Sirius XM Holdings (SIRI) AI Stock Analysis

• Market Cap: $7.62B
• Dividend Yield: 4.79%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -4.08%
• EPS Growth: -248.39%
• Country: US
• Employees: 5,515
• Sector: Communication Services
• Sector Strength: 93
• Industry: Entertainment
• EPS (TTM): 0.59
• Shares Outstanding: 337,924,530
• 10 Day Avg. Volume: 3,021,095
• 30 Day Avg. Volume: 2,794,109
• PEG Ratio: 2.42
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.83
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 121.99
• 1Y Price Target: $22.00
• Price Target Upside: -2.48% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 9

• Rating: 56 Neutral
• Price Target: $22.50 ▼(-0.27%Downside)

Sirius XM's overall score reflects significant financial and valuation challenges, with operational inefficiencies impacting profitability. While technical analysis indicates stability, the negative P/E ratio and revenue declines weigh heavily. Positive aspects from the earnings call, such as strong subscription performance and cost management, offer some optimism.

Positive Factors

Ad-Supported Product

Ad-supported Sirius product in early stages: With a greater share of the vehicle lineup capable of receiving ad insertions, to the extent that there is solid uptake on the service, the company would meaningfully increase its potential ad inventory.

Financial Performance

SIRI reported largely better than projected 1Q25 results, including self-pay net losses of -303k (vs. -413k est.).

Investment Rating

Maintaining OUTPERFORM investment rating and price target of $28. Improving cash flow following satellite launches and lower non-satellite capex over the next few years will support improving trends in FCF, as will efforts to reduce debt.

Negative Factors

Capital Expenditures

Further, the company is in the midst of an elevated investment cycle which is weighing on FCF generation and focus on leverage reduction will subdue capital returns.

Pandora Advertising Issues

Additionally, Pandora continues to lose users challenging the company’s ability to drive advertising growth.

Subscriber Growth Challenges

SIRI faces numerous challenges, particularly related to streaming-only subscribers, in 2025 as the company attempts to re-ignite subscriber growth.

Sirius XM Holdings Business Overview & Revenue Model

Company Description

Sirius XM Holdings Inc. is a leading audio entertainment company in the United States, primarily operating in the satellite radio and streaming audio sectors. It offers a wide range of content, including music, sports, talk shows, news, comedy, and exclusive entertainment, through its satellite and online platforms. The company provides its services to a diverse audience, including individuals, businesses, and automotive manufacturers, delivering content through its SiriusXM and Pandora brands.

How the Company Makes Money

Sirius XM Holdings Inc. generates revenue primarily through subscription fees paid by individuals and businesses for access to its satellite radio and streaming services. Additionally, the company earns money from advertising on its Pandora platform, which allows users to access streaming music and podcasts supported by ads. Another significant revenue stream comes from partnerships with automotive manufacturers, who integrate SiriusXM services into new vehicles, often including trial subscriptions that can convert into paid subscriptions. The company also benefits from licensing and distribution agreements, further enhancing its revenue through diverse content offerings and strategic collaborations.

Sirius XM Holdings Financial Statement Overview

Summary

Sirius XM Holdings' financial performance shows a challenging landscape with operational inefficiencies impacting profitability. Although the income statement indicates recent losses, the balance sheet and cash flow statements reveal some stability with improved debt-to-equity ratios and strong cash management. Overall, the financials reflect a company in transition, requiring careful strategic improvements.

Income Statement

The income statement reveals a concerning decline in net income, with the latest TTM (Trailing-Twelve-Months) showing a negative net profit margin of -19.16%. While previous years showed profitability, the recent downturn poses significant challenges. Revenue growth has been inconsistent, and current negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

Despite the negative net income, the balance sheet shows a reasonable debt-to-equity ratio improvement due to a reduction in total debt. The equity ratio is stable, but the financial health is somewhat undermined by fluctuating stockholder equity, which recently turned positive. This indicates moderate financial stability but potential risks from past negative equity.

Cash Flow

The cash flow statement shows a healthy operating cash flow, with a positive free cash flow despite the net income losses. The free cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, the decline in free cash flow growth is a concern, reflecting challenges in sustaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.61B	8.70B	8.95B	9.00B	8.70B	8.04B
Gross Profit	4.13B	4.20B	4.38B	4.52B	4.40B	4.10B
EBITDA	-864.00M	-747.00M	2.54B	2.61B	2.52B	1.39B
Net Income	-1.65B	-1.67B	1.26B	1.21B	1.31B	131.00M
Balance Sheet
Total Assets	27.43B	27.52B	10.37B	10.02B	10.27B	10.33B
Cash, Cash Equivalents and Short-Term Investments	127.00M	162.00M	216.00M	57.00M	191.00M	71.00M
Total Debt	10.47B	10.38B	9.53B	9.82B	9.24B	8.97B
Total Liabilities	16.21B	16.45B	12.94B	13.37B	12.90B	12.62B
Stockholders Equity	11.21B	11.07B	-2.56B	-3.35B	-2.63B	-2.29B
Cash Flow
Free Cash Flow	939.00M	1.01B	1.20B	1.55B	1.61B	1.67B
Operating Cash Flow	1.70B	1.74B	1.85B	1.98B	2.00B	2.02B
Investing Cash Flow	-849.00M	-970.00M	-686.00M	-548.00M	-200.00M	-741.00M
Financing Cash Flow	-807.00M	-916.00M	-1.00B	-1.56B	-1.68B	-1.31B

Sirius XM Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIRI, the sentiment is Positive. The current price of 22.56 is above the 20-day moving average (MA) of 21.95, above the 50-day MA of 21.61, and below the 200-day MA of 23.21, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIRI.

Sirius XM Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	81 Outperform	$24.49B	14.12	16.89%	0.95%	15.70%	26.73%
DIS	78 Outperform	$219.94B	24.99	8.75%	0.82%	5.33%	431.28%
NWSA	77 Outperform	$17.50B	34.48	5.88%	0.68%	-5.43%	135.46%
ROKU	75 Outperform	$12.75B	―	-4.34%	―	17.30%	81.72%
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.95%	2.29%	-73.14%
WBD	59 Neutral	$27.96B	―	-27.69%	―	-5.58%	-254.85%
SIRI	56 Neutral	$7.62B	―	-37.30%	4.79%	-4.08%	-248.39%

Sirius XM Holdings Corporate Events

Sirius XM Holds 2025 Annual Stockholders Meeting

On May 28, 2025, Sirius XM Holdings Inc. held its 2025 Annual Meeting of Stockholders, where key decisions were made. Stockholders elected Eddy W. Hartenstein, Kristina M. Salen, and Jennifer C. Witz as Class I directors. Additionally, a non-binding advisory vote determined that a Say-on-Pay vote on executive compensation should occur annually, with the board’s decision on this frequency to be filed later. Furthermore, the appointment of KPMG LLP as the independent registered public accountants for 2025 was ratified by the stockholders.

The most recent analyst rating on (SIRI) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on Sirius XM Holdings stock, see the SIRI Stock Forecast page.

Sirius XM Holdings Q1 2025 Financial Results Overview

Sirius XM Holdings reported its first quarter 2025 financial results, showing a 4% decrease in revenue to $2.07 billion and a net income decline to $204 million. Despite these declines, the company maintained a stable adjusted EBITDA margin of 30% and continued to focus on cost reductions and efficiency improvements. SiriusXM expanded its podcast business and automotive partnerships, including a new agreement with Mitsubishi for its 360L platform. The company reaffirmed its full-year 2025 financial guidance, highlighting its strong recurring revenue model and disciplined capital allocation strategy.