SiriusXM Gains 22,000 Subscribers Yet Stock Slides After Earnings Miss
SiriusXM added 22,000 paid subscribers in Q2, bringing its total to 33 million, but its shares fell about 13% after earnings fell short of forecasts.
In the second quarter, SiriusXM recorded an addition of 22,000 paid subscribers, pushing its subscriber base to 33 million and reducing monthly churn to a historic low of 1.4%. Revenue climbed 1% to $2.16 billion, surpassing forecasts, but net income of $239 million, or $0.70 per share, fell slightly below analyst expectations even though it was up 23% from a year earlier. The company responded by raising its full-year guidance for total revenue to roughly $8.525 billion, adjusted EBITDA to about $2.625 billion, and free cash flow to approximately $1.375 billion.
CEO Jennifer Witz said the results reflect the success of recent strategy shifts, including the launch of new channels such as one outlet Live and 20/20 True Crime, and the addition of The John Kasich Show and a Vice President JD Vance interview on The Megyn Kelly Show. SiriusXM also expanded advertising ties with Apple’s video podcast service and secured exclusive U.S. ad representation for YouTube inventory. Despite these positives, the stock slipped 13% in pre-market trading following the earnings miss.
Why it matters
The report shows SiriusXM's growth in subscribers and revenue, but a missed earnings target caused a notable stock decline.
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