SIRI Swings to Profit on Reduced Impairments, Revenue Dips

TL;DR

**SIRI's profit rebound is a relief, but declining revenue means the core business is still struggling to grow in a cutthroat streaming world.**

AI Summary

Sirius XM Holdings Inc. (SIRI) reported a significant turnaround in its financial performance for the nine months ended September 30, 2025, achieving a net income of $706 million compared to a net loss of $2,362 million in the prior year. This improvement was primarily driven by a substantial reduction in impairment, restructuring, and other costs, which fell from $3,441 million in 2024 to $164 million in 2025. Total revenue, however, saw a slight decrease of 2.2% to $6,365 million from $6,511 million, with subscriber revenue declining to $4,860 million from $4,983 million. Advertising revenue also dipped slightly to $1,281 million from $1,295 million. Operating expenses decreased significantly to $5,120 million from $8,533 million, largely due to the aforementioned impairment reduction. The company's cash and cash equivalents decreased to $79 million from $162 million at December 31, 2024, while long-term debt was reduced to $9,019 million from $10,314 million. SiriusXM's subscriber base stood at approximately 32.8 million as of September 30, 2025.

Why It Matters

This filing reveals a critical shift for SIRI, moving from a substantial net loss to a profit, largely by shedding significant impairment charges. While this is positive for investors, the slight decline in core subscriber and advertising revenue signals ongoing challenges in a competitive audio streaming market dominated by players like Spotify and Apple Music. Employees might see increased job security with improved profitability, but the revenue dip could pressure future growth initiatives. Customers will continue to benefit from SIRI's diverse content, but the company needs to innovate to retain and grow its 32.8 million subscribers amidst fierce competition. The broader market will watch if SIRI can sustain profitability and reverse revenue declines, especially after its September 2024 split-off from Liberty Media.

Risk Assessment

Risk Level: medium — While SIRI achieved a net income of $706 million, a significant improvement from a $2,362 million net loss, this was largely due to a massive reduction in 'Impairment, restructuring and other costs' from $3,441 million to $164 million. Total revenue actually decreased by $146 million, or 2.2%, for the nine months ended September 30, 2025, indicating underlying business challenges in subscriber and advertising growth. The company also saw a decrease in cash and cash equivalents from $162 million to $79 million.

Analyst Insight

Investors should view SIRI's profitability with cautious optimism, recognizing it's primarily driven by cost reductions rather than revenue growth. Monitor subscriber trends and advertising revenue closely in upcoming quarters to assess the health of its core business. Consider if the current valuation adequately reflects the challenges of a declining top-line in a highly competitive market.

Financial Highlights

debt To Equity

N/A

revenue

$6,365M

operating Margin

N/A

total Assets

N/A

total Debt

$9,019M

net Income

$706M

eps

N/A

gross Margin

N/A

cash Position

$79M

revenue Growth

-2.2%

Revenue Breakdown

Key Numbers

• $706M — Net income attributable to Sirius XM Holdings Inc. (for the nine months ended September 30, 2025, a significant improvement from a $1,952 million net loss in 2024)
• $297M — Net income attributable to Sirius XM Holdings Inc. (for the three months ended September 30, 2025, compared to a $2,456 million net loss in 2024)
• $6,365M — Total revenue (for the nine months ended September 30, 2025, down from $6,511 million in 2024)
• $1,629M — Subscriber revenue (for the three months ended September 30, 2025, down from $1,645 million in 2024)
• $164M — Impairment, restructuring and other costs (for the nine months ended September 30, 2025, a substantial decrease from $3,441 million in 2024)
• $9,019M — Long-term debt (as of September 30, 2025, reduced from $10,314 million at December 31, 2024)
• 32.8M — SiriusXM subscribers (as of September 30, 2025)
• $79M — Cash and cash equivalents (as of September 30, 2025, down from $162 million at December 31, 2024)
• $1,218M — Net cash provided by operating activities (for the nine months ended September 30, 2025, up from $1,062 million in 2024)

Key Players & Entities

• SIRIUS XM HOLDINGS INC. (company) — the reporting company under this Quarterly Report on Form 10-Q
• Liberty Media Corporation (company) — Former Parent of Sirius XM Holdings Inc.
• SplitCo (company) — formerly Liberty Sirius XM Holdings Inc., which merged with Old Sirius
• Old Sirius (company) — Sirius XM Holdings Inc. prior to the Merger Effective Time
• Sirius XM Radio LLC (company) — wholly owned subsidiary of Sirius XM Holdings Inc.
• Pandora Media, LLC (company) — wholly owned subsidiary of Sirius XM Holdings Inc.
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Stock Market LLC (regulator) — exchange where SIRI common stock is registered
• Chief Executive Officer (person) — chief operating decision maker of Sirius XM Holdings

FAQ

Risk Factors

• Subscriber Acquisition and Retention [high — market]: The company's success depends on its ability to attract and retain subscribers for both SiriusXM and Pandora services. Competition from other audio entertainment platforms and changing consumer preferences pose a risk to subscriber growth and revenue.
• Technological Dependence and Innovation [medium — operational]: SiriusXM relies on its satellite radio systems and streaming technology. Any disruptions or failures in these systems, or the inability to keep pace with technological advancements in audio streaming and in-car entertainment, could negatively impact operations and subscriber experience.
• Debt Levels and Interest Expense [medium — financial]: As of September 30, 2025, the company has $9,019 million in long-term debt. Managing this debt and associated interest payments is crucial, especially given the slight decrease in cash and cash equivalents to $79 million.
• Content Licensing and Royalties [medium — regulatory]: The company's ability to offer diverse content is dependent on licensing agreements with content providers. Changes in licensing costs or the inability to secure necessary rights could impact programming and subscriber appeal.
• Automotive Industry Dependence [medium — market]: A significant portion of SiriusXM's hardware distribution is through automakers. Changes in the automotive industry, such as shifts in vehicle production or the adoption of alternative in-car audio systems, could affect subscriber acquisition.
• Advertising Market Fluctuations [low — operational]: Advertising revenue, a component of both SiriusXM and Pandora segments, is subject to economic conditions and advertiser spending. A downturn in the advertising market could negatively impact this revenue stream.

Industry Context

The audio entertainment industry is highly competitive, with players ranging from traditional broadcasters to streaming services and podcast platforms. SiriusXM operates in a dynamic landscape shaped by evolving consumer preferences for on-demand content, personalized experiences, and seamless integration into vehicles. The increasing prevalence of connected cars and the growth of digital advertising are key trends influencing revenue generation and subscriber acquisition strategies.

Regulatory Implications

SiriusXM operates under regulations related to broadcasting, content licensing, and data privacy. While this filing does not highlight specific new regulatory actions, ongoing compliance with FCC regulations and data protection laws is essential. Changes in these regulations could impact operational costs and service offerings.

What Investors Should Do

1. Monitor subscriber growth trends for both SiriusXM and Pandora segments, as this remains a key driver of recurring revenue.
2. Analyze the impact of reduced impairment and restructuring costs on profitability and assess the sustainability of the current net income level.
3. Evaluate the company's debt management strategy given the significant long-term debt balance of $9,019 million and reduced cash position.
4. Assess the effectiveness of advertising revenue generation across SiriusXM Media, Pandora, and off-platform services in the current economic climate.
5. Consider the long-term implications of the Liberty Media transactions and the company's positioning as an independent entity.

Key Dates

• 2024-09-09: Completion of Liberty Media Transactions (Split-Off and Merger) — Sirius XM Holdings Inc. became an independent publicly traded company, separating from Liberty Media. This marks a significant structural change for the company.
• 2025-09-30: End of the Nine-Month Period — Reporting period for the significant financial turnaround, with net income of $706 million compared to a net loss in the prior year.
• 2025-09-30: SiriusXM Subscribers — Reported approximately 32.8 million subscribers for the SiriusXM business.
• 2025-09-30: Pandora Subscribers — Reported approximately 5.7 million subscribers for the Pandora business.

Glossary

Split-Off

A corporate transaction where a parent company distributes shares of a subsidiary to its shareholders, effectively separating the subsidiary into a new, independent company. (Sirius XM Holdings Inc. was formed through a split-off from Liberty Media Corporation.)

Merger

A corporate transaction where two or more companies combine to form a single, new entity. (Following the split-off, a merger occurred where Old Sirius became a subsidiary of the newly formed SplitCo (now Sirius XM Holdings Inc.).)

Successor Issuer

A company that assumes the reporting obligations of another company, often following a significant corporate transaction like a merger. (Sirius XM Holdings Inc. became the successor issuer to Old Sirius, inheriting its reporting requirements.)

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the U.S. (The financial statements are prepared in accordance with GAAP, requiring management to make estimates and assumptions.)

Reportable Operating Segments

Distinct business units of a company for which separate financial information is available and regularly reviewed by the chief operating decision maker. (Sirius XM Holdings Inc. has two reportable segments: SiriusXM and Pandora and Off-platform.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Sirius XM Holdings Inc. has demonstrated a significant financial recovery, moving from a substantial net loss to a net income of $706 million. This turnaround is largely attributable to a dramatic reduction in impairment, restructuring, and other costs, which fell from $3,441 million to $164 million. While total revenue experienced a slight decline of 2.2% to $6,365 million, driven by minor decreases in subscriber and advertising revenues, operating expenses also decreased significantly. The company has also made progress in reducing its long-term debt, although its cash and cash equivalents have decreased.

Key Financial Figures

• $0.001 — ange on which registered Common stock, $0.001 par value SIRI The Nasdaq Stock Market

Filing Documents

• siri-20250930.htm (10-Q) — 2004KB
• exhibit311-20250930.htm (EX-31.1) — 10KB
• exhibit312-20250930.htm (EX-31.2) — 10KB
• exhibit32-20250930.htm (EX-32) — 7KB
• 0000908937-25-000030.txt ( ) — 10315KB
• siri-20250930.xsd (EX-101.SCH) — 65KB
• siri-20250930_cal.xml (EX-101.CAL) — 80KB
• siri-20250930_def.xml (EX-101.DEF) — 378KB
• siri-20250930_lab.xml (EX-101.LAB) — 811KB
• siri-20250930_pre.xml (EX-101.PRE) — 589KB
• siri-20250930_htm.xml (XML) — 1671KB

- Financial Information

PART I - Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 3 Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 4 Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 9 Notes to the Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 3.

Quantitative and Qualitative Disclosures About Market Risks

Quantitative and Qualitative Disclosures About Market Risks 59 Item 4.

Controls and Procedures

Controls and Procedures 59

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 59 Item 1A.

Risk Factors

Risk Factors 60 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60 Item 3. Defaults Upon Senior Securities 60 Item 4. Mine Safety Disclosures 60 Item 5. Other Information 60 Item 6. Exhibits 60

Signatures

Signatures 63 1 Table of Contents SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Three Months Ended September 30, For the Nine Months Ended September 30, (in millions, except per share data) 2025 2024 2025 2024 Revenue: Subscriber revenue $ 1,629 $ 1,645 $ 4,860 $ 4,983 Advertising revenue 455 450 1,281 1,295 Equipment revenue 43 43 130 140 Other revenue 32 33 94 93 Total revenue 2,159 2,171 6,365 6,511 Operating expenses: Cost of services: Revenue share and royalties 721 707 2,130 2,118 Programming and content 154 150 458 456 Customer service and billing 116 110 339 335 Transmission 49 57 144 172 Cost of equipment 2 2 6 7 Subscriber acquisition costs 107 90 314 272 Sales and marketing 186 217 561 675 Product and technology 62 68 191 224 General and administrative 119 138 407 378 Depreciation and amortization 141 145 406 455 Impairment, restructuring and other costs 9 3,388 164 3,441 Total operating expenses 1,666 5,072 5,120 8,533 Income (loss) from operations 493 ( 2,901 ) 1,245 ( 2,022 ) Other income (expense), net Interest expense ( 115 ) ( 124 ) ( 348 ) ( 379 ) Other income, net 10 28 24 142 Total other expense ( 105 ) ( 96 ) ( 324 ) ( 237 ) Income (loss) before income taxes 388 ( 2,997 ) 921 ( 2,259 ) Income tax (expense) benefit ( 91 ) 39 ( 215 ) ( 103 ) Net income (loss) 297 ( 2,958 ) 706 ( 2,362 ) Less net loss attributable to noncontrolling interests — ( 502 ) — ( 410 ) Net income (loss) attributable to Sirius XM Holdings Inc. $ 297 $ ( 2,456 ) $ 706 $ ( 1,952 ) Net income (loss) per common share: Basic $ 0.88 $ ( 8.74 ) $ 2.09 $ ( 7.01 ) Diluted $ 0.84 $ ( 8.74 ) $ 1.99 $ ( 7.01 ) Weighted average common shares outstanding: Basic 337 339 338 337 Diluted 356 339 357 337 See accompanying notes to the unaudited consolidated financial statements. 2 Table of Contents SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE I

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Dollars and shares in millions, except per share amounts or otherwise stated) (1) Business & Basis of Presentation Liberty Media Transactions 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. 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"). The Split-Off was accomplished by Liberty Media redeeming each outstanding share of Liberty Media's Series A, Series B and Series C Liberty SiriusXM common stock, par value $ 0.01 per share, in exchange for 0.8375 of a share of SplitCo common stock, par value $ 0.001 per share (the "Redemption"), with cash being paid to entitled record holders of Liberty SiriusXM common stock in lieu of any fractional shares of common stock of SplitCo. Following the Split-Off, on September 9, 2024 at 6:00 p.m., New York City time (the "Merger Effective Time"), a wholly owned subsidiary of SplitCo merged with and into Sirius XM Holdings Inc. ("Old Sirius"), with Old Sirius surviving the merger as a wholly owned subsidiary of SplitCo (the "Merger" and together with the Split-Off, the "Transactions"). Upon consummation of the Merger, each share of common stock of Old Sirius, par value $ 0.001 per share, issued and outstanding immediately prior to the Merger Effective Time (other than shares owned by SplitCo and its subsidiaries) was converted into one-tenth ( 0.1 ) of a share of SplitCo common stock, with cash being paid to entitled record holders of Old Sirius common stock in lieu of any fractional shares of common stock of SplitCo. At the Merger Effective Time, Old Sirius was renamed "Sirius XM Inc." and SplitCo was renamed "Sirius XM Holdings Inc."

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued (UNAUDITED) (Dollars and shares in millions, except per share amounts or otherwise stated) results for such periods have been included. Interim results are not necessarily indicative of results that may be expected for a full year. All significant intercompany transactions have been eliminated in consolidation. Public companies are required to disclose certain information about their reportable operating segments. Operating segments are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources to an individual segment and in assessing performance of the segment. We have determined that we have two reportable segments as our chief operating decision maker, who is the Chief Executive Officer of Sirius XM Holdings, assesses performance and allocates resources based on the financial results of these segments. Refer to Note 16 for information related to our segments. We have evaluated events subsequent to the balance sheet date and prior to the filing of this Quarterly Report on Form 10-Q and have determined that no events have occurred that would require adjustment to our unaudited consolidated financial statements. For a discussion of subsequent events that do not require adjustment to our unaudited consolidated financial statements, refer to Note 17. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Estimates, by their nature, are based on judgment and available information. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the accompanying unaudited consolidated financial statements include asset impairment, fair value measurement of non-financia

Business

Business Sirius XM Holdings operates two complementary audio entertainment businesses - one of which it refers to as "SiriusXM" and the second of which it refers to as "Pandora and Off-platform". SiriusXM The SiriusXM business features music, sports, entertainment, comedy, talk, and news channels and other content, as well as podcasts and infotainment services 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. The primary source of revenue from the SiriusXM business is subscription fees, with most of its customers subscribing to monthly or annual plans. SiriusXM also derives revenue from advertising on select non-music channels and certain music channels within ad-supported plans, which is sold under the SiriusXM Media brand, direct sales of satellite radios and accessories, and other ancillary services. As of September 30, 2025, the SiriusXM business had approximately 32.8 million subscribers. In addition to the audio entertainment businesses, Sirius XM Holdings provides connected vehicle services to several automakers. These services are designed to enhance the safety, security and driving experience of consumers. Sirius XM Holdings also offers a suite of data services that includes graphical weather and fuel prices, a traffic information service, and real-time weather services in boats and airplanes. Sirius XM holds a 70 % equity interest and 33 % voting interest in Siriu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued (UNAUDITED) (Dollars and shares in millions, except per share amounts or otherwise stated) 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. SiriusXM also sells advertising on other audio platforms and in widely distributed podcasts, which it considers to be off-platform services. SiriusXM 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., SiriusXM 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. Effects of the Transactions Prior to the closing of the Transactions, a portion of Liberty Media's general and administrative expenses, including certain legal, tax, accounting, treasury and investor relations support of $ 3 and $ 15 for the three and nine months ended September 30, 2024, respectively, were allocated to SplitCo and are included in General and administrative in the unaudited consolidated statements of operations. There were no allocated costs during the three and nine months ended September 30, 2025. In addition, during the three and nine months ended September 30, 2024, we incurred costs related to the Transactions of $ 32 and $ 68 , respectively, which were recorded to Impairment, restructuring and other costs in our unaudited consolidated statements of ope