Sirius XM (SIRI) stock is soaring 5.03% in Friday's trading session following the release of its first-quarter 2025 earnings report, which demonstrated the company's resilience in the face of economic uncertainties and its ability to retain and grow its subscriber base.

The satellite radio provider reported strong subscriber performance, with self-pay net subscriber losses totaling 303,000, marking a 16% year-over-year improvement. Notably, churn improved by 18 basis points to 1.6% in the first quarter, a key contributor to the improved subscriber results. The company successfully managed recent price increases across virtually all full-price plans with minimal churn impact, showcasing the loyalty of its core subscriber base.

Jennifer Witz, Sirius XM's CEO, expressed confidence in the company's performance, stating, "We are very encouraged by our first quarter results and just how the metrics have trended even more recently. We really haven't seen anything to give us any pause." The company reaffirmed its full-year 2025 guidance, projecting approximately $8.5 billion in revenue, $2.6 billion in adjusted EBITDA, and $1.15 billion in free cash flow.

Investors seem particularly encouraged by Sirius XM's ability to navigate potential headwinds, including economic uncertainty and the impact of tariffs on the auto industry. The company's management expressed confidence that any potential reduction in new car sales would be partially offset by used car sales, where Sirius XM has a strong presence. Additionally, the company is preparing to launch a new ad-supported tier, which could open up opportunities to capture more price-sensitive listeners and drive future growth.