Sirius XM Reports 2% Revenue Drop Amid Subscriber Improvement and Podcast Growth

SiriusXM Holdings Inc. has reported a decline in its paid subscriber base to 33 million during the second quarter of 2025, marking a reduction of approximately 68,000 from the preceding quarter. Despite this downturn, the audio platform highlights the decrease as an improvement when compared to the loss of 100,000 paid subscribers during the same period the previous year. This marks the fifth consecutive quarter of subscriber improvement, attributed to enhancements in acquisition strategies and a reduction in churn rates.

Moreover, SiriusXM disclosed a revenue of $2.14 billion for the quarter, representing a 2 percent decline compared to the same timeframe in 2024. Net income also saw a decrease, standing at $205 million in contrast to $354 million reported a year earlier. The decrease in revenue is primarily attributed to a $21 million dip in subscriber revenue. Earnings per share fell short of analyst predictions, registering at 57 cents compared to 74 cents in the second quarter of 2024.

Despite these setbacks, SiriusXM has witnessed substantial growth in its podcast segment, with revenue surging nearly 50 percent over the previous year. This growth is facilitated by expanded video and social monetization efforts, alongside notable talent acquisitions, such as Trevor Noah's multiyear deal to establish a new podcast. Additional initiatives, like live events such as the SmartLess live taping featuring John Mayer, are underscored as methods to enhance branded opportunities and engage fans.

SiriusXM’s advertising revenue in the Pandora and Off-Platform segments recorded a slight dip to $394 million, down from $400 million in the second quarter of 2024. The decline is attributed to diminished advertiser demand in streaming music, partially countered by the upswing in podcast revenue. The company's CEO, Jennifer Witz, acknowledges ongoing challenges in the advertising market due to economic and consumer uncertainties, affecting budgets and shifting dollars toward lower funnel channels for short-term sales goals. Retail categories face disproportionate impacts.

Scott Greenstein, President and Chief Content Officer, addresses efforts to draw a younger audience, noting that podcast listeners tend to be younger than the core satellite demographic. He emphasizes the potential conversion of listeners to creators like Alex Cooper into subscribers. Greenstein states that Cooper’s Sirius music channel is thriving, appealing to a younger audience, and hints at future subscription opportunities.

SiriusXM maintains its full-year 2025 forecasts, projecting approximately $8.5 billion in revenue, adjusted EBITDA around $2.6 billion, and free cash flow of about $1.15 billion. The company regards the advertising climate as the predominant risk to this outlook.

Jennifer Witz notes satisfaction with the strategic direction SiriusXM is pursuing, citing improvements in subscriber rates, securing new content deals, accelerating the podcast segment, and achieving significant cost efficiencies. Witz further mentions improved engagement from loyal listeners and anticipates long-term growth by focusing on delivering value.

In terms of operating expenses, SiriusXM observed an increase to $1.77 billion from $1.71 billion the previous year. This growth is influenced by a $28 million charge related to legal matters and customer cancellation process settlements, alongside rising subscriber acquisition costs. Despite reducing the sales and marketing budget by $50 million, acquisition costs per individual subscriber have increased, though the company remains ahead in reducing these costs by $200 million.

To attract potential subscribers, SiriusXM launched a new ad-supported plan named SiriusXM Play, priced below $7 monthly, aiming at in-car customers dissuaded by premium subscriptions. This initiative is expected to bolster subscriber additions and enhance advertising revenue.

Lastly, despite facing subscriber losses totaling around 450,000 from a year ago, SiriusXM showed improvement by reporting 31.5 million total subscribers as of July 31. Average revenue per user remained steady from the previous year at $15.22. The firm underscores new programs to halt subscriber decline, such as expanded offerings in Audi vehicles and electric cars, and remains optimistic about achieving its 2025 financial ambitions.