SiriusXM Loses 301,000 Self-Pay Subscribers

SiriusXM Holdings Inc. (NASDAQ:SIRI) stock gained on Thursday after it reported fiscal fourth-quarter 2025 results. The company noted that subscriber revenue was $1.626 billion for the quarter, down from $1.633 billion year-over-year. The New York-based company reported a quarterly revenue of $2.19 billion, flat Y/Y, beating the analyst consensus estimate of $2.17 billion. GAAP EPS of 24 cents missed the analyst consensus estimate of 78 cents; advertising revenue was $491 million, up from $477 million a year ago. Adjusted EPS of 80 cents topped the analyst consensus estimate of 78 cents. For the year, SiriusXM self-pay subscribers decreased by 301,000 to 31.35 million total subscribers versus 31.65 million Y/Y. The self-pay monthly churn for the quarter stood at 1.4%, slightly down from 1.5% a year ago. SiriusXM segment revenue declined 1% year over year to $1.61 billion during the quarter, driven by the decline in self-pay subscribers offset by an increase in average revenue per user (ARPU). ARPU increased to $15.17 from $15.11 Y/Y. SiriusXM segment gross margin declined 100 bps Y/Y to 59% as the gross profit decreased 1% Y/Y. Pandora segment advertising revenue rose 4% Y/Y to $450 million for the quarter. For the year, Pandora's Monthly Active Users (MAUs) were 41.11 million, down from 43.34 million a year ago. The total number of ad-supported listener hours was 2.33 billion in the quarter, down from 2.39 billion Y/Y. The Pandora segment gross margin expanded by 200 bps Y/Y to 36% for the quarter as the gross profit increased by 8% Y/Y. The adjusted EBITDA slightly rose to $691 million from $688 million Y/Y. The net income declined to $99 million, from $287 million Y/Y. The company generated $541 million in free cash flow in the quarter, compared to $516 a year ago. As of December 31, it held $94 million in cash and equivalents. SiriusXM distributed $91 million through dividends and repurchased $46 million in shares, returning $137 million to shareholders during the quarter. Outlook SiriusXM now expects a revenue of $8.500 billion (down from prior outlook of $8.525 billion), below the analyst consensus estimate of $8.548 billion. It now expects an adjusted EBITDA of $2.600 billion (down from prior outlook of $2.625 billion) and a free cash flow of $1.35 billion (down from prior outlook of $2.625 billion). Elevated Short Float About 30.8 million shares are currently sold short, representing roughly 15% of the company's publicly tradable shares, a relatively elevated level that suggests notable bearish positioning and the potential for heightened volatility if sentiment shifts. SIRI Price Action: Sirius XM Holdings shares were up 8.39% at $22.47 during premarket trading on Thursday, according to Benzinga Pro data. Photo via Shutterstock