The additional 35% off applies to both subscriptions and one-time purchases. This also stacks with the current $4 coupon if you haven't used it already.
I was able to create multiple subscriptions for size 4's with the additional discount, but I was unable to create a second subscription for size 5's and got a message saying it was out of stock or I exceeded the purchase limit. So YMMV with multiple subscriptions.
Here is the breakdown of my order for Size 4 (144 Count):
Item(s) Subtotal: $45.18
Shipping & Handling: $0.00
Subscribe & Save: -$9.04
Prime Savings: -$15.81
Your Coupon Savings: -$4.00
Total before tax: $16.33
Estimated tax to be collected: $1.47
Grand Total: $17.80
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cris