SiriusXM Holdings Inc.

Greetings. Welcome to the SiriusXM's third quarter 2025 earnings call. This time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Hooper Stevens, Senior Vice President of Investor Relations and Finance. Thank you, Hooper. You may now begin.

Thank you, and good morning, everyone. Welcome to SiriusXM's third quarter 2025 earnings conference call. Today, we will have prepared remarks from Jennifer Witts, our Chief Executive Officer, and Tom Berry, our Chief Financial Officer. Scott Greenstein, our President and Chief Content Officer, and Wayne Thorson, our Executive Vice President and Chief Operating Officer, will join Jennifer and Tom to take questions during the Q&A portion of this call. I would like to remind everyone that certain statements made during the call might be forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These and all forward-looking statements are based upon management's current beliefs and expectations and necessarily depend upon assumptions, data, or methods that may be incorrect or imprecise. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For more information about those risks and uncertainties, please view SiriusXM's SEC filings and today's earnings release. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. As we begin, I would like to remind our listeners that today's call will include discussions about both actual results and adjusted results. All discussion of adjusted operating results exclude the effects of stock-based compensation. Additionally, we have posted a supplementary presentation to our IR website for your convenience. With that, I'll hand the call over to Jennifer.

Thank you, Hooper, and thank you all for joining us this morning. As we enter the final months of the year, we remain committed to enhancing the subscriber experience, growing our ad-supported offerings, and finding new opportunities to drive efficiencies and leverage our portfolio's strengths. In the third quarter, we made good progress in each of these areas, delivering solid financial results and positive early indicators of our focused approach. With this backdrop, we are increasing our full year 2025 guidance by $25 million across revenue, EBITDA, and free cash flow. We are confident improvements in our business will drive continued growth in free cash flow towards our target of $1.5 billion by 2027 and beyond. In addition, we are actively exploring ways to unlock the long-term strategic value of our Spectrum assets. We're seeing solid momentum in our new SiriusXM acquisition initiatives with ongoing expansion of our three-year automotive dealer subscription program and our Podcast Plus offering, as well as continued strength and retention as we provide more value to our subscribers. Subscribers for Q3 were in line with our expectations, with self-pay net ads down versus last year, almost entirely due to our pullback on streaming marketing spend. Enhancing the subscriber experience begins with programming. We are consistently providing our core audience with new, relevant, and engaging content and leveraging our unique platform and longstanding relationships to do even more with the voices driving culture today. Within music, the heart of our service, we hosted a variety of live events alongside channel launches. This included the return of Channel 13 to celebrate Taylor Swift's new album, a pop-up channel and small stage concert with Ed Sheeran, and an exclusive Metallica event to launch their new full-time channel, Maximum Metallica. The latter was announced with a special appearance on Howard Stern, who consistently books A-list guests. Additionally, this quarter, we celebrated 10 years of Radio Andy and extended our agreement with Andy Cohen to keep the channel as our definitive home for pop culture. Howard and Andy are just two examples of the talent creating impact at SiriusXM. Stephen A. Smith is making a splash with his new political and sports programs, as well as the launch of the digital destination, Get Sirius with Stephen A., which gives fans a fresh way to interact with the host. Earlier this month, we also announced the renewal of our agreement with Megyn Kelly, which has expanded to include the soon-to-be-launched Megyn Kelly channel. With each of these personalities, we are able to utilize our platform to elevate their voices and deliver exclusive programming to our listeners. Our efforts to include more content across package tiers is providing even more value to our dedicated subscribers. We've seen more than a 50% increase in NFL and MLB play-by-play listeners, and almost triple the usage of our artist-seeded stations, reflecting the expanded access to our programming introduced late last year. Initiatives such as these, which encourage our subscribers to engage with a wide range of content across devices and even introduce new members of the household to our service, not only result in higher satisfaction, but also drive greater retention. Our programming is just one way we are delivering meaningful value to our subscribers. 360L penetration continues to expand, launching in Toyota's new RAV4 as we announced this month, and we are always rolling out new updates to enhance the in-car experience. Features such as extra channels, for example, deliver listeners more 24-7 music both in-car and in-app, with significant increases in both usage and time spent listening. Streaming engagement has remained high across the board, showcasing how our service accompanies many subscribers throughout their day. In particular, subscribers with 360L who also stream listen almost daily, an average of 28 days a month. Beyond product enhancements, we remain focused on improving the overall customer experience. This quarter, we began rolling out our new identity framework, which shifts subscriptions from vehicle-based to customer-based. This change eliminates friction when customers add, replace, or exchange vehicles. For example, subscribers no longer need to cancel and resubscribe at the end of a trial when replacing a vehicle. This framework also lays the foundation for future initiatives that will simplify the sign-up experience for new customers. Together, these improvements are expected to drive stronger customer acquisition, higher retention, and sustained revenue growth. We've also made progress within our pricing and packaging. While we have been thoughtful in the rollout of play, our low-cost ad-supported subscription tier, we are seeing positive early indicators from the limited targeted marketing efforts we've rolled out in tandem with the launch. There's no evidence of cannibalization of our existing full-price population with the introduction of this new tier. In fact, within the test population, we are driving interest and subscriptions across all our packages, effectively widening the top of the funnel. This also gives us an additional solution to leverage as we gradually move away from unpublished discount offers in both acquisition and retention. While initial impacts are small, play is an important part of our broadened pricing and packaging structure, which we believe, alongside improvement in our content-led marketing efforts, will help drive improvements in future subscription trends. Switching to the topic of advertising, we saw another positive milestone in the third quarter. SiriusXM Media now reaches more than 170 million listeners a month, and our podcast network is now the largest in the nation per Edison Research. Ad revenue grew 1% year over year, and podcasting in particular continues to boom, once again up almost 50%, offsetting declines in music streaming. We are expanding our inventory to meet marketplace demand with a variety of new shows launched over the last few months from our partnership with SmartList Media and a new agreement announced this week with Mr. Ballin. The latter deal in particular with a video-first podcaster underscores our ability to support creators by growing podcast monetization across all platforms. We're seeing significant year-over-year and quarter-over-quarter expansion of our Creator Connect social and video offering, where we are growing both our inventory and CPMs. We're also expanding monetization opportunities with new partnerships, such as our integration of the Amazon DSP this quarter, which provides further runway for programmatic advertising, which was once again up year-over-year. Additionally, we are leveraging our broader network to take the podcasting tailwinds and help brands find their audiences across Pandora and SiriusXM, bringing more ad dollars to both platforms. We see even more opportunity to own the digital in-car ad experience across Pandora and SiriusXM through 360L, as well as CarPlay and Android Auto, usage of which is up for both services this quarter. And with our open ecosystem approach, we are utilizing our industry-leading strengths in selling and monetizing audio ads to expand our streaming and podcast networks. Across the company, we are exploring further options to do more with the valuable assets we have within the broader business, whether that is with Spectrum or by leveraging our ad capabilities with additional third parties. As we continue to drive profitability, achieve our target leverage ratio, and move towards our free cash flow target of $1.5 billion in 2027, we expect to have expanded opportunities for capital returns to drive long-term value creation for shareholders. With that, I'll turn it over to Tom for more on this quarter's financial results.