Sirius XM(SIRI) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $2.19 billion, flat year-over-year, while full-year 2025 revenue totaled $8.56 billion, a 2% decline from 2024[2][5] - Net income for the fourth quarter was $99 million, down from $287 million in the prior year, while full-year net income was $805 million compared to a net loss of $2,075 million in 2024[2][5] - Adjusted EBITDA for the fourth quarter was $691 million, slightly up from $688 million in the same period last year, with a full-year adjusted EBITDA of $2.67 billion, reflecting a 2% decline from 2024[3][5] - SiriusXM total revenue for Q4 2025 was $1,611 million, a decrease of 1% compared to Q4 2024, with a total revenue for the year of $6,417 million, down 2% from $6,553 million in 2024[28] - SiriusXM subscriber revenue decreased by 2% year-over-year for the twelve months, totaling $5,960 million in 2025 compared to $6,076 million in 2024[28] - Adjusted EBITDA for Q4 2025 was $691 million, remaining stable compared to $688 million in Q4 2024, with a total for the year of $2,665 million, down 2% from $2,732 million[28] Cash Flow and Investments - Free cash flow for 2025 was $1.26 billion, up 24% from $1.02 billion in 2024, driven by lower capital expenditures and operating discipline[17][5] - Cash used in investing activities was $747 million in 2025, down from $970 million in 2024, a decrease of approximately 23%[25] - Free cash flow increased by $25 million (5%) to $541 million for the three months ended December 31, 2025, compared to $516 million in 2024[36] Subscriber Metrics - SiriusXM ended 2025 with approximately 33 million total subscribers, with self-pay net subscribers increasing by approximately 110 thousand in Q4[11][5] - Total subscribers for SiriusXM as of December 31, 2025, were 32,927 thousand, a decline of 1% from 33,226 thousand in 2024[31] - The weighted average number of SiriusXM subscribers decreased by 333 thousand (1%) to 32,785 thousand for the three months ended December 31, 2025, compared to 33,118 thousand in 2024[35] - Self-pay subscribers decreased by 301 thousand (26%) to 110 thousand for the three months ended December 31, 2025, compared to 149 thousand in 2024[35] - Paid promotional subscribers increased by 2 thousand (110%) for the three months ended December 31, 2025, compared to a decrease of 79 thousand in 2024[35] Profitability and Expenses - SiriusXM's gross profit for 2025 was $3.82 billion, down 2% from $3.91 billion in 2024, resulting in a gross margin of 59%[13][5] - Total operating expenses for Q4 2025 increased by 17% to $1,967 million, compared to $1,682 million in Q4 2024[28] - SiriusXM's gross profit margin for Q4 2025 was 59%, down from 60% in Q4 2024, indicating a slight decline in profitability[28] Shareholder Returns - The company returned $501 million to shareholders in 2025 through dividends and share repurchases[18][5] - Common stock repurchased and retired amounted to $136 million in 2025, compared to $6 million in 2024, indicating a significant increase in share buybacks[25] - Dividends paid increased to $365 million in 2025 from $143 million in 2024, reflecting a rise of approximately 155%[25] Future Outlook - The company expects total revenue of approximately $8.5 billion, adjusted EBITDA of approximately $2.6 billion, and free cash flow of approximately $1.35 billion for 2026[19][5] Advertising and Podcasting - Podcasting revenue grew by 41% in 2025, building on a 12% growth in 2024[5][5] - Pandora's advertising revenue increased by 4% in Q4 2025, reaching $450 million, while total revenue for Pandora and Off-platform grew by 2% to $582 million[28] Asset and Liability Management - Total assets decreased to $27,237 million in 2025 from $27,521 million in 2024, a decline of approximately 1.03%[23] - Total current liabilities increased to $3,653 million in 2025 from $2,731 million in 2024, an increase of approximately 34%[23] - Long-term debt decreased to $8,648 million in 2025 from $10,314 million in 2024, a reduction of approximately 16%[23] - Total stockholders' equity increased to $11,563 million in 2025 from $11,074 million in 2024, an increase of about 4.4%[23] User Engagement - The number of monthly active users for Pandora and Off-platform services decreased by 5% to 41,112 thousand in 2025 from 43,344 thousand in 2024[31] - The total number of ad-supported listener hours decreased by 0.07 billion (3%) to 2.33 billion for the three months ended December 31, 2025, compared to 2.39 billion in 2024[35] - The company reached a combined monthly audience of approximately 170 million listeners across its audio businesses[38]