SiriusXM Holdings (NASDAQ:SIRI) stock declined on Thursday after it reported fiscal second-quarter 2025 results. The company noted that subscriber revenue was $1.63 billion for the quarter, down from $1.66 billion in the same quarter last year.
The New York-based company reported a quarterly revenue decline of 1.8% year-on-year to $2.14 billion, beating the analyst consensus estimate of $2.13 billion.
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- GAAP EPS of 57 cents missed the analyst consensus estimate of 73 cents.
- Advertising revenue was $432 million, down from $443 million a year ago.
- For the year, SiriusXM self-pay subscribers decreased by 209,000 to 31.28 million total subscribers versus 31.48 million Y/Y.
- The self-pay monthly churn remained steady Y/Y to 1.5% for the quarter.
- SiriusXM segment revenue declined 1.6% year over year to $1.61 billion during the quarter, driven by a lower average base of self-pay subscribers and a decrease in average revenue per user (ARPU).
- ARPU decreased to $15.22 from $15.24 Y/Y, reflecting an increase in self-pay subscribers on promotional plans, offset by rate increases on certain self-pay plans. SiriusXM segment gross margin remained consistent Y/Y at 60%.
- Pandora segment advertising revenue declined 1.5% Y/Y to $394 million for the quarter.
- Pandora's Monthly Active Users (MAUs) were 42.68 million, down from 45.13 million a year ago. The total number of ad-supported listener hours was 2.58 billion in the quarter, down from 2.60 billion Y/Y.
- The Pandora segment gross margin declined by 400 bps Y/Y to 29% for the quarter, while the gross profit decreased by 14.4% Y/Y.
- The adjusted EBITDA declined 4.8% Y/Y to $668 million.
- The net income is $205 million, down by 42.1% Y/Y.
- The company generated $402 million in free cash flow in the quarter, compared to $317 a year ago.
- As of June 30, it held $92 million in cash and equivalents.
- $137 million returned to shareholders ($92 million in dividends and $45 million in share repurchases).
SiriusXM CEO Jennifer Witz noted strong year-over-year subscriber growth, new content partnerships, and accelerating gains in the podcasting sector. Operational improvements and cost efficiencies also drove deeper listener engagement, strengthening the company's position for long-term growth, she added.
FY25 Outlook: SiriusXM reiterated revenue of $8.50 billion, in line with the analyst consensus estimate. It also reaffirmed an adjusted EBITDA of $2.60 billion and a free cash flow of $1.15 billion.
SiriusXM stock declined 6% year-to-date. The company missed the revenue and EPS estimates in two out of the last four quarters.
Price Action: SIRI stock is down 7.00% at $21.33 at the last check on Thursday.
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