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 June 30, 2025, the SiriusXM business had approximately 32.8 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 and on certain music channels within ad-supported plans, direct sales of radios and accessories, and other ancillary services. As of September 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 June 30, 2025, Pandora had approximately 42.7 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 September 30, 2025, Pandora had approximately 41.6 million monthly active users and 5.7 million subscribers.

Previous 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.

Current wording

Set forth below are our results of operations for the three and nine months ended September 30, 2025 compared with the three and nine months ended September 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 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.

Current wording

For the three months ended September 30, 2025 and 2024, subscriber revenue was $1,497 and $1,510, respectively, a decrease of 1%, or $13. For the nine months ended September 30, 2025 and 2024, subscriber revenue was $4,466 and $4,576, respectively, a decrease of 2%, or $110. The decreases were primarily attributed to a reduction in self-pay revenue resulting from a decline in the average number of subscribers, partially offset by rate increases on certain self-pay plans.

Previous wording

We expect SiriusXM subscriber revenues to remain relatively flat.

Current wording

We expect SiriusXM subscriber revenues to remain relatively flat with higher ARPU offset by declines in the number of average subscribers.

Previous wording

SiriusXM Advertising Revenue includes the sale of advertising on Sirius XM’s non-music channels.

Current wording

SiriusXM Advertising Revenue includes the sale of advertising on SiriusXM’s non-music channels and select music channels within ad-supported plans.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, advertising revenue was $39 and $41, respectively, a decrease of 5%, or $2. For the nine months ended September 30, 2025 and 2024, advertising revenue was $116 and $124, respectively, a decrease of 6%, or $8. The decreases were primarily due to lower advertising demand for news and sports channels. The decrease in the nine-month period was also impacted by lower demand on comedy channels.

Previous 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.

Current wording

For each of the three months ended September 30, 2025 and 2024, equipment revenue was $43. For the nine months ended September 30, 2025 and 2024, equipment revenue was $130 and $140, respectively, a decrease of 7%, or $10. During the three-month period, the transition to higher cost next generation chipsets was offset by higher chipset production. For the nine-month period, the decrease was driven by the transition to higher cost next generation chipsets as well as lower chipset production.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, other revenue was $32 and $33, respectively, a decrease of 3%, or $1. For the nine months ended September 30, 2025 and 2024, other revenue was $94 and $93, respectively, an increase of 1%, or $1. The decrease for the three-month period was driven by lower revenue from our connected vehicle services. The increase for the nine-month period was driven by one-time license fees.

Previous wording

We expect other revenue to remain relatively flat.

Current wording

We expect other revenue, excluding one-time license fees, to remain relatively flat.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, Pandora and Off-platform subscriber revenue was $132 and $135, respectively, a decrease of 2%, or $3. For the nine months ended September 30, 2025 and 2024, Pandora and Off-platform subscriber revenue was $394 and $407, respectively, a decrease of 3%, or $13. 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 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.

Current wording

For the three months ended September 30, 2025 and 2024, Pandora and Off-platform advertising revenue was $416 and $409, respectively, an increase of 2%, or $7. For the nine months ended September 30, 2025 and 2024, Pandora and Off-platform advertising revenue was $1,165 and $1,171, respectively, a decrease of 1%, or $6. The increase for the three-month period was driven by revenue generated from podcasts and technology fees, partially offset by reduced advertiser demand in streaming music. The decrease for the nine-month period was driven by reduced advertiser demand in streaming music, partially offset by revenue generated from podcasts and higher technology fees.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, revenue share and royalties were $384 and $390, respectively, a decrease of 2%, or $6, and decreased as a percentage of total SiriusXM revenue. For the nine months ended September 30, 2025 and 2024, revenue share and royalties were $1,154 and $1,176, respectively, a decrease of 2%, or $22, but increased as a percentage of total SiriusXM revenue. The decreases were driven by lower subscription revenue, partially offset by higher webcasting per play rate.

Previous wording

For the three months ended June 30, 2025 and 2024, programming and content expenses were $137 and $135, respectively, an increase of 1%, or $2, and increased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2025 and 2024, programming and content expenses were $274 and $275, respectively, a decrease of less than 1%, or $1, but increased as a percentage of total SiriusXM revenue. The increase for the three-month period was driven by higher production and personnel-related costs. The decrease for the six-month period was driven by lower license fees, partially offset by higher production and personnel-related costs.

Current wording

For the three months ended September 30, 2025 and 2024, programming and content expenses were $138 and $137, respectively, an increase of 1%, or $1 and increased as a percentage of total SiriusXM revenue. For each of the nine months ended September 30, 2025 and 2024, programming and content expenses were $412 which remained unchanged in absolute terms but increased as a percentage of total SiriusXM revenue. The increase for the three-month period was driven by higher personnel-related costs.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, customer service and billing expenses were $97 and $91, respectively, an increase of 7%, or $6, and increased as a percentage of total SiriusXM revenue. For the nine months ended September 30, 2025 and 2024, customer service and billing expenses were $283 and $276, respectively, an increase of 3%, or $7, and increased as a percentage of total SiriusXM revenue. The increases were driven by higher subscriber management systems and transaction costs, partially offset by lower call center costs and bad debt expense.

Previous wording

We expect our SiriusXM customer service and billing expenses to increase as a result of higher subscriber management system transition costs, partially offset by a reduction in call center costs.

Current wording

We expect our SiriusXM customer service and billing expenses to decrease as a result of reductions in call center and personnel-related costs, partially offset by higher costs associated with subscriber management systems.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, transmission expenses were $42 and $48, respectively, a decrease of 13%, or $6, and decreased as a percentage of total SiriusXM revenue. For the nine months ended September 30, 2025 and 2024, transmission expenses were $122 and $147, respectively, a decrease of 17%, or $25, 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

We expect our SiriusXM transmission expenses to decrease slightly due to lower rates and efficiencies, despite higher 360L subscribers; partially offset by higher satellite insurance costs.

Current wording

We expect our SiriusXM transmission expenses to remain relatively flat.

Previous 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.

Current wording

For each of the three months ended September 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 nine months ended September 30, 2025 and 2024, cost of equipment was $6 and $7, respectively, a decrease of 14%, or $1, and decreased as a percentage of total SiriusXM revenue. The decrease for the nine-month period was driven lower inventory reserves.

Previous wording

For the three months ended June 30, 2025 and 2024, revenue share and royalties were $331 and $317, respectively, an increase of 4%, or $14, and increased as a percentage of total Pandora and Off-platform revenue. For the six months ended June 30, 2025 and 2024, revenue share and royalties were $639 and $625, respectively, an increase of 2%, or $14, and increased as a percentage of total Pandora and Off-platform revenue. The increases were driven by podcast revenue share, partially offset by lower subscription revenue from a decline in the subscriber base.

Current wording

For the three months ended September 30, 2025 and 2024, revenue share and royalties were $337 and $317, respectively, an increase of 6%, or $20, and increased as a percentage of total Pandora and Off-platform revenue. For the nine months ended September 30, 2025 and 2024, revenue share and royalties were $976 and $942, respectively, an increase of 4%, or $34, and increased as a percentage of total Pandora and Off-platform revenue. The increases were driven by podcast revenue share, partially offset by a decline in the subscriber base.

Previous wording

For the three months ended June 30, 2025 and 2024, programming and content expenses were $14 and $13, respectively, an increase of 8%, or $1, and increased as a percentage of total Pandora and Off-platform revenue. For each of the six months ended June 30, 2025 and 2024, programming and content expenses were $30, but increased as a percentage of total Pandora and Off-platform revenue. The increase for the three-month period was primarily attributable to higher podcast programming costs.

Current wording

For the three months ended September 30, 2025 and 2024, programming and content expenses were $16 and $13, respectively, an increase of 23%, or $3, and increased as a percentage of total Pandora and Off-platform revenue. For each of the nine months ended September 30, 2025 and 2024, programming and content expenses were $46 and $44, respectively, an increase of 5%, or $2, and increased as a percentage of total Pandora and Off-platform revenue. The increases were primarily attributable to higher podcast programming costs.

Previous 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.

Current wording

For each of the three months ended September 30, 2025 and 2024, customer service and billing expenses were $19, which remained unchanged in absolute terms but decreased as a percentage of total Pandora and Off-platform revenue. For the nine months ended September 30, 2025 and 2024, customer service and billing expenses were $56 and $59, respectively, a decrease of 5%, or $3, and decreased as a percentage of total Pandora and Off-platform revenue. The decrease for the nine-month period was primarily driven by lower transaction fees.

Previous wording

For the three months ended June 30, 2025 and 2024, Pandora and Off-Platform transmission expenses were $7 and $8, respectively, a decrease of 13%, or $1, and decreased as a percentage of total Pandora and Off-platform revenue. For the six months ended June 30, 2025 and 2024, Pandora and Off-Platform transmission expenses were $15 and $16, respectively, a decrease of 6%, or $1, and decreased as a percentage of total Pandora and Off-platform revenue. The decreases were driven by lower bandwidth costs.

Current wording

For the three months ended September 30, 2025 and 2024, Pandora and Off-Platform transmission expenses were $7 and $9, respectively, a decrease of 22%, or $2, and decreased as a percentage of total Pandora and Off-platform revenue. For the nine months ended September 30, 2025 and 2024, Pandora and Off-Platform transmission expenses were $22 and $25, respectively, a decrease of 12%, or $3, and decreased as a percentage of total Pandora and Off-platform revenue. The decreases were driven by lower bandwidth costs.

Previous wording

We expect our Pandora and Off-platform transmission costs to increase due to higher hosting costs associated with increased AdsWizz platform fee revenue.

Current wording

We expect our Pandora and Off-platform transmission costs to remain relatively flat due to optimized spend, partially offset by higher hosting costs associated with increased AdsWizz platform fee revenue.

Previous wording

For the three months ended June 30, 2025 and 2024, subscriber acquisition costs were $107 and $92, respectively, an increase of 16%, or $15, and increased as a percentage of total revenue. For the six months ended June 30, 2025 and 2024, subscriber acquisition costs were $207 and $182, respectively, an increase of 14%, or $25, and increased as a percentage of total revenue. The increases were primarily driven by contractual changes with certain automakers, partially offset by lower volume during the six month period.

Current wording

For the three months ended September 30, 2025 and 2024, subscriber acquisition costs were $107 and $90, respectively, an increase of 19%, or $17, and increased as a percentage of total revenue. For the nine months ended September 30, 2025 and 2024, subscriber acquisition costs were $314 and $272, respectively, an increase of 15%, or $42, and increased as a percentage of total revenue. The increases were primarily driven by contractual changes with certain automakers.

Previous wording

We expect subscriber acquisition costs to rise due to increased penetration with certain automakers and higher subsidies and other incentives offered to induce automakers to include our latest technology in a greater percentage of their vehicles. However, if the imposition of tariffs by the United States government causes automakers to decrease production, we would expect subscriber acquisition costs to decline.

Current wording

We expect subscriber acquisition costs to stay relatively flat; However, if the imposition of tariffs by the United States government causes automakers to decrease production, we would expect subscriber acquisition costs to decline.

Previous wording

We expect sales and marketing expenses to increase due to an increase in our paid media and in-car marketing.

Current wording

We expect sales and marketing expenses to increase due to an increase in our brand and in-car marketing.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, general and administrative expenses were $119 and $138, respectively, a decrease of 14%, or $19, and decreased as a percentage of total revenue. For the nine months ended September 30, 2025 and 2024, general and administrative expenses were $407 and $378, respectively, an increase of 8%, or $29, and increased as a percentage of total revenue. The decrease for the three-month period was driven by lower legal costs, including income from a legal settlement, as well as the elimination of Former Parent operating costs; partially offset by higher software and telecom expenses. The increase for the nine-month period was 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, higher personnel-related costs and lower insurance recoveries; partially offset by the elimination of Former Parent operating costs, the $9 legal settlement income recognized during the three months ended September 30, 2025, and certain state tax litigation recoveries recorded during the first three months of 2025.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, depreciation and amortization expense was $141 and $145, respectively. For the nine months ended September 30, 2025 and 2024, depreciation and amortization expense was $406 and $455, respectively. The decreases were primarily associated with certain assets that reached the end of their useful lives.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, impairment, restructuring and other costs were $9 and $3,388, respectively. For the nine months ended September 30, 2025 and 2024, impairment, restructuring and other costs were $164 and $3,441, respectively. During the three months ended September 30, 2025, we recorded Transaction related costs of $6 and other restructuring related costs of $3. During the nine months ended September 30, 2025, we recorded a charge of $109 associated with impairments related to terminated software projects, other restructuring related costs of $25, severance and other employee costs of $24 and Transaction related costs of $6. During the three months ended September 30, 2024, we recorded impairment charges of $3,353 related to impairments of Goodwill and non-controlling investments, costs associated with the Transactions of $32, and a charge of $3 primarily related to severance and other restructuring costs. During the nine months ended September 30, 2024, we recorded impairment charges of $3,354 primarily related to impairments of Goodwill and non-controlling investments, costs associated with the Transactions of $68, a charge of $19 associated with severance and other restructuring costs.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, interest expense was $115 and $124, respectively. For the nine months ended September 30, 2025 and 2024, interest expense was $348 and $379, respectively. The decreases were primarily driven by a lower average outstanding debt balance.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, other income, net was $10 and $28, respectively. For the nine months ended September 30, 2025 and 2024, other income, net was $24 and $142, respectively. During the three and nine months ended September 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 nine months ended September 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 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.

Current wording

For the three months ended September 30, 2025 and 2024, income tax (expense) benefit was $(91) and $39, respectively. For the nine months ended September 30, 2025 and 2024, income tax expense was $215 and $103, respectively.

Previous 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.

Current wording

Our effective tax rate for the three months ended September 30, 2025 and 2024 was (23.5)% and 1.3%, respectively. Our effective tax rate for the nine months ended September 30, 2025 and 2024 was (23.3)% and (4.6)%, respectively. The effective tax rate for the three months and nine months ended September 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 nine months ended September 30, 2024 was primarily impacted by the nondeductible Sirius XM goodwill impairment charge, partially offset by tax losses related to share-based compensation and an increase in valuation allowance and net operating loss expirations related to state net operating losses that are projected to expire unutilized.

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 and six months ended June 30, 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 nine months ended September 30, 2025 and 2024.

Previous 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.

Current wording

(1) ARPU for SiriusXM excludes subscriber revenue from our connected vehicle services of $43 and $41 for the three months September 30, 2025 and 2024, respectively, and $127 and $122 for the nine months ended September 30, 2025 and 2024, respectively.

Previous 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.

Current wording

Subscribers. At September 30, 2025, SiriusXM had 32,808 subscribers, a decrease of 348, from the 33,156 subscribers as of September 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 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.

Current wording

For the three months ended September 30, 2025 and 2024, net subscriber additions were 11 and (100), respectively, an improvement of 111. For the nine months ended September 30, 2025 and 2024, net subscriber additions were (418) and (719), respectively, an improvement of 301. Self-pay net additions for the three-month period compared to the prior year decreased primarily due to lower conversion rates and streaming net additions, partially offset by lower churn and higher trial volumes as well as growth in new acquisition initiatives. Self-pay net additions for the nine-month period compared to the prior year period increased 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.

Previous 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.

Current wording

Sirius XM Canada Subscribers. At September 30, 2025, Sirius XM Canada had approximately 2,491 subscribers, a decrease of 68, or 3%, from the approximately 2,559 Sirius XM Canada subscribers as of September 30, 2024.

Previous wording

For each of the three months ended June 30, 2025 and 2024, our average self-pay monthly churn rate was 1.5%. For the six months ended June 30, 2025 and 2024, our average self-pay monthly churn rate was 1.5% and 1.6%, respectively. For the three month period, lower non-pay and vehicle churn was partially offset by slightly higher voluntary churn. For the six month period, the decrease was driven by lower voluntary churn, partially offset by higher vehicle churn.

Current wording

For each of the three months ended September 30, 2025 and 2024, our average self-pay monthly churn rate was 1.6%. For the nine months ended September 30, 2025 and 2024, our average self-pay monthly churn rate was 1.5% and 1.6%, respectively. The decrease for the nine month period was driven by lower vehicle, non-pay and voluntary churn.