Sirius XM Holdings (SIRI, Financials) saw its stock price dip 12% on Tuesday to $25.27 following a revised revenue forecast for 2025 that fell short of market expectations.

Projected full-year income of $8.5 billion by the audio entertainment giant was lower than Wall Street's projection of $8.74 billion. This news reinforced already existing difficulties, including Monday's stock price drop.

• Warning! GuruFocus has detected 3 Warning Signs with SIRI.

Particularly in its subscriber base, the company's financial situation shows continuous difficulty to sustain growth. Third-quarter performance for Sirius XM revealed a 4.4% year-over-year revenue drop to $2.17 billion. Driven by a $3.36 billion non-cash impairment charge connected to a deal with Liberty Media, a notable net loss of $2.96 billion was reported. Reuters also reports that the business changed its 2024 income forecast from the previous estimate of $8.75 billion to $8.68 billion.

Targeting a leverage ratio of 3.6x by year-end, Sirius XM declared intentions to cut debt by $700 million in 2025, thereby addressing its financial challenges. Focusing on its core in-car services rather than app-based streaminga move meant to better engage its main subscriber basethe business has named Wayne Thorsen as its new Chief Operating Officer to oversee a strategic turn-about.

Notwithstanding these obstacles, Sirius XM has a significant presence in the audio entertainment sector with satellite radio services, music streaming via Pandora, and a solid podcast network. However, due to recent struggles, the stock is down around 54% in the year thus far.