SiriusXM Holdings Inc.

Greetings. Welcome to the SiriusXM fourth quarter and full year 2025 earnings conference call. At this time, all participants will be in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. Now, my pleasure to introduce Maggie Mitchell, Senior Vice President, Corporate Communications. Thank you, Maggie. You may begin.

Thank you and good morning, everyone. Welcome to SiriusXM's fourth quarter and full year 2025 earnings conference call. Today, we will have prepared remarks from Jennifer Witts, our Chief Executive Officer, and Zach Coughlin, our Chief Financial Officer. Scott Greenstein, our President and Chief Content Officer, as well as Wayne Thorson, Executive Vice President and Chief Operating Officer, will join Jennifer and Zach to take your 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'd like to remind our listeners that today's call will include discussions about both actual results and adjusted results. All discussions of adjusted operating results exclude the effects of stock-based compensation. Additionally, we have posted supplementary presentation on our investor relations website for your convenience. With that, I'll hand the call over to Jennifer.

Good morning, everyone. Thank you for joining us today. In 2025, we delivered on our commitment and finished the year with strong Q4 results, exceeding our guidance and growing free cash flow year over year. We achieved this by strengthening our subscription offering, growing our advertising business, and leveraging the power of our broader portfolio to drive meaningful efficiencies and harness new opportunities. Following the refocus strategy we laid out at the end of December 2024, we have remained laser focused on bolstering our core SiriusXM in-car audience and expanding the reach of our ad network. As a result, we've exceeded our revised guidance, achieving $8.56 billion in revenue, $2.67 billion in adjusted EBITDA, and $1.26 billion in free cash flow, with a clear path to our target of $1.5 billion in free cash flow in 2027. Now let's dive into our subscription business. Throughout the year, we continued to deliver unique programming that drives connection and passion with our subscribers. First, we signed a new three-year agreement with the king of all media, Howard Stern. Our longstanding relationship with Howard helped to define SiriusXM in its early days. And today, he's more relevant than ever, achieving 32% year-over-year increase in earned media with A-list interviews and must-hear moments. With this new agreement, we've cemented Howard's place in our lineup for years to come. Simultaneously, we've continued to grow and strengthen our bench of influential voices across music, sports, news, culture, and more. We super serve passionate fan bases with dedicated league and artist channels, intimate live events, and the ability to interact directly with on-air hosts. ranging from beloved personalities on daily formats such as the Morning Mashup to industry heavyweights including John Mayer, Mad Dog, and many more. Our new Metallica channel is commanding a strong audience, outperforming our benchmarks. Additionally, we're seeing very positive engagement and passion from fans listening to our Unwell music channel with Alex Cooper, part of our broader deal with the Call Her Daddy host. We also closed out the year with our fan-favorite slate of holiday channels, with even more time spent listening to these channels than last year. Our unrivaled offering of sports audio content remains a key differentiator for us. With agreements with every major North American sports league and rights to more than 100 college teams, SiriusXM gives sports fans access to more live games and events than any other single media outlet or service. Sports listening is up year over year, both in car and on streaming. with audience gains in areas including NFL, NHL, and NBA play-by-play. In Q4, we extended our agreement with the NBA and launched new shows covering everything from the business of basketball to Italy's top soccer league. As we look ahead, we will continue to build programming around major events and milestones, including the Super Bowl and the World Cup. And SiriusXM has always offered a broad set of perspectives across political lines. In Q4, we launched a full-time Megyn Kelly channel, and to help kick off 2026, Chris Cuomo has joined our lineup with an exclusive daily political show on the POTUS channel. From a product and service perspective, our focus has been on enhancing what we do best. In the fourth quarter, we launched our new automotive Pandora app with a select set of partners, including GM, which builds the music streaming platform more directly into the vehicle where we have a leading position. 360L penetration further expands each year, now in more than half of new SiriusXM-enabled vehicle sales and representing an increasing portion of our self-paced subscribers and the 180 million-enabled fleet on the road today. This share will continue to grow with this next generation platform now available in all new Volvos, standard on enabled Audis, and debuting in the 2026 Toyota RAV4. 360L, combined with our streaming platform, provides increased observability across listening, content, and product usage, with measurable insights allowing us to improve personalization and drive deeper engagement, leading to increased customer satisfaction. We've also made major strides in simplifying the overall customer experience and driving value. In Q4, we launched Continuous Service, a new capability which reduces the friction subscribers experience when changing vehicles as part of our efforts to remain consumer-centric. This functionality maintains the customer's listening history, account credentials, and other attributes, and also keeps their streaming service active, giving them the ability to continue enjoying the service while they move between vehicles. We expect this will have benefits in customer satisfaction and retention, while also laying the groundwork for future enhancements that make the process even easier, solving a pain point for many of our dedicated listeners. This quarter, we also introduced companion subscriptions, as we continually improve the value of our plans and packages and provide greater differentiation between tiers. Our version of the family plan Companion subscriptions allow our most loyal full-price customers to add a vehicle or streaming login at no additional cost. This is another step towards offering a suite of family plans that make it easier than ever for our loyal customers to share what they love across their household. We've also seen positive growth in our newer tailored package offerings. Our multi-year automotive dealer subscription program, which first launched in 2024, is now in more than 15 brands across North America. We've also continued the thoughtful rollout of Play, which is now being expanded to a broader set of our new trialers. We are seeing positive indicators that it is driving conversion interest and subscriptions across all packages, widening the top of the funnel. Additionally, our Podcast Plus subscription has scaled. It now includes new shows and is available for purchase across Apple, Spotify, and more. Moving to the topic of advertising, 2025 was the year we secured our leadership position in digital audio advertising across a scaled audience of 170 million listeners. Throughout the year, we continued to deepen our podcast bench with disciplined investments in top shows and creators. We are now the number one podcast network in the nation and proudly had half of the nominees in the first ever best podcast category at the Golden Globes last month. Our podcasting ad revenue grew 41% for the full year on top of double digit growth in 2024, a testament to all the work we've done to extend our lead in this arena. Additionally, podcast programmatic demand has continued to grow up more than 92% over Q4 2024 as digital buyers recognize the channel's reach. Beyond our digital audio ad sales business, our advertising technology capabilities are expanding, offering services to major audio players around the world. Additionally, our cross-platform sales strategy incorporating social and video components from top creators such as Mr. Ballin continued to scale, with video and social revenue up four times year over year. As audiences increasingly engage with podcasts through video and social platforms, we are able to effectively monetize this shift with our omni-channel capabilities, allowing us to tap into brand budgets beyond audio. As we look ahead to 2026, we are maintaining our sharpened focus and our commitment to strengthening our business and our leadership in audio. Our guidance anticipates mostly flat revenue on slightly lower subscribers alongside stable adjusted EBITDA for the first time in three years with further growth in free cash flow. We are continuing to explore and capitalize on opportunities to leverage our assets moving forward, including our talent agreements, our ad sales expertise and ad tech, our 180 million vehicles in operation, and our 35 megahertz of contiguous spectrum. Overall, 2025 was a successful year where we were able to achieve both immediate impact and lay the groundwork for long-term results across the business. We delivered exceptional listener experiences and meaningful value to marketers, exceeded our cost savings target, maintained our dividend, strengthened our balance sheet, and drove disciplined execution that improved free cash flow and positions us for continued momentum. Enabling us to maintain our financial rigor and achieve our goals for 2026 is our new Chief Financial Officer, Zach Coghlan. Zach brings significant experience driving sustainable, profitable growth at a variety of public companies, and we're thrilled to have him leading our finance function here at SiriusXM. He has already hit the ground running and is focused on maintaining a strong balance sheet, driving margins, and optimizing our cash flows. all with the goal of increasing shareholder value. With that, I'll turn it over to Zach for more on the financial results.