Sirius XM (SIRI) posted a free-cash-flow target of $1.5 billion for 2026 and detailed a cost-savings initiative aimed at $100 million in gross savings this year during its presentation at the Goldman Sachs Communacopia + Technology Conference on September 9, 2026.
Chief Executive Officer Jennifer Witz said the company generated $1.25 billion in free cash flow last year and expects $1.375 billion in 2025. The stock rose about 34% over the prior six months and traded at roughly $29.45 on the day of the conference, giving Sirius XM a market capitalization of approximately $9.7 billion, a price-to-earnings ratio of 11.5 and a dividend yield of 3.8%.
Witz highlighted that ad revenue grew 5% in the second quarter, adding that Sirius XM holds about a 10% share of the estimated $18 billion U.S. audio advertising market. Call-center expenses fell 25% year over year as part of the cost-savings program. The company's free-cash-flow yield stands at roughly 16%.
Satellite capital expenditures are expected to approach zero by 2028 and beyond, Witz said. The company holds 25 megahertz of S-band spectrum, which serves about 35 million subscribers in the United States and Canada, along with 5 megahertz of WCS blocks acquired in 2024.
Sirius XM launched a 360-degree listening experience late in 2024. The platform has penetrated about 20% of the self-pay base, and the company expects it will be installed in roughly 60% of new car sales by year-end. A companion subscription plan has drawn around 300,000 subscribers, with retention 2 percentage points higher than the standard base. Over 80% of companion-plan users report it adds value, and more than 75% say they are more likely to remain customers.
The company also expanded its partnership with YouTube, which now reaches approximately 255 million monthly listeners—roughly 90% of the U.S. population aged 13 and older. The YouTube initiative is expected to make a small contribution in 2025, with scaling in the second half of 2026.
Sirius XM introduced tiered pricing for its newer packages, including a Sports Pass at $5 per month and an ad-supported music package called Play at $7 per month, alongside standard offerings priced at $20 to $25 per month. The Highway channel reaches 25% of subscribers each month across the 18-to-65 age demographic.
Witz described Sirius XM's competitive position in audio as unique among media platforms, noting that exclusive artist access drives participation, community, loyalty and ultimately growth in both subscription and advertising revenue.
