SiriusXM misses second-quarter profit estimates as hardware costs hit equipment revenue

• The company reported a surprise gain of 22,000 self-pay subscribers, compared with analysts' expectations for a decline of about 132,000, according to Visible Alpha data.
• SiriusXM's equipment revenue declined 22% from a year ago as higher memory chip costs tied to its hardware modules weighed on the business.
• Memory chip prices have climbed as chipmakers prioritize AI-related demand.
• Monthly active users at its Pandora and Off-platform businesses fell 7% to 39.8 million from a year earlier.
• Diluted earnings per share for the quarter ended June 30 came in at 70 cents, up from 57 cents a year earlier, but missed analysts' average estimate of 78 cents, according to LSEG-compiled data.
• Second-quarter revenue rose to $2.16 billion, slightly above analysts' estimate of $2.14 billion.
• The audio firm competes with streaming services such as Spotify, Apple Music, Amazon Music and YouTube, as well as traditional AM/FM radio.
• iHeartMedia and SiriusXM held merger talks in April, but the discussions later stalled, the New York Times reported in May.

Audio entertainment company SiriusXM missed second-quarter profit estimates on Thursday, weighed down by a steep decline in equipment revenue due to higher memory chip costs.

Shares of the New York-based company, which provides subscription satellite radio, music streaming, podcast and advertising services, fell about 10% in premarket trading.