Sirius XM (NASDAQ: SIRI) shares plummeted 5.04% in intraday trading after the satellite radio company reported disappointing first-quarter results that fell short of analyst expectations. The company's financial performance and declining subscriber numbers have raised concerns among investors about its growth prospects in an increasingly competitive audio entertainment market.

For the quarter ended March 31, Sirius XM reported earnings per share of $0.59, missing the analyst consensus estimate of $0.66. Revenue came in at $2.07 billion, down 4.3% year-over-year and slightly below the expected $2.08 billion. The company's net income declined to $204 million, compared to $241 million in the same period last year.

Adding to investor worries, Sirius XM reported a decrease of 303,000 self-pay subscribers during the quarter, bringing its total subscriber base to approximately 33 million. While this represents a 16% improvement compared to the subscriber loss in the same period last year, it highlights the ongoing challenges the company faces in retaining and growing its customer base. The company's self-pay monthly churn rate improved slightly to 1.6%, down from 1.7% in the first quarter of 2024.

Despite the disappointing results, Sirius XM reaffirmed its full-year 2025 guidance, projecting revenue of $8.5 billion and adjusted EBITDA of $2.6 billion. CFO Tom Barry attempted to reassure investors, stating that the company does not expect tariff-related pressure on new car sales to have a material impact on its subscriber or financial performance this year. However, the market's reaction suggests that investors remain cautious about the company's ability to navigate the changing landscape of audio entertainment and maintain its competitive edge.