SiriusXM Reports Sharp Net Income Turnaround

SiriusXM reported third-quarter revenue of $2.16 billion, surpassing analyst expectations but down 1% from the prior-year period. Net income reached $297 million, a sharp turnaround from a $29.6 billion net loss a year earlier.

Earnings per share came in at $0.84, beating forecasts and contrasting with a $8.74 loss in Q3 2024. The prior-year loss included a $3.36 billion noncash goodwill impairment tied to the Liberty Media transaction.

The satellite radio provider ended the quarter with 33 million total subscribers, reflecting a net loss of 40,000 paid users year over year. Monthly churn improved slightly to 1.6%, though the smaller base drove a $13 million drop in subscriber revenue.

In recent quarters, SiriusXM extended its deal with Andy Cohen, renewed with Megyn Kelly, and launched Stephen A. Smith on the platform. It also added hit podcasts Morbid and The MrBallen Podcast. Podcast advertising remained a standout, surging 50% year over year, while total ad revenue rose just 1%. The podcast gains helped counter weakness in music streaming ads (via Pandora, which SiriusXM owns).

On potential video podcast ads, Chief Content Officer Scott Greenstein highlighted “enormous growth” on YouTube and referenced Spotify’s Netflix partnership.

“With our lineup of content, there’s no shortage of opportunity where we’ll go in video right now,” Greenstein said. “We like the way we’re monetizing. We’re flexible. We can have video behind the paywall. We can have video with YouTube or any distribution partner.”

CEO Jennifer Witz added: “Most of our engagement, of course, is in the car, right? And we believe we still have lots of opportunity with audio in the car, but that video is a great complement. And to the extent we can work, like Scott said, with other partners, especially where we’ve seen success with YouTube, it gives us a real opportunity to build complementary engagement outside of the car, and even promote back to SiriusXM content in audio in the car.”