Sirius XM Q4 Earnings Surpass Estimates, Revenue Stable Y/Y

Sirius XM Holdings SIRI reported fourth-quarter 2025 earnings of 84 cents per share, beating the Zacks Consensus Estimate of 77 cents per share.  The company reported earnings of 83 cents per share in the year-ago quarter. 

The company reported total revenues of $2.19 billion, surpassing the Zacks Consensus Estimate by 0.82%. This compares to year-ago revenues of $2.19 billion. 

Subscriber revenues (74.2% of total revenues) declined 0.43% from the year-ago quarter’s reported figure to $1.63 billion. The figure surpassed the Zacks Consensus Estimate by 0.13%.

Advertisement revenues (22.4% of total revenues) increased 2.9% year over year to $491 million, surpassing the Zacks Consensus Estimate by 3.79%.

Equipment revenues (2.2% of total revenues) increased 14% year over year to $48 million, beating the Zacks Consensus Estimate by 13.32%.

Other revenues (1.3% of total revenues) decreased 22% year over year to $28 million, missing the Zacks Consensus Estimate by 21.43%.

Sirius XM Holdings Inc. Price, Consensus and EPS Surprise

Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote

Sirius XM Standalone Segment's Details

Sirius XM's Standalone segment revenues (73.5% of total revenues) were $1.61 billion, down 1% year over year.

Subscriber revenues decreased 0.3% year over year to $1.49 billion, reflecting the impact of rate increases on certain self-pay plans, partially offset by an increase in subscribers on promotional plans. 

Total subscriber base declined 1% year over year to 32.93 million.

Advertising revenues were $41 million, down 5% year over year.

Self-pay subscribers decreased 1% year over year to 31.35 million from 31.65 million. Self-pay net subscriber additions in the reported quarter were 110,000 compared with 149,000 in the year-ago period. Average revenue per user amounted to $15.17, up from $15.11 year over year. Self-pay monthly churn improved to 1.4% from 1.5% in the year-ago period.

Pandora & Off-Platform Details

Pandora and Off-Platform revenues (26.6% of total revenues) increased 2% year over year to $582 million. The increase was primarily driven by a 4% increase in advertising revenues to $450 million from $434 million, partially offset by a 1% reduction in subscriber revenues to $132 million from $134 million. 

Self-pay subscribers of the Pandora Plus and Pandora Premium services ended the quarter at 5.6 million.

Ad-supported listener hours were 2.33 billion in the fourth quarter, down 3% year over year. Advertising revenue per thousand listener hours decreased 5% year over year to $103.40.

SIRI's Q4 Operating Details

In the fourth quarter, total operating expenses increased 17% year over year to $1.97billion, primarily due to impairment and restructuring costs of $272 million compared with $12 million in the prior-year period.

Adjusted EBITDA increased 0.43% year over year at $691 million, with a margin of 32% compared with 31% in the prior year.

Balance Sheet & Cash Flow of SIRI

As of Dec. 31, 2025, cash and cash equivalents were $94 million compared with $79 million as of Sept. 30, 2025, according to the company's consolidated balance sheet. 

Long-term debt as of Dec. 31, 2025, was $8.65 billion compared with $9.0 billion as of Sept. 30, 2025.

For the fourth quarter, cash flow from operations was $680 million compared with $679 million in the year-ago quarter.

Free cash flow was $541 million for the reported quarter, up 5% from $516 million reported in the prior-year period.

SIRI’s 2026 Guidance

For 2026, the company projects revenues of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.35 billion.

SIRI’s Zacks Rank & Stocks to Consider

SIRI currently carries a Zacks Rank #3 (Hold).

Airbnb ABNB, LiveOne LVO and YETI YETI are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.

Airbnb, LiveOne and YETI presently carry a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Airbnb and LiveOne are set to report their upcoming results on Feb. 12. Yeti is set to report its upcoming results on Feb. 19.

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This article originally published on Zacks Investment Research (zacks.com).

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