Sirius XM misses on earnings despite slight revenue beat

NEW YORK - On Thursday, Sirius XM Holdings Inc. (NASDAQ:SIRI) reported second quarter 2025 earnings that fell short of analyst expectations, despite revenue slightly exceeding estimates.

The company’s shares slipped 0.70% in pre-market trading following the announcement.

The satellite radio and audio entertainment company posted adjusted earnings per share of $0.57, missing the analyst consensus of $0.75 by a significant margin. Revenue came in at $2.14 billion, just above the $2.13 billion analysts had expected, but still representing a 2% decrease compared to the same period in 2024.

Net income totaled $205 million, down from $354 million in the prior-year quarter, reflecting the effects of the modest revenue decline, partially offset by disciplined cost management. The company maintained an adjusted EBITDA margin of 31% for the quarter.

"Our renewed strategic focus continued to deliver this quarter," said Jennifer Witz, Chief Executive Officer. "We achieved meaningful year-over-year subscriber improvements, signed exciting new content agreements, accelerated momentum in podcasting, and unlocked significant cost efficiencies."

SiriusXM’s self-pay subscribers decreased by approximately 68,000 in the second quarter, though this represented an improvement of 32,000 compared to the same period last year. The company ended the quarter with approximately 33 million total subscribers.

Podcasts emerged as a bright spot, with revenue up nearly 50% in the second quarter compared to 2024. The growth was supported by expanded video and social monetization, alongside the addition of high-profile voices like Trevor Noah.

"Our second-quarter results demonstrate the balance we’re achieving between disciplined cost control and strategic investment," said Tom Barry, Chief Financial Officer. "We maintained a healthy EBITDA margin, generated strong free cash flow, and delivered significant cost savings."

The company reaffirmed its full-year 2025 guidance, projecting total revenue of approximately $8.5 billion, in line with analyst consensus of $8.502 billion, along with adjusted EBITDA of approximately $2.6 billion and free cash flow of approximately $1.15 billion.

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