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1. Company Snapshot

1.a. Company Description

Sirius XM Holdings Inc.provides satellite radio services on a subscription fee basis in the United States.It broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels, including various music genres, such as rock, pop and hip-hop, country, dance, jazz, Latin, and classical; live play-by-play sports from various leagues and colleges; various talk and entertainment channels for a range of audiences; national, international, and financial news; and limited run channels.


The company also provides streaming service that includes a range of music and non-music channels, and podcasts, as well as channels that are not available on its satellite radio service; and offers applications to allow consumers to access its streaming service on smartphones, tablets, computers, home devices, and other consumer electronic equipment, as well as connected vehicle services.In addition, it distributes satellite radios through automakers and retailers, as well as its website.Further, the company provides location-based services through two-way wireless connectivity, including safety, security, convenience, remote vehicles diagnostic, maintenance and data, and stolen or parked vehicle locator services.


Additionally, it offers satellite television services, which offer music channels on the DISH Network satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; and real-time traffic and weather services.The company was incorporated in 2013 and is headquartered in New York, New York.Sirius XM Holdings Inc.


is a subsidiary of Liberty Media Corporation.

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1.b. Last Insights on SIRI

Sirius XM Holdings Inc.'s recent performance was driven by its Q3 2025 earnings release, which showed quarterly earnings of $0.84 per share, beating estimates. The company modestly raised its 2025 guidance, citing cost discipline and stable results despite slight declines in revenue and subscribers. Additionally, management hinted at near-term partnership opportunities for monetizing excess spectrum assets. Bessemer Group Inc. also increased its stake in the company by 75.8%. The company's expanding digital ads and podcasting growth also contributed to its positive performance.

1.c. Company Highlights

2. SiriusXM's Q3 Earnings: A Strong Performance

SiriusXM reported a total revenue of $2.16 billion for the third quarter, essentially flat year-over-year, down less than 1%. The company's adjusted EBITDA was $676 million, down 2% year-over-year with a 31% margin. Earnings per share (EPS) came in at $0.84, beating analyst estimates of $0.79. The company's net income for the quarter was $297 million, and free cash flow was $257 million, up from $93 million in the third quarter of 2024.

Publication Date: Nov -02

📋 Highlights
  • 2025 Guidance Raised: by $25M across revenue, EBITDA, and free cash flow, targeting $8.525B revenue, $2.625B EBITDA, and $1.225B free cash flow.
  • 360L Subscriber Engagement: shows 28 days/month of listening for combined 360L and streaming users, driving increased usage retention.
  • Play Tier Success: with no cannibalization of full-price subscribers, supporting positive early performance in ad-supported low-cost offerings.
  • Podcasting Ad Revenue Growth: surged 50% YoY, offsetting declines in music streaming and boosting overall ad revenue to $455M in Q3.
  • Free Cash Flow Improved: to $257M in Q3 2025 (vs. $93M in Q3 2024), reflecting disciplined execution and stronger cash generation.

Revenue and Margin Analysis

The company's subscriber revenue declined by $16 million to $1.63 billion, while advertising revenue grew by $5 million to $455 million. The growth in advertising revenue was driven by the strength of podcasting, which saw a 50% increase in ad revenue. The company's adjusted EBITDA margin was 31%, indicating a stable operating performance.

Operational Highlights

SiriusXM's 360L penetration continues to expand, with significant increases in both usage and time spent listening. The company's streaming engagement remains high across the board, with subscribers who have 360L and stream listening almost daily, an average of 28 days a month. The introduction of the low-cost, ad-supported subscription tier, Play, has shown positive early indicators, with no evidence of cannibalization of the existing full-price population.

Guidance and Outlook

The company is increasing its guidance on revenue, adjusted EBITDA, and free cash flow by $25 million to approximately $8.525 billion, $2.625 billion, and $1.225 billion, respectively. This reflects the continued strength of the company's operations and its disciplined execution. SiriusXM expects to have increased flexibility to enhance shareholder returns and pursue strategic opportunities.

Valuation Analysis

At current levels, SiriusXM's P/E ratio stands at 7.36, indicating a relatively attractive valuation. The company's EV/EBITDA ratio is 4.29, suggesting a reasonable valuation relative to its earnings before interest, taxes, depreciation, and amortization. Additionally, the dividend yield is 4.98%, providing a relatively stable source of return for investors.

3. NewsRoom

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Where Will Sirius XM Stock Be in 3 Years?

Nov -26

Source: fool.com

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Reviewing Sirius XM (NASDAQ:SIRI) and Entravision Communications (NYSE:EVC)

Nov -26

Source: defenseworld.net

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Sirius XM Holdings Inc. $SIRI Shares Acquired by Advisors Asset Management Inc.

Nov -26

Source: defenseworld.net

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How Good Has SIRI Stock Actually Been?

Nov -24

Source: fool.com

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Don't Buy Sirius XM Stock Until This Big Thing Happens

Nov -24

Source: fool.com

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What to Know Before Buying Sirius XM Holdings stock

Nov -23

Source: fool.com

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This Ridiculously Cheap Warren Buffett Stock Could Make You Richer

Nov -20

Source: fool.com

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October Readers Identified 10 Ideal "Safer" Dividends In 39 Dogs

Nov -19

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.72%)

6. Segments

Sirius XM

Expected Growth: 10.47%

Sirius XM's 10.47% growth driven by increasing adoption of connected vehicles, rising demand for in-car entertainment, and growing popularity of podcasts. Additionally, strategic partnerships with major automakers, expansion into new markets, and innovative content offerings contribute to the company's growth momentum.

Pandora and Off-platform

Expected Growth: 11.53%

Pandora's 11.53% growth is driven by increasing ad revenue, rising subscription rates, and expanding partnerships. Off-platform growth is fueled by the rise of connected cars, smartphones, and smart speakers, increasing accessibility and user engagement. Additionally, SiriusXM's strategic investments in podcasting and original content are attracting new listeners, further boosting growth.

7. Detailed Products

Satellite Radio

A subscription-based radio service that provides access to a wide range of commercial-free music, sports, news, talk, and entertainment programming.

Streaming Radio

A streaming service that allows users to access SiriusXM content on-demand, including live and on-demand radio stations, podcasts, and exclusive content.

Connected Vehicle Services

A suite of services that provide vehicle owners with safety, security, and convenience features, including stolen vehicle recovery, roadside assistance, and vehicle diagnostics.

Traffic and Travel Services

A suite of services that provide real-time traffic updates, traffic cameras, and travel information to help drivers navigate roads and plan their trips.

Infotainment Services

A suite of services that provide entertainment, information, and convenience features to vehicle owners, including voice-controlled navigation and entertainment systems.

8. Sirius XM Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sirius XM Holdings Inc. has a low threat of substitutes due to its unique satellite radio service, which provides a distinct experience for its customers.

Bargaining Power Of Customers

Sirius XM Holdings Inc. has a medium bargaining power of customers, as customers have some flexibility to switch to alternative services, but the company's strong brand and content offerings mitigate this risk.

Bargaining Power Of Suppliers

Sirius XM Holdings Inc. has a low bargaining power of suppliers, as it has a diverse range of content providers and suppliers, reducing its dependence on any one supplier.

Threat Of New Entrants

Sirius XM Holdings Inc. has a low threat of new entrants, as the satellite radio industry has high barriers to entry, including significant capital expenditures and regulatory hurdles.

Intensity Of Rivalry

Sirius XM Holdings Inc. operates in a highly competitive industry, with intense rivalry from other audio entertainment providers, including streaming services and traditional radio stations.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 136.81%
Debt Cost 5.35%
Equity Weight -36.81%
Equity Cost 9.45%
WACC 3.85%
Leverage -371.66%

11. Quality Control: Sirius XM Holdings Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.58$

Current Price

21.59$

Potential

-0.00%

Expected Cash-Flows