SiriusXM Loses 301,000 Self-Pay Subscribers

Core Insights - SiriusXM Holdings Inc. reported fiscal fourth-quarter 2025 results, with stock gaining despite mixed performance metrics [1] Financial Performance - Subscriber revenue for the quarter was $1.626 billion, a slight decrease from $1.633 billion year-over-year [1] - Quarterly revenue remained flat at $2.19 billion, surpassing analyst consensus estimates of $2.17 billion [1] - GAAP EPS was 24 cents, missing the analyst consensus estimate of 78 cents, while adjusted EPS was 80 cents, exceeding the consensus [2] - Advertising revenue increased to $491 million from $477 million year-over-year [2] Subscriber Metrics - Self-pay subscribers decreased by 301,000 to 31.35 million compared to 31.65 million year-over-year [3] - Self-pay monthly churn rate for the quarter was 1.4%, slightly down from 1.5% a year ago [3] - Average revenue per user (ARPU) increased to $15.17 from $15.11 year-over-year [3] Segment Performance - SiriusXM segment revenue declined by 1% year-over-year to $1.61 billion, influenced by the drop in self-pay subscribers [3] - Pandora segment advertising revenue rose by 4% year-over-year to $450 million [4] - Total ad-supported listener hours decreased to 2.33 billion from 2.39 billion year-over-year [5] Profitability and Cash Flow - SiriusXM segment gross margin declined by 100 basis points year-over-year to 59% [4] - Net income fell to $99 million from $287 million year-over-year [6] - Free cash flow generated in the quarter was $541 million, compared to $516 million a year ago [6] Shareholder Returns - The company distributed $91 million through dividends and repurchased $46 million in shares, returning a total of $137 million to shareholders during the quarter [6] Outlook - SiriusXM revised its revenue outlook to $8.500 billion, down from a prior estimate of $8.525 billion, which is below the analyst consensus estimate of $8.548 billion [7]