Satellite radio provider Siriusxm experienced a remarkable 10.64% stock price surge to $23.30 following the release of its third-quarter 2025 financial results, which greatly exceeded analyst expectations across multiple metrics. The company reported earnings per share of $0.84, beating forecasts by 6.33%, while revenue reached $2.16 billion, slightly above the anticipated $2.14 billion.
Siriusxm shares soared as Q3 earnings crushed expectations, with EPS of $0.84 outperforming projections.
Despite facing ongoing challenges with subscriber retention, the company’s financial performance demonstrated considerable resilience. Siriusxm reported a decline of 262,000 self-pay subscribers year-over-year, bringing the total to 31.24 million, while overall subscriber count fell by 574,000 to 38.5 million. The company effectively maintained subscriber engagement with a noteworthy improvement in churn rate to 1.6%.
However, the company managed to offset these losses through improved monetization strategies, as evidenced by the marginal increase in average revenue per user to $15.19.
The company’s adjusted EBITDA of $676 million, though down 2% from the previous year, significantly surpassed analyst estimates of approximately $654.3 million. Perhaps most impressive was the dramatic improvement in free cash flow, which reached $257 million compared to just $93 million in Q3 2024, reflecting enhanced operational efficiency and strategic cost management.
In response to these strong results, Siriusxm raised its fiscal year 2025 guidance across key metrics. Revenue projections increased to $8.525 billion, while adjusted EBITDA and free cash flow forecasts were elevated to $2.625 billion each, greatly exceeding previous expectations. The significant jump in free cash flow from a previous projection of $1.15 billion represents a strong commitment to improving financial health.
The company’s strategic emphasis on digital advertising and podcasting expansion appears to be bearing fruit. Siriusxm has successfully integrated with Amazon’s platform for programmatic ad buying and continues to leverage its podcasting leadership, which reaches approximately 170 million monthly listeners. Similar to music streaming platforms like Spotify and Tidal, Siriusxm has been exploring ways to improve artist exposure through curated playlists and exclusive content. The company has also begun exploring sync deals for its original content, potentially creating additional revenue by licensing exclusive programming for use in television and film productions.
While analysts maintain a mixed “Hold” consensus on the stock with price targets ranging from $22 to $28, some consider shares undervalued with fair value estimates approaching $30.
The quarterly dividend of $0.27 per share, yielding approximately 4.7%, further enhances the investment appeal for income-focused shareholders amid the company’s improving financial outlook.
