Satellite radio and media company Sirius XM (NASDAQ: SIRI) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, but sales were flat year on year at $2.19 billion. Its GAAP profit of $0.24 per share was 69% below analysts’ consensus estimates.

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Company Overview

Known for its commercial-free music channels, Sirius XM (NASDAQ: SIRI) is a broadcasting company that provides satellite radio and online radio services across North America.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Sirius XM’s sales grew at a weak 1.3% compounded annual growth rate over the last five years. This was below our standards and is a tough starting point for our analysis.

Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Sirius XM’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.2% annually.

This quarter, Sirius XM’s $2.19 billion of revenue was flat year on year but beat Wall Street’s estimates by 1%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection suggests its newer products and services will spur better top-line performance, it is still below average for the sector.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Sirius XM’s operating margin has risen over the last 12 months, leading to break even profits over the last two years. However, its large expense base and inefficient cost structure mean it still sports inadequate profitability for a consumer discretionary business.

In Q4, Sirius XM generated an operating margin profit margin of 10.3%, down 12.8 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sirius XM’s EPS grew at a spectacular 58.2% compounded annual growth rate over the last five years, higher than its 1.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

In Q4, Sirius XM reported EPS of $0.24, down from $0.80 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Sirius XM’s full-year EPS of $2.22 to grow 39.8%.

Key Takeaways from Sirius XM’s Q4 Results

It was encouraging to see Sirius XM beat analysts’ EBITDA expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this was a weaker quarter. The stock traded up 8.7% to $22.53 immediately following the results.

So do we think Sirius XM is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).