Sirius XM Q2 Earnings Miss Estimates, Revenues Decline Y/Y

Sirius XM Holdings SIRI reported second-quarter 2025 earnings of 57 cents per share, which missed the Zacks Consensus Estimate of 79 cents. The company reported earnings of 74 cents per share in the year-ago quarter.

Total revenues, on a reported basis, declined 1.8% year over year to $2.14 billion, which beat the consensus mark by 0.30%.

Subscriber revenues (76.2% of total revenues) declined 1.7% from the year-ago quarter to $1.629 billion, surpassing the Zacks Consensus Estimate by 0.86%.

Meanwhile, advertisement revenues (20.2% of total revenues) decreased 2.5% year over year to $432 million. The figure missed the Zacks Consensus Estimate by 0.97%.

Sirius XM Holdings Inc. Price, Consensus and EPS Surprise

 

Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote

Equipment revenues (2.2% of total revenues) decreased 2.1% year over year to $46 million. The figure missed the Zacks Consensus Estimate by 2.27%.

Other revenues (1.4% of total revenues) increased 3.3% year over year to $31 million and beat the Zacks Consensus Estimate by 2.05%.

Sirius XM Standalone Segment's Details

Sirius XM’s Standalone segment’s revenues (75.5% of total revenues) were $1.61 billion, down 1.6% year over year.

Revenues decreased, primarily due to a $21 million or 1.4% year-over-year reduction in subscriber revenues, which amounted to $1.50 billion, reflecting a smaller average base of self-pay subscribers.

Total subscriber base declined 1.4% year over year to 32.80 million, beating the Zacks Consensus Estimate by 0.11%.

Advertising revenues were $38 million, down 11.6% year over year. Equipment revenues declined 2.1% year over year to $46 million. Other revenues increased 3.3% year over year to $31 million.

Self-pay subscribers decreased 0.7% year over year to 31.28 million. Net subscriber loss in the reported quarter was 66K compared with a net loss of 173K in the year-ago period.

Average revenue per user amounted to $15.22, down from $15.24 year over year. The figure beat the Zacks Consensus Estimate by 0.22%.

Pandora & OFF Platform Details

Pandora and the OFF platform’s revenues (24.5% of total revenues) declined 2.6% year over year to $524 million. The decline was primarily due to a 5.8% reduction in subscriber revenues to $130 million and a 1.5% decrease in advertising revenues to $394 million.

Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased by 245K in the second quarter of 2025 to end the period at 5.7 million.

Total ad-supported listener hours were 2.58 billion in the second quarter, down 0.8% year over year. Advertising revenue per thousand listener hours was $85.97, which decreased 13.2% year over year.

SIRI’s Q2 Operating Details

In the second quarter, total operating expenses increased 1.5% year over year to $1.73 billion.

Adjusted EBITDA declined 4.8% year over year to $668 million.

Balance Sheet & Cash Flow of SIRI

As of June 30, 2025, cash and cash equivalents were $92 million compared with $127 million as of March 31, 2025.

Long-term debt, as of June 30, 2025, was $10.1 billion compared with $10.4 billion as of March 31, 2025.

For the second quarter, cash flow from operations was $546 million compared with $242 million in the year-ago quarter.

Free cash flow was $402 million for the reported quarter, up from $56 million reported in the prior-year period.

SIRI Reiterates 2025 Guidance

Revenues are expected to be $8.5 billion. Adjusted EBITDA is projected to be $2.6 billion. Free cash flow is expected to be $1.15 billion.

SIRI’s Zacks Rank & Stocks to Consider

Currently, Sirius XM carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader Consumer Discretionary sector are Accel Entertainment ACEL, The Walt Disney DIS and Acushnet Holdings Corp. GOLF, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Accel Entertainment shares have gained 20.5% year to date. ACEL is set to report its second-quarter 2025 results on Aug. 5.

Shares of Walt Disney have returned 6.8% year to date. DIS is set to report third-quarter fiscal 2025 results on Aug. 6.

Acushnet shares have appreciated 11.9% year to date. GOLF is slated to report its second-quarter 2025 results on Aug. 7.

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This article originally published on Zacks Investment Research (zacks.com).

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