Sirius XM Q3 revenue slightly misses estimates on lower equipment sales

Overview

• Audio entertainment provider's Q3 revenue down slightly yr/yr, slightly missing analyst expectations

• Net income for Q3 rose 7% yr/yr, while adjusted EBITDA grew 3%

• Company raised full-year 2026 guidance for revenue, adjusted EBITDA and free cash flow

Outlook

• Sirius XM raises 2026 full-year revenue guidance to about $8.55 bln

• Company lifts 2026 adjusted EBITDA forecast to about $2.65 bln

• Sirius XM now sees 2026 free cash flow at about $1.40 bln

Result Drivers

• EQUIPMENT REVENUE DECLINE - Co said lower equipment revenue due to higher memory costs was the main reason for slight yr/yr revenue decrease

• COST MANAGEMENT - Adjusted EBITDA growth and margin expansion attributed to lower programming expenses, greater automation in customer care and reduced sales and marketing spending, per CFO Zac Coughlin

• SUBSCRIBER STABILIZATION - Co said improved self-pay net additions and lower self-pay churn reflected growing adoption of companion subscriptions and continuous service initiatives

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the broadcasting peer group is "buy."

• Wall Street's median 12-month price target for Sirius XM Holdings Inc. is $32.00, about 17.1% above its October 28 closing price of $27.32

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)