Sirius XM Holdings stock has dropped about 14% over the past year, trading at around $20.37 as of Monday, significantly lagging the S&P 500's roughly 15% gain in the same period.
This decline reflects ongoing investor concerns about sluggish growth in the audio entertainment sector.
In the third quarter of 2025, revenue fell 1% year-over-year to $2.16 billion, while adjusted EBITDA dipped slightly to $676 million. Subscriber numbers remain steady at about 33 million, but the company faces challenges from automotive sales cycles, higher customer acquisition costs, and competition from streaming services.
A recent move by Capital Management Corp—selling 147,767 shares in Q4 2025 for an estimated $3.18 million—further highlights waning confidence, though the fund still holds a position worth over $10 million.
Despite the pressure, SiriusXM shows resilience with strong profitability, including $993 million in trailing twelve-month net income, a 5.3% dividend yield, and surging free cash flow ($257 million in Q3 2025, up sharply from the prior year). The company raised its full-year 2025 free cash flow guidance to $1.23 billion.