Sirius XM Holdings Inc. Reports Significant Financial Challenges Following Merger with Liberty Media Corporation

Sirius XM Holdings Inc. reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024, following a split-off and merger with Liberty Media Corporation on September 9, 2024. The company experienced a substantial decline in both revenue and profitability compared to the same periods in 2023.

For the three months ended September 30, 2024, total revenue was $2,171 million, a decrease of 4% from $2,271 million in 2023. Subscriber revenue also fell by 5% to $1,645 million, down from $1,729 million. The nine-month figures reflected a similar trend, with total revenue of $6,511 million, down 2% from $6,665 million in the prior year. Subscriber revenue for the nine months was $4,983 million, a decrease of 4% from $5,146 million.

The company's operating expenses surged dramatically, with total operating expenses for the three months ending September 30, 2024, reaching $5,072 million, a staggering increase of 191% from $1,743 million in the same period of 2023. This spike was primarily attributed to impairment, restructuring, and other costs totaling $3,388 million for the quarter, compared to just $6 million in the previous year. As a result, Sirius XM reported a net loss of $(2,958) million for the three months ended September 30, 2024, compared to a net income of $291 million in 2023. For the nine months, the net loss was $(2,362) million, a stark contrast to the net income of $760 million reported in the same period of 2023.

The company’s cash position also deteriorated, with cash and cash equivalents decreasing to $127 million as of September 30, 2024, down from $306 million at the end of 2023. Total assets fell to $27,483 million from $30,056 million, while total equity decreased to $10,859 million from $13,102 million.

Sirius XM's subscriber base also declined, with approximately 33.2 million subscribers as of September 30, 2024, down from 33.9 million a year earlier. The company reported a net loss of subscribers for both the three and nine months ended September 30, 2024.

Strategically, the company has focused on investments in clean energy technologies, committing $20 million in the third quarter of 2024, a significant increase from $3 million in the same period of 2023. Additionally, Sirius XM has been involved in various legal proceedings, including class actions related to pricing and subscription practices, which may impact its financial condition.

Overall, Sirius XM Holdings Inc. is navigating a challenging financial landscape marked by increased operational costs, declining revenues, and a significant net loss, all while undergoing a major corporate restructuring.