Sirius XM: Profitability and Content Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy SIRI?
Source: Fool
- Sustained Profitability: Despite a decline in subscribers from a peak of 34.9 million in 2019, Sirius XM generated $9 billion in revenue for 2022, with the latest quarterly ARPU rising from $13.82 to $15.19, indicating successful user value enhancement.
- Content Enrichment: Howard Stern has renewed his contract with Sirius XM for three years, ensuring his presence until at least 2028, while the company has also partnered with popular podcasters to attract younger audiences, enhancing its content competitiveness.
- Dividend Growth Potential: Initiating quarterly dividends in 2016, Sirius XM has increased payouts annually, currently boasting a 5.3% dividend yield and a payout ratio of only 31.7%, indicating strong capacity for shareholder returns and dividend expansion.
- Attractive Valuation: With a forward P/E ratio of just 6.5, Sirius XM's stock is declining even as the market rises, and analysts predict revenue and earnings growth by 2026, suggesting the current stock price is compelling for long-term investment.
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Analyst Views on SIRI
Wall Street analysts forecast SIRI stock price to rise
8 Analyst Rating
2 Buy
2 Hold
4 Sell
Hold
Current: 21.070
Low
18.00
Averages
23.13
High
30.00
Current: 21.070
Low
18.00
Averages
23.13
High
30.00
About SIRI
Sirius XM Holdings Inc. is an audio entertainment company in North America. The Company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network, and a suite of business and advertising solutions. Its segments include Sirius XM and Pandora and Off-platform. The Sirius XM segment features music, sports, entertainment, comedy, talk, news, traffic and news channels and other content, as well as podcasts and infotainment services, in the United States on a subscription fee basis. Sirius XM's packages include live, curated, and certain exclusive and on-demand programming. The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, vehicle speakers or connected devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sirius XM Downgraded to Neutral by Seaport Research
- Downgrade Impact: On February 6, 2026, Seaport Research downgraded Sirius XM from Buy to Neutral and removed its price target; while new revenue and EBITDA guidance appears stable, the expectation of increased self-pay net losses in 2026 led to a muted market response.
- Revenue Performance: Sirius XM reported fourth-quarter revenue of $2.19 billion for 2026, surpassing the $2.17 billion consensus estimate, with the CEO noting a renewed strategic focus post-independence and significant free cash flow growth, indicating business stabilization.
- Subscription Fee Increase: Effective February 24, 2026, the standard rate for the Sirius Marine Voyager subscription will rise by $1.00, and the Platinum audio tier will increase by $1.01, which may impact user retention and overall revenue.
- Market Competition: Despite Sirius XM's investment potential, analysts suggest that certain AI stocks offer greater upside and lower downside risk, indicating a potential decrease in market focus on Sirius XM.
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Berkshire Sells Liberty Live Stock and Reveals Manager Weschler's Stake
Berkshire Hathaway Stock Sale: Berkshire Hathaway sold approximately $27 million worth of Liberty Live Group stock in January.
Investment Manager's Holdings: Berkshire investment manager Ted Weschler and his family own around $22 million in Liberty Live Group stock.
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Three Cheap Stocks Worth Considering Now
- Sirius XM Strong Cash Flow: Despite a decline in subscribers from 34.9 million in 2019 to 33 million, Sirius XM continues to generate ten-figure free cash flow, which it plans to utilize for buybacks and dividends, demonstrating resilience in the market.
- Crocs Revenue Growth Return: After five years of double-digit revenue growth, Crocs is expected to return to growth in 2026, with projected per-share net income of $12.88 to $13.55, indicating its stock trades at 7.1 to 7.5 times forward earnings, reflecting market confidence in its future.
- Comcast Theme Park Growth: While its traditional cable and broadband business faces decline, Comcast's theme park segment achieved 22% revenue growth in the latest quarter, with expectations of 8% growth in both revenue and earnings by 2027, showcasing the effectiveness of its diversification strategy.
- Attractive Market Valuations: Sirius XM and Comcast stocks trade at 6.8 times and 8.6 times forward earnings, respectively, while offering dividend yields of 5.1% and 4.2%, attracting investors seeking value opportunities.
See More
Chou Associates Reduces SiriusXM Holdings Stake
- Share Reduction Details: Chou Associates Management Inc. reduced its stake in SiriusXM Holdings by 292,873 shares in Q4 2025, valued at approximately $6.30 million, indicating a cautious approach towards the stock.
- Holding Proportion Change: As of December 31, 2025, Chou Associates' stake in SiriusXM decreased to 4.06%, which may impact its overall portfolio risk management strategy.
- Company Financial Overview: SiriusXM reported $8.56 billion in revenue and $805 million in net income for 2025, with a dividend yield of 5.02%, demonstrating stable cash flow and profitability.
- Market Performance Analysis: As of February 12, 2026, SiriusXM shares were priced at $21.70, down 11.6% over the past year, underperforming the S&P 500 by 24.47 percentage points, reflecting market concerns about its future growth.
See More
CHECK Capital Increases Stake in Sirius XM by 821,657 Shares
- Stake Increase: According to a SEC filing dated February 6, 2026, CHECK Capital Management increased its stake in Sirius XM by 821,657 shares during Q4 2025, with an estimated transaction value of $17.66 million, indicating confidence in the company's future prospects.
- Ownership Proportion Rise: Following this purchase, CHECK Capital's stake in Sirius XM rose to 1.68%, making it a significant part of its $3.44 billion reportable U.S. equity assets, reflecting the diversity of its investment portfolio.
- Financial Performance: As of February 5, 2026, Sirius XM shares were priced at $22.60, down 8.1% over the past year; however, the company achieved a 37% increase in free cash flow to $1.24 billion in 2025, indicating a recovery in profitability.
- Dividend Yield: Sirius XM currently offers a 4.9% dividend yield, with approximately 29.3% of its free cash flow allocated to dividend payments in 2025, suggesting the company is capable of consistently returning value to shareholders while reducing its outstanding share count.
See More
SiriusXM Q4 Mixed Results, Subscriber Loss Weighs on Stock
- Earnings Overview: SiriusXM reported mixed fiscal Q4 2025 results with total revenue of $2.19 billion remaining flat year-over-year but slightly exceeding analyst expectations, while GAAP earnings significantly missed estimates, indicating pressure on profitability.
- Subscriber Loss Concern: The company lost 301,000 self-pay subscribers in Q4, raising serious concerns about future revenue stability and highlighting challenges in customer retention amid increasing competition in the streaming sector.
- Stock Performance: Following the earnings report, SiriusXM shares initially gained but fell 2.61% to $22.02 due to the subscriber loss revelation, reflecting market worries about the company's future outlook.
- Technical Analysis: Currently, SiriusXM's stock is trading 3.6% above its 20-day simple moving average but 0.2% below its 100-day average, indicating short-term strength while facing long-term challenges, with key support at $20.50, where a drop could lead to further declines.
See More
Sirius XM Downgraded to Neutral by Seaport Research
- Downgrade Impact: On February 6, 2026, Seaport Research downgraded Sirius XM from Buy to Neutral and removed its price target; while new revenue and EBITDA guidance appears stable, the expectation of increased self-pay net losses in 2026 led to a muted market response.
- Revenue Performance: Sirius XM reported fourth-quarter revenue of $2.19 billion for 2026, surpassing the $2.17 billion consensus estimate, with the CEO noting a renewed strategic focus post-independence and significant free cash flow growth, indicating business stabilization.
- Subscription Fee Increase: Effective February 24, 2026, the standard rate for the Sirius Marine Voyager subscription will rise by $1.00, and the Platinum audio tier will increase by $1.01, which may impact user retention and overall revenue.
- Market Competition: Despite Sirius XM's investment potential, analysts suggest that certain AI stocks offer greater upside and lower downside risk, indicating a potential decrease in market focus on Sirius XM.
See More
Berkshire Sells Liberty Live Stock and Reveals Manager Weschler's Stake
Berkshire Hathaway Stock Sale: Berkshire Hathaway sold approximately $27 million worth of Liberty Live Group stock in January.
Investment Manager's Holdings: Berkshire investment manager Ted Weschler and his family own around $22 million in Liberty Live Group stock.
See More
Three Cheap Stocks Worth Considering Now
- Sirius XM Strong Cash Flow: Despite a decline in subscribers from 34.9 million in 2019 to 33 million, Sirius XM continues to generate ten-figure free cash flow, which it plans to utilize for buybacks and dividends, demonstrating resilience in the market.
- Crocs Revenue Growth Return: After five years of double-digit revenue growth, Crocs is expected to return to growth in 2026, with projected per-share net income of $12.88 to $13.55, indicating its stock trades at 7.1 to 7.5 times forward earnings, reflecting market confidence in its future.
- Comcast Theme Park Growth: While its traditional cable and broadband business faces decline, Comcast's theme park segment achieved 22% revenue growth in the latest quarter, with expectations of 8% growth in both revenue and earnings by 2027, showcasing the effectiveness of its diversification strategy.
- Attractive Market Valuations: Sirius XM and Comcast stocks trade at 6.8 times and 8.6 times forward earnings, respectively, while offering dividend yields of 5.1% and 4.2%, attracting investors seeking value opportunities.
See More
Chou Associates Reduces SiriusXM Holdings Stake
- Share Reduction Details: Chou Associates Management Inc. reduced its stake in SiriusXM Holdings by 292,873 shares in Q4 2025, valued at approximately $6.30 million, indicating a cautious approach towards the stock.
- Holding Proportion Change: As of December 31, 2025, Chou Associates' stake in SiriusXM decreased to 4.06%, which may impact its overall portfolio risk management strategy.
- Company Financial Overview: SiriusXM reported $8.56 billion in revenue and $805 million in net income for 2025, with a dividend yield of 5.02%, demonstrating stable cash flow and profitability.
- Market Performance Analysis: As of February 12, 2026, SiriusXM shares were priced at $21.70, down 11.6% over the past year, underperforming the S&P 500 by 24.47 percentage points, reflecting market concerns about its future growth.
See More
CHECK Capital Increases Stake in Sirius XM by 821,657 Shares
- Stake Increase: According to a SEC filing dated February 6, 2026, CHECK Capital Management increased its stake in Sirius XM by 821,657 shares during Q4 2025, with an estimated transaction value of $17.66 million, indicating confidence in the company's future prospects.
- Ownership Proportion Rise: Following this purchase, CHECK Capital's stake in Sirius XM rose to 1.68%, making it a significant part of its $3.44 billion reportable U.S. equity assets, reflecting the diversity of its investment portfolio.
- Financial Performance: As of February 5, 2026, Sirius XM shares were priced at $22.60, down 8.1% over the past year; however, the company achieved a 37% increase in free cash flow to $1.24 billion in 2025, indicating a recovery in profitability.
- Dividend Yield: Sirius XM currently offers a 4.9% dividend yield, with approximately 29.3% of its free cash flow allocated to dividend payments in 2025, suggesting the company is capable of consistently returning value to shareholders while reducing its outstanding share count.
See More
SiriusXM Q4 Mixed Results, Subscriber Loss Weighs on Stock
- Earnings Overview: SiriusXM reported mixed fiscal Q4 2025 results with total revenue of $2.19 billion remaining flat year-over-year but slightly exceeding analyst expectations, while GAAP earnings significantly missed estimates, indicating pressure on profitability.
- Subscriber Loss Concern: The company lost 301,000 self-pay subscribers in Q4, raising serious concerns about future revenue stability and highlighting challenges in customer retention amid increasing competition in the streaming sector.
- Stock Performance: Following the earnings report, SiriusXM shares initially gained but fell 2.61% to $22.02 due to the subscriber loss revelation, reflecting market worries about the company's future outlook.
- Technical Analysis: Currently, SiriusXM's stock is trading 3.6% above its 20-day simple moving average but 0.2% below its 100-day average, indicating short-term strength while facing long-term challenges, with key support at $20.50, where a drop could lead to further declines.
See More
