What to Know Before Buying Sirius XM in 2026

Core Viewpoint - Sirius XM has experienced a significant decline in its stock price, dropping 65% over the past five years, which may deter potential investors. However, the company's 37% stake owned by Berkshire Hathaway could attract attention from investors [1]. Financial Performance - Sirius XM reported revenue of $8.6 billion in 2025, a decrease from its peak of $9 billion in 2022. The company ended the year with 31.3 million self-pay subscribers, down from a record high three years ago [5]. - The company's free cash flow (FCF) increased by 24% year over year to $1.26 billion in 2025, with expectations to reach $1.5 billion by 2027 as it nears the end of its satellite-related capital investment cycle [6]. Shareholder Returns - In 2025, Sirius XM paid $365 million in dividends, resulting in a current dividend yield of 5.19%. Additionally, the company repurchased $136 million worth of outstanding shares in the past 12 months [7]. Market Sentiment - Despite the increase in free cash flow, Sirius XM's stock price has declined by 11% over the past year, indicating a lack of confidence from the investment community regarding future growth [8]. - The company trades at a low forward price-to-earnings ratio of 7.4, and without consistent revenue and subscriber growth, significant capital gains may be challenging for investors [10].