SIRI Stock Forecast & Price Target

Sirius XM Holdings is strategically introducing a new lower-priced plan, SiriusXM Play, which is expected to attract more subscribers by offering over 130 channels and increased advertising, thus enhancing its average revenue per user (ARPU) growth from the second quarter of 2025. Additionally, the company anticipates stronger-than-expected subscriber growth, which may further bolster its financial performance. On the cost management front, SiriusXM has upgraded its outlook to achieve $200 million in cost savings by 2025, indicating a more efficient operational approach that could positively impact profitability.

Sirius XM Holdings recorded an EBITDA of $668 million, reflecting a decline of 4.8% year-over-year, which, despite being better than prior estimates, indicates persistent challenges in profitability. Total revenues fell by 1.8% year-over-year to $2.138 billion, with subscription revenues also decreasing by 1.7% to $1.629 billion, underscoring issues with subscriber growth and retention. Additionally, while the satellite radio average revenue per user (ARPU) remained flat at $15.22, it reveals limited pricing power amidst increased competition from streaming services.