SiriusXM reported 31.2 million paid subscribers in the first quarter, down 109,000 subscribers from the year-ago period, and about 33 million total subscribers, which also includes users on a free trial subscription. The total userbase was largely unchanged from a year ago.
The satellite radio company said churn among its user base “remained a standout,” and “improving” to 1.5 percent, which is the lowest first-quarter level in SiriusXM history, according to the company. This came even after the implementation of SiriusXM’s first consecutive annual price increase in February across full-price plans.
The company reported revenue of $2.09 billion, up 1 percent from a year ago, and net income of $245 million. Earnings per diluted common share increased 22% to 72 cents, from 59 cents in the prior-year period. Both came in above Wall Street expectations.
Podcasting was another area of strong performance, with revenue growing 37% year-over-year. This helped drive overall advertising revenue, which was up 5% to $372 million. The total was partially offset by softer advertiser demand in streaming music.
Amid the earnings reports, SiriusXM is reportedly in early talks to merge with iHeartMedia companies, according to sources familiar with the matter. At the start of the earnings call, CEO Jennifer Witz headed off further questions about it, saying the company is “focused on creating long term value for our shareholders.”
“We do not comment on rumors, and we ask that you keep today’s questions focused on our operating and financial performance. Our board and management team are always focused on creating long term value for our shareholders, and will continue to pursue that objective in a thoughtful and disciplined way,” Witz said.
SiriusXM Media also recently announced a partnership with YouTube to serve as the exclusive U.S. advertising representative for YouTube’s audio inventory. This agreement is expected to expand its reach to approximately 255 million monthly listeners starting this fall, according to SiriusXM, with Witz pointing to the fact that many YouTube users often move between listening and watching. The company is co-developing proprietary technology with Google for the ad partnerships.
“We are very focused on this as our opportunity to expand scale,” Witz said on the earnings call.
The company reaffirmed its full-year 2026 guidance, including total revenue of about $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. “In the first quarter, we increased year-over-year subscriber net additions, grew ARPU, and achieved the lowest first-quarter churn on record. Our latest proprietary subscriber satisfaction study delivered the highest scores since its inception, reinforcing the strength of our value proposition. We also significantly enhanced our advertising capabilities through our landmark partnership with YouTube. This strong execution, combined with continued enhancements to our content offering and deeper listener engagement underscores the resilience of our model and positions us well to deliver sustainable long-term value for shareholders.”
More to come.
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