Sirius XM(US:SIRI)2025-10-30 13:24Subscriber Metrics - As of September 30, 2025, SiriusXM had approximately 32.8 million subscribers, while Pandora had approximately 41.6 million monthly active users and 5.7 million subscribers[223][226]. - Sirius XM Canada had approximately 2,491 subscribers as of September 30, 2025, a decrease of 68 subscribers or 3% from 2,559 in 2024[299]. - As of September 30, 2025, SiriusXM had 32,808 subscribers, a decrease of 348 subscribers or 1% from 33,156 subscribers in 2024[297]. - For the three months ended September 30, 2025, net subscriber additions were 11, an improvement of 111 compared to a loss of 100 in the same period of 2024[298]. - Average self-pay monthly churn rate for the nine months ended September 30, 2025 was 1.5%, a decrease from 1.6% in 2024[299]. - Pandora had approximately 41,562 monthly active users as of September 30, 2025, a decrease of 2,159 users or 5% from 43,721 users in 2024[302]. Revenue Performance - The primary revenue source for SiriusXM is subscription fees, with additional revenue from advertising on select channels and direct sales of radios and accessories[223]. - For the three months ended September 30, 2025, SiriusXM subscriber revenue was $1,497 million, a decrease of 1% or $13 compared to $1,510 million in 2024[233]. - For the nine months ended September 30, 2025, SiriusXM subscriber revenue was $4,466 million, a decrease of 2% or $110 compared to $4,576 million in 2024[233]. - Total revenue for the three months ended September 30, 2025, was $2,159 million, a decrease of 1% or $12 compared to $2,171 million in 2024[248]. - Total revenue for the nine months ended September 30, 2025, was $6,365 million, a decrease of 2% or $146 compared to $6,511 million in 2024[248]. - For the three months ended September 30, 2025, advertising revenue was $39 million, a decrease of 5% or $2 compared to $41 million in 2024[235]. - For the nine months ended September 30, 2025, advertising revenue was $116 million, a decrease of 6% or $8 compared to $124 million in 2024[235]. - For the three months ended September 30, 2025, Pandora and Off-platform advertising revenue was $416 million, an increase of 2% or $7 compared to $409 million in 2024[246]. - For the nine months ended September 30, 2025, Pandora and Off-platform advertising revenue was $1,165 million, a decrease of 1% or $6 compared to $1,171 million in 2024[246]. Financial Performance - Net income for the three months ended September 30, 2025, was $297 million, compared to a net loss of $2,958 million in 2024[248]. - Income (loss) from operations for the three months ended September 30, 2025, was $493 million, compared to a loss of $2,901 million in 2024[248]. - Adjusted EBITDA for the three months ended September 30, 2025 was $676 million, a decrease of 2% or $17 million from $693 million in 2024[308]. - Adjusted EBITDA for the three months ended September 30, 2025, was $676, compared to $693 for the same period in 2024, while for the nine months ended September 30, 2025, it was $1,974 compared to $2,043 in 2024[336]. - Free cash flow for the three months ended September 30, 2025 was $257 million, an increase of 176% or $164 million from $93 million in 2024[309]. - For the nine months ended September 30, 2025, free cash flow was $715 million, up from $499 million in the same period of 2024, a 43% increase[338]. - Net cash provided by operating activities for Q3 2025 was $430 million, compared to $309 million in Q3 2024, a 39% increase[338]. - Total net cash used in investing activities for Q3 2025 was $191 million, down from $242 million in Q3 2024[338]. Expenses and Costs - For the three months ended September 30, 2025, transmission expenses decreased by 13% to $42 million compared to $48 million in 2024, driven by lower hosting costs[257]. - For the nine months ended September 30, 2025, cost of equipment decreased by 14% to $6 million from $7 million in 2024, attributed to lower inventory reserves[259]. - Revenue share and royalties for Pandora and Off-platform increased by 6% to $337 million for the three months ended September 30, 2025, compared to $317 million in 2024, driven by podcast revenue share[262]. - Programming and content expenses for Pandora and Off-platform increased by 23% to $16 million for the three months ended September 30, 2025, compared to $13 million in 2024, primarily due to higher podcast programming costs[264]. - Subscriber acquisition costs increased by 19% to $107 million for the three months ended September 30, 2025, compared to $90 million in 2024, driven by contractual changes with certain automakers[271]. - Sales and marketing expenses decreased by 14% to $186 million for the three months ended September 30, 2025, compared to $217 million in 2024, primarily due to lower brand and streaming marketing spend[274]. - General and administrative expenses decreased by 14% to $119 million for the three months ended September 30, 2025, compared to $138 million in 2024, driven by lower legal costs[278]. - Interest expense decreased to $115 million for the three months ended September 30, 2025, from $124 million in 2024, primarily due to a lower average outstanding debt balance[283]. - Impairment, restructuring, and other costs were $9 million for the three months ended September 30, 2025, compared to $3,388 million in 2024, indicating a substantial reduction in restructuring-related expenses[282]. Debt and Financing - The company has significant indebtedness, which may limit its ability to incur additional debt for operations[212]. - Cash flows used in financing activities included debt repayment of $2,797, cash dividends of $51, and tax payments of $39, partially offset by debt borrowings of $2,451[317]. - As of September 30, 2025, $1,970 was available for future borrowing under the Credit Facility, with no amounts available under the Delayed Draw Incremental Term Loan[318]. - The company is in compliance with debt covenants as of September 30, 2025[326]. - The weighted average interest rate for variable rate debt as of September 30, 2025, was 6.0%, while fixed rate debt had a weighted average interest rate of 4.3%[344]. Strategic Initiatives - The company completed a significant transaction on September 9, 2024, involving a split-off and merger, resulting in the renaming of Old Sirius to Sirius XM Inc.[216][218]. - The effectiveness of marketing efforts is crucial for attracting and retaining subscribers, as well as converting listeners into subscribers[206]. - The company relies on third parties for operations, and any failure in their performance could adversely affect business[206]. - The company uses artificial intelligence in its business, and challenges in managing its use could result in reputational harm and legal liability[210]. - The company expects to fund operating expenses and capital expenditures, including satellite construction, with existing cash and cash flow from operations[318]. - The company has made tax-efficient equity investments in clean energy technologies, expected to produce tax credits and related tax losses[322]. - The company regularly evaluates its business plans and strategies, which may lead to material changes in cash requirements[320]. - The stock repurchase program was authorized for an aggregate of $1,166 following the closing of the Transactions, with no end date established[324]. - Cumulative stock repurchases since the closing of the Transactions totaled 4,371 thousand shares for $96, with $1,070 remaining available for additional repurchases[324]. - The board of directors declared a quarterly dividend of $0.27 per share, payable on November 21, 2025[325]. Market Risks - The company is exposed to market risks due to fluctuations in stock prices and interest rates, which are managed through a mix of fixed and variable rate debt[343]. - The company’s advertising revenue is calculated based on the number of listener hours on its Pandora service, which is a key performance metric[342].