Stock Up 10% on Higher Revenue Forecast

SiriusXM Holdings saw quarterly revenue slip 1% year-over-year to $2.16 billion, though it reversed a loss from a year ago to generate $297 million in positive net income, the company reported Thursday (Oct. 30).

That turnaround — Sirius reported a net loss of $2.96 billion in the third quarter of 2024, stemming from the Liberty Media transaction — helped push the company’s share price up by more than 10% to $23.19 at the market’s close on Thursday.

While the company reported lower subscriber revenue and higher royalties and customer acquisition costs, years of cost-cutting and workforce reductions helped to offset those pressures. Sirius’ adjusted earnings before interest, tax, deductions and amortization (EBITDA) fell roughly 2.5% to $676 million from $693 million a year ago, but with an adjusted EBIDTA margin of 31%, Sirius executives raised their 2025 financial target by $25 million across revenue, EBITDA and free cash flow.

“We are confident improvements in our business will drive continued growth in free cash flow towards our target of $1.5 billion by 2027 and beyond,” SiriusXM CEO Jennifer Witz told investors on a conference call.

SiriusXM self-pay net subscribers decreased by approximately 40,000 in the third quarter, bringing the total number to around 33 million. While that was in line with expectations, Witz said, the company hopes that new programming — like an Ed Sheeran pop-up channel and concert, and a Taylor Swift channel launched to celebrate her new album — will offset losses in the fourth quarter.

Churn among subscribers who pay their bills monthly and the number of trial customers improved compared to last year by 1.6% and 1.4%, respectively. Trial customers stood at 7.4 million at the end of the quarter, down from 7.6 million at the end of the second quarter of 2025 but up slightly from 7.3 million at the end of the third quarter of 2024. The company ended the quarter with approximately 33 million total subscribers.