Satellite radio and media company Sirius XM (NASDAQ: SIRI) reported Q3 CY2025 results topping the market’s revenue expectations, but sales were flat year on year at $2.16 billion. Its GAAP profit of $0.84 per share was 7.9% above 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 the best consistently grow over the long haul. Regrettably, Sirius XM’s sales grew at a weak 1.6% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. 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 $2.16 billion of revenue was flat year on year but beat Wall Street’s estimates by 0.8%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection implies 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

Sirius XM’s operating margin has been trending up over the last 12 months and averaged 1.5% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports inadequate profitability for a consumer discretionary business.

In Q3, Sirius XM generated an operating margin profit margin of 22.8%, up 156.5 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sirius XM’s EPS grew at an unimpressive 3.9% compounded annual growth rate over the last five years. This performance was better than its flat revenue but doesn’t tell us much about its business quality because its operating margin didn’t improve.

In Q3, Sirius XM reported EPS of $0.84, up from negative $8.74 in the same quarter last year. This print beat analysts’ estimates by 7.9%. Over the next 12 months, Wall Street expects Sirius XM’s full-year EPS of $2.83 to grow 7.4%.

Key Takeaways from Sirius XM’s Q3 Results

It was good to see Sirius XM beat analysts’ revenue and EPS expectations this quarter. Overall, this print was quite good. The stock traded up 8.7% to $22.89 immediately after reporting.

Is Sirius XM an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.