SIRIUS XM HOLDINGS INC.

Previous wording

The primary source of revenue from the SiriusXM business is subscription fees, with most of its customers subscribing to monthly or annual plans. Additional revenue streams include advertising on select non-music channels, direct sales of radios and accessories, and other ancillary services. As of March 31, 2025, the SiriusXM business had approximately 32.9 million subscribers.

Current wording

The primary source of revenue from the SiriusXM business is subscription fees, with most of its customers subscribing to monthly or annual plans. Additional revenue streams include advertising on select non-music channels, direct sales of radios and accessories, and other ancillary services. As of June 30, 2025, the SiriusXM business had approximately 32.8 million subscribers.

Previous wording

Our Pandora and Off-platform business operates a music, comedy and podcast streaming platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, car speakers or connected devices. Pandora enables listeners to create personalized stations and playlists, discover new content, hear artist- and expert-curated playlists and podcasts as well as search and play songs and albums on-demand. Pandora is available as (1) an ad-supported radio service, (2) a radio subscription service (Pandora Plus) and (3) an on-demand subscription service (Pandora Premium). As of March 31, 2025, Pandora had approximately 42.4 million monthly active users and 5.7 million subscribers.

Current wording

Our Pandora and Off-platform business operates a music, comedy and podcast streaming platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, car speakers or connected devices. Pandora enables listeners to create personalized stations and playlists, discover new content, hear artist- and expert-curated playlists and podcasts as well as search and play songs and albums on-demand. Pandora is available as (1) an ad-supported radio service, (2) a radio subscription service (Pandora Plus) and (3) an on-demand subscription service (Pandora Premium). As of June 30, 2025, Pandora had approximately 42.7 million monthly active users and 5.7 million subscribers.

Previous wording

Set forth below are our results of operations for the three months ended March 31, 2025 compared with the three months ended March 31, 2024. The results of operations are presented for each of our reporting segments for revenue and cost of services and on a consolidated basis for all other items.

Current wording

Set forth below are our results of operations for the three and six months ended June 30, 2025 compared with the three and six months ended June 30, 2024. The results of operations are presented for each of our reporting segments for revenue and cost of services and on a consolidated basis for all other items.

Previous wording

For the three months ended March 31, 2025 and 2024, subscriber revenue was $1,470 and $1,547, respectively, a decrease of 5%, or $77. The decrease was primarily attributed to a reduction in self-pay revenue resulting from a decline in the average number of subscribers as well as lower Average Revenue Per User (“ARPU”). The lower ARPU was driven by an increase in subscribers on self-pay promotional plans, partially offset by rate increases on certain self-pay plans.

Current wording

For the three months ended June 30, 2025 and 2024, subscriber revenue was $1,499 and $1,520, respectively, a decrease of 1%, or $21. For the six months ended June 30, 2025 and 2024, subscriber revenue was $2,969 and $3,067, respectively, a decrease of 3%, or $98. The decreases were primarily attributed to a reduction in self-pay revenue resulting from a decline in the average number of subscribers. The six month period was also impacted by lower Average Revenue Per User (“ARPU”) driven by an increase in subscribers on self-pay promotional plans, partially offset by rate increases on certain self-pay plans.

Previous wording

For the three months ended March 31, 2025 and 2024, advertising revenue was $39 and $40, respectively, a decrease of 3%, or $1. This decline was primarily due to lower advertising demand for entertainment and comedy channels.

Current wording

For the three months ended June 30, 2025 and 2024, advertising revenue was $38 and $43, respectively, a decrease of 12%, or $5. For the six months ended June 30, 2025 and 2024, advertising revenue was $77 and $83, respectively, a decrease of 7%, or $6. The decreases were primarily due to lower advertising demand for news and comedy channels.

Previous wording

We expect our SiriusXM advertising revenue to grow as we continue to promote our brand and leverage co-selling initiatives across our brands and platforms.

Current wording

We expect our SiriusXM advertising revenue to grow as we continue to leverage co-selling initiatives across our brands and platforms.

Previous wording

For the three months ended March 31, 2025 and 2024, equipment revenue was $41 and $50, respectively, a decrease of 18%, or $9. The decrease was driven by a transition to higher cost next generation chipsets and lower chipset production.

Current wording

For the three months ended June 30, 2025 and 2024, equipment revenue was $46 and $47, respectively, a decrease of 2% or $1. For the six months ended June 30, 2025 and 2024, equipment revenue was $87 and $97, respectively, a decrease of 10%, or $10. The decreases were driven by a transition to higher cost next generation chipsets and lower chipset production.

Previous wording

SiriusXM Other Revenue includes service and advisory revenue from Sirius XM Canada, revenue from our connected vehicle services and ancillary revenues.

Current wording

SiriusXM Other Revenue includes service fee revenue from Sirius XM Canada, revenue from our connected vehicle services and ancillary revenues.

Previous wording

For the three months ended March 31, 2025 and 2024, other revenue was $31 and $30, respectively, an increase of 3%, or $1. The increase was driven by higher license fees, partially offset by lower royalty revenue from Sirius XM Canada.

Current wording

For the three months ended June 30, 2025 and 2024, other revenue was $31 and $30, respectively, an increase of 3%, or $1. For the six months ended June 30, 2025 and 2024, other revenue was $62 and $60, respectively, an increase of 3%, or $2. The increase for the three month period was driven by higher service fee revenue from Sirius XM Canada. The increase for the six month period was driven by one-time license fees.

Previous wording

We expect other revenue to decrease primarily due to the impact of foreign exchange volatility from Sirius XM Canada.

Current wording

We expect other revenue to remain relatively flat.

Previous wording

For the three months ended March 31, 2025 and 2024, Pandora and Off-platform subscriber revenue was $132 and $133, respectively, a decrease of 1%, or $1. The decrease was driven by a decline in the subscriber base, partially offset by rate increases on Pandora subscription plans.

Current wording

For the three months ended June 30, 2025 and 2024, Pandora and Off-platform subscriber revenue was $130 and $138, respectively, a decrease of 6%, or $8. For the six months ended June 30, 2025 and 2024, Pandora and Off-platform subscriber revenue was $262 and $271, respectively, a decrease of 3%, or $9. The decreases were driven by a decline in the subscriber base, partially offset by rate increases on Pandora subscription plans.

Previous wording

For the three months ended March 31, 2025 and 2024, Pandora and Off-platform advertising revenue was $355 and $362, respectively, a decrease of 2%, or $7. The decrease was primarily driven by reduced streaming demand, partially offset by revenue generated from podcasts.

Current wording

For the three months ended June 30, 2025 and 2024, Pandora and Off-platform advertising revenue was $394 and $400, respectively, a decrease of 2%, or $6. For the six months ended June 30, 2025 and 2024, Pandora and Off-platform advertising revenue was $749 and $762, respectively, a decrease of 2%, or $13. The decreases were primarily driven by reduced advertiser demand in streaming music, partially offset by revenue generated from podcasts and higher tech fees.

Previous wording

For the three months ended March 31, 2025 and 2024, revenue share and royalties were $379 and $395, respectively, a decrease of 4%, or $16, but increased as a percentage of total SiriusXM revenue. The decrease was driven by lower subscription revenue.

Current wording

For each of the three months ended June 30, 2025 and 2024, revenue share and royalties were $391 and increased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2025 and 2024, revenue share and royalties were $770 and $786, respectively, a decrease of 2%, or $16, but increased as a percentage of total SiriusXM revenue. The decrease for the six month period was driven by lower subscription revenue, partially offset by higher webcasting per play rate.

Previous wording

We expect our SiriusXM revenue share and royalty costs to remain flat as a percentage of revenue but to decrease overall. We project lower eligible subscription revenue, partially offset by higher royalty rates under the statutory webcasting license due to adjustments for the Consumer Price Index.

Current wording

We expect our SiriusXM revenue share and royalty costs to remain flat as a percentage of revenue.

Previous wording

For the three months ended March 31, 2025 and 2024, customer service and billing expenses were $94 and $97, respectively, a decrease of 3%, or $3, but increased as a percentage of total SiriusXM revenue. The reduction was primarily driven by lower call center costs and bad debt expense; partially offset by higher data center expenses.

Current wording

For the three months ended June 30, 2025 and 2024, customer service and billing expenses were $92 and $87, respectively, an increase of 6%, or $5, and increased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2025 and 2024, customer service and billing expenses were $186 and $184, respectively, an increase of 1%, or $2, and increased as a percentage of total SiriusXM revenue. The increases were driven by higher data center and transaction costs, partially offset by lower call center costs and bad debt expense.

Previous wording

For the three months ended March 31, 2025 and 2024, transmission expenses were $42 and $50, respectively, a decrease of 16%, or $8, and decreased as a percentage of total SiriusXM revenue. The decrease was driven primarily by lower hosting costs associated with our streaming platform.

Current wording

For the three months ended June 30, 2025 and 2024, transmission expenses were $38 and $49, respectively, a decrease of 22%, or $11, and decreased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2025 and 2024, transmission expenses were $80 and $99, respectively, a decrease of 19%, or $19, and decreased as a percentage of total SiriusXM revenue. The decreases were driven primarily by lower hosting costs associated with our streaming platform.

Previous wording

For each of the three months ended March 31, 2025 and 2024, cost of equipment was $2, remaining unchanged in absolute terms but increased as a percentage of total SiriusXM revenue.

Current wording

For each of the three months ended June 30, 2025 and 2024, cost of equipment was $2, which remained unchanged in absolute terms but increased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2025 and 2024, cost of equipment was $4 and $5, respectively, a decrease of 20%, or $1, and decreased as a percentage of total SiriusXM revenue. The decrease for the six month period was driven by lower component sales.

Previous wording

We expect our Pandora and Off-platform revenue share and royalties to increase with the growth in our podcast revenue and higher royalty rates, including as a result of adjustments for the Consumer Price Index.

Current wording

We expect our Pandora and Off-platform revenue share and royalties to increase with the growth in our podcast revenue.

Previous wording

We expect our Pandora and Off-platform programming and content costs to decrease driven by lower personnel-related costs.

Current wording

We expect our Pandora and Off-platform programming and content costs to remain relatively flat.

Previous wording

For the three months ended March 31, 2025 and 2024, customer service and billing expenses were $18 and $19, respectively, a decrease of 5%, or $1, and decreased as a percentage of total Pandora and Off-platform revenue. The decrease was driven by lower bad debt expense and transaction fees from subscriber decline.

Current wording

For the three months ended June 30, 2025 and 2024, customer service and billing expenses were $19 and $21, respectively, a decrease of 10%, or $2, and decreased as a percentage of total Pandora and Off-platform revenue. For the six months ended June 30, 2025 and 2024, customer service and billing expenses were $37 and $40, respectively, a decrease of 8%, or $3, and decreased as a percentage of total Pandora and Off-platform revenue. The decreases were primarily driven by lower transaction fees.

Previous wording

For the three months ended March 31, 2025 and 2024, sales and marketing expenses were $190 and $229, respectively, a decrease of 17%, or $39, and decreased as a percentage of total revenue. The decrease was primarily due to lower brand, streaming and in-car marketing as well as personnel-related costs.

Current wording

For the three months ended June 30, 2025 and 2024, sales and marketing expenses were $185 and $228, respectively, a decrease of 19%, or $43, and decreased as a percentage of total revenue. For the six months ended June 30, 2025 and 2024, sales and marketing expenses were $375 and $457, respectively, a decrease of 18%, or $82, and decreased as a percentage of total revenue. The decreases were primarily due to lower brand, streaming and in-car marketing as well as personnel-related costs.

Previous wording

We anticipate product and technology expenses to decline as we optimize our technology spend.

Current wording

We anticipate product and technology expenses will remain relatively flat as we optimize our technology spend.

Previous wording

For the three months ended March 31, 2025 and 2024, general and administrative expenses were $122 and $124, respectively, a decrease of 2%, or $2, but increased as a percentage of total revenue. The decrease was primarily driven by certain state tax litigation recoveries as well as the elimination of Former Parent operating costs.

Current wording

For the three months ended June 30, 2025 and 2024, general and administrative expenses were $166 and $116, respectively, an increase of 43%, or $50, and increased as a percentage of total revenue. For the six months ended June 30, 2025 and 2024, general and administrative expenses were $288 and $240, respectively, an increase of 20%, or $48, and increased as a percentage of total revenue. The increases were primarily driven by higher legal costs, including amounts associated with a settlement reserve for certain litigation matters of $28 which is expected to be paid in 2026, and personnel-related costs as well as lower insurance recoveries, partially offset by the elimination of Former Parent operating costs. The increase for the six month period was partially offset by certain state tax litigation recoveries recorded during the first three months of 2025.

Previous wording

We expect our general and administrative expenses to remain relatively flat.

Current wording

We expect our general and administrative expenses, excluding the impact of any past or future litigation insurance recoveries and settlement reserves, to remain relatively flat.

Previous wording

For the three months ended March 31, 2025 and 2024, depreciation and amortization expense was $144 and $155, respectively. The decrease was primarily associated with certain acquired intangible assets that reached the end of their useful lives.

Current wording

For the three months ended June 30, 2025 and 2024, depreciation and amortization expense was $121 and $156, respectively. For the six months ended June 30, 2025 and 2024, depreciation and amortization expense was $265 and $311, respectively. The decreases were primarily associated with certain assets that reached the end of their useful lives.

Previous wording

For the three months ended March 31, 2025 and 2024, impairment, restructuring and other costs were $48 and $32, respectively. During the three months ended March 31, 2025, we recorded charges of $20 associated with severance and other employee costs, $15 associated with restructuring costs and $13 related to the write-off of certain assets. During the three months ended March 31, 2024, we recorded costs associated with the Transactions of $19 and a charge of $12 primarily related to severance and other related costs.

Current wording

For the three months ended June 30, 2025 and 2024, impairment, restructuring and other costs were $107 and $21, respectively. For the six months ended June 30, 2025 and 2024, impairment, restructuring and other costs were $155 and $53, respectively. During the three months ended June 30, 2025, we recorded a charge of $97 associated with impairments related to terminated software projects, other restructuring related costs of $6 and severance and other employee costs of $4. During the six months ended June 30, 2025, we recorded a charge of $109 associated with impairments related to terminated software projects, other restructuring related costs of $22 and severance and other employee costs of $24. During the three months ended June 30, 2024, we recorded costs associated with the Transactions of $18, and a charge of $3 primarily related to severance and other related costs. During the six months ended June 30, 2024, we recorded costs associated with the Transactions of $37, a charge of $15 associated with severance and other employee costs, and impairments, primarily related to terminated software projects and vacated office space of $1.

Previous wording

For the three months ended March 31, 2025 and 2024, interest expense was $117 and $129, respectively. The decrease was driven by a lower average outstanding debt balance.

Current wording

For the three months ended June 30, 2025 and 2024, interest expense was $116 and $126, respectively. For the six months ended June 30, 2025 and 2024, interest expense was $233 and $255, respectively. The decreases were driven by a lower average outstanding debt balance.

Previous wording

Other Income (Expense), Netprimarily includes realized and unrealized gains and losses from our debt measured at fair value, bond hedges, our Deferred Compensation Plan and other investments, intergroup interests, interest and dividend income, our share of the income or loss from equity investments and transaction costs related to non-operating investments.

Current wording

Other Income, Netprimarily includes realized and unrealized gains and losses from our debt measured at fair value, bond hedges, our Deferred Compensation Plan and other investments, intergroup interests, interest and dividend income, our share of the income or loss from equity investments and transaction costs related to non-operating investments.

Previous wording

For the three months ended March 31, 2025 and 2024, other income (expense), net was $(1) and $29, respectively. During the three months ended March 31, 2025, we recorded unrealized losses on debt measured at fair value and trading losses associated with the investments held for our Deferred Compensation Plan, partially offset by earnings on unconsolidated entity investments. During the three months ended March 31, 2024, we recorded unrealized gains on debt measured at fair value, earnings on unconsolidated entity investments and trading gains associated with the investments held for our Deferred Compensation Plan.

Current wording

For the three months ended June 30, 2025 and 2024, other income, net was $15 and $85, respectively. For the six months ended June 30, 2025 and 2024, other income, net was $14 and $114, respectively. During the three and six months ended June 30, 2025, we recorded unrealized gains on debt measured at fair value, trading gains associated with the investments held for our Deferred Compensation Plan, and earnings on unconsolidated entity investments. During the three and six months ended June 30, 2024, we recorded unrealized gains on debt measured at fair value, earnings on unconsolidated entity investments and trading gains associated with the investments held for our Deferred Compensation Plan.

Previous wording

For the three months ended March 31, 2025 and 2024, income tax expense was $65 and $68, respectively.

Current wording

For the three months ended June 30, 2025 and 2024, income tax expense was $59 and $76, respectively. For the six months ended June 30, 2025 and 2024, income tax expense was $124 and $144, respectively.

Previous wording

Our effective tax rate for the three months ended March 31, 2025 and 2024 was 24.2% and 22.0%, respectively. The effective tax rate for the three months ended March 31, 2025 was primarily driven by federal and state income tax expense and tax losses related to share-based compensation, partially offset by certain tax credits. The effective tax rate for the three months ended March 31, 2024 was primarily impacted by benefits related to certain tax credits, offset by the effect of state income taxes.

Current wording

Our effective tax rate for the three months ended June 30, 2025 and 2024 was 22.3% and 17.7%, respectively. Our effective tax rate for the six months ended June 30, 2025 and 2024 was 23.3% and 19.5%, respectively. The effective tax rate for the three months and six months ended June 30, 2025 was primarily driven by federal and state income tax expense and tax losses related to share-based compensation, partially offset by certain tax credits. The effective tax rate for the three and six months ended June 30, 2024 was primarily impacted by the effect of federal and state income tax expense, partially offset by benefits related to certain tax credits.

Previous wording

Our Non-GAAP financial measures should be viewed in addition to, and not as an alternative for or superior to, our reported results prepared in accordance with GAAP. In addition, our Non-GAAP financial measures may not be comparable to similarly-titled measures by other companies. Please refer to the Glossary for a further discussion of such Non-GAAP financial and operating performance measures and reconciliations to the most directly comparable GAAP measure (where applicable). Subscribers and subscription related revenues and expenses associated with our connected vehicle services and Sirius XM Canada are not included in Sirius XM's subscriber count or subscriber-based operating metrics. Subscribers to the Cloud Cover music programming service are now included in Pandora's subscriber count.

Current wording

Our Non-GAAP financial measures should be viewed in addition to, and not as an alternative for or superior to, our reported results prepared in accordance with GAAP. In addition, our Non-GAAP financial measures may not be comparable to similarly-titled measures by other companies. Please refer to the Glossary for a further discussion of such Non-GAAP financial and operating performance measures and reconciliations to the most directly comparable GAAP measure (where applicable). Subscribers and subscription related revenues and expenses associated with our connected vehicle services and Sirius XM Canada are not included in SiriusXM’s subscriber count or subscriber-based operating metrics. Subscribers to the Cloud Cover music programming service are now included in Pandora's subscriber count.

Previous wording

The following table contains our Non-GAAP financial and operating performance measures which are based on our adjusted results of operations for the three months ended March 31, 2025 and 2024.

Current wording

The following table contains our Non-GAAP financial and operating performance measures which are based on our adjusted results of operations for the three and six months ended June 30, 2025 and 2024.

Previous wording

(1) ARPU for Sirius XM excludes subscriber revenue from our connected vehicle services of $41 for each of the three months ended March 31, 2025 and 2024.

Current wording

(1) ARPU for SiriusXM excludes subscriber revenue from our connected vehicle services of $42 and $41 for the three months June 30, 2025 and 2024, respectively, and $84 and $82 for the six months ended June 30, 2025 and 2024, respectively.

Previous wording

Subscribers. At March 31, 2025, Sirius XM had approximately 32,864 subscribers, a decrease of 566, from the approximately 33,430 subscribers as of March 31, 2024. Our self-pay subscriber base declined due to lower vehicle conversion rates, partially offset by reductions in voluntary and non-pay churn. We also saw a decrease in paid promotional subscribers as we transitioned some automakers from paid promotional subscriptions to unpaid or to shorter term promotional plans.

Current wording

Subscribers. At June 30, 2025, SiriusXM had 32,797 subscribers, a decrease of 460, from the 33,257 subscribers as of June 30, 2024. Our self-pay subscriber base declined due to lower vehicle conversion rates, partially offset by reductions in voluntary and non-pay churn as well as growth in new acquisition initiatives. We also saw a decrease in paid promotional subscribers as we transitioned some automakers from paid promotional subscriptions to unpaid or to shorter term promotional plans.

Previous wording

For the three months ended March 31, 2025 and 2024, net subscriber additions were (362) and (445), respectively, an improvement of 83. Self-pay net additions improved compared to the prior year primarily due to lower churn and higher trial volumes, partially offset by lower conversion rates and streaming net additions. Paid promotional net additions also improved compared to the prior year period driven by a decrease in the trials ending during the quarter.

Current wording

For the three months ended June 30, 2025 and 2024, net subscriber additions were (66) and (173), respectively, an improvement of 107. For the six months ended June 30, 2025 and 2024, net subscriber additions were (429) and (618), respectively, an improvement of 189. Self-pay net additions improved compared to the prior year periods primarily due to lower churn and higher trial volumes as well as growth in new acquisition initiatives, partially offset by lower conversion rates and streaming net additions. Paid promotional net additions also improved compared to the prior year periods driven by higher vehicle sales and a decrease in the trials ending during the three and six month periods.

Previous wording

Sirius XM Canada Subscribers. At March 31, 2025, Sirius XM Canada had approximately 2,487 subscribers, a decrease of 113, or 4%, from the approximately 2,600 Sirius XM Canada subscribers as of March 31, 2024.

Current wording

Sirius XM Canada Subscribers. At June 30, 2025, Sirius XM Canada had approximately 2,521 subscribers, a decrease of 65, or 3%, from the approximately 2,586 Sirius XM Canada subscribers as of June 30, 2024.

Previous wording

ARPUis derived from total earned Sirius XM subscriber revenue (excluding revenue derived from our connected vehicle services) and net advertising revenue, divided by the number of months in the period, divided by the daily weighted average number of subscribers for the period. (See the accompanying Glossary for more details.)

Current wording

ARPUis derived from total earned SiriusXM subscriber revenue (excluding revenue derived from our connected vehicle services) and net advertising revenue, divided by the number of months in the period, divided by the daily weighted average number of subscribers for the period. (See the accompanying Glossary for more details.)

Previous wording

For the three months ended March 31, 2025 and 2024, ARPU was $14.86 and $15.36, respectively. The decrease was driven by an increase in self-pay subscribers on promotional plans, partially offset by rate increases on certain self-pay plans.

Current wording

For the three months ended June 30, 2025 and 2024, ARPU was $15.22 and $15.24, respectively. For the six months ended June 30, 2025 and 2024, ARPU was $15.04 and $15.30, respectively. The decreases were driven by an increase in self-pay subscribers on promotional plans, partially offset by rate increases on certain self-pay plans.

Previous wording

For the three months ended March 31, 2025 and 2024, SAC, per installation, was $18.86 and $12.50, respectively. The increase was driven by a transition to higher cost chipsets as well as contractual changes with certain automakers.

Current wording

For the three months ended June 30, 2025 and 2024, SAC, per installation, was $18.04 and $13.85, respectively. For the six months ended June 30, 2025 and 2024, SAC, per installation, was $18.43 and $13.20, respectively. The increases were driven by a transition to higher cost chipsets as well as contractual changes with certain automakers.