SIRI Filings — Sirius XM Holdings Inc. - FilingSpy
SIRI
Sirius XM Holdings Inc.
A North American audio entertainment company running two big music brands: SiriusXM, a subscription satellite and streaming radio service heard in cars and homes, and Pandora, an ad-supported and premium music streaming app. The company was born from the 2008 merger of rival satellite radio pioneers Sirius and XM, and later folded in Pandora in 2018. Sirius takes its name from the brightest star in the night sky, the 'Dog Star,' while Pandora is named after the Greek myth figure whose name means 'all-gifted.'
Revenue rose 1% to $2.16B as Pandora ad growth and rate increases offset subscriber losses
advertising growth carried the quarter as subscriber stalled. Revenue rose 1.0% to $2,160M, was 53.0% and was $0.70, with rate increases and podcast demand offsetting fewer subscribers. The business has returned to top-line growth but still loses self-pay listeners.
Key takeaways
and advertising grew 5% to $413M on podcast revenue and programmatic demand, even as monthly active users fell 7%, driving total revenue up 1.0% to $2,160M.
subscriber increased 1% to $1,508M from rate increases on self-pay plans, partially offset by a decline in average subscribers.
General and administrative expenses fell 18% to $136M, largely because the $28M litigation settlement reserve recorded in Q2 2025 did not recur this quarter.
Section summaries
Management's Discussion and Analysis
Total revenue rose 1% to $2.16B in Q2 2026, driven by Pandora advertising growth and SiriusXM subscriber rate increases, while net income grew 17%.
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subscriber increased 1% to $1,508M due to rate increases on self-pay plans, partially offset by a decline in average subscribers.
rose 47.6% to $592M, supported by higher earnings and favorable timing; rose 32.2% to $722M.
was $239M, up 16.6% from a year earlier, and was $0.70 versus $0.57; rose 3% to $691M.
The company repurchased $28M of stock and paid $182M in dividends, with $1,900M available under its at June 30, 2026.
What changed
Q1 2026 flagged watching Q2 self-pay subscribers and ARPU after a 31.2M base; subscriber rose 1% on rates while average subscribers still declined, so losses did not widen but continued.
Q1 2026 flagged monthly active users after a drop to 40.1M; this filing shows a 7% drop in MAUs even as ad grew 5%, confirming the decline continues.
Q1 2026 flagged whether the $6M and restructuring costs would recur; Q2 carried no such charge and G&A fell 18% from the prior-year $28M reserve, so costs normalized.
Q1 2026 flagged Q2 under SOFR and satellite ; free cash flow rose to $592M, up 47.6% and 256.6% from Q1's $166M.
FY2025 risk flagged the next royalty rate proceeding affecting the 15.5% sound-recording rate through 2027; no update this quarter, so the outcome remains open.
A new Q2 risk factor cites increased memory costs for satellite radio modules raising equipment pressure and potential future subscriber acquisition costs.
What to watch
Q3 2026 self-pay subscribers and ARPU after the Q2 decline to see if rate increases keep masking subscriber losses.
Q3 2026 monthly active users after the 7% Q2 drop to see if the fall past 40.1M continues.
Next quarter's as SOFR-based interest and satellite flow through the rest of 2026.
Outcome of the sound-recording royalty rate proceeding affecting the 15.5% of gross rate through 2027.
and Off-platform advertising grew 5% to $413M, fueled by podcast revenue and higher programmatic demand, despite a 7% drop in monthly active users.
Total cost of services was nearly flat at $1,028M, with lower share and royalties offset by higher content costs.
General and administrative expenses fell 18% to $136M, largely due to a $28M litigation settlement reserve recorded in Q2 2025.
rose 3% to $691M, and surged 48% to $593M, supported by higher earnings and favorable timing.
The company repurchased $28M of stock, paid $182M in dividends, and had $1,900M available under its as of June 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risk in the normal course of business due to our ongoing investing and financial activities and the conduct of operations. Market risk refers to the risk of loss arising from adverse changes in stock prices and interest rates. The risk of loss can be ass…
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We are exposed to market risk in the normal course of business due to our ongoing investing and financial activities and the conduct of operations. Market risk refers to the risk of loss arising from adverse changes in stock prices and interest rates. The risk of loss can be assessed from the perspective of adverse changes in fair values, cash flows and future earnings. We have established policies, procedures and internal processes governing our management of market risks and the use of financial instruments to manage our exposure to such risks.
We are exposed to changes in interest rates primarily as a result of our borrowing and investment activities, which include investments in fixed and floating rate debt instruments and borrowings used to maintain liquidity and to fund business operations. The nature and amount of our long- and short-term debt are expected to vary as a result of future requirements, market conditions and other factors. We manage our exposure to interest rates by maintaining what we believe is an appropriate mix of fixed and variable rate debt. We believe this best protects us from interest rate risk. We have achieved this mix by (i) issuing fixed rate debt that we believe has a low stated interest rate and significant term to maturity and (ii) issuing variable rate debt with appropriate maturities and interest rates. As of June 30, 2026, we had $100 million principal amount of variable rate debt with a weighted average interest rate of 5.2% and $9,325 million principal amount of fixed rate debt with a weighted average interest rate of 4.6%.
For a discussion of our “Legal Proceedings,” refer to Note 14 to our unaudited consolidated financial statements in this Quarterly Report on Form 10-Q. 56 Table of Contents
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For a discussion of our “Legal Proceedings,” refer to Note 14 to our unaudited consolidated financial statements in this Quarterly Report on Form 10-Q.
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Table of Contents
The following risk factor supplements the Risk Factors previously disclosed in response to Part I, “Item 1A. Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2025 which was filed with the Securities and Exchange Commission on February 5, 2026. Inc…
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The following risk factor supplements the Risk Factors previously disclosed in response to Part I, “Item 1A. Risk
Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2025 which was filed with the Securities and
Exchange Commission on February 5, 2026.
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.
We have experienced, and may continue to experience, increased costs for memory used in our satellite radio modules that are essential components of our satellite radios. These costs have adversely affected, and may continue to adversely affect, our equipment revenue. The memory and other components are subject to price fluctuations driven by factors largely outside our control, including global supply and demand imbalances, capacity constraints at manufacturing facilities, increased AI-driven demand, tariffs or trade restrictions imposed on manufacturing and other inputs, and geopolitical disruptions affecting the concentrated regions where these components are produced. If memory or other component costs remain elevated or we are unable to mitigate the cost increases, our equipment revenue could be further reduced, and in the longer term, our subscriber acquisition costs could increase, adversely affecting our business.