Sirius XM’s third quarter was marked by subscriber stability and operational efficiency, prompting a positive market response. Management emphasized improved self-pay net additions and a focus on customer lifetime value as key factors supporting the company’s positioning. CEO Jennifer Witz noted, “We delivered positive self-pay net additions, improved churn year-over-year, and maintained stable ARPU, reflecting continued stabilization in our subscription business.” Investments in differentiated content and broader household access, alongside disciplined cost management, were central to the quarter’s results.
Is now the time to buy SIRI? Find out in our full research report (it’s free for active Edge members).
Sirius XM (SIRI) Q3 2026 highlights:
- Revenue $2.15 billion vs S&P analysts’ estimates of $2.16 billion (flat year on year, in line)
- Adjusted EPS $0.90 vs S&P analysts’ estimates of $0.79 (13.7% beat)
- Adjusted EBITDA $694 million vs analyst estimates of $664.8 million (32.2% margin, 4.4% beat)
- EBITDA guidance $2.65 billion at the midpoint for the full year, in line with analyst expectations
- Operating margin 22.2%, in line with the same quarter last year
- Subscribers 38.37 million, in line with the same quarter last year
- Market capitalization $9.76 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Sirius XM’s Q3 earnings call
- Sebastiano Petti (JPMorgan) asked about the timing and rationale behind shifting to higher lifetime value subscribers. CEO Jennifer Witz explained the focus is on building a more durable, engaged subscription base, noting, “Success is that we have stable to slightly improving subscription revenue overall.”
- Bryan Kraft (Deutsche Bank) inquired about the ongoing contribution of Companion plans and the YouTube Audio partnership’s impact on advertising. Witz confirmed continued expansion of Companion plans and Scott Walker described the YouTube deal as an “aggregated audience play…bringing more sell-through and pricing opportunity.”
- Steven Cahall (Wells Fargo) questioned top-of-funnel subscriber trends and the role of new product bundles. Witz highlighted new programs like Sports Pass and partnerships with Verizon and T-Mobile as ways to broaden demand beyond the traditional in-car channel.
- Jessica Reif Ehrlich (Bank of America) sought clarity on advertising revenue trends and margin outlook for Q4. CFO Zac Coughlin explained that stable core advertising was offset by equipment cost headwinds, while some margin pressure in Q4 is linked to targeted marketing investments.
- Jason Bazinet (Citi) asked about the potential expansion and risks of Companion plans. Witz responded that further expansion is being considered, with close monitoring for possible cannibalization, while Coughlin noted ARPU stability despite the changing mix.
Catalysts in upcoming quarters
In the coming quarters, our analyst team will be closely monitoring (1) the pace of adoption and retention benefits from Companion and extended dealer plans, (2) the commercialization and revenue impact of the YouTube Audio advertising partnership, and (3) margin trends as Sirius XM balances cost savings with renewed investments in content and marketing. The company’s ability to navigate subscriber quality initiatives, digital ad scaling, and cost management will be key signposts for sustained performance.
Sirius XM currently trades at $28.99, up from $27.32 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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