SiriusXM Holdings Inc. (NASDAQ:SIRI) stock gained on Thursday after it reported fiscal fourth-quarter 2025 results.
The company noted that subscriber revenue was $1.626 billion for the quarter, down from $1.633 billion year-over-year.
The New York-based company reported a quarterly revenue of $2.19 billion, flat Y/Y, beating the analyst consensus estimate of $2.17 billion.
GAAP EPS of 24 cents missed the analyst consensus estimate of 78 cents; advertising revenue was $491 million, up from $477 million a year ago.
Adjusted EPS of 80 cents topped the analyst consensus estimate of 78 cents.
For the year, SiriusXM self-pay subscribers decreased by 301,000 to 31.35 million total subscribers versus 31.65 million Y/Y.
The self-pay monthly churn for the quarter stood at 1.4%, slightly down from 1.5% a year ago.
SiriusXM segment revenue declined 1% year over year to $1.61 billion during the quarter, driven by the decline in self-pay subscribers offset by an increase in average revenue per user (ARPU).
ARPU increased to $15.17 from $15.11 Y/Y.
SiriusXM segment gross margin declined 100 bps Y/Y to 59% as the gross profit decreased 1% Y/Y.
Pandora segment advertising revenue rose 4% Y/Y to $450 million for the quarter.
For the year, Pandora's Monthly Active Users (MAUs) were 41.11 million, down from 43.34 million a year ago.
The total number of ad-supported listener hours was 2.33 billion in the quarter, down from 2.39 billion Y/Y.
The Pandora segment gross margin expanded by 200 bps Y/Y to 36% for the quarter as the gross profit increased by 8% Y/Y.
The adjusted EBITDA slightly rose to $691 million from $688 million Y/Y.
The net income declined to $99 million, from $287 million Y/Y.
The company generated $541 million in free cash flow in the quarter, compared to $516 a year ago.
As of December 31, it held $94 million in cash and equivalents.
SiriusXM distributed $91 million through dividends and repurchased $46 million in shares, returning $137 million to shareholders during the quarter.
Outlook
SiriusXM now expects a revenue of $8.500 billion (down from prior outlook of $8.525 billion), below the analyst consensus estimate of $8.548 billion.
It now expects an adjusted EBITDA of $2.600 billion (down from prior outlook of $2.625 billion) and a free cash flow of $1.35 billion (down from prior outlook of $2.625 billion).
Elevated Short Float
About 30.8 million shares are currently sold short, representing roughly 15% of the company's publicly tradable shares, a relatively elevated level that suggests notable bearish positioning and the potential for heightened volatility if sentiment shifts.
SIRI Price Action: Sirius XM Holdings shares were up 8.39% at $22.47 during premarket trading on Thursday, according to Benzinga Pro data.
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