Days before terrestrial radio begins its earnings report season, SiriusXM reported a mixed second quarter on the satellite front, as the company relies on its star-studded podcasting arm to make up for losses on the ad and subscriber sides.
CEO Jennifer Witz opened the call by framing Q2 2025 as a period of “great progress,” driven by strategic content moves. Among the biggest headlines: SiriusXM signed a multi-platform deal with Stephen A. Smith, who will host a live daily sports show on Mad Dog Sports Radio and a political/culture program on the POTUS channel, with distribution also as a podcast.
While overall ad revenue declined approximately 2% in Q2, podcast advertising was a standout, increasing nearly 50% year over year due to high-profile partnerships with Alex Cooper, Trevor Noah, and now Morbid, one of the most popular true crime podcasts. SiriusXM also emphasized its ability to scale campaigns when hosts like Mel Robbins or shows like Conan O’Brien Needs a Friend see audience growth.
However, the podcasting success might not necessarily be translating into subscriptions. While noting an improvement of 32,000 from the same quarter last year, SiriusXM reported self-pay net subscriber losses of 68,000.
Ultimately, SiriusXM posted Q2 revenue of $2.14 billion, down 2% year over year. The company continues to target $200 million in in-year cost savings and now expects capital expenditures to fall to around $400 million in 2026, following workforce and software reductions in Q2.
Sales and marketing costs were down 20%, while general and administrative costs rose 23%, partly due to legal expenses. The company took a $100 million non-cash write-off of capitalized software assets no longer aligned with its roadmap.
The Pandora and off-platform segment posted $524 million in revenue, down 3%.
So what’s next for the company? SiriusXM is hanging its subscription hopes on the launch of SiriusXM Play, a lower-cost, ad-supported subscription plan. The new tier marks the first time SiriusXM will allow commercials on its music channels, in a gambit to lure both listeners and advertisers away from free AM/FM.
The satellite broadcaster is also working to simplify the multi-platform buying process. “We announced an agreement to improve audio’s representation within media mix models,” said Witz, as AI-powered ad tools and real-time replacement capabilities in 360L vehicles are also expected to enhance ad delivery.
SiriusXM reaffirmed its full-year 2025 guidance of $8.5 billion in total revenue, though it is settling on the lower side of its expectations. “We remain confident in our strategic priorities and our ability to deliver on our financial targets,” said CFO Tom Barry. “Strong cash generation and ongoing cost efficiency position us well to navigate near-term headwinds.”
