Sirius XM Holdings 2025 Q1 Earnings Misses Targets as Net Income Drops 15.4%
Friday, May 2, 2025 5:11 am ET
27min read SIRI Trend
Revenue
In the first quarter of 2025, Sirius XM Holdings reported a 4.5% decline in total revenue, reaching $2.04 billion compared to $2.13 billion in the same period the previous year. Subscriber revenue contributed $1.60 billion, while advertising revenue added $394 million. Equipment revenue accounted for $41 million, and other revenue totaled $31 million.
Earnings/Net Income
Sirius XM Holdings experienced a decline in earnings per share, which fell 16.7% to $0.60 in Q1 2025 from $0.72 in Q1 2024. The company's net income decreased by 15.4% to $204 million compared to $241 million in the previous year. This performance reflects a challenging quarter for the company.
Price Action
The stock price of Sirius XM Holdings fell by 9.76% during the latest trading day, decreased 8.71% over the recent full trading week, and dropped 13.51% month-to-date.
Post Earnings Price Action Review
The analysis of Sirius XM Holdings (SIRI) stock price in relation to its earnings report metrics reveals mixed outcomes. The backtest data shows a 3-day win rate of 50%, indicating that half the time, the stock price increases within three days post-earnings. However, the 10-day win rate drops to 40%, suggesting a lower likelihood of price appreciation in that timeframe. The 30-day win rate further declines to 25%, indicating that only a quarter of the time does the stock perform well a month after earnings releases. The maximum return observed was 0.97% on the second day post-earnings, implying that while the stock has some potential for price gains, they are typically modest. Positive surprises in revenue, net income, and EPS can lead to stock price appreciation, whereas negative surprises may result in declines. Investors should weigh these factors along with broader market conditions when making decisions.
CEO Commentary
Jennifer Witz, Chief Executive Officer, emphasized that Q1 2025 marked the first full quarter since the company adopted its new strategic direction focused on enhancing its core in-car audience. She noted, "we are already seeing early benefits from these efforts," citing strong subscription business performance despite economic uncertainty. Witz highlighted successful management of churn rates, effective pricing strategies, and the addition of new programming, which contributed to high customer satisfaction. She expressed confidence in Sirius XM's resilience, stating that the company is well-positioned to deliver value through its unique content offerings and strategic initiatives.
Guidance
Sirius XM Holdings reaffirmed its 2025 full-year guidance, targeting approximately $8.5 billion in revenue, $2.6 billion in adjusted EBITDA, and $1.15 billion in free cash flow. The company remains optimistic about achieving these goals, driven by ongoing operational efficiencies and disciplined strategic investments, while also noting potential improvements in subscriber trends and cost management throughout the year.
Additional News
Sirius XM Holdings announced significant corporate changes and strategic initiatives within three weeks of the earnings report. Notably, Wayne D. Thorsen was appointed as the Executive Vice President and Chief Operating Officer, effective December 16, 2024. Thorsen's role includes overseeing product and technology functions, commercial activities, business development, and corporate strategy. Additionally, Sirius XM's Board of Directors declared a quarterly cash dividend of $0.27 per share, payable on May 28, 2025. The dividend reflects the company's ongoing commitment to shareholder returns. Furthermore, Sirius XM disclosed substantial savings targets, aiming for $200 million in annualized savings exiting 2025, aligning with its strategic focus on operational efficiency and cost management.
