Sirius XM Holdings 2025 Q3 Earnings Turnaround Driven by $297M Net Income, 110.0% Positive Swing from 2024 Q3

Sirius XM Holdings (SIRI) delivered a remarkable turnaround in Q3 2025, reporting net income of $297 million (EPS $0.84) versus a $2.96 billion loss (EPS -$8.74) in the prior-year period. The company exceeded revenue estimates by 0.54% and raised full-year guidance, signaling improved operational and financial health.

Revenue

Subscriber revenue led the performance at $1.63 billion, with advertising contributing $455 million and equipment sales generating $43 million. Other revenue streams, including $32 million from non-core segments, rounded out the total revenue of $2.16 billion. The slight 0.5% year-over-year decline in total revenue was offset by strong profitability gains and cash flow improvements.

Earnings/Net Income

The company’s net income surged by 110.0% year-over-year, driven by a 6.33% EPS beat ($0.84 vs. $0.79 estimate). This marked a dramatic reversal from a $2.96 billion loss in Q3 2024, underscoring Sirius XM’s improved cost management and revenue diversification.

Guidance

Sirius XM raised its full-year 2025 guidance, projecting revenue of $8.525 billion, Adjusted EBITDA of $2.625 billion, and free cash flow of $1.225 billion. The optimism is tied to digital advertising and podcast revenue growth, though subscriber declines and competitive pressures remain key risks.

Post-Earnings Price Action Review

The stock initially surged 4.91% in premarket trading following the earnings beat, but momentum waned, closing up just 1.2% over the subsequent week. Month-to-date, shares fell 4.28%, reflecting broader market skepticism about long-term subscriber sustainability. While the Q3 results validated improved profitability, persistent subscriber losses (-574K YoY) and intense competition from streaming platforms like Spotify and Apple Music limit upside potential.

CEO Commentary

CEO Jim Meyer emphasized the company’s focus on digital transformation and cost discipline during the earnings call. He highlighted “strong execution in advertising and podcasting” as key drivers of the guidance increase but acknowledged subscriber challenges. The tone was cautiously optimistic, with Meyer stating, “We’re confident in our ability to monetize our content and spectrum assets while stabilizing core metrics.”

Additional News

Sirius XM reaffirmed its quarterly dividend of $0.22 per share, signaling ongoing commitment to shareholder returns despite subscriber declines. The company also announced plans to accelerate spectrum monetization efforts, aiming to unlock value from its FCC-allocated radio spectrum. Additionally, SiriusXM and Pandora expanded partnerships with automotive manufacturers to integrate AI-powered personalized content, positioning for long-term growth in connected car ecosystems.

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