SiriusXM earnings topped expectations in the third quarter, underscoring a profitable rebound and stronger guidance for 2025 even as the satellite radio company navigates a slightly smaller subscriber base. Revenue came in at $2.16 billion, above estimates though down 1% year over year, while net income swung to $297 million from a year-ago loss driven by a one-time goodwill impairment.
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Investors and industry watchers are zeroing in on how the company balances in-car dominance with growing off-platform engagement. SiriusXM earnings also highlighted a powerful advertising story in podcasting, where revenue jumped 50% year over year and helped offset pressure elsewhere, including softer music streaming ads at Pandora.
SiriusXM earnings snapshot: revenue, profit and EPS
The latest SiriusXM earnings detailed solid profitability and a clean beat versus Wall Street expectations. Third-quarter revenue landed at $2.16 billion, down modestly from the prior year but ahead of consensus. Net income totaled $297 million, a marked improvement from a $2.96 billion net loss in the same quarter last year.
- EPS printed at $0.84, topping forecasts and improving from a loss of $8.74 in the 2024 third quarter
- The year-ago loss included a $3.36 billion noncash goodwill impairment tied to the Liberty Media transaction
- Operating trends benefited from improved churn and disciplined cost management
Taken together, SiriusXM earnings show a business that is returning to normalized profitability as one-time charges recede and higher-margin segments like podcast advertising scale.
Subscribers and churn: where the base stands now
SiriusXM reported 33 million total subscribers, reflecting a decline of 40,000 paid subscribers from a year ago. Monthly churn improved slightly to 1.6%, helping to stabilize engagement. The lower subscriber base contributed to a $13 million decrease in subscriber revenue during the quarter, a dynamic the company aims to balance with stronger monetization and new content initiatives.
SiriusXM earnings continue to reflect the platform’s deep reach in the car, where listening remains the core use case. Management emphasized that audio in the car still represents significant headroom, even as video and off-platform experiences serve as complementary channels to deepen loyalty and discovery.
Podcast advertising outperforms as Pandora softens
A standout in the SiriusXM earnings report was podcasting, with ad revenue up 50% year over year. Overall ad revenue grew 1%, illustrating how the fast-growing podcast segment helped offset declines in music streaming ad revenue at Pandora. The company has leaned into top-tier creator deals and high-engagement franchises to drive momentum.
Recent moves include:
- Renewals and expansions with prominent voices such as Andy Cohen and Megyn Kelly
- The debut of Stephen A. Smith on the platform
- New signings of popular podcasts Morbid and The MrBallen Podcast
This content strategy is designed to lift ad inventory quality, improve audience targeting at scale and attract brand budgets that prize premium, brand-safe environments.
Content pipeline and creator agreements support engagement
Beyond podcasting, the broader content slate remains a differentiator. The company’s roster includes long-running tentpoles and emerging franchises that appeal to varied demographics. While specific contract details are often confidential, continuing negotiations with marquee talent—such as Howard Stern—signal the platform’s focus on exclusive content that drives stickiness.
SiriusXM earnings underscore how curated programming, from live personalities to true crime formats, can anchor engagement across car listening and mobile apps.
Video strategy: flexible distribution to amplify reach
Management highlighted video as a complementary way to grow reach and monetization. Chief content officer Scott Greenstein cited “enormous growth” on YouTube and emphasized a flexible approach.
“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,” Greenstein said, pointing to opportunities to mirror recent initiatives seen elsewhere in the industry.
CEO Jennifer Witz added that while “most of our engagement, of course, is in the car,” video can “build complementary engagement outside of the car, and even promote back to SiriusXM content in audio in the car.” Those comments frame how SiriusXM earnings are increasingly tied to a flywheel where video discovery can funnel listeners back into higher-value audio sessions.
Guidance raised: 2025 revenue, EBITDA and free cash flow
In a notable vote of confidence, the company raised its full-year 2025 outlook:
- Revenue to $8.525 billion
- Adjusted EBITDA to approximately $2.625 billion
- Free cash flow to around $1.225 billion
“This was a quarter of meaningful progress for SiriusXM,” Witz said. “We’re enhancing the subscriber experience through new content, deeper personalization, and continued innovation across every stage of the customer journey… we’re leveraging our unique assets to deliver sustainable profitability and long-term value for our shareholders — a strategy that is already delivering as we raise our full year guidance.”
The improved forecast signals that SiriusXM earnings are supported by operating discipline, a stabilizing subscriber base and scaling digital advertising.
Context: last year’s impairment and the return to normalized results
The dramatic year-on-year swing in net income is largely explained by the prior-year noncash impairment of $3.36 billion related to Liberty Media. Excluding that charge, underlying operations showed steadier dynamics. By contrast, this quarter’s SiriusXM earnings benefited from incremental improvements in churn and higher-yielding ad segments, while subscriber revenue softness modestly weighed on the top line.
This normalization phase helps investors parse what portion of the profit recovery is structural—such as better monetization in podcasts—and what remains tied to macro ad markets or auto production cycles that influence subscriber additions.
Strategic priorities that flow through SiriusXM earnings
- Personalization and product innovation: Deeper personalization aims to increase listener satisfaction, lower churn and extend session times
- Cross-platform engagement: Using video selectively to expand reach and promote flagship audio content
- Premium creator ecosystem: Building a portfolio of exclusive and high-impact shows that deliver brand-safe ad inventory at scale
- Advertising modernization: Enhancing measurement, targeting and dynamic ad insertion to capture shifting budgets
Each pillar is designed to smooth revenue variability and support margin resilience across cycles.
What industry trends could shape the next leg
SiriusXM earnings sit at the intersection of several secular shifts:
- In-car connectivity: As newer vehicles ship with integrated infotainment, the company can deepen data-driven personalization and simplify onboarding
- Podcast ad maturation: As buyers demand proof of performance, platforms that offer premium inventory plus stronger measurement may win share
- Video discovery loops: Short-form clips and full-length segments on third-party platforms can scale awareness and direct audiences back to owned channels
- Auto market dynamics: Production levels and financing conditions influence the pipeline of trial-to-paid conversions for in-car subscriptions
Performance against these tailwinds will help determine whether the company can grow revenue while maintaining improved churn and profitability.
What to watch next
SiriusXM earnings offer several markers for the coming quarters:
- Churn and net adds: Whether 1.6% churn can improve further and stabilize net subscriber trends
- Ad mix: Sustained growth in podcast revenue and signs of stabilization at Pandora
- Content ROI: Engagement lifts tied to marquee signings, renewals and format expansions
- Video monetization: Traction with paywalled video versus open distribution on YouTube
- Cash generation: Delivery against the raised outlook for EBITDA and free cash flow
Clear progress on these items would support the company’s elevated guidance and reinforce the quality of recurring earnings.
Conclusion
SiriusXM earnings surpassed expectations, turning the page from last year’s impairment and setting a stronger course for 2025. While the subscriber base declined modestly, churn improved and high-growth podcast advertising offset pressure in music streaming ads. With flexible video distribution, a deepening creator lineup and a sharper focus on personalization, the company aims to drive engagement that translates into durable cash flow. If execution holds, SiriusXM earnings momentum and raised guidance set the stage for steady performance into next year.
FAQ’s
Did SiriusXM beat expectations this quarter?
Yes. Revenue was $2.16B (above estimates, down 1% y/y) and EPS was $0.84, with net income of $297M versus a large loss a year ago due to a noncash impairment.
How many subscribers does SiriusXM have and what is churn?
The company reported 33M total subscribers, down about 40K y/y. Monthly churn improved slightly to 1.6%.
Why did SiriusXM raise 2025 guidance?
Management cited momentum in podcast advertising (+50% y/y), improving engagement, and operating discipline. New and renewed talent deals also support outlook.
What is driving advertising growth at SiriusXM?
Podcasting was the standout, with ad revenue up 50% y/y, offsetting softness in music streaming ads at Pandora. The company is also exploring flexible video distribution to expand reach.
Article Source: The Hollywood Reporter
