Sirius XM To Sharpen Focus On Core Subscription Business; Issues FY25 Guidance

Sirius XM

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(RTTNews) - Sirius XM Holdings (SIRI) announced an updated strategic plan, which sharpens the focus on core subscription business; leverages the strength of its advertising business across its portfolio; accelerates efficiency throughout the organization; and emphasizes margins, free cash flow generation, and stockholder returns. The company will shift marketing and other resources away from high-cost, high-churn audiences in streaming to focus resources on core revenue-generating segments. SiriusXM is further optimizing efficiencies in key areas across the business. The company targets an initial incremental $200 million of annualized savings exiting 2025.

SiriusXM expects to reduce its debt by approximately $700 million in 2025 and achieve a leverage ratio of 3.6x by year end 2025. The Board of SiriusXM remains committed to current quarterly dividend of $0.27 per share, or $1.08 per share annually. The Board authorized $1.166 billion common stock repurchase program remains in place.

SiriusXM also provided 2025 guidance for total revenue of $8.5 billion, adjusted EBITDA of $2.6 billion, and free cash flow of $1.15 billion. This follows the reaffirmation of 2024 guidance for total revenue of approximately $8.675 billion, adjusted EBITDA of approximately $2.7 billion, and free cash flow of approximately $1 billion.

Sirius XM has appointed Wayne Thorsen, former Executive Vice President and Chief Business Officer of ADT Inc., to serve as SiriusXM's Executive Vice President and Chief Operating Officer, effective December 16, 2024. Joseph Inzerillo has stepped down from his role as Chief Product and Technology Officer, effective immediately.