SiriusXM Holdings’ revamped strategy to gain and retain subscribers with lower-cost companion plans and channels by Morgan Wallen and Green Day is bearing green shoots and giving the company enough confidence to raise its 2026 targets, the company said on Thursday (July 30).

SiriusXM added 22,000 net new direct subscribers in the second quarter — its first second-quarter increase in net self-pay subscribers in four years — thanks to a record-low churn rate of 1.4%. Overall second quarter revenue edged 1% higher to $2.16 billion on a 3% increase in adjusted earnings before interest, tax, depreciation and amortization (EBITDA) — to $691 million — and a 48% increase in free cash flow — to $593 million. SiriusXM’s net profit for the quarter rose 17% to $239 million, according to company financials.

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SiriusXM Holdings, which includes in-car satellite radio, Pandora, podcasting and streaming networks, worked and reworked its strategy to stem a persistent net decline in its more than 30 million-strong subscriber base, from big investments in an app, podcasting and premium content to rolling out more subscription plans and raising prices.

“Since resetting our strategy, we’ve been focused on building a stronger, more durable SiriusXM, and our second-quarter performance demonstrates that strategy is delivering meaningful results,” Jennifer Witz, CEO of SiriusXM, said in a statement. “We achieved… strengthened engagement and retention across our subscriber base, and continue to build momentum by delivering premium content… while creating new opportunities for advertisers. These results reflect disciplined execution and give us the confidence to raise our full-year guidance.”

For SiriusXM, subscriber revenue and average revenue per user (ARPU) both increased by 1% to $1.6 billion and $15.32, and advertising revenue grew by 8% to $41 million. Companion subscriptions added 123,000 incremental self-pay net additions in the quarter, having added 124,000 subscriptions in the prior quarter.

Scott Greenstein, president and chief content officer for SiriusXM, said on a call discussing earnings that they have seen significant demand from subscribers for SiriusXM’s sports channels — sports streaming increased by 14% from last year — and its new full-time channels from Green Day and Morgan Wallen.

“[Morgan Wallen’s channel is] our No. 1 most listened-to artist partner channel, and it’s big across all different kinds of demographics,” Greenstein said, adding that in-car monthly listeners of the channel have grown by more than 20% since its April launch. “It’s probably the strongest artist channel we’ve launched this decade.”

With listener demand for recent sports events like the FIFA World Cup, SiriusXM launched a new sports-only subscription this week called Sports Pass, which costs $5 a month and provides access to the company’s complete sports lineup.

Pandora and what the company calls off-platform revenue rose by 4% to $543 million, with ad revenue
rising 5% to $413 million, as growth in podcasting, demand for programmatic and tech fees offset lower demand for streaming music advertising. Subscriber revenue from its 5.6 million self-pay subscribers was flat at $130 million.

Executives raised the company’s full-year 2026 guidance by $25 million each for revenue, adjusted EBITDA, and free cash flow to about $8.525 billion, $2.625 billion and $1.375 billion, respectively.

Here are the highlights:

  • Second quarter revenue rose 1% year over year to $2.16 billion. 
  • Net income rose 17% to $239 million, and diluted earnings per share were up 23% to $0.70. 
  • Adjusted EBITDA grew 3% to $691 million, with adjusted EBITDA margin expanding one percentage point to 32%. 
  • Free cash flow increased 48% to $593 million. 
  • SiriusXM recorded 22,000 self-pay net additions, its first positive second-quarter result in four years, supported by a record-low self-pay churn rate of 1.4%. 
  • SiriusXM raised its full-year revenue, adjusted EBITDA and free cash flow guidance by $25 million each, to approximately $8.525 billion, $2.625 billion and $1.375 billion, respectively. 
  • Companion subscriptions contributed 123,000 incremental self-pay net additions during the quarter, alongside continued benefits from the company’s continuous service initiative and automotive dealer extended-duration plans. 
  • Sirius XM advertising revenue increased 8% overall to $454 million.