Sirius XM (SIRI) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and full-year 2025 results, exceeding guidance with $8.56 billion in revenue, $805 million net income, $2.67 billion adjusted EBITDA, and $1.26 billion free cash flow, up 24% year-over-year.

• Strengthened subscription and advertising offerings, expanded exclusive content, and maintained leadership in digital audio and podcasting.

• Surpassed cost savings targets, achieving $250 million in incremental gross cost savings and improving balance sheet strength.

• Maintained a scaled audience with 170 million listeners and the #1 podcast network in the U.S.

• Returned $501 million to shareholders through dividends and share repurchases.

Financial highlights

• Full-year 2025 revenue was $8.56 billion (down 2% year-over-year), modestly ahead of raised guidance.

• Adjusted EBITDA was $2.67 billion (31% margin), down 2% year-over-year but slightly above guidance.

• Net income was $805 million, reversing a prior year loss of $2.08 billion due to a previous impairment charge.

• Free cash flow for the year was $1.26 billion, up 24% year-over-year and exceeding guidance by over $100 million.

• Q4 revenue was $2.19 billion, flat year-over-year; Q4 Adjusted EBITDA was $691 million.

Outlook and guidance

• 2026 revenue expected at ~$8.5 billion and Adjusted EBITDA at ~$2.6 billion, both flat year-over-year.

• Free cash flow projected to grow to ~$1.35 billion in 2026, targeting $1.5 billion by 2027.

• Additional $100 million in gross cost savings expected in 2026, for a cumulative $350 million run rate.

• Self-pay net adds expected to be modestly lower in 2026 due to timing of companion subscriptions.

• Maintaining a low-to-mid 3x leverage ratio.