Sirius XM's Q1 Earnings Miss Estimates, Revenues Decline Y/Y

Sirius XM Holdings SIRI reported first-quarter 2025 earnings of 59 cents per share, which missed the Zacks Consensus Estimate of 70 cents. The company reported earnings of 63 cents per share in the year-ago quarter.

Total revenues, on a reported basis, declined 4.3% year over year to $2.06 billion and missed the consensus mark by 0.72%.

Subscriber revenues (77.5% of total revenues) declined 4.6% from the year-ago quarter to $1.602 billion, missing the Zacks Consensus Estimate by 0.25%.

Meanwhile, advertisement revenues (19.1% of total revenues) decreased 2% year over year to $394 million. The figure missed the Zacks Consensus Estimate by 0.61%. 

Equipment revenues (2% of total revenues) decreased 18% year over year to $41 million. The figure missed the Zacks Consensus Estimate by 9.81%.

Other revenues (1.5% of total revenues) increased 3.3% year over year to $31 million and beat the Zacks Consensus Estimate by 5.14%.

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Sirius XM Holdings Inc. Price, Consensus and EPS Surprise

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

Sirius XM Standalone Details

The Sirius XM Standalone segment’s revenues (76.5% of total revenues) were $1.58 billion, down 5.2% year over year. 

Total subscriber base declined 1.7% year over year to 32.86 million, beating the Zacks Consensus Estimate by 0.01%.

Revenues declined due to a 5% drop in subscriber revenues, which amounted to $1.47 billion. Advertising revenues were $39 million, down 2.5% year over year. Equipment revenues declined 18% year over year to $41 million. Other revenues increased 3.3% year over year to $31 million.

Self-pay subscribers increased 3% year over year to 31.34 million. Net subscriber loss in the reported quarter was 362K compared with a net loss of 445K in the year-ago period. 

Average revenue per user amounted to $14.86, down 3.3% year over year. The figure missed the Zacks Consensus Estimate by 1.33%. 

Pandora & OFF Platform Details

Pandora and OFF platform’s revenues (23.5% of total revenues) declined 1.6% year over year to $487 million, owing to a 1.9% decrease in advertising revenues, which totaled $355 million. Subscriber revenues decreased 0.8% year over year to $132 million. 

Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased 287K in the first quarter of 2025 to end the period at 5.7 million.

Total ad-supported listener hours were 2.35 billion in the first quarter, down 5.6% year over year. Advertising revenue per thousand listener hours was $87.23, which decreased 4% year over year.

SIRI’s Operating Details

In the first quarter, total operating expenses decreased 4.1% year over year to $1.68 billion. 

Adjusted EBITDA declined 3.2% year over year to $629 million.

Balance Sheet & Cash Flow of SIRI

As of March 31, 2024, cash and cash equivalents were $127 million compared with $162 million as of Dec. 31, 2024.

Long-term debt, as of March 31, 2025, was $10.4 billion compared with $10.3 billion as of Dec. 31, 2024.

For the first quarter, cash flow from operations was $242 million compared with $264 million in the year-ago quarter.

Free cash flow was $56 million for the reported quarter, down from $88 million reported in the prior-year period. 

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.

Zacks Rank & Stocks to Consider

Currently, Sirius XM carries a Zacks Rank #3 (Hold).

Atlanta Braves Holdings, Inc. BATRK, Fox FOXA and Gray Media Inc. GTN are some better-ranked stocks that investors can consider in the Zacks Consumer Discretionary sector. BATRK, FOXA and GTN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of BATRK have gained 4.1% year to date. IT is set to report first-quarter 2025 results on May 12.

Shares of Fox have inched up 1.3% year to date. FOXA is slated to report third-quarter fiscal 2025 results on May 12.

Shares of GTN have gained 6.1% year to date. It is set to report first-quarter 2025 results on May 8.

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

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