Sirius XM(US:SIRI)2025-05-01 11:58Financial Performance - SiriusXM reported Q1 2025 revenue of $2.07 billion, a 4% decrease from Q1 2024[2]. - Net income for Q1 2025 was $204 million, down from $241 million in the prior-year period, with diluted earnings per share at $0.59 compared to $0.63[2][6]. - Adjusted EBITDA was $629 million, reflecting a 3% decline from $650 million in the same period last year, maintaining a stable adjusted EBITDA margin of 30%[3][6]. - Total revenue decreased by 4% to $2,068 million in Q1 2025 from $2,162 million in Q1 2024[28]. - Sirius XM subscriber revenue declined by 5% to $1,470 million, while total Sirius XM revenue fell by 5% to $1,581 million[28]. - Free cash flow for Q1 2025 was $56 million, a decrease of 36% year-over-year, primarily due to timing of payments and higher capital expenditures[17]. - Free cash flow decreased by 36% to $56 million in Q1 2025 compared to $88 million in Q1 2024[34]. - The company reaffirmed its full-year 2025 guidance, projecting total revenue of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion, and free cash flow of approximately $1.15 billion[19]. Subscriber Metrics - SiriusXM's total subscribers stood at 33 million, with self-pay subscribers decreasing by approximately 303,000, but showing a 16% improvement in churn rate at 1.6%[10]. - The total number of Sirius XM subscribers decreased by 2% to 32,864 thousand from 33,430 thousand year-over-year[31]. - The average self-pay monthly churn rate improved to 1.6% from 1.7% year-over-year[32]. - SiriusXM reaches a combined monthly audience of approximately 160 million listeners across its audio businesses[36]. Cost Management - Sales and marketing expenses decreased by 19% to $176 million, reflecting the company's efforts to optimize its cost structure[16]. - Total operating expenses decreased by 4% to $1,681 million in Q1 2025 from $1,753 million in Q1 2024[28]. - Subscriber acquisition costs (SAC) per installation increased to $18.86 in Q1 2025 from $12.50 in Q1 2024, representing a 50.88% increase[35]. - Subscriber acquisition costs, excluding connected vehicle services, were $100 million in Q1 2025 compared to $90 million in Q1 2024, reflecting an increase of 11.11%[35]. Podcast and Advertising Performance - The podcast business grew significantly, achieving almost one billion downloads and a 33% year-over-year increase in podcast revenue, reaching 70 million monthly listeners[7]. - Pandora and Off-platform revenue totaled $487 million, a 2% decrease from the prior-year period, driven by weaker advertising performance[13]. Strategic Developments - SiriusXM's automotive platform 360L is expanding through a new agreement with Mitsubishi, expected to feature in new vehicles through 2030[8]. - The company repurchased and retired $25 million of common stock during the quarter[34]. Market Challenges and Risks - The company faces substantial competition and has experienced a loss of subscribers in its SiriusXM service and a decline in monthly active users for its Pandora ad-supported service[38]. - Future operations and financial results are subject to significant uncertainties and may differ materially from current expectations[37]. - The company relies on third parties for operations, and any failure in their performance could adversely affect business[38]. - The impact of economic conditions may negatively affect the company's operating results and financial condition[38]. - The company may change its dividend policy at any time, reflecting potential shifts in capital structure[38].