Key Points

• SiriusXM posted $2.14 billion in revenue for the quarter, down 2% on a year-over basis.
• SiriusXM’s core satellite and streaming radio business earned $1.6 billion in revenue, down 2% compared to Q2 2024.
• Net income fell to $205 million from $354 million.

SiriusXM continued to struggle with churn in its core satellite and streaming radio business during the second quarter (Q2) of the year, though the company is hoping a new, ad-supported product will turn things around.

During Q2, SiriusXM’s overall revenue was $2.14 billion, down two percent when compared to the same quarter last year. Net income fell to $205 million, down from $354 million logged during Q2 2024, while diluted earnings per share (EPS) fell to $0.57.

Adjusted EBITDA came in at $668 million for the quarter, down from $702 million in the prior year, reflecting the modest revenue decline tempered by cost discipline. Free cash flow improved to $402 million, up 27 percent year over year.

Revenue from the company’s core SiriusXM radio segment totaled $1.6 billion, down two percent on a year-over basis. Average revenue per user (ARPU) held steady at $15.22, despite SiriusXM losing customers during the quarter. Self-pay subscriptions dipped by 68,000 accounts, a slight improvement from Q2 2024, when SiriusXM reported 100,000 fewer customers. It was also an improvement from the 303,000 customers SiriusXM lost during the first three months of the year.

SiriusXM ended the quarter with about 33 million total subscribers.

“Our renewed strategic focus continued to deliver this quarter,” said Jennifer Witz, chief executive officer. “We achieved meaningful year-over-year subscriber improvements, signed exciting new content agreements, accelerated momentum in podcasting, and unlocked significant cost efficiencies.”

Witz said the company is seeing “deeper engagement from our most-loyal listeners,” though the company was light on data that explained exactly what that engagement was.

“We’re becoming a more focused, more flexible company, centered on delivering real and increasing value to our listeners and driving long-term growth for our business,” Witz promised.

Part of that long-term growth is rooted in a new plan called SiriusXM Play, which offers dozens of music channels with short ad breaks. The plan costs $10 per month and also includes ad-supported news, comedy and sports talk channels. SiriusXM Play is available in cars and through the SiriusXM streaming app.

Historically, SiriusXM has only offered its music channels without commercials, which the company marketed as a strong and premium alternative to traditional AM and FM radio stations.

But, in the era of Spotify and Apple Music, SiriusXM has decided to take a play out of the streaming video playbook and roll out a plan that allows the company to generate two sources of revenue from cost-conscious subscribers who appreciate SiriusXM’s programming and are willing to tolerate a few ads to get it at a low rate.

SiriusXM’s signature packages continue to be available, including its streaming All Access plan, which costs the same $10 per month, though its music-inclusive plans also include separate music royalty fees that drive up the cost of the service.

Pandora and off-platform segment generated $524 million in revenue, down three percent from $538 million a year ago, as advertising and subscriber revenue both declined. Growth in podcasting, including a new multiyear deal with Trevor Noah, partially offset weakness in music streaming revenue.

SiriusXM reaffirmed its 2025 outlook, projecting approximately $8.5 billion in total revenue, $2.6 billion in adjusted EBITDA, and $1.15 billion in free cash flow for the year.