Sirius XM Holdings 2025 Q2 Earnings Misses Targets as Net Income Drops 42.1%

Sirius XM Holdings reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company missed analyst expectations as revenue fell slightly short, while earnings per share (EPS) showed a substantial decline compared to estimates. Additionally, Sirius XM reaffirmed its guidance for the full year, maintaining its revenue and adjusted EBITDA targets but acknowledging potential headwinds in the advertising environment. The company remains confident in its strategic priorities and operational execution, anticipating potential benefits from tax-related advantages and reduced capital expenditures.

Revenue
The total revenue of Sirius XM Holdings decreased by 1.9% to $2.11 billion in 2025 Q2, down from $2.15 billion in 2024 Q2.

Earnings/Net Income
Sirius XM Holdings's EPS declined 41.9% to $0.61 in 2025 Q2 from $1.05 in 2024 Q2. Meanwhile, the company's net income declined to $205 million in 2025 Q2, down 42.1% from $354 million reported in 2024 Q2. The EPS results were disappointing, reflecting a significant decline in profitability.

Price Action
The stock price of Sirius XM Holdings has dropped 6.13% during the latest trading day, has tumbled 12.62% during the most recent full trading week, and has tumbled 8.05% month-to-date.

Post Earnings Price Action Review
The strategy of buying Sirius XM Holdings (SIRI) shares after a revenue raise on the financial report release date and holding for 30 days has proven ineffective over the past three years, with a cumulative return of -14.69%. This performance significantly underperformed the market, indicating that the strategy did not yield profitable returns relative to broader market trends. The assumption that revenue raises signal positive future performance is not supported by historical data, as evidenced by the recent earnings report where revenue slightly exceeded estimates, yet the company missed on earnings and experienced declines in net income and EPS. Investors should consider the limitations of this approach and seek alternative strategies for generating positive returns in the future.

CEO Commentary
Jennifer C. Witz - CEO & Director
"The second quarter was a period of great progress... with early momentum associated with our operational improvements and continued strong results across key performance indicators." Witz highlighted a year-over-year improvement in self-pay net adds, attributing this to new acquisition initiatives and low churn. She noted the launch of SiriusXM Play, aimed at price-sensitive customers, and emphasized the strategic investments in content and advertising solutions. Witz expressed confidence in the company's direction, stating, "we are committed to delivering even greater value to our dedicated customers," positioning SiriusXM for long-term success.

Guidance
Sirius XM Holdings reaffirms its 2025 guidance, targeting approximately $8.5 billion in total revenue, $2.6 billion in adjusted EBITDA, and $1.15 billion in free cash flow. The company acknowledges potential headwinds in the advertising environment but maintains its confidence in strategic priorities and operational execution, noting potential upside from tax-related benefits and lower CapEx.

Additional News
Sirius XM Holdings has announced significant changes in its leadership and shareholder distribution plans. Anjali Sud, current CEO of Tubi, has been appointed as a new independent director to the company's Board of Directors, bringing extensive experience in media, technology, and entertainment. Additionally, Sirius XM declared a quarterly cash dividend of $0.27 per share of common stock, to be paid on August 27, 2025, to stockholders of record as of August 8, 2025. The company also returned $137 million to shareholders through dividends and share repurchases, reflecting its commitment to delivering value to its investors.