Sirius XM(US:SIRI)2025-10-30 11:45Financial Performance - SiriusXM reported Q3 2025 revenue of $2.16 billion, a 1% decrease from the prior year, with net income of $297 million compared to a net loss of $2.96 billion in Q3 2024[1][6]. - Adjusted EBITDA for Q3 2025 was $676 million, down from $693 million in the same period last year, resulting in an adjusted EBITDA margin of 31%[2][6]. - SiriusXM's total revenue for Q3 2025 was $2,159 million, a decrease of 1% compared to $2,171 million in Q3 2024[29]. - Net income for the nine months ended September 30, 2025, was $706 million, a significant recovery from a net loss of $2,362 million in the same period of 2024[26]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,974 million, a decrease of 3% from $2,043 million in the same period of 2024[29]. - For the three months ended September 30, 2025, SiriusXM reported a net loss of $297 million compared to a net loss of $2,958 million in the same period of 2024[37]. - SiriusXM's adjusted EBITDA for the quarter was $800 million, representing a margin of 36.4%[44]. Subscriber Metrics - The total subscriber count at the end of Q3 2025 was approximately 33 million, with a slight decrease of about 40,000 self-pay net subscribers[11]. - The total number of SiriusXM subscribers as of September 30, 2025, was 32,808 thousand, down 1% from 33,156 thousand in 2024[32]. - Self-pay subscribers decreased by 40 thousand in Q3 2025, while paid promotional subscribers increased by 51 thousand, resulting in net additions of 11 thousand subscribers[36]. - The weighted average number of SiriusXM subscribers was 32,749 thousand in Q3 2025, a decrease of 463 thousand from 33,212 thousand in Q3 2024[36]. - The company added 1.1 million net new subscribers, bringing the total subscriber base to 34.7 million, a growth of 3% year-over-year[44]. Cash Flow and Shareholder Returns - SiriusXM's free cash flow for Q3 2025 was $257 million, significantly up from $93 million in the prior-year period[18]. - The company returned $111 million to shareholders in Q3 2025 through dividends of $91 million and share repurchases of $20 million[19]. - SiriusXM's free cash flow for the quarter was reported at $400 million, allowing for continued investment in growth initiatives[44]. - The company is committed to returning value to shareholders, with a planned increase in its dividend payout by 10%[44]. Advertising and Revenue Generation - SiriusXM Media expanded its advertising capabilities, integrating with Amazon DSP for programmatic access to digital inventory, contributing to a 2% increase in advertising revenue to $416 million[9][14]. - Advertising revenue for SiriusXM decreased by 5% to $39 million in Q3 2025 from $41 million in Q3 2024[29]. - Advertising revenue per thousand listener hours for Pandora decreased by 13% to $91.24 in Q3 2025 from $104.50 in Q3 2024[36]. - The total number of ad-supported listener hours for Pandora was 2.49 billion in Q3 2025, a 1% increase from 2.47 billion in Q3 2024[36]. Cost Management - Subscriber acquisition costs (SAC) rose to $107 million in Q3 2025, compared to $90 million in the same quarter of 2024, with SAC per installation increasing to $19.37[16]. - Total operating expenses for Q3 2025 were $1,666 million, a decrease of 67% compared to $5,072 million in Q3 2024[29]. - Subscriber acquisition costs increased by 19% to $107 million in Q3 2025 from $90 million in Q3 2024[29]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were $588 million, a decrease from $792 million in the same period of 2024, indicating a reduction of approximately 25.7%[26]. Debt and Assets - SiriusXM maintained solid margins while investing in engagement, ad monetization, and OEM distribution, resulting in a $120 million reduction in debt[3][19]. - Long-term debt decreased to $9,019 million as of September 30, 2025, from $10,314 million as of December 31, 2024, a reduction of approximately 12.5%[24]. - As of September 30, 2025, total assets decreased to $27,401 million from $27,521 million as of December 31, 2024, representing a decline of approximately 0.4%[24]. - Total current liabilities increased to $3,461 million as of September 30, 2025, compared to $2,731 million as of December 31, 2024, marking an increase of approximately 27%[24]. - Total stockholders' equity increased to $11,556 million as of September 30, 2025, compared to $11,074 million as of December 31, 2024, representing an increase of about 4.4%[24]. Future Outlook and Investments - The company increased its 2025 financial guidance by $25 million, projecting total revenue of approximately $8.525 billion, adjusted EBITDA of approximately $2.625 billion, and free cash flow of approximately $1.225 billion[20]. - The company expects to achieve revenue growth of approximately 4% for the upcoming fiscal year, projecting total revenue of around $8.9 billion[44]. - SiriusXM is investing in new technology and content, with a focus on expanding its podcast offerings and enhancing user experience[44]. - The company plans to expand its market presence by targeting new demographics and increasing partnerships with automotive manufacturers[44]. - SiriusXM is exploring potential acquisitions to enhance its content library and diversify its service offerings[44].