Quarterly report [Sections 13 or 15(d)]

Segments and Geographic Information

v3.26.3
Segments and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segments and Geographic Information Segments and Geographic Information
In accordance with FASB ASC Topic 280, Segment Reporting, we disaggregate our operations into two reportable segments: SiriusXM and Pandora and Off-platform. The financial results of these segments are utilized by the chief operating decision maker, who is our Chief Executive Officer, for evaluating segment performance and allocating resources. We report our segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. For additional information on our segments refer to Note 1.
Segment results include the revenues and cost of services which are directly attributable to each segment. There are no indirect revenues or costs incurred that are allocated to the segments. We eliminate intersegment advertising campaign revenue. We had intersegment advertising revenue of less than $1 and $1 during the three months ended September 30, 2026 and 2025, respectively, and $2 and $4 during the nine months ended September 30, 2026 and 2025, respectively.
Segment revenue and gross profit were as follows during the periods presented:
For the Three Months Ended September 30, 2026
SiriusXM
 Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,500  $ 130  $ 1,630 
Advertising revenue 37  419  456 
Other revenue 67  —  67 
Total revenue 1,604  549  2,153 
Cost of services
Revenue share and royalties (392) (334) (726)
Programming and content (a)
(121) (15) (136)
Other (a)(b)
(128) (27) (155)
Total cost of services
 (641) (376) (1,017)
Segment gross profit $ 963  $ 173  $ 1,136 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended September 30, 2026
Segment Gross Profit $ 1,136 
Subscriber acquisition costs (107)
Sales and marketing (a)
(169)
Product and technology (a)
(56)
General and administrative (a)
(111)
Depreciation and amortization (166)
Share-based payment expense (38)
Impairment, restructuring and other costs
 (10)
Total other expense (63)
Consolidated income before income taxes
 $ 416 
(a)     Share-based payment expense of $10 related to cost of services, $10 related to sales and marketing, $8 related to product and technology and $10 related to general and administrative has been excluded for the three months ended September 30, 2026.
(b)    SiriusXM other costs of services related to customer service and billing of $90, transmission costs of $37 and cost of equipment of $1. Pandora and Off-platform other costs of services related to customer service and billing of $18 and transmission costs of $9.

For the Three Months Ended September 30, 2025
SiriusXM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,497  $ 132  $ 1,629 
Advertising revenue 39  416  455 
Other revenue 75  —  75 
Total revenue 1,611  548  2,159 
Cost of services
Revenue share and royalties (384) (337) (721)
Programming and content (c)
(130) (15) (145)
Other (c)(d)
(139) (26) (165)
Total cost of service
 (653) (378) (1,031)
Segment gross profit $ 958  $ 170  $ 1,128 
    The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended September 30, 2025
Segment Gross Profit $ 1,128 
Subscriber acquisition costs (107)
Sales and marketing (c)
(176)
Product and technology (c)
(54)
General and administrative (c)
(106)
Depreciation and amortization (141)
Share-based payment expense (42)
Impairment, restructuring and other costs (9)
Total other expense (105)
Consolidated income before income taxes $ 388 
(c)     Share-based payment expense of $11 related to cost of services, $10 related to sales and marketing, $8 related to product and technology and $13 related to general and administrative has been excluded for the three months ended September 30, 2025.
(d)    SiriusXM other costs of services related to customer service and billing of $96, transmission costs of $41 and cost of equipment of $2. Pandora and Off-platform other costs of services related to customer service and billing of $19 and transmission costs of $7.

For the Nine Months Ended September 30, 2026
SiriusXM
 Pandora and Off-platform Total
Revenue
Subscriber revenue $ 4,491  $ 389  $ 4,880 
Advertising revenue 113  1,204  1,317 
Other revenue 207  —  207 
Total revenue 4,811  1,593  6,404 
Cost of services
Revenue share and royalties (1,151) (994) (2,145)
Programming and content (e)
(367) (43) (410)
Other (e)(f)
(383) (81) (464)
Total cost of services (1,901) (1,118) (3,019)
Segment gross profit $ 2,910  $ 475  $ 3,385 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Nine Months Ended September 30, 2026
Segment Gross Profit $ 3,385 
Subscriber acquisition costs (316)
Sales and marketing (e)
(521)
Product and technology (e)
(162)
General and administrative (e)
(337)
Depreciation and amortization (482)
Share-based payment expense (140)
Impairment, restructuring and other costs
 (22)
Total other expense (351)
Consolidated income before income taxes
 $ 1,054 
(e)     Share-based payment expense of $38 related to cost of services, $33 related to sales and marketing, $27 related to product and technology and $42 related to general and administrative has been excluded for the nine months ended September 30, 2026.
(f)    SiriusXM other costs of services related to customer service and billing of $265, transmission costs of $114 and cost of equipment of $4. Pandora and Off-platform other costs of services related to customer service and billing of $56 and transmission costs of $25.

For the Nine Months Ended September 30, 2025
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 4,466  $ 394  $ 4,860 
Advertising revenue 116  1,165  1,281 
Other revenue 224  —  224 
Total revenue 4,806  1,559  6,365 
Cost of services
Revenue share and royalties (1,154) (976) (2,130)
Programming and content (g)
(386) (44) (430)
Other (g)(h)
(403) (77) (480)
Total cost of services (1,943) (1,097) (3,040)
Segment gross profit $ 2,863  $ 462  $ 3,325 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Nine Months Ended September 30, 2025
Segment Gross Profit $ 3,325 
Subscriber acquisition costs (314)
Sales and marketing (g)
(525)
Product and technology (g)
(165)
General and administrative (g)
(366)
Depreciation and amortization (406)
Share-based payment expense (140)
Impairment, restructuring and other costs
 (164)
Total other expense (324)
Consolidated income before income taxes $ 921 
(g)     Share-based payment expense of $37 related to cost of services, $36 related to sales and marketing, $26 related to product and technology and $41 related to general and administrative has been excluded for the nine months ended September 30, 2025.
(h)    SiriusXM other costs of services related to customer service and billing of $279, transmission costs of $118 and cost of equipment of $6. Pandora and Off-platform other costs of services related to customer service and billing of $56 and transmission costs of $21.
A measure of segment assets is not currently provided to our Chief Executive Officer, who serves as our chief operating decision maker, and has therefore not been provided.
As of September 30, 2026, long-lived assets were predominantly located in the United States. No individual foreign country represented a material portion of our consolidated revenue during the three and nine months ended September 30, 2026 and 2025.