Sirius XM Q2 Earnings Fall Short, Revenue Down 1.8% YoY

Sirius XM Q2 earnings miss estimates with revenues declining 1.8% YoY to $2.14 billion, missing the Zacks consensus estimate by 0.30%. Subscriber revenues fell 1.7% YoY to $1.629 billion, while advertising revenues decreased 2.5% YoY to $432 million. The total subscriber base declined 1.4% YoY to 32.80 million. Adjusted EBITDA fell 4.8% YoY to $668 million.

Title: Sirius XM Q2 Earnings Miss Estimates; Revenue Declines 1.8% YoY

Sirius XM Holdings Inc. (NASDAQ: SIRI) reported its second-quarter (Q2) earnings on July 2, 2025, with mixed results that fell short of analyst expectations. The satellite radio and media company reported revenue of $2.14 billion, a 1.8% decrease compared to the same period last year. This decline was primarily driven by a 2.5% drop in advertising revenue to $432 million. The company's earnings per share (EPS) of $0.57 also missed the Zacks consensus estimate by $0.30, with net income declining to $205 million for the quarter [1].

A notable positive was a 50% year-over-year (YoY) increase in podcast ad revenue, which offset some of the pressure from traditional subscriber and advertising revenue drops. However, the company faced challenges with subscriber acquisition costs increasing by 16% YoY and a decline in the total subscriber base by 1.4% to 32.8 million subscribers. Adjusted EBITDA decreased by 4.8% to $668 million, reflecting the overall financial strain [2].

Despite these challenges, Sirius XM reaffirmed its full-year financial guidance. The company's strategic initiatives, including a renewed focus on podcasting and new content agreements, aim to foster future growth. CEO Jennifer Witz noted the company's deeper engagement with loyal listeners and early traction in key performance metrics [3].

The stock market reaction was immediate, with Sirius XM shares falling 7.5% in the afternoon session. The stock has added approximately 0.6% since the beginning of the year, underperforming the S&P 500's gain of 8.2%. 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].

Investors should closely monitor Sirius XM's strategic initiatives and their impact on financial metrics. The company's ability to navigate the challenges in the advertising market and subscriber acquisition costs will be crucial for its long-term growth prospects.

References
[1] https://finance.yahoo.com/news/why-sirius-xm-siri-stock-174109759.html
[2] https://www.ainvest.com/news/sirius-xm-q2-earnings-call-revenue-decline-advertising-challenges-growth-podcast-ad-revenue-2508/
[3] https://www.nasdaq.com/articles/sirius-xm-siri-q2-revenue-rises-2