Sirius XM Q2 Revenue Rises 2%, Earnings Per Share Misses Consensus

Sirius XM's Q2 revenue rose 2% to $2.14 billion, beating estimates, but GAAP EPS fell 25% to $0.57, missing expectations. Free cash flow increased 27% YoY, driven by cost reductions. Podcasting revenue jumped 50% YoY, offsetting declines in subscriber and ad revenue. The company reaffirmed full-year forecasts despite ongoing challenges in subscriber trends and segment margins.

Sirius XM Holdings Inc. (NASDAQ: SIRI) reported its second-quarter (Q2) 2025 earnings on July 2, 2025, with a mixed performance. The company's revenue rose 2% to $2.14 billion, surpassing analyst estimates, while GAAP earnings per share (EPS) fell 25% to $0.57, missing expectations. Despite these mixed results, Sirius XM reaffirmed its full-year revenue and EBITDA guidance, indicating confidence in its strategic initiatives.

Revenue and EBITDA

Revenue for the quarter was $2.14 billion, up 2% year-over-year (YoY) compared to the same period last year, beating analyst estimates [1]. Adjusted EBITDA decreased 5% to $668 million, driven by a 2% decline in total revenue and a 2.5% drop in ad revenue [2].

EPS and Free Cash Flow

GAAP EPS fell 25% to $0.57, missing analyst expectations of $0.77 [1]. However, free cash flow increased 27% YoY to $1.2 billion, driven by cost reductions and improved operational efficiency [2].

Podcasting Growth

Podcast ad revenue grew significantly, jumping 50% YoY, offsetting declines in subscriber and ad revenue [2]. This growth was driven by new content agreements and the launch of popular shows like Trevor Noah's podcast [3].

Subscriber and Advertising Challenges

Total revenue declined by 2% due to lower advertiser demand in streaming music and a 16% YoY increase in subscriber acquisition costs [2]. The company acknowledged the challenging economic backdrop and its impact on the advertising market.

Strategic Initiatives

Despite these challenges, Sirius XM is pursuing strategic initiatives to foster future growth. The company highlighted its renewed focus on podcasting, new content agreements, and operational improvements. CEO Jennifer Witz noted the company's deeper engagement with loyal listeners and early traction in key performance metrics [3].

Investment Outlook

The company's stock has added approximately 0.6% since the beginning of the year, underperforming the S&P 500's gain of 8.2% [2]. The Zacks Rank currently assigns a #5 (Strong Sell) rating to Sirius XM, indicating that the stock is expected to underperform the market in the near future [2]. However, the company's strategic initiatives and growth prospects may influence this outlook in the coming quarters.

Conclusion

Sirius XM's Q2 earnings report highlights the company's ability to grow in the podcasting market while facing challenges in the broader advertising market. The company's strategic initiatives and operational improvements suggest a renewed focus on driving long-term growth. However, the company's stock performance and future prospects will depend on how these initiatives translate into improved financial metrics and market performance.

References:
[1] https://finance.yahoo.com/news/sirius-xm-nasdaq-siri-posts-123440593.html
[2] https://www.ainvest.com/news/sirius-xm-q2-earnings-call-revenue-decline-advertising-challenges-growth-podcast-ad-revenue-2508/
[3] https://www.hollywoodreporter.com/business/digital/siriusxm-q2-2025-earnings-report-subscribers-podcasting-1236334612/