SiriusXM Adds 22K Subscribers, But Shares Fall After Earnings Miss

SiriusXM added 22,000 paid subscribers in the second quarter to reach 33 million total subscribers, with monthly churn improving to 1.4 percent, marking the lowest level in the company's history.

Still, shares were down 13 percent in pre-market trading as the company reported revenue of $2.16 billion, up 1 percent year over year, above expectations, and net income of $239 million, or adjusted earning per share of $0.70, which slightly missed analyst expectations but was up 23 percent year-over-year.

The satellite radio company raised its full-year guidance and now expects total revenue of approximately $8.525 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $2.625 billion, and free cash flow of approximately $1.375 billion.

"Since resetting our strategy, we've been focused on building a stronger, more durable SiriusXM, and our second quarter performance demonstrates that strategy is delivering meaningful results," said CEO Jennifer Witz. "We achieved positive second-quarter self-pay net additions for the first time in four years, strengthened engagement and retention across our subscriber base, and continue to build momentum by delivering premium content and experiences that deepen our connection with listeners while creating new opportunities for advertisers. These results reflect disciplined execution and give us the confidence to raise our full-year guidance for revenue, Adjusted EBITDA, and free cash flow. We remain focused on creating long-term value by investing in the areas that strengthen our listener relationships and further differentiate SiriusXM."

In the past quarter, the company launched ABC News Live and 20/20 True Crime channels, added The John Kasich Show and hosted Vice President JD Vance on The Megyn Kelly Show. The company also renewed partnerships with Comedy Bang! Bang! and The School of Greatness and announced A History of the United States in 100 Objects , an original podcast produced with BBC Studios.

Off-platform advertising revenue, which includes podcasting and Pandora, increased 5% year-over-year to $413 million, driven by strength in podcasting, higher programmatic demand and technology fees, partially offset by softer streaming music advertising. On its own, podcasting revenue grew 30% year over year.

SiriusXM has partnered with Apple to launch its new video podcast advertising service and has partnered with YouTube to become its exclusive advertising representative for inventory in the U.S.

On Thursday, the company also announced that Wayne D. Thorsen, the executive vice president and chief operating officer, will leave the company effective Friday. SiriusXM said it does not intend to appoint a successor chief operating officer at this time.

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