Slides
Page 1
1 SECOND QUARTER 2026 OPERATING AND FINANCIAL RESULTS July 30, 2026
Page 2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about our outlook and our future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning or the negative version of such words or phrases. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. All capitalized terms herein shall have the meaning attributable to them in our Quarterly Report on Form 10-Q for the period ended March 31, 2026 which is filed with the Securities and Exchange Commission (“SEC”) and available at www.sec.gov. The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: Risks Relating to our Business and Operations: We face substantial competition, and that competition has increased over time; our SiriusXM service has suffered a loss of subscribers, and our Pandora ad-supported service has similarly experienced a loss of monthly active users; if our efforts to attract and retain subscribers and listeners, or convert listeners into subscribers, are not successful, our business will be adversely affected; we engage in extensive marketing efforts and the continued effectiveness of those efforts is an important part of our business; we rely on third parties for the operation of our business, and the failure of third parties to perform could adversely affect our business; failure to successfully monetize and generate revenues from podcasts and other non-music content could adversely affect our business, operating results, and financial condition; we may not realize the benefits of acquisitions or other strategic investments and initiatives; and the impact of economic conditions may adversely affect our business, operating results, and financial condition. Risks Relating to our SiriusXM Business: Changing consumer behavior and new technologies relating to our satellite radio business may reduce our subscribers and may cause our subscribers to purchase fewer services from us or to cancel our services altogether, resulting in less revenue to us; a substantial number of our SiriusXM service subscribers periodically cancel their subscriptions and we cannot predict how successful we will be at retaining customers; our ability to profitably attract and retain new subscribers to our SiriusXM service is uncertain; our business depends in part upon the auto industry; failure of our satellites would significantly damage our business; increases in the cost of memory used in our satellite radio modules and other components included in our satellite radios could reduce equipment revenue and adversely affect our business; and our SiriusXM service may experience harmful interference from wireless operations. Risks Relating to our Pandora and Off-platform Business: Our Pandora and Off-platform business generates a significant portion of its revenues from advertising, and reduced spending by advertisers could harm our business; emerging industry trends may adversely impact our ability to generate revenue from advertising; our failure to convince advertisers of the benefits of our Pandora ad-supported service could harm our business; if we are unable to maintain our advertising revenue, our results of operations will be adversely affected; changes to mobile operating systems and browsers may hinder our ability to sell advertising and market our services; and if we fail to accurately predict and play music, comedy or other content that our Pandora listeners enjoy, we may fail to retain existing and attract new listeners. Risks Relating to Laws and Governmental Regulations: Privacy and data security laws and regulations may hinder our ability to market our services, sell advertising and impose legal liabilities; consumer protection laws and our failure to comply with them could damage our business; failure to comply with FCC requirements could damage our business; we may face lawsuits, incur liability or suffer reputational harm as a result of content published or made available through our services; and Increasing interest and expectations regarding sustainable business practices by our various stakeholders and related reporting obligations may expose us to potential liabilities, increased costs, reputational harm, and other adverse effects. Risks Associated with Data and Cybersecurity and the Protection of Consumer Information: If we fail to protect the security of personal information about our customers, we could be subject to costly government enforcement actions and private litigation and our reputation could suffer; we use artificial intelligence in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability and adversely affect our results of operations; and interruption or failure of our information technology and communications systems could impair the delivery of our service and harm our business. Risks Associated with Certain Intellectual Property Rights: Rapid technological and industry changes and new entrants could adversely impact our services; the market for music rights is changing and is subject to significant uncertainties; our Pandora services depend upon maintaining complex licenses with copyright owners, and these licenses contain onerous terms; failure to protect our intellectual property or actions by third parties to enforce their intellectual property rights could substantially harm our business and operating results; and some of our services and technologies use “open source” software, which may restrict how we use or distribute our services or require that we release the source code subject to those licenses. Risks Related to our Capital Structure: While we currently pay a quarterly cash dividend to holders of our common stock, we may change our dividend policy at any time; our holding company structure could restrict access to funds of our subsidiaries that may be needed to pay third party obligations; we have significant indebtedness, and our subsidiaries’ debt contains certain covenants that restrict their operations; and our ability to incur additional indebtedness to fund our operations could be limited, which could negatively impact our operations. Risks Related to the Transactions: We may have a significant indemnity obligation to Liberty Media, which is not limited in amount or subject to any cap, if the transactions associated with the Split-Off are treated as a taxable transaction; we may determine to forgo certain transactions that might otherwise be advantageous in order to avoid the risk of incurring significant tax-related liabilities; we have assumed and are responsible for all of the liabilities attributed to the Liberty SiriusXM Group as a result of the completion of the Transactions, and acquired the assets of SplitCo on an “as is, where is” basis; we may be harmed by securities class actions and derivative lawsuits in connection with the Transactions; it may be difficult for a third party to acquire us, even if doing so may be beneficial to our stockholders; we have directors associated or previously associated with Liberty Media, which may lead to conflicting interests; and our directors and officers are protected from liability for a broad range of actions. Other Operational Risks: If we are unable to attract and retain qualified personnel, our business could be harmed; our facilities could be damaged by natural catastrophes or terrorist activities; the unfavorable outcome of pending or future litigation could have an adverse impact on our operations and financial condition; we may be exposed to liabilities that other entertainment service providers would not customarily be subject to; and our business and prospects depend on the strength of our brands. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2025, which is filed with the SEC and available at www.sec.gov, as updated by our periodic filings with the SEC. The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. 2
Page 3
3 BUSINESS HIGHLIGHTS IMPROVING SUBSCRIBER TRENDS, CHURN AND ENGAGEMENT • Delivered the strongest second-quarter self-pay subscriber performance in four years with 22,000 net additions, an improvement of 90,000 year-over- year, driven by companion subscriptions, continuous service, and extended-duration plans. • Self-pay monthly churn improved to ~1.4%, the lowest level in SiriusXM's history, reflecting the continued benefits of continuous service and lower vehicle-related and non-pay churn, partially offset by slightl higher voluntary churn. • ARPU increased 1% year-over-year to $15.32 reflecting the benefits of February pricing actions. • Deepened subscriber engagement through personalized listening, with OEM subscribers averaging ~24 hours of monthly listening, app users engaging more than twice as much as vehicle-only listeners, and personalized artist station listening up 50% year-over-year. STRONG FINANCIAL PERFORMANCE DRIVES HIGHER GUIDANCE • Raised full-year 2026 guidance for revenue, Adjusted EBITDA, and free cash flow by $25 million across the board, reflecting confidence in first-half execution. • Revenue increased 1% to $2.16 billion, driven by the strength of the subscription business and continued momentum in advertising. • Adjusted EBITDA increased 3% to $691 million, with margins expanding one percentage point to 32%. • Net income improved 17% to $239 million while diluted EPS grew 23% to $0.70. • Free cash flow increased 48% to $593 million, driven by higher Adjusted EBITDA, lower cash taxes as well as favorable timing of vendor payments and capital expenditures. • Returned $97 million to shareholders through dividends and share repurchases, while reaching the company's long-term leverage target of low- to mid-3x net debt-to-Adjusted EBITDA. ADVERTISING MOMENTUM AND SPORTS LEADERSHIP DRIVE GROWTH • Advertising revenue increased 5% year-over-year to $454 million, driven by strength in podcasting, programmatic, technology fees, and premium live sports. • Partnered with Apple to launch its next-generation video podcast advertising experience, enabling dynamic video ad insertion. • Advanced commercialization of YouTube Audio ahead of a broader rollout later this year, with early advertiser campaigns underway. • Reinforced sports leadership with audio coverage of the FIFA World Cup 2026, NFL Draft, NBA Playoffs golf majors, and an extended NASCAR partnership. • Announced Sports Pass and expanded local sports coverage through a new Audacy and WWE® partnership, creating a more comprehensive destination for sports fans.
Page 4
(2)% —% (1)% (3)% 2% 4 Adjusted Operating Expenses Remain Relatively Flat 2Q26 vs 2Q25 EXECUTING OUR COST TRANSFORMATION STRATEGY • On pace to deliver $100 million of incremental gross cost savings in 2026 through ongoing optimization initiatives across customer service, G&A, and satellite and transmission operations. • Captured $29 million of cost savings in the second quarter, including $21 million of operating expense savings and $8 million of capital expenditure savings, bringing year- to-date totals to $48 million and $26 million, respectively. • Total adjusted operating expenses were relatively flat year-over-year, reflecting continued cost discipline and operational efficiency. CREATING EFFICIENCIES TO SUPPORT STRATEGIC INVESTMENT AND LONG-TERM GROWTH $ millions Note: Figures exclude stock-based compensation and legal settlements. Refer to the accompanying earnings release for a reconciliation of SiriusXM's non-GAAP measures to their most directly comparable GAAP measures. (2)% 9% 2% $722 $141 $109 $44 $107 $173 $48 $124 $722 $137 $108 $48 $109 $176 $47 $121 2025 2026 Revenue Share and Royalties Programming and Content Customer Service and Billing TransmissionSubscriber Acquisition Costs Sales and Marketing Product and Technology General and Administrative
Page 5
$262 $204 Satellite CapEx 2024A 2025A 2026E 2027E 2028E 5 AS PREVIOUSLY ARTICULATED, THE COMPANY EXPECTS 2026 NON-SATELLITE CAPEX IN THE ~$400M - $415M RANGE DISCIPLINED CAPITAL INVESTMENT SUPPORTS FUTURE GROWTH • Second quarter CapEx declined to $130 million from $145 million in the prior year period, reflecting lower satellite investment and supporting strong free cash flow growth. • Successfully launched SXM-11 while advancing construction of SXM-12, keeping the next-generation satellite fleet on track. • Non-satellite CapEx remained consistent at $103 million, consistent with the prior year. • A declining capital investment profile is expected to continue supporting long-term free cash flow growth. Satellite Capital Expenditures 2024A — 2028E Note: All CapEx estimates are approximate and have been rounded from internal forecasts. ~$115 ~$50 Near Zero $ millions
Page 6
6 CONSOLIDATED FINANCIAL HIGHLIGHTS
Page 7
Free Cash Flow $402 $593 2Q25 2Q26 Adj. EBITDA $668 $691 2Q25 2Q26 +3% +48% 7 Consolidated Second Quarter Results Earnings Per Common Diluted Share of $0.70 Compared to $0.57 for the second quarter of 2025 SECOND QUARTER 2026 CONSOLIDATED RESULTS TOTAL REVENUE • Revenue grew 1% year-over-year to nearly $2.2 billion, fueled by our strong subscription business and continued growth across advertising. • Subscription revenue of $1.6 billion up 1% from the prior year period and advertising revenue increased 5% to $454 million. ADJUSTED EBITDA • Adjusted EBITDA grew 3% to $691 million with margin expanding one percentage point to 32%. The year-over-year improvement was driven by higher subscription and advertising revenue, along with disciplined expense management, including lower programming, legal and personnel-related costs. NET INCOME AND DILUTED EARNINGS PER SHARE • Net income increased 17% to $239 million from $205 million in the prior year period. Earnings per diluted share rose 23% to $0.70. FREE CASH FLOW • Free cash flow increased 48% to $593 million, due to higher Adjusted EBITDA, lower cash taxes as well as favorable timing of vendor payments and capital expenditures. $ millions Total Revenue $2,138 $2,160 2Q25 2Q26 +1%
Page 8
8 SEGMENT HIGHLIGHTS
Page 9
9 SUBSCRIBER HIGHLIGHTS SECOND QUARTER 2026 SELF-PAY SUBSCRIBER PERFORMANCE SUPPORTED BY VALUE-ORIENTED OFFERINGS • Self-pay net additions were 22,000, an improvement of 90,000 year-over-year, driven by growing adoption of companion subscriptions, continued progress with continuous service and momentum in extended-duration automotive dealer programs, more than offsetting slightly lower conversion rates. • Self-pay monthly churn improved to 1.4%, the lowest level in SiriusXM history, reflecting continued benefits of continuous service and lower vehicle-related and non-pay churn, partially offset by slightly higher voluntary churn. PAID PROMOTIONAL SUBSCRIBERS IMPROVED • Paid promotional net subscriber additions improved to 68,000 from 2,000 in the prior year period, driven by higher vehicle sales. 2025 (303,000) (68,000) (40,000) 110,000 1Q 2Q 3Q 4Q 2026(111,000) 22,000 Total Ending SiriusXM Subscribers Approximately 33 Million Note: Chart reflects SiriusXM self-pay net subscriber additions.
Page 10
Total Revenue $1,614 $1,617 2Q25 2Q26 10 SIRIUSXM SEGMENT SECOND QUARTER 2026 HIGHLIGHTS REVENUE OF ~$1.6 BILLION • SiriusXM segment generated total revenue of $1.6 billion, relatively flat year-over-year. • Subscriber revenue grew 1% to $1.5 billion, driven by a 1% increase in ARPU to $15.32, from $15.22 in the prior year period, reflecting the benefit of our February pricing actions. • Advertising revenue advanced 8% to $41 million, supported by robust advertiser demand across sports, particularly around the FIFA World Cup 2026 and college sports. • Equipment revenue declined 22% year-over year to $36 million, primarily due to higher memory costs associated with hardware modules. GROSS PROFIT OF $981 MILLION • SiriusXM segment gross profit improved 2% to $981 million, from $966 million in the prior year period, while gross margin expanded to 61% from 60%. For the Three Months Ended June 30, 2026 $ millions 2025 2026 Subscriber Revenue $1,499 $1,508 Advertising Revenue $38 $41 Equipment Revenue $46 $36 Other Revenue $31 $32 SECOND QUARTER SIRIUSXM SEGMENT RESULTS $ millions —%
Page 11
Total Revenue $524 $543 2Q25 2Q26 11 PANDORA AND OFF-PLATFORM SEGMENT SECOND QUARTER 2026 HIGHLIGHTS REVENUE OF $543 MILLION • Pandora and Off-Platform segment revenue increased 4% to $543 million. • Advertising revenue now represents 76% of segment revenue compared to 75% in the prior year quarter. • Subscriber revenue of $130 million was relatively flat year-over-year. ADVERTISING REVENUE OF $413 MILLION • Advertising revenue grew 5% year-over-year, driven by strength in podcasting, higher programmatic demand and technology fees, partially offset by softer advertiser demand in streaming music. GROSS PROFIT OF $163 MILLION • Gross profit increased 6% to $163 million from $154 million in the prior year period, while gross margin expanded to 30% from 29%. For the Three Months Ended June 30, 2026 $ millions 2025 2026 Advertising Revenue $394 $413 Subscriber Revenue $130 $130 SECOND QUARTER PANDORA AND OFF- PLATFORM SEGMENT RESULTS $ millions 4%
Page 12
12 INCREASING FULL YEAR 2026 REVENUE, ADJUSTED EBITDA AND FREE CASH FLOW GUIDANCE REVENUE 12 FREE CASH FLOWADJ. EBITDA $8.525B $2.625B $1.375B • All guidance metrics are approximate and represent the company’s expectations for the full-year 2026, other than the company's free cash flow target for 2027. • Adjusted EBITDA and free cash flow are non-GAAP financial measures. The company has not provided a reconciliation of these measures to net income and net cash provided by operating activities, respectively, as the GAAP measures will include special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end. Due to this uncertainty, the company cannot reconcile expected Adjusted EBITDA and free cash flow to their most directly comparable financial measures under GAAP without unreasonable effort. SIRIUSXM INCREASING 2026 FINANCIAL GUIDANCE BY $25 MILLION ACROSS THE BOARD, AND CONTINUES TO TARGET FREE CASH FLOW OF $1.5 BILLION IN 2027.
Page 13
A HOME FOR FANDOM TURNING LISTENING INTO BELONGING ACROSS MUSIC, SPORTS, PODCASTS, NEWS, TALK AND MORE 13 13
Page 14
• Expanded artist-first programming with exclusive channels from Morgan Wallen and Green Day. • Created one-of-a kind experiences with fans joining Kenny Chesney at Flora-Bama, experiencing Hilary Duff's Small Stage Series performance, attending a pre-tour concert with The Black Crowes and Whiskey Myers, enjoying a live SmartLess taping featuring Jonah Hill and celebrating the FIFA World Cup with Carlos Vives. • Delivered marquee moments with the casts of The Devil Wears Prada 2 and Toy Story 5, and an intimate album preview with Olivia Rodrigo. • Strengthened our premium news and podcast portfolio through an expanded ABC News partnership and renewals of hit podcasts including Comedy Bang! Bang! and The School of Greatness. • Reinforced our unparalleled leadership in sports audio through FIFA World Cup coverage, expanded NASCAR rights, marquee golf, NFL Draft and 2026 NBA Playoffs programming, and new talent across MLB and NBA Radio. POWERING FANDOM
Page 15
THANK YOU
Page 16
APPENDIX Note; Dollars and shares in millions, except per share amounts or otherwise stated.
Page 17
17 FREE CASH FLOW RECONCILIATION For the Three Months Ended June 30, 2026 2025 Cash Flow Information Net cash provided by operating activities $722 $546 Net cash used in investing activities $(152) $(162) Net cash used in financing activities $(471) $(419) Free Cash Flow Net cash provided by operating activities $722 $546 Additions to property and equipment $(130) $(145) Sales of other investments $1 $1 Free Cash Flow $593 $402
Page 18
18 ADJUSTED EBITDA RECONCILIATION For the Three Months Ended June 30, 2026 2025 Net income: $239 $205 Add back items excluded from Adjusted EBITDA: Legal settlements and reserves $— $28 Impairment, restructuring and other costs $6 $107 Share-based payment expense $48 $47 Depreciation and amortization $165 $121 Interest expense $112 $116 Other expense (income), net $48 $(15) Income tax expense $73 $59 Adjusted EBITDA $691 $668
Page 19
19 For the Three Months Ended June 30, 2026 2025 Numerator Net income available to common stockholders for basic net income per common share $239 $205 Effect of assumed conversions of convertible notes, net of tax $— $(3) Net income available to common stockholders for dilutive net income per common share $239 $202 Denominator Weighted average common shares outstanding for basic net income per common share 337 338 Weighted average impact of assumed convertible notes — 18 Weighted average impact of dilutive equity instruments 5 1 Weighted average shares for diluted net income per common share 342 357 Net income per common share: Basic $0.71 $0.61 Diluted $0.70 $0.57 Basic net income per common share is calculated by dividing the income available to common stockholders by the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options, restricted stock units and convertible debt) were exercised or converted into common stock, calculated using the treasury stock method. We had no participating securities during the three and six months ended June 30, 2026, and 2025. EARNINGS PER SHARE CALCULATION