Core Viewpoint - Sirius XM is a cash flow-generating company facing challenges in growth, making it a potential value trap for investors [1] Group 1: Growth Challenges - Revenue has decreased from $9.0 billion in 2022 to $8.7 billion in 2024, primarily due to a decline in subscriber revenue [3] - Adjusted EBITDA has contracted from $2.8 billion to $2.7 billion during the same period [3] - The company operates in a saturated market where most new vehicles come with Sirius pre-installed, limiting growth opportunities [4] - Younger audiences are shifting to platforms like Spotify and YouTube Music, impacting Sirius XM's subscriber base [5] - Management has implemented cost-cutting measures, achieving $350 million in gross savings in 2023 and 2024, with an additional $200 million targeted for 2025 [6][7] Group 2: Cash Flow Strength - Despite declining revenue, Sirius XM generated $1.0 billion in free cash flow on $8.7 billion in revenue in 2024, resulting in a margin of approximately 11% [8] - The company has been consistently buying back its stock, spending about $0.9 billion on share repurchases between 2022 and 2024 [10] - Sirius XM's price-to-free-cash-flow (P/FCF) ratio is currently at 8.1 times, indicating potential value for shareholders through stock buybacks [10] Group 3: Investment Appeal - Sirius XM may not be a growth stock like Spotify or Netflix, but it offers dependable cash flow and disciplined capital return, appealing to value-focused investors [12] - The company stands out in an environment where many tech-adjacent media companies are struggling financially, highlighting its cash-rich profile [11]

Core Insights - Sirius XM's recent financial update has led to a significant drop in share price, indicating investor dissatisfaction with the results [2][4] - The company is facing challenges in growth due to a declining user base and competition from internet-enabled streaming services [6][11] Financial Performance - In Q2 2024, Sirius XM's revenue decreased by 2% year-over-year to $2.1 billion, with a loss of 460,000 subscribers, bringing the total to 32.8 million [4] - The company reported a net profit margin of 9.6% despite a 23% drop in diluted earnings per share [7] - Free cash flow (FCF) increased by 27% to $402 million in Q2, with projections of $1.5 billion in FCF by 2027, a 30.4% increase from the forecast of $1.15 billion for this year [8] Revenue Composition - Sirius XM generates 76.2% of its revenue from subscriptions, which are more stable compared to the 20.2% from advertising [5] - The company is not facing direct competition from other satellite radio providers, as it is the only one legally allowed in the U.S. [5] Cost Management and Shareholder Returns - Management is implementing cost-cutting measures aimed at achieving $200 million in annual expense reductions [8] - Sirius XM repurchased $45 million worth of shares in Q2, resulting in a 5.6% reduction in diluted outstanding share count compared to the previous year [9] - The company paid a dividend of $92 million in Q2, with a dividend yield of 5.11% based on a low price-to-earnings (P/E) ratio of 8.1 [10] Market Outlook - Analysts predict a revenue decline at an annualized rate of 0.7% from 2024 to 2027, primarily due to competition from streaming services like Apple, Spotify, and YouTube [6][11]

Core Insights - Sirius XM Holdings (SIRI) reported Q2 2025 earnings of 57 cents per share, missing the Zacks Consensus Estimate of 79 cents, and down from 74 cents per share in the same quarter last year [1][7] - Total revenues decreased by 1.8% year over year to $2.14 billion, surpassing the consensus estimate by 0.30% [1] - Subscriber revenues, which account for 76.2% of total revenues, fell by 1.7% year over year to $1.629 billion, exceeding the Zacks Consensus Estimate by 0.86% [1] Revenue Breakdown - Advertisement revenues, making up 20.2% of total revenues, declined by 2.5% year over year to $432 million, missing the Zacks Consensus Estimate by 0.97% [2] - Equipment revenues, representing 2.2% of total revenues, decreased by 2.1% year over year to $46 million, also missing the consensus estimate by 2.27% [2] - Other revenues, which constitute 1.4% of total revenues, increased by 3.3% year over year to $31 million, beating the Zacks Consensus Estimate by 2.05% [2] Subscriber Metrics - Sirius XM's Standalone segment revenues, accounting for 75.5% of total revenues, were $1.61 billion, down 1.6% year over year [3] - Subscriber revenues in this segment decreased by $21 million or 1.4% year over year to $1.50 billion, attributed to a smaller average base of self-pay subscribers [3] - The total subscriber base declined by 1.4% year over year to 32.80 million, slightly beating the Zacks Consensus Estimate by 0.11% [3] Advertising and Equipment Revenue - Advertising revenues in the Standalone segment were $38 million, down 11.6% year over year [4] - Equipment revenues remained at $46 million, reflecting a 2.1% year-over-year decline [4] - Average revenue per user was $15.22, down from $15.24 year over year, but still beating the Zacks Consensus Estimate by 0.22% [4] Pandora & OFF Platform Performance - Revenues from Pandora and the OFF platform, which represent 24.5% of total revenues, declined by 2.6% year over year to $524 million [5] - Subscriber revenues in this segment decreased by 5.8% to $130 million, while advertising revenues fell by 1.5% to $394 million [5] - Self-pay subscribers for Pandora Plus and Pandora Premium services decreased by 245K to 5.7 million [5] Operational and Financial Metrics - Total operating expenses increased by 1.5% year over year to $1.73 billion, while adjusted EBITDA declined by 4.8% year over year to $668 million [8] - As of June 30, 2025, cash and cash equivalents were $92 million, down from $127 million as of March 31, 2025 [9] - Long-term debt decreased to $10.1 billion from $10.4 billion over the same period [9] Cash Flow and Guidance - Cash flow from operations was $546 million, compared to $242 million in the year-ago quarter [9] - Free cash flow for the reported quarter was $402 million, significantly up from $56 million in the prior-year period [9] - The company reiterated its 2025 guidance, expecting revenues of $8.5 billion, adjusted EBITDA of $2.6 billion, and free cash flow of $1.15 billion [10]

Economic Indicators - The Personal Consumption Expenditures (PCE) report for June showed results warmer than expected, with year-over-year PCE reaching +2.6%, which is 10 basis points higher than anticipated [2][5] - Personal Income increased by +0.3%, exceeding expectations by 10 basis points, while Personal Spending fell to +0.3%, down 10 basis points from expectations [3][4] - The overall PCE Index month-over-month was in line with expectations at +0.3%, following an upwardly revised +0.2% the previous month [4] Job Market - Initial Jobless Claims rose slightly to 218K, marking the first increase in seven weeks, but still significantly lower than the 250K seen in early June [7] - Continuing Claims remained stable at 1.946 million, indicating a leveling off after a period of decline [8] - The upcoming Employment Situation report for July is expected to show 100K new jobs, which is a decrease of 47K from the previous month [9] Q2 Earnings Reports - AbbVie reported Q2 earnings of $2.97 per share, surpassing projections of $2.89, with a year-to-date increase of +6.5% [10] - CVS Health exceeded earnings estimates with $1.81 per share, resulting in an earnings beat of +23.13% and a year-to-date increase of +38.8% [10] - Mastercard's earnings of $4.15 per share beat expectations by 10 cents, with a year-to-date increase of +6% [10] - Bristol Myers-Squibb had a notable earnings beat at $1.46 per share, exceeding estimates by +36.45% [11] - International Paper reported a significant earnings drop to $0.20 per share, missing expectations by -47.37% [11] - Sirius XM missed estimates with earnings of 57 cents per share, resulting in a -27.85% earnings surprise [12] Market Outlook - The Chicago Business Barometer (PMI) report is expected after the market opens, with no further scheduled announcements [13] - Anticipation surrounds upcoming earnings reports from major companies such as Apple and Amazon, with expectations of modest gains for Apple and high-single-digit growth for Amazon [14]

Part I - Financial Information This section presents the unaudited financial statements, management's analysis, market risks, and internal controls [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements, including statements of operations, balance sheets, cash flows, and comprehensive notes, for the periods ended June 30, 2025 and 2024 [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenue and net income attributable to Sirius XM Holdings Inc. declined for both the three and six months ended June 30, 2025, compared to the prior year Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $2,138 | $2,178 | $4,206 | $4,340 | | **Income from operations** | $365 | $471 | $752 | $880 | | **Net income** | $205 | $354 | $409 | $595 | | **Net income attributable to Sirius XM** | $205 | $304 | $409 | $503 | | **Diluted EPS** | $0.57 | $0.74 | $1.16 | $1.37 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly decreased, while total liabilities declined and total stockholders' equity increased compared to December 31, 2024 Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,045 | $1,149 | | **Total assets** | $27,326 | $27,521 | | **Total current liabilities** | $2,570 | $2,731 | | **Long-term debt** | $10,136 | $10,314 | | **Total liabilities** | $15,997 | $16,447 | | **Total stockholders' equity** | $11,329 | $11,074 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased, while net cash used in investing activities decreased, and net cash used in financing activities rose for the six months ended June 30, 2025 Consolidated Cash Flow Highlights (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $788 | $753 | | **Net cash used in investing activities** | $(397) | $(550) | | **Net cash used in financing activities** | $(461) | $(314) | | **Net decrease in cash, cash equivalents and restricted cash** | $(70) | $(111) | [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section details accounting policies, business structure, segment reporting, debt, equity, commitments, and legal proceedings, providing context for the financial statements - The company operates two reportable segments: 'SiriusXM' (satellite radio and connected vehicle services) and 'Pandora and Off-platform' (streaming music, comedy, and podcasts) [45](index=45&type=chunk)[47](index=47&type=chunk) - As of June 30, 2025, the SiriusXM business had approximately **32.8 million subscribers**, while Pandora had **5.7 million subscribers** [50](index=50&type=chunk) - The company is the product of a series of transactions with its former parent, Liberty Media, which closed on September 9, 2024 [33](index=33&type=chunk)[34](index=34&type=chunk) - This involved a split-off and a merger, resulting in the current public company structure [35](index=35&type=chunk) Debt Summary as of June 30, 2025 (in millions) | Debt Instrument | Principal Amount | Carrying Value | | :--- | :--- | :--- | | 3.75% Convertible Senior Notes due 2028 | $575 | $596 | | Incremental Term Loan | $900 | $900 | | 3.125% Senior Notes due 2026 | $1,000 | $997 | | 5.00% Senior Notes due 2027 | $1,500 | $1,496 | | 4.00% Senior Notes due 2028 | $2,000 | $1,990 | | 5.500% Senior Notes due 2029 | $1,250 | $1,243 | | 4.125% Senior Notes due 2030 | $1,500 | $1,491 | | 3.875% Senior Notes due 2031 | $1,500 | $1,489 | | **Total Long-Term Debt** | | **$10,136** | Contractual Cash Commitments as of June 30, 2025 (in millions) | Commitment Type | Total | 2025 (remaining) | 2026 | 2027 | | :--- | :--- | :--- | :--- | :--- | | Debt obligations | $10,233 | $31 | $1,059 | $2,318 | | Cash interest payments | $1,729 | $228 | $452 | $402 | | Programming and content | $831 | $190 | $289 | $190 | | Royalties, minimum guarantees and other | $1,825 | $410 | $486 | $364 | | **Total** | **$15,240** | **$1,025** | **$2,496** | **$3,383** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, including revenue trends, operating expenses, key performance metrics, liquidity, capital resources, and capital return programs [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Total revenue and operating income declined for Q2 2025 and the six-month period, primarily due to lower subscriber revenue and increased impairment costs Revenue by Segment (in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | SiriusXM | $1,614 | $1,640 | (2)% | | Pandora and Off-platform | $524 | $538 | (3)% | | **Total Revenue** | **$2,138** | **$2,178** | **(2)%** | - SiriusXM subscriber revenue decreased **1%** in Q2 2025 due to a decline in the average number of subscribers [239](index=239&type=chunk) - Pandora subscriber revenue fell **6%** due to a smaller subscriber base, partially offset by rate increases [248](index=248&type=chunk) - Impairment, restructuring and other costs increased significantly to **$107 million** in Q2 2025, primarily due to a **$97 million** charge for impairments related to terminated software projects [287](index=287&type=chunk) - Sales and marketing expenses decreased **19%** YoY to **$185 million** in Q2 2025, driven by lower brand, streaming, and in-car marketing costs [279](index=279&type=chunk) [Key Financial and Operating Performance Metrics](index=52&type=section&id=Key%20Financial%20and%20Operating%20Performance%20Metrics) SiriusXM subscribers and Pandora monthly active users declined, while Adjusted EBITDA decreased and Free Cash Flow increased for Q2 2025 Key Operating Metrics as of June 30 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **SiriusXM Ending Subscribers (thousands)** | 32,797 | 33,257 | (1)% | | - Self-pay subscribers | 31,275 | 31,484 | (1)% | | **Pandora Monthly Active Users (thousands)** | 42,684 | 45,129 | (5)% | | **Pandora Self-pay Subscribers (thousands)** | 5,706 | 5,951 | (4)% | Key Financial Metrics (Q2) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **SiriusXM ARPU** | $15.22 | $15.24 | (0.1)% | | **SiriusXM Avg. Self-pay Monthly Churn** | 1.5% | 1.5% | 0% | | **Adjusted EBITDA (millions)** | $668 | $702 | (5)% | | **Free Cash Flow (millions)** | $402 | $317 | 27% | [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash, operating cash flow, and a credit facility, utilizing funds for dividends and stock repurchases under an authorized program - The company expects to fund operating expenses, capital expenditures, debt service, and capital returns with existing cash, cash flow from operations, and borrowings under its credit facility [321](index=321&type=chunk) - A new stock repurchase program for **$1,166 million** was authorized on September 9, 2024 [327](index=327&type=chunk) - As of June 30, 2025, **$1,090 million** remained available under this authorization [327](index=327&type=chunk) - On July 23, 2025, the board declared a quarterly dividend of **$0.27 per share**, payable on August 27, 2025 [328](index=328&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company manages its primary market risk exposure to interest rate changes by maintaining a balanced mix of fixed and variable rate debt - The company's primary market risk exposure is to interest rate changes [345](index=345&type=chunk) - This is managed through a mix of fixed and variable rate debt [346](index=346&type=chunk) Debt Structure by Rate Type (as of June 30, 2025) | Debt Type | Principal Amount (millions) | Weighted Average Interest Rate | | :--- | :--- | :--- | | Variable Rate Debt | $900 | 6.1% | | Fixed Rate Debt | $9,325 | 4.3% | [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2025, the company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective [348](index=348&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting [349](index=349&type=chunk) Part II - Other Information This section covers legal proceedings, risk factors, and details on equity security sales and use of proceeds [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including lawsuits regarding subscription practices, royalty fees, and a 'Do-Not-Call' litigation settlement - The company is defending a lawsuit from the New York Attorney General alleging violations related to its subscription cancellation processes [168](index=168&type=chunk)[169](index=169&type=chunk) - Multiple class actions and mass arbitrations are pending, alleging false advertising and lack of disclosure regarding the 'U.S. Music Royalty Fee' [173](index=173&type=chunk) - In July 2025, the company agreed to a **$28 million** settlement for a putative class action lawsuit alleging violations of the Telephone Consumer Protection Act's 'Do-Not-Call' provisions, to be paid in 2026 subject to court approval [179](index=179&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, were reported - No material changes to risk factors were reported since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024 [352](index=352&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's board-authorized stock repurchase program has **$1.09 billion** remaining, with **2.1 million shares** repurchased for **$45 million** during Q2 2025 - As of June 30, 2025, **$1.09 billion** remained available for share repurchases under the current board authorization [354](index=354&type=chunk) Share Repurchases for the Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 850,821 | $20.64 | | May 2025 | 661,843 | $21.74 | | June 2025 | 600,954 | $21.96 | | **Total** | **2,113,618** | **$21.36** |

Core Viewpoint - Sirius XM reported quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.79 per share, representing a -27.85% earnings surprise [1] - The company posted revenues of $2.14 billion for the quarter, slightly surpassing the Zacks Consensus Estimate by 0.30%, but down from $2.18 billion year-over-year [2] Financial Performance - Earnings per share (EPS) for the previous year was $0.80, indicating a decline in earnings [1] - Over the last four quarters, Sirius XM has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is $0.77, with revenues expected to be $2.14 billion, and for the current fiscal year, the EPS estimate is $2.85 on revenues of $8.52 billion [7] Market Position - Sirius XM shares have increased by approximately 0.6% since the beginning of the year, underperforming compared to the S&P 500's gain of 8.2% [3] - The company currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Industry Outlook - The Broadcast Radio and Television industry, to which Sirius XM belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Sirius XM's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for Q2 totaled $2.14 billion, down 2% year-over-year, with similar results across subscription and advertising revenue streams [17] - Adjusted EBITDA was $668 million, down 5% year-over-year, reflecting a healthy margin of 31% [18] - Free cash flow rose 27% to $402 million, driven by timing of payments, lower capital expenditures, and elimination of prior overhead [18] - The company maintained a net debt to adjusted EBITDA ratio of 3.8 times [25] Business Line Data and Key Metrics Changes - SiriusXM revenue was $1.61 billion, down 2% from the prior year, driven by a smaller self-pay subscriber base [22] - Self-pay net subscriber additions were negative 68,000, an improvement of 32,000 compared to the prior year, with a churn rate of 1.5% [23] - In the Pandora and off-platform segment, revenue was $524 million, down 3% year-over-year, with podcast advertising revenue increasing nearly 50% [24][14] Market Data and Key Metrics Changes - The advertising market faced challenges due to economic uncertainties, with overall advertising down approximately 2% from Q2 2024 [12][13] - Podcast ad revenue climbed almost 50% year-over-year, indicating strong growth in that segment despite overall advertising declines [14] Company Strategy and Development Direction - The company is focused on enhancing content offerings and subscriber engagement, with new talent and programming initiatives [6][7] - A new ad-supported subscription plan, SiriusXM Play, is being rolled out, expected to be available in nearly 100 million vehicles by year-end [11] - The company is investing in technology enhancements, including AI capabilities for advertising and customer service [78][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term success of the business despite anticipated headwinds in the advertising market [6][27] - The company is closely monitoring macroeconomic trends that could impact advertising revenue [26] - Full-year guidance remains unchanged, with expectations of approximately $8.5 billion in total revenue and $2.6 billion in adjusted EBITDA [26] Other Important Information - The company returned approximately $137 million to shareholders through dividends and share buybacks [25] - A comprehensive technology and workforce realignment was undertaken, including a non-cash write-off of $100 million in capitalized software assets [20] Q&A Session Summary Question: Inquiry on free cash flow guidance and its full-year impact - Management noted a sizable beat in free cash flow for the quarter, attributing it to timing and ongoing cost structure optimization [30][31] Question: Strategy for attracting younger audiences - Management highlighted the success of podcasts and new content aimed at younger demographics, with a focus on monetization in that space [32][34] Question: Podcasting and digital advertising developments - Management reported strong growth in podcasting, with efforts to improve programmatic ad tech capabilities [39][41] Question: Update on G&A expenses and podcast ad revenue strength - Legal expenses impacted G&A, while podcasting revenue growth was attributed to increased marketer adoption and content monetization [58][61] Question: Clarification on net adds and acquisition initiatives - Management confirmed improvements in both acquisition and retention, with ongoing initiatives expected to contribute positively [67][70] Question: AI utilization in advertising and broader business - Management discussed leveraging AI for customer service and advertising, with ongoing improvements in targeting and campaign scaling [78][79] Question: Rollout pace of ad-supported subscription plan - Management outlined a targeted rollout strategy for the new ad-supported plan, aiming for significant vehicle penetration by year-end [90][91]

Financial Data and Key Metrics Changes - Revenue for Q2 totaled $2,140 million, down 2% year over year, with similar results across subscription and advertising revenue streams [16] - Adjusted EBITDA was $668 million, down 5% year over year, reflecting a healthy margin of 31% [17] - Free cash flow rose 27% to $402 million, driven by timing of payments, lower capital expenditures, and elimination of Liberty level overhead from the prior year [17] - The company expects to achieve approximately $200 million in gross savings this year, primarily in operating expenses [17] Business Line Data and Key Metrics Changes - SiriusXM revenue was $1,610 million, down 2% from the prior year, driven by a smaller self-pay subscriber base [21] - ARPU was flat at $15.22, with a gross margin of 60% [21] - Self-pay net subscriber additions were negative 68,000, an improvement of 32,000 compared to the prior year, reflecting low churn of 1.5% [21] - In the Pandora and off-platform segment, revenue was $524 million, down 3% year over year, with podcast advertising revenue increasing nearly 50% [22] Market Data and Key Metrics Changes - The advertising environment remains challenging due to economic uncertainties, with overall advertising down approximately 2% from Q2 2024 [13] - Podcast ad revenue climbed almost 50% year over year, indicating strong growth in that segment [13] - The company is seeing pricing pressure in streaming from excess CTV inventory and competition [13] Company Strategy and Development Direction - The company is focused on enhancing value for subscribers through new content and programming, including a new agreement with Stephen A. Smith [6][11] - SiriusXM Play, a new ad-supported subscription plan, is being rolled out to target price-sensitive customers [11] - The company is investing in ad tech improvements, including AI voice replicas for scalable campaigns [12] - The strategic focus includes optimizing expenses and enhancing in-car experiences while growing off-platform monetization [26] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term success of the business despite anticipated headwinds in the second half of the year [7][9] - The company is closely monitoring macroeconomic trends that could impact advertising revenue [25] - Management reaffirmed full-year guidance of approximately $8.5 billion in total revenue and $1.15 billion in free cash flow [24][25] Other Important Information - The company returned approximately $137 million to shareholders through dividends and share buybacks [23] - A comprehensive technology and workforce realignment was undertaken, including a non-cash write-off of approximately $100 million in capitalized software assets [19] Q&A Session Summary Question: Inquiry on free cash flow guidance and its full-year impact - Management noted a sizable beat in free cash flow for the quarter, attributing it to timing and ongoing cost structure optimization [29][30] Question: Strategy for attracting younger audiences - The company is leveraging its podcast offerings to attract younger demographics while continuing to monetize content effectively [31][34] Question: Podcasting and digital advertising developments - Podcasting is expected to grow as a portion of total ad revenue, with improvements in targeting and measurement capabilities [40][41] Question: Update on G&A expenses and legal costs - Legal expenses included a $28 million settlement, which skewed G&A expenses for the quarter [60] Question: Conversion trends and customer demographics - The company is seeing a slowing decline in conversion rates for new cars, with ongoing enhancements in acquisition programs [93][94]

Financial Performance - Total revenue decreased by 2% year-over-year to $2.14 billion in the second quarter of 2025[24] - Adjusted EBITDA was $668 million, a 5% decrease year-over-year, with a margin of 31%, down one percentage point[20] - Free cash flow increased by 27% year-over-year to $402 million in the second quarter of 2025[21] - Net income was $205 million, compared to $354 million in the prior year's second quarter[22] Subscriber and Revenue Highlights - SiriusXM self-pay net additions improved by 32,000 year-over-year, with a decrease of (68,000) in the second quarter of 2025[7, 27] - SiriusXM total revenue decreased by 2% to $1.6 billion, driven by a 1% reduction in subscriber revenue to $1.499 billion[32, 36] - Pandora and Off-platform total revenue decreased by 3% to $524 million, with subscriber revenue down 6% to $130 million and advertising revenue down 2% to $394 million[38, 42] Cost Management and Capital Expenditures - The company expects to achieve approximately $200 million of gross savings in-period in 2025[7, 8] - Sales and marketing expenses decreased by 20% to $173 million, and product and technology costs fell by 20% to $48 million[8] - Full-year satellite capex is now expected to be approximately $200 million[15] - The company now expects 2025 non-satellite capex to be at the low end of the previously articulated $450–500 million range, declining further to ~$400 million in 2026[7, 15]

Exhibit 99.1 SiriusXM Reports Second Quarter 2025 Operating and Financial Results NEW YORK – July 31, 2025 – SiriusXM today announced its second quarter 2025 operating and financial results, including revenue of $2.14 billion, a 2% decrease compared to the same period in 2024. Net income totaled $205 million compared to $354 million in the prior-year quarter. Earnings per diluted common share were $0.57, compared to $0.74 in the second quarter of 2024. Adjusted EBITDA was $668 million in the second quarter ...