Sirius XM (NASDAQ:SIRI) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Sirius XM (NASDAQ:SIRI) announced its quarterly earnings results on Thursday. The company reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.70 by $0.02, Zacks reports. The business had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.07 billion. Sirius XM had a return on equity of 8.93% and a net margin of 9.41%.The firm’s revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the company earned $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 Performance

Shares of SIRI stock traded up $0.18 during trading hours on Thursday, reaching $26.94. 8,973,143 shares of the company’s stock were exchanged, compared to its average volume of 5,985,779. Sirius XM has a fifty-two week low of $19.41 and a fifty-two week high of $28.77. The stock has a market capitalization of $9.07 billion, a P/E ratio of 12.03, a P/E/G ratio of 0.71 and a beta of 0.85. The business has a fifty day moving average price of $23.48 and a 200-day moving average price of $21.97. The company has a quick ratio of 0.30, a current ratio of 0.30 and a debt-to-equity ratio of 0.75.

Sirius XM Dividend Announcement

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

Sirius XM News Summary

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

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. AQR Capital Management LLC raised its stake in shares of Sirius XM by 165.2% in the second quarter. AQR Capital Management LLC now owns 5,191,440 shares of the company’s stock valued at $117,327,000 after purchasing an additional 3,233,922 shares in the last quarter. Bank of New York Mellon Corp raised its stake in shares of Sirius XM by 253.8% in the fourth quarter. Bank of New York Mellon Corp now owns 2,019,901 shares of the company’s stock valued at $40,388,000 after purchasing an additional 1,449,036 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Sirius XM by 434.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,740,360 shares of the company’s stock valued at $34,798,000 after purchasing an additional 1,414,426 shares in the last quarter. Two Sigma Investments LP raised its stake in shares of Sirius XM by 270.0% in the third quarter. Two Sigma Investments LP now owns 1,933,521 shares of the company’s stock valued at $45,003,000 after purchasing an additional 1,410,963 shares in the last quarter. Finally, Man Group plc acquired a new position in shares of Sirius XM in the second quarter valued at $19,708,000. 10.69% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

SIRI has been the subject of several research reports. Moffett Nathanson initiated coverage on Sirius XM in a report on Tuesday, January 27th. They set a “neutral” rating and a $21.00 price target for the company. JPMorgan Chase & Co. upgraded Sirius XM from an “underweight” rating to a “neutral” rating and lifted their price target for the company from $20.00 to $24.00 in a report on Tuesday, February 10th. Guggenheim reiterated a “buy” rating and set a $34.00 price target (up from $29.00) on shares of Sirius XM in a report on Friday, April 24th. Rosenblatt Securities upgraded Sirius XM from a “neutral” rating to a “buy” rating and lifted their price target for the company from $24.00 to $46.00 in a report on Thursday, April 23rd. Finally, UBS Group set a $24.00 price target on Sirius XM in a report on Tuesday, February 10th. Four investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, Sirius XM currently has a consensus rating of “Hold” and a consensus target price of $27.44.

Sirius XM Company Profile

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.