SiriusXM Q4: Strong Earnings, Subscriber Challenges

Sirius XM reported strong financial performance in Q4 2024, with earnings per share of $0.83 significantly exceeding Wall Street's expectation of $0.66, despite a 4.4% year-on-year decline in revenue to $2.19 billion. The company added 149,000 self-pay subscribers in the quarter, improving from the previous year, yet faced an annual decrease in total subscribers by 649,000, and a drop in Pandora subscribers due to price increases. Sirius XM also reported a net income increase to $287 million, driven partly by reduced operating expenses and steady demand for live sports content. For 2025, Sirius XM forecasts revenue of $8.5 billion, slightly below analysts' estimates, and plans to focus on cost savings and enhancing its core in-car subscriber base. Despite challenges in subscriber retention, Sirius XM's advertising revenue showed growth, notably in podcasting. The company’s strategic shifts aim to improve customer satisfaction and long-term business health.