SiriusXM Reports Lower Q2 Earnings Amid Modest Revs

RADIO ONLINE | Thursday, July 31, 2025 | 11:55pm CT

SiriusXM

SiriusXM posted second-quarter 2025 revenue of $2.14 billion, marking a 2% decline from the same quarter in 2024. Net income for the quarter was $205 million, down from $354 million a year ago, while diluted earnings per share fell to $0.57 from $0.74. The company's adjusted EBITDA came in at $668 million, a 5% drop from the prior-year period. However, free cash flow rose 27% to $402 million, driven by lower capital expenditures, payment timing, and the elimination of Liberty Media-related overhead.

SiriusXM CEO Jennifer Witz said the company's strategic shift is showing positive results, citing improved subscriber trends, new content deals, and increased podcasting momentum. "We're seeing deeper engagement from our most loyal listeners and early traction from key performance and operational metrics," Witz said. Chief Financial Officer Tom Barry added that the company is striking a balance between cost control and investment, noting a maintained EBITDA margin and capital reallocation toward high-impact areas. SiriusXM returned $137 million to shareholders during the quarter, including $92 million in dividends and $45 million in share repurchases.

Within its core SiriusXM segment, the company reported revenue of $1.6 billion, a 2% decrease from the same period last year. The decline was largely due to a $21 million reduction in subscriber revenue, attributed to a smaller average base of self-pay subscribers. Average Revenue Per User (ARPU) held steady at $15.22. The SiriusXM subscriber base ended the quarter at approximately 33 million, down 1% from the previous year, though the company noted improvements in its trial funnel and acquisition programs, including partnerships with automotive dealers and electric vehicle manufacturers.

In the Pandora and Off-Platform segment, revenue totaled $524 million, down 3% year-over-year. This included a 6% drop in subscriber revenue and a 2% decrease in advertising revenue. Despite these declines, SiriusXM reported nearly 50% growth in podcast revenue compared to the second quarter of 2024, driven by stronger video and social monetization and the addition of high-profile personalities such as Trevor Noah. The Pandora Plus and Premium services ended the quarter with 5.7 million self-pay subscribers. However, gross margin in this segment declined to 29%, down from 33% a year ago, reflecting reduced demand for music streaming ads, partially offset by improved profitability in podcasting.

The company also reported ongoing efforts to improve advertising performance and efficiency through partnerships with Narrativ and ad tech provider Innovid. SiriusXM introduced AI-generated voice replicas in its AdMaker tool and added enhanced measurement capabilities to support more accurate marketing mix modeling.

Subscriber acquisition costs rose to $107 million, up from $92 million in the prior-year quarter, reflecting increased investment in next-generation chipsets and dealer programs. Meanwhile, sales and marketing expenses declined by 20% to $173 million, and product and technology costs also fell 20% to $48 million. General and administrative expenses increased 23% to $124 million, primarily due to higher legal costs against a favorable insurance recovery in the prior-year period.

Despite the lower earnings and revenue, SiriusXM reaffirmed its full-year 2025 guidance. The company continues to project total revenue of approximately $8.5 billion, adjusted EBITDA of roughly $2.6 billion, and free cash flow of around $1.15 billion. The company also noted that it ended the second quarter with a net debt-to-adjusted EBITDA ratio of 3.8 times and continues to target a long-term leverage ratio in the low-to-mid 3x range.