of millions of subscribers.

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