Sirius XM Holdings Inc. (NASDAQ:SIRI) shares surged 5.4% on Thursday, after the audio entertainment company delivered better-than-expected third-quarter results and raised its full-year guidance across all major financial metrics.
The company posted earnings per share of $0.84, topping the analyst estimate of $0.79, while revenue reached $2.16 billion, slightly above the consensus forecast of $2.14 billion.
Although revenue declined 1% year-over-year, SiriusXM lifted its full-year forecasts by $25 million each for revenue, adjusted EBITDA, and free cash flow, signaling stronger-than-anticipated performance through the remainder of the year.
“This was a quarter of meaningful progress for SiriusXM,” said Jennifer Witz, Chief Executive Officer. “We’re enhancing the subscriber experience through new content, deeper personalization, and continued innovation across every stage of the customer journey, driving greater engagement and value for our listeners.”
The company now expects full-year revenue of about $8.525 billion, adjusted EBITDA of $2.625 billion, and free cash flow of roughly $1.225 billion.
During the third quarter, free cash flow surged to $257 million, up sharply from $93 million in the same period a year earlier.
Despite reporting a net loss of around 40,000 self-pay subscribers, SiriusXM held its churn rate steady at 1.6%, while average revenue per user (ARPU) ticked higher to $15.19, compared with $15.16 a year ago. The company closed the quarter with roughly 33 million total subscribers.
“Our third-quarter results demonstrate continued financial strength, and we are pleased to increase our financial guidance,” said Tom Barry, Chief Financial Officer. “We maintained solid margins, with meaningful investments that drive clear payback in engagement, ad monetization, and OEM distribution largely off-set by disciplined cost management.”
SiriusXM also continued to return capital to shareholders, distributing $111 million through dividends and share repurchases, while reducing its total debt by $120 million during the quarter.