SiriusXM Holdings Inc. (SIRI) released its second-quarter 2025 earnings report Thursday mroning, before the market opened, revealing continued subscriber losses and revenue challenges amid a strategic focus on its core in-car audio business.
The key details:
- Earnings Per Share (EPS): SiriusXM reported an adjusted EPS of $0.77, meeting the Zacks Consensus Estimate of $0.77 but reflecting a 1.25% decline from the $0.78 reported in Q2 2024. On a GAAP basis, EPS was $0.82, compared to $0.84 in the year-ago quarter.
- Revenue: Total revenue was $2.13 billion, down 2.3% year-over-year from $2.18 billion, slightly missing the Zacks Consensus Estimate of $2.13 billion. The decline was primarily driven by lower subscriber revenue due to a shrinking subscriber base and weaker advertising revenue.
- Adjusted EBITDA: Adjusted EBITDA fell 2% to $687 million from $702 million in Q2 2024, with a margin of 32%, down from 33%. The decrease was attributed to lower subscriber revenue and increased subscriber acquisition costs, partially offset by reduced operating expenses.
- SiriusXM Segment: The company lost 119,000 self-pay subscribers in Q2 2025, an improvement from the 130,000 lost in Q2 2024, bringing the self-pay subscriber base to approximately 31.4 million. Total SiriusXM subscribers, including paid promotional subscribers, stood at 32.8 million, down from 33.2 million at the end of Q1 2025.
- The net subscriber loss was 178,000, compared to a net gain of 39,000 in Q2 2024, driven by a 59,000 loss in paid promotional subscribers (versus a 171,000 gain in Q2 2024). Subscriber revenue in this segment fell 4% to $1.59 billion, and average revenue per user (ARPU) dropped 2.6% to $15.08, reflecting promotional pricing and a shift to lower-tier plans.
- Pandora lost 44,000 self-pay subscribers (Pandora Plus and Premium tiers), compared to a gain of 8,000 in Q2 2024, reducing the subscriber base to 5.8 million. Monthly active users (MAUs) at Pandora declined 5% to 43.1 million from 45.3 million in Q2 2024. Total segment revenue was $535 million, down 1% from $544 million, with advertising revenue flat at $404 million and subscriber revenue steady at $131 million.
- Podcast advertising revenue grew 8% year-over-year, partially offsetting softer digital ad performance.
SiriusXM continued to bolster its programming, signing deals with high-profile talent like Bill Belichick for exclusive shows and expanding podcast offerings with Alex Cooper’s Call Her Daddy. The company also launched new music channels and secured a multi-year agreement to include SiriusXM’s 360L platform in Mitsubishi vehicles through 2030.
Subscriber losses were driven by intense competition from streaming platforms like Spotify, Apple Music, and YouTube, which offer greater flexibility and integration. The shift of consumers to digital audio and podcasts has eroded SiriusXM’s traditional satellite radio base.