SIRI

SiriusXM is a cash-rich but slowly shrinking subscription audio business. The FY2025 headline looks like a sharp recovery — net income jumped 148.3% to $805M, operating income surged 197.0% to $1.47B, and diluted EPS rose 136.3% to $2.23 — but that comparison is flattered by FY2024's $1.67B loss, which was driven by a large non-cash charge rather than operating collapse. The underlying reality is steady erosion: revenue declined 1.6% to $8.56B, continuing a multi-year slide from $9.00B in FY2022, as the satellite radio subscriber base matures and faces streaming competition.

What keeps this interesting is cash and price. SiriusXM generated $1.90B of operating cash flow (+9.0%), holds a 52.4% gross margin and 17.2% operating margin, and trades at just 12.6x earnings and 1.1x sales. Management returns that cash: it pays a dividend ($268M) and stepped up buybacks dramatically ($136M, off a tiny base). The balance sheet is workable at 1.36x liabilities/equity with long-term debt of ~$3.01B (down 6.3%), though cash on hand is thin at $94M (-42.0%) and current liabilities rose 33.8%, so liquidity leans on the recurring subscription cash flow.