SIRIUS XM HOLDINGS INC.
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
SIRI$32.40-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0000908937-26-000011
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0000908937-26-000022
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 234 previous paragraphs and 234 current paragraphs.
160 unchanged; 61 reworded; 13 added; 11 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
•increases in the cost of memory used in our satellite radio modules and other components included in our satellite radios could reduce equipment revenue and adversely affect our business; and
Current report
For the three months ended June 30, 2026 and 2025, advertising revenue was $41 and $38, respectively, an increase of 8%, or $3. For the six months ended June 30, 2026 and 2025, advertising revenue was $76 and $77, respectively, a decrease of 1%, or $1. The increase for the three month period was driven by higher advertising demand primarily for sports programming, partially offset by lower advertising demand for news. The decrease for the six month period was driven by lower advertising demand for news channels, partially offset by higher demand for sports programming.
Current report
We expect our SiriusXM advertising revenue to grow as we continue to leverage co-selling initiatives across our brands and platforms.
Current report
For the three months ended June 30, 2026 and 2025, equipment revenue was $36 and $46, respectively, a decrease of 22%, or $10. For the six months ended June 30, 2026 and 2025, equipment revenue was $77 and $87, respectively, a decrease of 11%, or $10. The decreases were driven by higher memory costs associated with our hardware.
Current report
Total Revenue for the three months ended June 30, 2026 and 2025 was $2,160 and $2,138, respectively, an increase of 1%, or $22. Total Revenue for the six months ended June 30, 2026 and 2025 was $4,251 and $4,206, respectively, an increase of 1%, or $45.
Current report
For the three months ended June 30, 2026 and 2025, transmission expenses were $40 and $38, respectively, an increase of 5%, or $2, and increased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2026 and 2025, transmission expenses were $79 and $80, respectively, a decrease of 1%, or $1, and decreased as a percentage of total SiriusXM revenue. The increase for the three month period was driven by higher personnel-related costs. The decrease for the six month period was driven primarily by lower 360L data costs, partially offset by higher personnel-related costs.
Current report
For the three months ended June 30, 2026 and 2025, cost of equipment was $1 and $2, respectively, a decrease of 50%, or $1, and decreased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2026 and 2025, cost of equipment was $3 and $4, respectively, a decrease of 25%, or $1, and decreased as a percentage of total SiriusXM revenue. The decrease for the six month period was driven primarily by lower sales volumes.
Current report
For the three months ended June 30, 2026 and 2025, subscriber acquisition costs were $109 and $107, respectively, an increase of 2%, or $2, and increased as a percentage of total revenue. For the six months ended June 30, 2026 and 2025, subscriber acquisition costs were $209 and $207, respectively, an increase of 1%, or $2, and decreased as a percentage of total revenue. The increases were primarily driven by increased production from certain automakers with higher subsidy rates.
Current report
For the three months ended June 30, 2026 and 2025, sales and marketing expenses were $188 and $185, respectively, an increase of 2%, or $3, and increased as a percentage of total revenue. For each of the six months ended June 30, 2026 and 2025, sales and marketing expenses were $375 and decreased as a percentage of total revenue. The increase for the three-month period was primarily attributable to higher personnel-related costs, reflecting increased sales commissions and performance-based incentive compensation associated with revenue growth; partially offset by higher marketing spend.
Current report
We expect product and technology expenses to increase primarily due to higher cloud infrastructure costs.
Current report
For the three months ended June 30, 2026 and 2025, income tax expense was $73 and $59, respectively. For the six months ended June 30, 2026 and 2025, income tax expense was $154 and $124, respectively.
Current report
For the three months ended June 30, 2026 and 2025, SAC, per installation, was $21.32 and $18.04, respectively. For the six months ended June 30, 2026 and 2025, SAC, per installation, was $20.11 and $18.43, respectively. The increases were driven by increased production from certain automakers with higher subsidy rates, higher memory costs and migration to higher cost chipsets with enhanced technology.
Current report
For the three months ended June 30, 2026 and 2025, free cash flow was $593 and $402, respectively, an increase of 48%, or $191. For the six months ended June 30, 2026 and 2025, free cash flow was $764 and $458, respectively, an increase of 67%, or $306. The increases were driven by higher adjusted EBITDA, lower cash taxes paid as well as favorable timing of vendor payments and capital expenditures.
Removed paragraphs (11)
Previous report
For the three months ended March 31, 2026 and 2025, advertising revenue was $35 and $39, respectively, a decrease of 10%, or $4. The decrease was primarily due to lower advertising demand for news channels.
Previous report
For each of the three months ended March 31, 2026 and 2025, equipment revenue was $41. Higher manufacturing volume was offset by an unfavorable chipset mix.
Previous report
We anticipate Pandora and Off-platform subscriber revenues to decline modestly.
Previous report
Total Revenue for the three months ended March 31, 2026 and 2025 was $2,091 and $2,068, respectively, an increase of 1%, or $23.
Previous report
For the three months ended March 31, 2026 and 2025, transmission expenses were $39 and $42, respectively, a decrease of 7%, or $3, and decreased as a percentage of total SiriusXM revenue. The decrease was driven primarily by lower hosting costs associated with our streaming platform.
Previous report
For each of the three months ended March 31, 2026 and 2025, cost of equipment was $2, and decreased as a percentage of total SiriusXM revenue. Lower sales volumes were offset by higher freight costs.
Previous report
For each of the three months ended March 31, 2026 and 2025, subscriber acquisition costs were $100, and decreased as a percentage of total revenue. The decrease was primarily driven by lower equipment installations.
Previous report
For the three months ended March 31, 2026 and 2025, sales and marketing expenses were $187 and $190, respectively, a decrease of 2%, or $3, and decreased as a percentage of total revenue. The decrease was primarily due to personnel-related costs.
Previous report
We anticipate product and technology expenses will remain relatively flat as we optimize our technology spend.
Previous report
For the three months ended March 31, 2026 and 2025, SAC, per installation, was $18.80 and $18.86, respectively. The decrease was driven by a higher mix of chipset production compared to installations, partially offset by the transition to higher cost chipsets as well as contractual changes with certain automakers.
Previous report
For the three months ended March 31, 2026 and 2025, free cash flow was $171 and $56, respectively, an increase of 205%, or $115. The increase was driven by higher adjusted EBITDA and lower capital expenditures.
Reworded paragraphs (61)
Previous wording
•failure of our satellites would significantly damage our business; and
Current wording
•failure of our satellites would significantly damage our business;
Previous wording
On September 9, 2024 at 4:05 p.m., New York City time, Liberty Media Corporation (“Liberty Media” or “Former Parent”) completed its previously announced split-off (the “Split-Off”) of its former wholly owned subsidiary, Liberty Sirius XM Holdings Inc. (“SplitCo”).
Current wording
On September 9, 2024 at 4:05 p.m., New York City time, Liberty Media Corporation (“Liberty Media”) completed its previously announced split-off (the “Split-Off”) of its former wholly owned subsidiary, Liberty Sirius XM Holdings Inc. (“SplitCo”).
Previous wording
Our SiriusXM business features a wide range of content, including, music, sports, entertainment, comedy, talk and news channels, podcasts and infotainment services, all available in the United States on a subscription fee basis. SiriusXM packages include live, curated, hosted and certain exclusive and on-demand programming. The SiriusXM service is distributed through SiriusXM’s two proprietary satellite radio systems and streamed via applications for mobile devices, home devices and other consumer electronic equipment. Satellite radios are primarily distributed through automakers, retailers and SiriusXM’s website.
Current wording
Our SiriusXM business features a wide range of content, including, music, sports, entertainment, comedy, talk and news channels, podcasts and infotainment services, all available in the United States on a subscription fee basis. SiriusXM packages include live, curated, hosted and certain exclusive and on-demand programming. The SiriusXM service is distributed through SiriusXM’s two proprietary satellite radio systems and streamed via applications for mobile devices, home devices and other consumer electronic equipment. Satellite radios are primarily distributed through automakers, retailers and SiriusXM’s website. The SiriusXM service is also available through an in-car user interface called “360L” that combines SiriusXM’s satellite and streaming services into a single, cohesive in-vehicle entertainment experience. SiriusXM holds a 70% equity interest and 33% voting interest in Sirius XM Canada Holdings Inc. (“Sirius XM Canada”).
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 music and non-music channels in certain packages, direct sales of radios and accessories, and other ancillary services. As of March 31, 2026, the SiriusXM business had approximately 32.8 million subscribers in the U.S., while Sirius XM Canada had approximately 2.4 million subscribers. Sirius XM Canada's subscribers are not included in our subscriber count or subscriber-based operating metrics.
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 music and non-music channels in certain packages, direct sales of radios and accessories, and other ancillary services. As of June 30, 2026, the SiriusXM business had approximately 32.9 million subscribers in the U.S., while Sirius XM Canada had approximately 2.5 million subscribers. Sirius XM Canada's subscribers are not included in our subscriber count or subscriber-based operating metrics.
Previous wording
The majority of revenue from Pandora is generated from advertising on Pandora’s ad-supported radio service, which is sold under the SiriusXM Media brand. Pandora also derives subscription revenue from its Pandora Plus and Pandora Premium subscribers. As of March 31, 2026, Pandora had approximately 40.1 million monthly active users and 5.6 million subscribers.
Current wording
The majority of revenue from Pandora is generated from advertising on Pandora’s ad-supported radio service, which is sold under the SiriusXM Media brand. Pandora also derives subscription revenue from its Pandora Plus and Pandora Premium subscribers. As of June 30, 2026, Pandora had approximately 39.8 million monthly active users and 5.6 million subscribers.
Previous wording
Set forth below are our results of operations for the three months ended March 31, 2026 compared with the three months ended March 31, 2025. 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, 2026 compared with the three and six months ended June 30, 2025. 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, 2026 and 2025, subscriber revenue was $1,483 and $1,470, respectively, an increase of 1%, or $13. The increase was primarily attributed to rate increases on certain self-pay plans, partially offset by a decline in the average number of subscribers.
Current wording
For the three months ended June 30, 2026 and 2025, subscriber revenue was $1,508 and $1,499, respectively, an increase of 1%, or $9. For the six months ended June 30, 2026 and 2025, subscriber revenue was $2,991 and $2,969, respectively, an increase of 1%, or $22. The increases were primarily attributed to rate increases on certain self-pay plans, partially offset by a decline in the average number of subscribers.
Previous wording
We expect equipment revenue to decline due to higher costs associated with the transition to our next generation chipset.
Current wording
We expect equipment revenue to decline primarily due to higher memory costs associated with our hardware.
Previous wording
For each of the three months ended March 31, 2026 and 2025, other revenue was $31. Higher service fee revenue from Sirius XM Canada was offset by a one-time true-up of license fees in the first quarter of 2025.
Current wording
For the three months ended June 30, 2026 and 2025, other revenue was $32 and $31, respectively, an increase of 3%, or $1. For the six months ended June 30, 2026 and 2025, other revenue was $63 and $62, respectively, an increase of 2%, or $1. The increases were driven by higher service fee revenue from Sirius XM Canada, partially offset by lower rental vehicle revenue. The six month period was also impacted by a one-time true-up of license fees in the first quarter of 2025.
Previous wording
We expect other revenue to remain relatively flat.
Current wording
We expect SiriusXM other revenue to remain relatively flat.
Previous wording
For the three months ended March 31, 2026 and 2025, Pandora and Off-platform subscriber revenue was $129 and $132, respectively, a decrease of 2%, or $3. The decrease was primarily driven by a decline in the subscriber base.
Current wording
For each of the three months ended June 30, 2026 and 2025, Pandora and Off-platform subscriber revenue was $130. For the six months ended June 30, 2026 and 2025, Pandora and Off-platform subscriber revenue was $259 and $262, respectively, a decrease of 1%, or $3. The decrease for the six month period was primarily driven by a decline in the subscriber base.
Previous wording
We expect our SiriusXM advertising revenue to remain relatively flat.
Current wording
We expect Pandora and Off-platform subscriber revenue to remain relatively flat.
Previous wording
For the three months ended March 31, 2026 and 2025, Pandora and Off-platform advertising revenue was $372 and $355, respectively, an increase of 5%, or $17. The increase was driven by revenue generated from podcasts and higher programmatic demand and technology fees; partially offset by reduced advertiser demand in streaming music.
Current wording
For the three months ended June 30, 2026 and 2025, Pandora and Off-platform advertising revenue was $413 and $394, respectively, an increase of 5%, or $19. For the six months ended June 30, 2026 and 2025, Pandora and Off-platform advertising revenue was $785 and $749, respectively, an increase of 5%, or $36. The increases were driven by revenue generated from podcasts and higher programmatic demand and technology fees, partially offset by reduced advertiser demand in streaming music.
Previous wording
We expect Pandora and Off-platform advertising revenue to moderately increase due to growth in off-platform monetization, including through podcasts, as well as higher technology fees.
Current wording
We expect Pandora and Off-platform advertising revenue to increase due to growth in off-platform monetization, including through podcasts and new partnerships, as well as higher technology fees.
Previous wording
For the three months ended March 31, 2026 and 2025, revenue share and royalties were $377 and $379, respectively, a decrease of 1%, or $2, and decreased as a percentage of total SiriusXM revenue. The decrease was driven by lower revenue share with automakers, partially offset by higher webcasting royalties.
Current wording
For the three months ended June 30, 2026 and 2025, revenue share and royalties were $382 and $391, respectively, a decrease of 2%, or $9, and decreased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2026 and 2025, revenue share and royalties were $759 and $770, respectively, a decrease of 1%, or $11, and decreased as a percentage of total SiriusXM revenue. The decreases were driven by lower revenue share with content providers and automakers, partially offset by higher webcasting royalties.
Previous wording
For the three months ended March 31, 2026 and 2025, programming and content expenses were $135 and $137, respectively, a decrease of 1%, or $2, and decreased as a percentage of total SiriusXM revenue. The decrease was driven by lower content costs, partially offset by higher personnel-related costs.
Current wording
For the three months ended June 30, 2026 and 2025, programming and content expenses were $132 and $137, respectively, a decrease of 4%, or $5, and decreased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2026 and 2025, programming and content expenses were $267 and $274, respectively, a decrease of 3%, or $7, and decreased as a percentage of total SiriusXM revenue. The decreases were driven by lower content costs from contract renewals.
Previous wording
For the three months ended March 31, 2026 and 2025, customer service and billing expenses were $86 and $94, respectively, a decrease of 9%, or $8, and decreased as a percentage of total SiriusXM revenue. The decrease was driven by lower call center costs and bad debt expense.
Current wording
For each of the three months ended June 30, 2026 and 2025, customer service and billing expenses were $92, and decreased as a percentage of total SiriusXM revenue. For the six months ended June 30, 2026 and 2025, customer service and billing expenses were $178 and $186, respectively, a decrease of 4%, or $8, and decreased as a percentage of total SiriusXM revenue. The decrease for the six month period was driven by lower call center costs and bad debt expense.
Previous 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 and transaction costs.
Current wording
We expect our SiriusXM customer service and billing expenses to decrease as a result of reductions in call center costs.
Previous wording
We expect our SiriusXM transmission expenses to increase primarily from hosting cloud costs for broadcast and service delivery as well as increases in maintenance costs related to our repeater network.
Current wording
We expect our SiriusXM transmission expenses to remain relatively flat.
Previous wording
For the three months ended March 31, 2026 and 2025, revenue share and royalties were $320 and $308, respectively, an increase of 4%, or $12, and increased as a percentage of total Pandora and Off-platform revenue. The increase was driven by podcast revenue share as well as a higher sound recording and publisher royalties.
Current wording
For the three months ended June 30, 2026 and 2025, revenue share and royalties were $340 and $331, respectively, an increase of 3%, or $9, and decreased as a percentage of total Pandora and Off-platform revenue. For the six months ended June 30, 2026 and 2025, revenue share and royalties were $660 and $639, respectively, an increase of 3%, or $21, and increased as a percentage of total Pandora and Off-platform revenue. The increases were driven by podcast revenue share.
Previous wording
We expect our Pandora and Off-platform revenue share and royalties to increase with the growth in our podcast revenue.
Current wording
We expect our Pandora and Off-platform revenue share and royalties to increase with the growth in our off-platform monetization, including through podcasts and new partnerships.
Previous wording
For the three months ended March 31, 2026 and 2025, programming and content 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 decrease was primarily attributable to lower live event and podcast programming costs.
Current wording
For each of the three months ended June 30, 2026 and 2025, programming and content expenses were $14, and decreased as a percentage of total Pandora and Off-platform revenue. For the six months ended June 30, 2026 and 2025, programming and content expenses were $29 and $30, respectively, a decrease of 3%, or $1, and decreased as a percentage of total Pandora and Off-platform revenue. The decreases were primarily attributable to lower live event and programming costs.
Previous wording
We expect our Pandora and Off-platform programming and content costs to decline slightly.
Current wording
We expect our Pandora and Off-platform programming and content costs to increase slightly.
Previous wording
For the three months ended March 31, 2026 and 2025, customer service and billing expenses were $20 and $18, respectively, an increase of 11%, or $2, and increased as a percentage of total Pandora and Off-platform revenue. The increase was primarily driven by higher bad debt expense, partially offset by lower transaction fees.
Current wording
For the three months ended June 30, 2026 and 2025, 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. For the six months ended June 30, 2026 and 2025, customer service and billing expenses were $38 and $37, respectively, an increase of 3%, or $1, and decreased as a percentage of total Pandora and Off-platform revenue. The decrease for the three month period was primarily driven by lower transaction fees. The increase for the six month period was primarily driven by higher bad debt expense, partially offset by lower transaction fees.
Previous wording
We expect our Pandora and Off-platform customer service and billing costs to remain relatively flat.
Current wording
We expect Pandora and Off-platform customer service and billing to remain relatively flat as a percentage of Pandora and Off-platform subscriber revenues.
Previous wording
For each of the three months ended March 31, 2026 and 2025, Pandora and Off-Platform transmission expenses were $8, and decreased as a percentage of total Pandora and Off-platform revenue.
Current wording
For the three months ended June 30, 2026 and 2025, Pandora and Off-Platform transmission expenses were $9 and $7, respectively, an increase of 29%, or $2, and increased as a percentage of total Pandora and Off-platform revenue. For the six months ended June 30, 2026 and 2025, Pandora and Off-Platform transmission expenses were $17 and $15, respectively, an increase of 13%, or $2, and increased as a percentage of total Pandora and Off-platform revenue. The increases were primarily driven by higher cloud costs.
Previous wording
We expect our Pandora and Off-platform transmission costs to remain relatively flat.
Current wording
We expect Pandora and Off-platform transmission costs to increase as a result of higher cloud costs to support revenue growth.
Previous wording
We expect subscriber acquisition costs to remain relatively flat.
Current wording
We expect subscriber acquisition costs to increase due to contractual increases of subsidy rates with certain automakers.
Previous wording
We expect sales and marketing expenses to increase due to an increased investment in our brand and content promotion spend to drive long term acquisition and retention benefits along with other marketing cost.
Current wording
We expect sales and marketing expenses to increase due to an increased investment in our brand and content spend to drive long term acquisition and retention benefits.
Previous wording
For the three months ended March 31, 2026 and 2025, product and technology expenses were $69 and $73, respectively, a decrease of 5%, or $4, and decreased as a percentage of total revenue. The decrease was primarily driven by lower personnel-related costs.
Current wording
For each of the three months ended June 30, 2026 and 2025, product and technology expenses were $56 and decreased as a percentage of total revenue. For the six months ended June 30, 2026 and 2025, product and technology expenses were $125 and $129, respectively, a decrease of 3%, or $4, and decreased as a percentage of total revenue. The decrease for the six month period was primarily driven by a one-time cloud cost adjustment, partially offset by higher personnel-related costs.
Previous wording
For each of the three months ended March 31, 2026 and 2025, general and administrative expenses were $122, and decreased as a percentage of total revenue. Lower personnel-related costs were offset by certain state tax litigation recoveries recorded in 2025.
Current wording
For the three months ended June 30, 2026 and 2025, general and administrative expenses were $136 and $166, respectively, a decrease of 18%, or $30, and decreased as a percentage of total revenue. For the six months ended June 30, 2026 and 2025, general and administrative expenses were $258 and $288, respectively, a decrease of 10%, or $30, and decreased as a percentage of total revenue. The decreases were driven by lower legal costs, including amounts recorded in the second quarter of 2025 associated with a settlement reserve for certain litigation matters of $28, partially offset by certain state tax litigation recoveries recorded in 2025 and higher personnel-related costs.
Previous wording
We expect our general and administrative expenses, excluding the impact of any past or future litigation insurance recoveries and settlement reserves, to decline due to continued efficiencies.
Current wording
We expect our general and administrative expenses, excluding the impact of any past or future litigation insurance recoveries and settlement reserves, to decline due to lower technology, employee-related and rent costs.
Previous wording
For the three months ended March 31, 2026 and 2025, depreciation and amortization expense was $151 and $144, respectively. The increase was primarily associated with additional assets placed in service as well as a change in the estimated useful life of our Sirius FM-6 satellite. The change in the useful life of the Sirius FM-6 satellite is expected to add $60 of incremental depreciation expense for the fiscal year 2026 and will be fully depreciated by December 2026.
Current wording
For the three months ended June 30, 2026 and 2025, depreciation and amortization expense was $165 and $121, respectively. For the six months ended June 30, 2026 and 2025, depreciation and amortization expense was $316 and $265, respectively. The increases were primarily associated with a change in the estimated useful life of our Sirius FM-6 satellite as well as additional assets placed in service. The change in the useful life of the Sirius FM-6 satellite is expected to add $60 of incremental depreciation expense for the fiscal year 2026 and will be fully depreciated by December 2026.
Previous wording
For the three months ended March 31, 2026 and 2025, impairment, restructuring and other costs were $6 and $48, respectively. During the three months ended March 31, 2026, we recorded charges of $4 associated with restructuring charges and $2 associated with severance and other employee costs. During the three months ended March 31, 2025, we recorded impairment charges of $20 associated with severance and other employee costs, $15 associated with restructuring costs, and a charge of $13 related to the write-off of certain assets.
Current wording
For the three months ended June 30, 2026 and 2025, impairment, restructuring and other costs were $6 and $107, respectively. For the six months ended June 30, 2026 and 2025, impairment, restructuring and other costs were $12 and $155, respectively. During the three months ended June 30, 2026, we recorded $5 associated with restructuring charges and $1 associated with severance and other employee costs. During the six months ended June 30, 2026, we recorded charges of $9 associated with restructuring charges and $3 associated with severance and other employee costs. 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.
Previous wording
For the three months ended March 31, 2026 and 2025, interest expense was $112 and $117, respectively. The decrease was primarily driven by a lower average outstanding debt balance.
Current wording
For the three months ended June 30, 2026 and 2025, interest expense was $112 and $116, respectively. For the six months ended June 30, 2026 and 2025, interest expense was $224 and $233, respectively. The decreases were primarily driven by a lower average outstanding debt balance.
Previous 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.
Current wording
Other (Expense) Income, Netprimarily includes realized and unrealized gains and losses from our debt measured at fair value, 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, 2026 and 2025, other expense, net was $16 and $1, respectively. During each of the three months ended March 31, 2026 and 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.
Current wording
For the three months ended June 30, 2026 and 2025, other (expense) income, net was $(48) and $15, respectively. For the six months ended June 30, 2026 and 2025, other (expense) income, net was $(64) and $14, respectively. During the three and six months ended June 30, 2026, we recorded unrealized losses 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, 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.
Previous wording
For the three months ended March 31, 2026 and 2025, income tax expense was $81 and $65, respectively. Our effective tax rate for the three months ended March 31, 2026 and 2025 was 24.8% and 24.2%, respectively. The effective tax rate for the three months ended March 31, 2026 and 2025 were primarily driven by federal and state income tax expense and tax losses related to share-based compensation, partially offset by certain tax credits.
Current wording
Our effective tax rate for the three months June 30, 2026 and 2025 was 23.4% and 22.3%, respectively. Our effective tax rate for the six months ended June 30, 2026 and 2025 was 24.1% and 23.3%, respectively. The effective tax rate for the three and six months ended June 30, 2026 were primarily driven by federal and state income tax expense, tax losses related to share-based compensation and the fair value adjustment to the Convertible Notes that is not deductible for tax purposes, partially offset by certain tax credits. The effective tax rate for the three and six months ended June 30, 2025 were primarily driven by federal and state income tax expense and tax losses related to share-based compensation, partially offset by 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 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.
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 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, 2026 and 2025.
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, 2026 and 2025.
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Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The SiriusXM service is also available through an in-car user interface called “360L” that combines SiriusXM’s satellite and streaming services into a single, cohesive in-vehicle entertainment experience.SiriusXM holds a 70% equity interest and 33% voting interest in Sirius XM Canada Holdings Inc. (“Sirius XM Canada”).
Previous report — wording carried elsewhere
For a discussion of our “Critical Accounting Policies and Estimates”, refer to “Management's Discussion and Analysis of