SiriusXM added paid subscribers sequentially and posted better-than-expected earnings in the first quarter, even as its paid subscriber base shrank slightly year-over-year to 31.2 million, down 109,000 from a year ago. Total subscribers, including trial users, stood at about 33 million and remained essentially flat compared with the prior year.
The company reported revenue of $2.09 billion, up 1% year-over-year, and net income of $245 million. Earnings per diluted share rose 22% to 72 cents from 59 cents, beating Wall Street expectations. Advertising revenue grew 5% to $372 million, driven by a 37% surge in podcasting revenue that offset softer demand in streaming music.
Churn improved to a record-low 1.5% for a first quarter, even after the company’s first back-to-back annual price increase in February. SiriusXM described churn as a “standout” area that continues to improve.
The earnings report comes amid reports that SiriusXM is in early-stage merger discussions with iHeartMedia. CEO Jennifer Witz declined to address the rumors at the start of the earnings call, directing analysts to focus on operating results.
Separately, SiriusXM announced a major partnership with YouTube to become the exclusive U.S. advertising sales representative for YouTube’s audio inventory. The deal, which begins this fall, is expected to give SiriusXM access to approximately 255 million monthly listeners.
The company is co-developing proprietary ad technology with Google.“We are very focused on this as our opportunity to expand scale,” Witz said.
Three key themes define this earnings story. Subscriber trajectory and churn management remains the central question, as investors scrutinize whether Sirius XM can stabilize its subscriber base amid competition from Spotify, Apple Music, and other streaming platforms—any signs of accelerating defections or pricing pressure could weigh heavily on the stock. Streaming transition progress will be closely watched, with analysts looking for evidence that the company's digital initiatives are gaining traction and offsetting legacy satellite radio headwinds. Cost discipline and margin expansion rounds out the narrative, as management's ability to control expenses while investing in content and technology will determine whether the company can deliver sustainable profit growth even if top-line momentum remains challenged.
🔎Outlook: SiriusXM reaffirmed its full-year 2026 guidance, including total revenue of approximately $8.5 billion. “We are off to a strong start in 2026, delivering growth in both revenue and profitability while executing with discipline against our strategic priorities,” Witz said. She highlighted higher subscriber net additions, improved ARPU, record-low churn, and the highest-ever subscriber satisfaction scores.