SiriusXM Sheds Fewer Quarterly Subscribers

SiriusXM Holdings Inc. operating two primary business segments: SiriusXM and Pandora/Off-platform.  SiriusXM released its first quarter 2025 operating and financial results on May 1, 2025, reflecting a challenging yet strategically focused performance amid economic headwinds. Below are the key highlights based on available information:

Q1 2025 Operating and Financial Results

• Revenue: Total revenue was $2.07 billion, down 4% from $2.16 billion in Q1 2024. The decline was primarily driven by a 5% drop in subscription revenue, partially offset by a 3% increase in advertising revenue.
• Net Income: Net income was $204 million, a decrease from $241 million in Q1 2024, representing a year-over-year decline of approximately 15%. Earnings per diluted common share were $0.59, compared to $0.63 in Q1 2024.
• Adjusted EBITDA: Adjusted EBITDA was $629 million, down 3% from $650 million in Q1 2024. Despite the decline, SiriusXM maintained a stable adjusted EBITDA margin of 30%, supported by lower operating expenses.
• Free Cash Flow: Free cash flow was reported at $56 million, though specific comparisons to prior periods were not detailed in the available sources.
• Cost Reductions: SiriusXM reduced operating expenses significantly, including a 19% decrease in sales and marketing expenses to $176 million, a 15% reduction in product and technology costs to $63 million, and a 3% decline in general and administrative expenses to $108 million. These savings helped mitigate the revenue decline.

Operational Highlights

• Subscriber Metrics: SiriusXM lost 303,000 self-pay subscribers in Q1 2025, resulting in a total of approximately 33 million subscribers. This reflects ongoing challenges in subscriber retention, particularly as the company competes with music streaming services.
• Advertising and Podcasting: The 3% growth in advertising revenue was driven by strength in the Pandora/Off-platform segment, with podcasting revenue continuing to grow, though specific figures for Q1 2025 podcasting were not provided. The company expanded its podcast network with new content and partnerships, such as the renewal and expansion of its agreement with Mel Robbins for exclusive talk programming.
• Programming and Partnerships: SiriusXM emphasized its differentiated content, including extensive live sports coverage (e.g., the 12-team college football playoff and the 2024-2025 NBA season) and exclusive music programming like the "Life with John Mayer" channel, which introduced a new interview series, How’s Life. A new agreement with ESPN+ was announced, offering subscription bundles to enhance value for sports fans.

Strategic Focus: CEO Jennifer Witz highlighted a focus on delivering standout experiences for core subscribers, strengthening the advertising business, and enhancing service value. The company is operating with greater discipline, improving execution, and reallocating capital to high-impact areas.