The Associated Press report said the Washington-based company, which has never reported a profit, said it lost $263.1 million, after paying preferred dividends in the final three months of 2006.
That beat a loss of $270.4 million a year ago.
The fourth-quarter loss includes a one-time charge of $57.6 million to reflect the declining value of XM's 23% stake in Canadian Satellite Radio, the report said.
Quarterly revenue increased to $257 million from $177 million a year ago, the report added.
A week ago, XM Satellite and New York-based Sirius Satellite Radio announced a deal to combine their operations, the report further said.