SIRIUS XM HOLDINGS INC.

Previous wording

Sirius XM Holdings Inc., the reporting company under this Quarterly Report on Form 10-Q, is the product of a series of transactions that closed on Monday, September 9, 2024. Any references to the “Company,” “we,” “us,” or “ours” refers to Sirius XM Holdings Inc. and its consolidated subsidiaries following the Transactions.

Current wording

Sirius XM Holdings Inc., the reporting company under this Quarterly Report on Form 10-Q, is the product of a series of transactions that closed on Monday, September 9, 2024. Any references to the “Company,” “we,” “us,” or “ours” refer to Sirius XM Holdings Inc. and its consolidated subsidiaries following the Transactions.

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 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.

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 September 30, 2026, the SiriusXM business had approximately 32.9 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.

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 June 30, 2026, Pandora had approximately 39.8 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 September 30, 2026, Pandora had approximately 38.8 million monthly active users and 5.5 million subscribers.

Previous wording

Sirius XM Holdings also sells advertising on other audio platforms and in widely-distributed podcasts, which it considers to be off-platform services. Sirius XM Holdings has an arrangement with SoundCloud Holdings, LLC (“SoundCloud”) to be its exclusive ad sales representative in the U.S. and certain European countries and offer advertisers the ability to execute campaigns across the Pandora and SoundCloud platforms. It also has arrangements to serve as the ad sales representative for certain podcasts. In addition, through AdsWizz Inc., Sirius XM Holdings provides a comprehensive digital audio and programmatic advertising technology platform, which connects audio publishers and advertisers with a variety of ad insertion, campaign trafficking, yield optimization, programmatic buying, marketplace and podcast monetization solutions.

Current wording

Sirius XM Holdings also sells advertising on other audio platforms and in widely-distributed podcasts, which it considers to be off-platform services. Sirius XM Holdings has an arrangement with SoundCloud Holdings, LLC (“SoundCloud”) to be its exclusive ad sales representative in the U.S. and certain European countries and offer advertisers the ability to execute campaigns across the Pandora and SoundCloud platforms. In addition, Sirius XM Holdings is the exclusive audio advertising representative for YouTube audio advertising inventory in the U.S. It also has arrangements to serve as the ad sales representative for certain podcasts. In addition, through AdsWizz Inc., Sirius XM Holdings provides a comprehensive digital audio and programmatic advertising technology platform, which connects audio publishers and advertisers with a variety of ad insertion, campaign trafficking, yield optimization, programmatic buying, marketplace and podcast monetization solutions.

Previous 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.

Current wording

Set forth below are our results of operations for the three and nine months ended September 30, 2026 compared with the three and nine months ended September 30, 2025. The results of operations are presented for each of our reportable 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, 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.

Current wording

For the three months ended September 30, 2026 and 2025, subscriber revenue was $1,500 and $1,497, respectively, an increase of $3. For the nine months ended September 30, 2026 and 2025, subscriber revenue was $4,491 and $4,466, respectively, an increase of 1%, or $25. The increases were primarily attributed to rate increases on certain self-pay plans, partially offset by the growing mix of value-added and more affordable subscription offerings designed to broaden access and strengthen long-term retention.

Previous wording

We expect SiriusXM subscriber revenues to remain relatively flat with higher average revenue per user (“ARPU”) offset by declines in the number of average subscribers.

Current wording

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

Previous wording

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

Current wording

We expect our SiriusXM advertising revenue to remain relatively flat as co-selling initiatives across our brands and platforms offset broadcast demand headwinds.

Previous wording

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 wording

For the three months ended September 30, 2026 and 2025, equipment revenue was $36 and $43, respectively, a decrease of 16%, or $7. For the nine months ended September 30, 2026 and 2025, equipment revenue was $113 and $130, respectively, a decrease of 13%, or $17. The decreases were driven by higher memory costs associated with our hardware.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, other revenue was $31 and $32, respectively, a decrease of 3%, or $1. For each of the nine months ended September 30, 2026 and 2025, other revenue was $94.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, Pandora and Off-platform subscriber revenue was $130 and $132, respectively, a decrease of 2%, or $2. For the nine months ended September 30, 2026 and 2025, Pandora and Off-platform subscriber revenue was $389 and $394, respectively, a decrease of 1%, or $5. The decreases were driven by a decline in the subscriber base.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, Pandora and Off-platform advertising revenue was $419 and $416, respectively, an increase of 1%, or $3. For the nine months ended September 30, 2026 and 2025, Pandora and Off-platform advertising revenue was $1,204 and $1,165, respectively, an increase of 3%, or $39. The increases were driven by revenue generated from podcasts, higher programmatic demand and technology fees, partially offset by reduced streaming music advertising driven by lower listening hours.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, revenue share and royalties were $392 and $384, respectively, an increase of 2%, or $8, and increased as a percentage of total SiriusXM revenue. For the nine months ended September 30, 2026 and 2025, revenue share and royalties were $1,151 and $1,154, respectively, a decrease of $3, and decreased as a percentage of total SiriusXM revenue. The increase for the three month period was driven by higher royalties, partially offset by lower revenue share with content providers and automakers. The decrease for the nine month period was driven by lower revenue share with content providers and automakers, partially offset by higher webcasting royalties.

Previous wording

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

Current wording

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

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, programming and content expenses were $127 and $138, respectively, a decrease of 8%, or $11, and decreased as a percentage of total SiriusXM revenue. For the nine months ended September 30, 2026 and 2025, programming and content expenses were $394 and $412, respectively, a decrease of 4%, or $18, and decreased as a percentage of total SiriusXM revenue. The decreases were driven by lower content costs from contract renewals.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, customer service and billing expenses were $91 and $97, respectively, a decrease of 6%, or $6, and decreased as a percentage of total SiriusXM revenue. For the nine months ended September 30, 2026 and 2025, customer service and billing expenses were $269 and $283, respectively, a decrease of 5%, or $14, and decreased as a percentage of total SiriusXM revenue. The decreases were driven by lower call center costs resulting from greater automation and lower call volumes. The three-month period was partially offset by higher bad debt expense.

Previous wording

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 wording

For the three months ended September 30, 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. For the nine months ended September 30, 2026 and 2025, transmission expenses were $118 and $122, respectively, a decrease of 3%, or $4, and decreased as a percentage of total SiriusXM revenue. The decreases were driven primarily by lower 360L data costs.

Previous wording

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 wording

For the three months ended September 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 nine months ended September 30, 2026 and 2025, cost of equipment was $4 and $6, respectively, a decrease of 33%, or $2, and decreased as a percentage of total SiriusXM revenue. The decreases were driven primarily by lower sales volumes.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, revenue share and royalties were $334 and $337, respectively, a decrease of 1%, or $3, and decreased as a percentage of total Pandora and Off-platform revenue. For the nine months ended September 30, 2026 and 2025, revenue share and royalties were $994 and $976, respectively, an increase of 2%, or $18, and decreased as a percentage of total Pandora and Off-platform revenue. The decrease for the three month period was driven by lower listening hours, partially offset by higher podcast revenue share. The increase for the nine month period was driven by higher podcast revenue share.

Previous 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.

Current wording

For each of the three months ended September 30, 2026 and 2025, programming and content expenses were $16, and decreased as a percentage of total Pandora and Off-platform revenue. For the nine months ended September 30, 2026 and 2025, programming and content expenses were $45 and $46, respectively, a decrease of 2%, or $1, and decreased as a percentage of total Pandora and Off-platform revenue.

Previous 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.

Current wording

For the three months ended September 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 each of the nine months ended September 30, 2026 and 2025, customer service and billing expenses were $56, and decreased as a percentage of total Pandora and Off-platform revenue.

Previous 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.

Current wording

We expect Pandora and Off-platform customer service and billing to increase due to higher subscription revenue.

Previous 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.

Current wording

For the three months ended September 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 nine months ended September 30, 2026 and 2025, Pandora and Off-platform transmission expenses were $26 and $22, respectively, an increase of 18%, or $4, and increased as a percentage of total Pandora and Off-platform revenue. The increases were primarily driven by higher cloud costs.

Previous wording

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 wording

For each of the three months ended September 30, 2026 and 2025, subscriber acquisition costs were $107, and increased as a percentage of total revenue. For the nine months ended September 30, 2026 and 2025, subscriber acquisition costs were $316 and $314, respectively, an increase of 1%, or $2, and increased as a percentage of total revenue.

Previous wording

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 wording

For the three months ended September 30, 2026 and 2025, sales and marketing expenses were $179 and $186, respectively, a decrease of 4%, or $7, and decreased as a percentage of total revenue. For the nine months ended September 30, 2026 and 2025, sales and marketing expenses were $554 and $561, respectively, a decrease of 1%, or $7, and decreased as a percentage of total revenue. The decreases were primarily attributable to more efficient in-car subscriber acquisition spending.

Previous 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.

Current wording

We expect sales and marketing expenses to increase as we invest in brand and content marketing to support long-term subscriber acquisition and retention.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, product and technology expenses were $64 and $62, respectively, an increase of 3%, or $2, and increased as a percentage of total revenue. For the nine months ended September 30, 2026 and 2025, product and technology expenses were $189 and $191, respectively, a decrease of 1%, or $2, and decreased as a percentage of total revenue.

Previous wording

We expect product and technology expenses to increase primarily due to higher cloud infrastructure costs.

Current wording

We expect product and technology expenses to increase primarily due to higher cloud infrastructure costs, investments in artificial intelligence, as well as targeted investments to grow revenue and support value-driving initiatives.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, general and administrative expenses were $121 and $119, respectively, an increase of 2%, or $2, and increased as a percentage of total revenue. For the nine months ended September 30, 2026 and 2025, general and administrative expenses were $379 and $407, respectively, a decrease of 7%, or $28, and decreased as a percentage of total revenue. The increase for the three month period was driven by higher legal costs, including the impact of a legal settlement recovery recorded in the prior-year period. The decrease for the nine month period was driven by lower legal and personnel-related costs, partially offset by certain state tax litigation recoveries recorded in 2025.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, depreciation and amortization expense was $166 and $141, respectively. For the nine months ended September 30, 2026 and 2025, depreciation and amortization expense was $482 and $406, 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 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.

Current wording

For the three months ended September 30, 2026 and 2025, impairment, restructuring and other costs were $10 and $9, respectively. For the nine months ended September 30, 2026 and 2025, impairment, restructuring and other costs were $22 and $164, respectively. During the three months ended September 30, 2026, we recorded $5 associated with restructuring charges and $5 associated with severance and other employee costs. During the nine months ended September 30, 2026, we recorded charges of $14 associated with restructuring charges and $8 associated with severance and other employee costs. 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.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, interest expense was $109 and $115, respectively. For the nine months ended September 30, 2026 and 2025, interest expense was $333 and $348, respectively. The decreases were primarily driven by a lower average outstanding debt balance.

Previous 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.

Current wording

For the three months ended September 30, 2026 and 2025, other income, net was $46 and $10, respectively. For the nine months ended September 30, 2026 and 2025, other (expense) income, net was $(18) and $24, respectively. During the three months ended September 30, 2026, we recorded unrealized gains on debt measured at fair value and earnings on unconsolidated entity investments. During the nine months ended September 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 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.

Previous wording

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 wording

For the three months ended September 30, 2026 and 2025, income tax expense was $99 and $91, respectively. For the nine months ended September 30, 2026 and 2025, income tax expense was $253 and $215, respectively.

Previous 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.

Current wording

Our effective tax rate for the three months ended September 30, 2026 and 2025 was 23.8% and 23.5%, respectively. Our effective tax rate for the nine months ended September 30, 2026 and 2025 was 24.0% and 23.3%, respectively. The effective tax rate for the three and nine months ended September 30, 2026 and 2025 were primarily driven by federal and state income tax expense, tax losses related to share-based compensation, partially offset by certain tax credits.

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, 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 nine months ended September 30, 2026 and 2025.

Previous wording

(1) ARPU for SiriusXM excludes subscriber revenue from our connected vehicle services of $42 for each of the three months ended June 30, 2026 and 2025 and $85 and $84 for the six months ended June 30, 2026 and 2025, respectively.

Current wording

(1) ARPU for SiriusXM excludes subscriber revenue from our connected vehicle services of $42 and $43 for the three months ended September 30, 2026 and 2025, respectively, and $127 for each of the nine months ended September 30, 2026 and 2025.

Previous wording

Subscribers. At June 30, 2026, SiriusXM had 32,869 subscribers, an increase of 72, from the 32,797 subscribers as of June 30, 2025. Our subscriber base increased primarily due to reductions in vehicle-related and non-pay churn as well as growth in new initiatives, partially offset by slightly lower conversion rates.

Current wording

Subscribers. At September 30, 2026, SiriusXM had 32,854 subscribers, an increase of 46, from the 32,808 subscribers as of September 30, 2025. Our subscriber base increased primarily due to reductions in vehicle-related and non-pay churn as well as growth in new initiatives, partially offset by slightly lower conversion rates.

Previous wording

For the three months ended June 30, 2026 and 2025, net subscriber additions were 90 and (66), respectively, an improvement of 156. For the six months ended June 30, 2026 and 2025, net subscriber additions were (57) and (429), respectively, an improvement of 372. Self-pay net additions improved primarily due to growth in our value-add initiatives such as the offer of companion subscriptions to subscribers, implementation of continuous service practices and automotive dealer extended-duration plans; partially offset by slightly lower conversion rates. Paid promotional net additions also improved compared to the prior year periods driven by higher vehicle sales.

Current wording

For the three months ended September 30, 2026 and 2025, net subscriber additions were (15) and 11, respectively, a decrease of 26. For the nine months ended September 30, 2026 and 2025, net subscriber additions were (72) and (418), respectively, an improvement of 346. Self-pay net additions improved primarily due to growth in Companion Plans, Continuous Service and extended-duration dealer programs, partially offset by lower conversion rates. Paid promotional net additions declined in the third quarter, reflecting lower vehicle sales and trial starts, as well as changes in automaker promotional programs, including shifts to unpaid or shorter-duration trials. For the nine-month period, paid promotional net additions improved year-over-year, supported by stronger vehicle sales in the first half of 2026.

Previous wording

Sirius XM Canada Subscribers. At June 30, 2026, Sirius XM Canada had approximately 2,463 subscribers, a decrease of 58, or 2%, from the approximately 2,521 Sirius XM Canada subscribers as of June 30, 2025.

Current wording

Sirius XM Canada Subscribers. At September 30, 2026, Sirius XM Canada had approximately 2,437 subscribers, a decrease of 54, or 2%, from the approximately 2,491 Sirius XM Canada subscribers as of September 30, 2025.