Sirius XM Holdings, Inc Bank of America 2026 Media,Communications & Entertainment Conference

Yeah. Thank you for having me.

No, I guess it's what a lucky time to join. If you think about it, three major things that I think are exciting as we look ahead. We've got really the durability of the business model, the opportunities for growth, and optionality. I think maybe if I'll take a moment to rewind backwards to the end of 2024, and we refocused the strategy at that point in time on three major pillars. First off, strengthening the subscription business through elevating the in-car experience, accelerating advertising growth, and leveraging scale to drive efficiencies and shareholder value. You fast-forward now to the first half of the year, and you can see that really paying off. Right? First half of the year, revenue growth of 1% in both business channels growing. EBITDA growth of 5% and free cash flow growth of 67%.

It's really a payoff for the work that began for the end of 2024. If I go back to the three points of what excites me, about having joined now, on the durability side, on the subscriber base, I think if you take a look at our long-term loyal subscriber base, over 50% of our subscribers longer than 10 years, which is remarkable in a subscription model from there. And you can see that in record low churn, that we're putting up record high customer satisfaction, and so the stability that that brings inside of the business. And I was most familiar with that side of the business as a customer for many years before. Then you bring on the point on growth, and I think we see growth in the advertising or the subscription business, which we'll talk about.

But inside of advertising, I think, that's been a pleasant surprise as well to see that we have this second pillar of growth ahead of us. We're growing already. Then you talk about the YouTube business being added on top of there. I think I'm sure we'll talk about that here today.

Yes. I think that's exciting. Then the idea of optionality, this is the new and emerging element of opportunity and shareholder value creation is really the optionality around our spectrum assets and what the opportunities are over time, to take advantage of those. You combine the three of those, and what you end up with is a great shareholder story. We're seeing that this year in the share price already. And I think as we look forward, the opportunity to continue to deliver great value to the shareholders through a number of elements that we have ahead of us.

I think what we're excited about is we see growth in both of our business channels, both subscription and on the advertising. They're a little bit different and probably sized a little bit differently as well. But on the subscription side, the focus on making sure that we continue the work that we've done about driving smart packaging and pricing strategy, that segmentation, driving value across each of those levels for our consumers, building up the ability to take pricing if the market allows. And we see that resulting in both the opportunity to take pricing and retention. So that leading to opportunities for growth on the subscription side, driving stability.

The advertising business, we're already growing the end of this year and the first part of the end of last year and the first part of this year, a few points of growth at that point in time. And then continuing on podcast, programmatic, and those growth pillars. Then you add YouTube on top of that, and I think both of those will lead to growth opportunities for advertising also. So you put the two of those together, and I think we feel great we've got a portfolio of opportunities to be able to grow the business, both of them with growth over that 3- to 5-year window.

Yeah, we feel great about the sustainability of the performance we've seen. I think there was a little, on the subscription side, there was maybe a little bit of timing in the second quarter, not a whole lot. The rest of the business improvements are largely structural. So if we think about what we're doing around adding value, creating the opportunity to take pricing, and leading to the subscription metrics we're seeing, whether it be the churn, as you mentioned, ARPU going up, our internal customer satisfaction metrics all going up. Those are all sort of structural improvements that we're seeing, not tied to timing. If you look down the rest of the P&L, the cost work that we're doing to make sure we're driving efficiencies as we leverage scale, largely speaking, that is structural in nature as well.

I think what that's leading to then is the outcome from a cash flow perspective combined with the decreasing satellite CapEx expenses that are structural as well. As we look forward, I think the performance that we've put up here in the first half of the year, including the second quarter, largely speaking, we're confident we should be able to continue with that strength through the rest of this year and building out into the next couple of years as well.