Is Sirius XM Stock Worth Your Money? Here's What You're Actually Buying

Sirius XM Holdings (NASDAQ: SIRI) has been the US satellite radio monopoly since the 2009 merger. Drivers pay $10-$25/month for premium channels plus a digital streaming option. But before you hit buy, here’s what matters.

The Money Flow

Sirius XM pulled in $8.7B in revenue last year, with a heavy dependency on subscriptions: 76% ($6.6B) comes from monthly listener fees. Ad revenue (including its Pandora acquisition) adds another 20% at $1.8B. The rest is equipment and misc—basically they’re a subscription-first business, not an advertising play like traditional radio.

The Competitive Squeeze

Two decades ago, Sirius XM’s rivals were AM/FM radio and CD players. Today? Smartphones and connected cars have made Spotify and streaming the real threat. The numbers tell the story: Sirius XM peaked at 34.9M subscribers seven years ago and now sits at 32.8M (Q3 2025). Revenue has declined for three straight years. The monthly churn holds steady at 1.6%, but the subscriber base is slowly bleeding out as streaming wins.

Why Buffett’s All-In

Warren Buffett’s Berkshire Hathaway owns 37% of Sirius XM and has been buying since summer 2024. It’s not a growth story—it’s a value play. Here’s why it appeals to the Oracle: over $1B in annual free cash flow, trading under 7x forward earnings, and a 5.3% dividend yield. Sure, there’s serious debt on the balance sheet and long-term viability questions linger, but that Berkshire backing provides some comfort.

The Real Question

Sirius XM isn’t dying tomorrow, but it’s not a growth stock either. You’re buying a cash-generating machine from a dying era of audio consumption. Whether that’s compelling depends on your risk tolerance and timeline.