PULSE POINTS:
❓What Happened: SiriusXM reported a decrease in first-quarter revenue and subscribers. Despite this, CFO Tom Barry indicated that the company is not significantly impacted by tariff-related pressures on car sales. Notably, in 2024, an estimated 92.7 percent of SiriusXM’s revenue came from subscriptions to its satellite radio service, a large portion of which is tied to installation deals with much of the American automobile industry.
👥 Who’s Involved: SiriusXM, CFO Tom Barry, CEO Jennifer Wirtz, and the Trump White House.
📍 Where & When: The quarterly revenue numbers and comments regarding tariff impacts were revealed on May 1 during SiriusXM’s earnings call.
💬 Key Quote: “Big picture, we sleep well at night,” Barry said, noting the company had not seen a significant negative impact on auto sales stemming from President Donald J. Trump’s imposition of tariffs on foreign imports earlier this year.
⚠️ Impact: SiriusXM’s unique business model, heavily reliant on new car sales and installment contracts with automobile manufacturers, makes the company especially vulnerable to disruptions impacting the auto industry. The comments from company executives indicating that they see tariffs having only a minimal impact on revenue suggest negative economic forecasts pushed by Wall Street may be overblown.
IN FULL:
Executives with SiriusXM, the satellite radio provider, stated during a quarterly earnings call on Thursday that they do not believe the foreign import tariffs imposed by President Donald J. Trump will significantly impact the company’s revenue. The comments are notable as SiriusXM is heavily reliant on revenue derived from subscribers to its satellite radio service, which is pre-installed in many American automobiles.
During the Thursday morning earnings call, SiriusXM CFO Tom Barry stated that the company does not anticipate “that tariff-related pressure on new car sales will have a material impact on our subscriber or financial performance this year.” While Barry cautioned that “like every business, we’ll continue to closely monitor ongoing developments and broader consumer health,” he emphasized to investors, “Big picture, we sleep well at night.”
While SiriusXM did state that its revenue decreased in the first quarter of 2025 by four percent, to slightly over $2 billion, Barry and the company’s CEO, Jennifer Wirtz, stressed that lower-than-expected advertising profits drove the decline. The satellite radio provider’s business model is heavily reliant on new car sales and installment contracts with automakers to grow its subscriber base. In 2024, an estimated 92.7 percent of SiriusXM’s revenue came from subscriptions to its satellite radio service, a large portion of which is tied to the installation deals with much of the American automobile industry.
The confidence expressed by the SiriusXM executives that the Trump administration tariffs will have minimal impact on their future earnings contrasts with the narrative being pushed by economic analysis on Wall Street, which continues to forecast a high likelihood of a recession later this year. Notably, the outlook presented by Barry mirrors consumer data that suggests the U.S. economy remains steady despite a 0.3 percent contraction in GDP in the first quarter announced on Wednesday.