Charter Announces Third Quarter 2026 Results and Launches New Operating Model
The savings target adds to more than $1 billion in anticipated Cox synergies as pro forma revenue and Internet customers decline.
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Rhea-AI Summary
Charter Communications (CHTR) reported third-quarter results and launched an operating overhaul targeting $2 billion in annualized operating expense savings.
The company targets savings over the next 18 months, in addition to more than $1 billion in anticipated Cox transaction synergies. The Cox transactions closed August 19, 2026. Pro forma revenue, treating Cox as included for the full quarter, fell 1.5% to $16.5 billion; actual revenue rose 9.1% to $14.9 billion. Actual net loss attributable to shareholders was $2.4 billion, primarily driven by a $6.3 billion franchise impairment charge.
Pro forma adjusted EBITDA fell 4.0% to $6.6 billion. Internet customers declined by 233,000, while mobile lines increased by 508,000. Actual free cash flow fell $947 million to $674 million. Charter reduced debt through approximately $1.5 billion in deleveraging from a secured-note exchange and repayment of $1.0 billion of legacy Cox notes.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.$2 billion in annualized operating expense savings targeted over the next 18 months through operating redesign.
- Major pointCox transactions completed August 19, 2026, adding more than 11 million passings and over 5 million customer relationships.
- Moderate point. Forward-looking: it has not happened yet and may not happen.More than $1 billion in anticipated Cox transaction synergies remains additional to the new savings target.
- Moderate point508,000 mobile lines added pro forma in Q3, versus 514,000 a year earlier; total lines rose 15.4% year-over-year.
- Moderate pointPro forma mobile service revenue increased 17.3% year-over-year to $1,158 million in Q3.
- Moderate pointActual Q3 revenue rose 9.1% year-over-year to $14.9 billion, primarily driven by the Cox transactions.
- Moderate pointActual Q3 adjusted EBITDA rose 6.9% year-over-year to $5.9 billion, primarily driven by the Cox transactions.
- Moderate pointPro forma Q3 capital expenditures declined to $3.2 billion from $3.6 billion a year earlier.
- Moderate pointApproximately $1.5 billion in deleveraging resulted from the secured-note exchange during the quarter. 10% of market cap
- Moderate point$1.0 billion of legacy Cox notes repaid at maturity during the quarter. 6.9% of market cap
4 minor points
- Minor pointLegacy Charter rural expansion activated 116,000 subsidized passings and added 48,000 customer relationships in Q3.
- Minor pointLegacy Charter small-business revenue increased 0.1% year-over-year to $1,090 million in Q3.
- Minor pointLegacy Charter mid-market and large-business revenue increased 2.1% year-over-year to $762 million in Q3.
- Minor pointMonthly small-business revenue per customer rose 1.1% year-over-year to $163.74.
Negative
- Major pointActual Q3 net loss attributable to shareholders totaled $2.4 billion, primarily driven by a $6.3 billion franchise impairment charge. 44% of market cap
- Moderate pointPro forma Q3 revenue declined 1.5% year-over-year to $16.5 billion.
- Moderate pointPro forma Q3 adjusted EBITDA fell 4.0% year-over-year to $6.6 billion; excluding transition expenses, it declined 3.0%.
- Moderate pointActual Q3 operating cash flow fell to $4.0 billion from $4.5 billion a year earlier.
- Moderate pointActual Q3 free cash flow declined $947 million year-over-year to $674 million.
- Moderate point233,000 Internet customers lost pro forma in Q3, versus 171,000 a year earlier; total customers fell 2.5% year-over-year.
- Moderate pointPro forma Internet revenue declined 3.7% year-over-year to $7,097 million in Q3.
- Moderate point77,000 video customers lost pro forma in Q3, versus 121,000 a year earlier; total customers fell 1.8% year-over-year.
- Moderate pointPro forma video revenue declined 9.8% year-over-year to $3,609 million in Q3.
- Moderate point238,000 customer relationships lost pro forma in Q3, versus 154,000 a year earlier.
6 minor points
- Minor pointVoice customers declined 11.6% year-over-year to 6,143,000.
- Minor pointPro forma voice revenue declined 6.8% year-over-year to $366 million in Q3.
- Minor pointCustomer relationship penetration fell 2.6 percentage points year-over-year to 51.9% of estimated passings.
- Minor point195,000 connectivity customers lost pro forma in Q3, versus 106,000 a year earlier.
- Minor pointPro forma monthly residential revenue per customer declined 1.6% year-over-year to $117.85.
- Minor pointLegacy Cox business revenue declined 1.1% year-over-year to $839 million pro forma in Q3.
News Explained
Charter launched Spectrum’s products, pricing and packaging across the legacy Cox footprint on
Details
Market move: CHTR -7.79% vs previous close. 3Q26 earnings report
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Key Figures
- Annualized expense savings plan
- $2 billion
- Targeted run-rate operating expense savings over the next 18 months
- Cox Transactions synergies
- More than $1 billion
- Anticipated synergies, in addition to the expense savings plan
- Pro forma revenue
- $16.5 billion; down 1.5% year-over-year
- Third quarter 2026
- Net loss attributable to Charter shareholders
- Pro forma $2.1 billion; actual $2.4 billion
- Third quarter 2026
- Franchise impairment charge
- $6.3 billion
- Primarily drove the reported pro forma and actual net losses
- Adjusted EBITDA
- $6.6 billion; down 4.0% year-over-year
- Pro forma, third quarter 2026
- Free cash flow
- $674 million; down $947 million versus the prior year
- Actual, third quarter 2026
Key Terms
pro forma financial
impairment charge financial
adjusted ebitda financial
free cash flow financial
secured notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
New operating model designed to return Charter to growth and transform organization for speed and efficiency.
Will strengthen core Internet offerings and leverage differentiated mobile and video products to drive customer growth and maximize revenue per passing.
Announces new
"With the combination of Charter and Cox, we have the scale and network capabilities to connect more Americans than ever before," said Chris Winfrey, President and CEO of Charter. "We are America's Internet Company® and our purpose is Connecting Gigabit America. Today, we are announcing decisive steps to unlock our full potential."
Winfrey continued, "We are fundamentally rethinking how we operate and compete, with a renewed focus on delivering the best products and services. We will return Charter to Internet customer growth and transform Charter into a simpler, faster, more agile organization – and reignite our culture to win. We have the assets and competitive advantages to succeed and are moving with urgency to deliver more value for our customers and stronger results for our investors."
New Operating Model Centered on Growth and Efficiency
Charter is reformulating its go-to-market approach for its core Internet offering, marketing and distribution, and will further leverage its differentiated mobile and video products to drive growth and provide greater value for customers. This new operating model is focused on accelerating new customer connects as well as improving retention and customer satisfaction with improved execution of its service delivery. By delivering added value and improving its service reputation, Charter will deepen customer relationships and maximize revenue per passing over the long term.
In parallel, Charter is undertaking a fundamental redesign of how it operates, reducing complexity, accelerating decision-making and focusing resources on the activities that contribute most directly to growth and stronger performance. As part of this transformation, the Company is targeting
The savings program will focus on eliminating nonessential activities, simplifying organizational structures and driving greater efficiencies through vendor partnerships. Together, these initiatives are expected to strengthen Charter's competitive position, drive improved financial performance and support significantly higher free cash flow generation over time.
Cox Transactions Completed, Adding Significant Opportunity for Charter's Growth
On August 19, 2026, Charter completed its transactions between the Company and Cox Communications, Inc. ("Cox Communications") (the "Cox Transactions"). The Cox Transactions added more than 11 million passings and over 5 million customer relationships, making Charter the nation's leading Internet and video provider. The acquisition expands Charter's presence in attractive, high-growth markets, including
- In this release, actual results reflect the operations of Charter for the three and nine months ended September 30, 2026 and Cox Communications for the period from August 20, 2026 through September 30, 2026.
- Pro forma results present the Cox Transactions as if they had closed on January 1, 2024 and include the operations of Charter and Cox Communications for the full three and nine months ended September 30, 2026.
On September 16, 2026, Charter launched Spectrum's products, pricing and packaging across the legacy Cox footprint, bringing its Internet, mobile and video offerings to more than 11 million homes and businesses. Since launch, Charter has seen strong demand from consumers and an improvement in customer trends across the legacy Cox footprint.
Third Quarter 2026 Results and Highlights
- On a pro forma basis, third quarter Spectrum MobileTM lines1 increased by 508,000 and by 1.8 million over the last twelve months. Legacy Charter added 440,000 mobile lines during the quarter. As of September 30, 2026, Charter served 13.5 million mobile lines.
- Spectrum Internet® customers declined by 233,000 on a pro forma basis during the third quarter, including a decline of 156,000 Internet customers at legacy Charter and 77,000 at legacy Cox. As of September 30, 2026, Charter served 34.3 million Internet customers.
- On a pro forma basis, video customers decreased by 77,000 in the third quarter compared to a decline of 121,000 in the prior-year period, and declined by 256,000, or
1.8% , over the last twelve months. During the third quarter, legacy Charter lost 38,000 video customers. As of September 30, 2026, Charter served 13.8 million video customers. - As of September 30, 2026, Spectrum customer relationships totaled 36.7 million and connectivity customers totaled 35.4 million.
- Pro forma third quarter revenue of
$16.5 billion 1.5% year-over-year, primarily driven by lower residential revenue. On an actual basis, third quarter revenue of$14.9 billion 9.1% year-over-year, primarily driven by the Cox Transactions. - Pro forma third quarter net loss attributable to Charter shareholders totaled
$2.1 billion $2.4 billion $6.3 billion - Pro forma third quarter Adjusted EBITDA2 of
$6.6 billion 4.0% year-over-year and3.0% excluding transition expenses. On an actual basis, third quarter Adjusted EBITDA of$5.9 billion 6.9% year-over-year, primarily driven by the Cox Transactions. - On a pro forma basis, third quarter capital expenditures declined to
$3.2 billion $3.6 billion $3.0 billion - Third quarter actual net cash flows from operating activities of
$4.0 billion $4.5 billion - Third quarter actual free cash flow2 of
$674 million $947 million - During the quarter, Charter exchanged
$5.5 billion $4.0 billion $1.5 billion $1.0 billion
|
1. |
Unless otherwise specified, customer data represents residential and small business customers for legacy Charter and residential customers only for legacy Cox. |
|
2. |
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the "Use of Adjusted EBITDA and Free Cash Flow Information" section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release. |
Key Operating Results
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Approximate as of |
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||
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|
|
Actual |
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Pro Forma |
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|
|
|
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September 30, 2026 (e) |
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September 30, 2025 (e) |
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Y/Y Change |
|
Footprint |
|
|
|
|
|
|
|
Estimated Passings (f) |
|
70,706 |
|
69,156 |
|
2.2 % |
|
Customer Relationships (g) |
|
|
|
|
|
|
|
Residential |
|
34,476 |
|
35,419 |
|
(2.7) % |
|
Small Business (h) |
|
2,215 |
|
2,239 |
|
(1.1) % |
|
Total Customer Relationships |
|
36,691 |
|
37,658 |
|
(2.6) % |
|
Residential |
|
(230) |
|
(152) |
|
(78) |
|
Small Business (h) |
|
(8) |
|
(2) |
|
(6) |
|
Pro forma total Customer Relationships Quarterly Net Additions |
|
(238) |
|
(154) |
|
(84) |
|
Total Customer Relationship Penetration of Estimated Passings (i) |
|
51.9 % |
|
54.5 % |
|
(2.6) ppts |
|
Pro forma Monthly Residential Revenue per Residential Customer (j) |
|
$ 117.85 |
|
$ 119.71 |
|
(1.6) % |
|
Monthly Small Business Revenue per Small Business Customer (h)(k) |
|
$ 163.74 |
|
$ 161.97 |
|
1.1 % |
|
Residential Customer Relationships Penetration (l) |
|
|
|
|
|
|
|
One Product Penetration |
|
50.8 % |
|
52.0 % |
|
(1.2) ppts |
|
Two Product Penetration |
|
33.1 % |
|
31.9 % |
|
1.2 ppts |
|
Three or More Product Penetration |
|
16.2 % |
|
16.0 % |
|
0.2 ppts |
|
Connectivity (m) |
|
|
|
|
|
|
|
Residential |
|
33,294 |
|
34,084 |
|
(2.3) % |
|
Small Business (h) |
|
2,064 |
|
2,077 |
|
(0.6) % |
|
Total Connectivity Customers |
|
35,358 |
|
36,161 |
|
(2.2) % |
|
Residential |
|
(190) |
|
(107) |
|
(83) |
|
Small Business (h) |
|
(5) |
|
1 |
|
(6) |
|
Pro forma total Connectivity Quarterly Net Additions |
|
(195) |
|
(106) |
|
(89) |
|
Internet |
|
|
|
|
|
|
|
Residential |
|
32,289 |
|
33,173 |
|
(2.7) % |
|
Small Business (h) |
|
2,025 |
|
2,039 |
|
(0.7) % |
|
Total Internet Customers |
|
34,314 |
|
35,212 |
|
(2.5) % |
|
Residential |
|
(228) |
|
(170) |
|
(58) |
|
Small Business (h) |
|
(5) |
|
(1) |
|
(4) |
|
Pro forma total Internet Quarterly Net Additions |
|
(233) |
|
(171) |
|
(62) |
|
Mobile Lines (n) |
|
|
|
|
|
|
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Residential |
|
12,992 |
|
11,282 |
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15.2 % |
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Small Business (h) |
|
460 |
|
374 |
|
22.8 % |
|
Total Mobile Lines |
|
13,452 |
|
11,656 |
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15.4 % |
|
Residential |
|
489 |
|
494 |
|
(5) |
|
Small Business (h) |
|
19 |
|
20 |
|
(1) |
|
Pro forma total Mobile Lines Quarterly Net Additions |
|
508 |
|
514 |
|
(6) |
|
Video (o) |
|
|
|
|
|
|
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Residential |
|
13,298 |
|
13,519 |
|
(1.6) % |
|
Small Business (h) |
|
503 |
|
538 |
|
(6.5) % |
|
Total Video Customers |
|
13,801 |
|
14,057 |
|
(1.8) % |
|
Residential |
|
(66) |
|
(115) |
|
49 |
|
Small Business (h) |
|
(11) |
|
(6) |
|
(5) |
|
Pro forma total Video Quarterly Net Additions |
|
(77) |
|
(121) |
|
44 |
|
Voice |
|
|
|
|
|
|
|
Residential |
|
4,952 |
|
5,730 |
|
(13.6) % |
|
Small Business (h) |
|
1,191 |
|
1,219 |
|
(2.3) % |
|
Total Voice Customers |
|
6,143 |
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6,949 |
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(11.6) % |
|
In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 11 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding. |
Third Quarter Performance Highlights
On September 16, 2026, Charter launched Spectrum Day across the legacy Cox footprint, introducing Spectrum's products, pricing and packaging to more than 11 million homes and businesses. Customers in legacy Cox markets now have access to Internet with no data caps, a year of free Spectrum Mobile for eligible customers, a
On a pro forma basis, third quarter Internet customers decreased by 233,000, compared to a decline of 171,000 during the third quarter of 2025. Legacy Charter lost 156,000 Internet customers versus a loss of 109,000 during the third quarter of 2025. Spectrum increasingly offers symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in several markets. In February 2026, Spectrum launched its Invincible WiFiTM product, a tri-band advanced WiFi 7 router that integrates 5G cellular and battery backup to keep customers seamlessly and fully connected during a power outage or network disruption. In the first quarter of 2026, Spectrum launched its
During the third quarter of 2026, Charter added 508,000 mobile lines on a pro forma basis, compared to an increase of 514,000 during the third quarter of 2025. Legacy Charter added 440,000 mobile lines versus an increase of 482,000 during the third quarter of 2025. Spectrum Mobile has faster wireless speeds than the competition (AT&T, T-Mobile, Verizon).1
Video customers decreased by 77,000 in the third quarter of 2026 on a pro forma basis, compared to a decline of 121,000 in the third quarter of 2025. Legacy Charter lost 38,000 video customers versus a loss of 70,000 during the third quarter of 2025, with the improvement driven by benefits from the inclusion of programmers' streaming applications in Spectrum's expanded basic video packages and simplified pricing and packaging.
Spectrum Stream TV video customers now receive up to approximately
Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the third quarter of 2026, legacy Charter activated 116,000 subsidized rural passings. Within legacy Charter's subsidized rural footprint, total customer relationships increased by 48,000 in the third quarter of 2026.
|
1. |
Based on Download Speeds among top 5 national providers in Opensignal |
Third Quarter Financial Results
(in millions)
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Three Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Pro Forma |
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Pro Forma |
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% Change |
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Actual |
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Actual |
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% Change |
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Revenues: |
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Internet |
$ 7,097 |
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$ 7,366 |
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(3.7) % |
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$ 6,395 |
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$ 5,971 |
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7.1 % |
|
Mobile service |
1,158 |
|
987 |
|
17.3 % |
|
1,134 |
|
954 |
|
18.9 % |
|
Connectivity |
8,255 |
|
8,353 |
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(1.2) % |
|
7,529 |
|
6,925 |
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8.7 % |
|
Video |
3,609 |
|
4,003 |
|
(9.8) % |
|
3,292 |
|
3,389 |
|
(2.9) % |
|
Voice |
366 |
|
393 |
|
(6.8) % |
|
340 |
|
332 |
|
2.6 % |
|
Residential revenue |
12,230 |
|
12,749 |
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(4.1) % |
|
11,161 |
|
10,646 |
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4.8 % |
|
Legacy Charter small business |
1,090 |
|
1,088 |
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0.1 % |
|
1,090 |
|
1,088 |
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0.1 % |
|
Legacy Charter mid-market & large business |
762 |
|
747 |
|
2.1 % |
|
762 |
|
747 |
|
2.1 % |
|
Legacy Cox Communications business |
839 |
|
848 |
|
(1.1) % |
|
397 |
|
— |
|
n/a |
|
Commercial revenue |
2,691 |
|
2,683 |
|
0.3 % |
|
2,249 |
|
1,835 |
|
22.6 % |
|
Advertising sales |
487 |
|
403 |
|
21.0 % |
|
460 |
|
356 |
|
29.2 % |
|
Other |
1,097 |
|
929 |
|
18.1 % |
|
1,052 |
|
835 |
|
26.0 % |
|
Total Revenues |
|
|
|
|
(1.5) % |
|
|
|
|
|
9.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Charter shareholders |
$ (2,079) |
|
$ 952 |
|
(318.4) % |
|
$ (2,397) |
|
$ 1,137 |
|
(310.8) % |
|
Net income (loss) attributable to Charter shareholders margin |
(12.6) % |
|
5.7 % |
|
|
|
(16.1) % |
|
8.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA1 |
$ 6,587 |
|
$ 6,862 |
|
(4.0) % |
|
$ 5,943 |
|
$ 5,561 |
|
6.9 % |
|
Adjusted EBITDA margin |
39.9 % |
|
40.9 % |
|
|
|
39.8 % |
|
40.7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ 3,235 |
|
$ 3,642 |
|
(11.2) % |
|
$ 3,027 |
|
$ 3,051 |
|
(0.8) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
|
|
|
|
$ 4,027 |
|
$ 4,480 |
|
(10.1) % |
|
Free cash flow1 |
|
|
|
|
|
|
$ 674 |
|
$ 1,621 |
|
(58.4) % |
|
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
|
|
|
1. |
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the "Use of Adjusted EBITDA and Free Cash Flow Information" section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release. |
Revenues
On a pro forma basis, third quarter revenue decreased by
Pro forma residential revenue totaled
Third quarter pro forma 2026 monthly residential revenue per residential customer totaled
On a pro forma basis, Internet revenue declined
Pro forma third quarter mobile service revenue totaled
Pro forma video revenue totaled
On a pro forma basis, voice revenue decreased by
On a pro forma basis, commercial revenue increased by
Pro forma third quarter advertising sales revenue of
On a pro forma basis, other revenue totaled
Operating Costs and Expenses
On a pro forma basis, third quarter total operating costs and expenses increased
On a pro forma basis, third quarter programming costs decreased by
Other costs of revenue increased by
On a pro forma basis, field and technology operations expenses increased by
Customer operations expenses decreased by
Marketing and residential sales expenses decreased by
Transition expenses, which represent incremental costs incurred for the integration of the Cox Transactions, totaled
On a pro forma basis, other expenses decreased by
Net Income (Loss) Attributable to Charter Shareholders
Pro forma net loss attributable to Charter shareholders totaled
Actual net loss per basic common share attributable to Charter shareholders totaled
Adjusted EBITDA
Third quarter pro forma Adjusted EBITDA of
Capital Expenditures
Pro forma capital expenditures totaled
Charter expects pro forma full year 2026 capital expenditures, excluding transition capital expenditures, to total approximately
Cash Flow and Free Cash Flow
During the third quarter of 2026, actual net cash flows from operating activities totaled
Actual free cash flow in the third quarter of 2026 totaled
Liquidity & Financing
As of September 30, 2026, total principal amount of debt was
During the three months ended September 30, 2026, Charter Communications Operating, LLC ("Charter Operating") and Charter Communications Operating Capital Corp. jointly issued
During the three months ended September 30, 2026, Charter Operating, Charter Communications Operating Capital Corp. and Time Warner Cable, LLC exchanged approximately
Share Repurchases
During the third quarter, Charter purchased 139,807 shares of Charter Class A common stock for
Webcast
Charter will host a webcast on Friday, November 6, 2026 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.
The webcast can be accessed live via the Company's investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.
Additional Information Available on Website
The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2026, which will be posted on the "Results & SEC Filings" section of the Company's investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the "SEC"). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the "Results & SEC Filings" section.
Use of Adjusted EBITDA and Free Cash Flow Information
The Company uses certain measures that are not defined by
Adjusted EBITDA is defined as net income (loss) attributable to Charter shareholders plus net income (loss) attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, impairment of franchises, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as restructuring costs, special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company's businesses as well as other non-cash or special items, and is unaffected by the Company's capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.
Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
Management and Charter's board of directors use Adjusted EBITDA and free cash flow to assess Charter's performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company's credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company's debt covenants refer to these expenses as management fees, which were
About Charter
Charter Communications, Inc. (NASDAQ: CHTR, CHTRP), through its Spectrum brand, is the leading internet and video provider in the nation and the fastest growing mobile company in our footprint, with services available to more than 70 million homes and businesses across 45 states. Supported by our
More information about Charter can be found at corporate.charter.com.
|
*At close of the Cox acquisition, Spectrum announced that over the next 18 months, it will fully return legacy Cox's customer service function to the |
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as "believe," "future," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:
- our ability to sustain and grow revenues and cash flow from operations by offering Internet, mobile, video, voice, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;
- the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite ("DBS") operators, wireless and satellite broadband and telephone providers, digital subscriber line ("DSL") providers, fiber to the home providers and providers of video content over broadband Internet connections;
- general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;
- our ability to develop and deploy new products and technologies including consumer services and service platforms;
- any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;
- the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;
- our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;
- our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);
- the ability to hire and retain key personnel;
- the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets;
- our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions;
- our ability to achieve the cost synergies and growth opportunities contemplated by the Cox Transactions;
- our ability to promptly, efficiently and effectively integrate acquired operations;
- changes in our or legacy Cox Communications operations' businesses, future cash requirements, capital requirements, results of operations, revenues, financial condition and/or cash flows;
- disruption in our business relationships as a result of the Cox Transactions; and
- the increase in indebtedness as a result of the Cox Transactions and the Liberty Broadband Transaction, which will increase interest expense and may decrease our operating flexibility.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES (dollars in millions)
|
|||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
Last Twelve Months |
||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
Actual |
|
Actual |
|
Actual |
|
Actual |
|
Actual |
|
Actual |
|
Net income (loss) attributable to Charter shareholders |
$ (2,397) |
|
$ 1,137 |
|
$ 58 |
|
$ 3,655 |
|
$ 1,390 |
|
$ 5,121 |
|
Plus: Net income (loss) attributable to noncontrolling interest |
(302) |
|
179 |
|
130 |
|
565 |
|
344 |
|
775 |
|
Interest expense, net |
1,341 |
|
1,268 |
|
3,873 |
|
3,772 |
|
5,143 |
|
5,046 |
|
Income tax (benefit) expense |
(803) |
|
418 |
|
137 |
|
1,277 |
|
552 |
|
1,647 |
|
Depreciation and amortization |
2,621 |
|
2,160 |
|
7,029 |
|
6,517 |
|
9,223 |
|
8,685 |
|
Impairment of franchises |
6,326 |
|
— |
|
6,326 |
|
— |
|
6,326 |
|
— |
|
(Gain) loss on extinguishment of debt |
(1,391) |
|
28 |
|
(1,630) |
|
28 |
|
(1,630) |
|
36 |
|
Stock compensation expense |
177 |
|
151 |
|
518 |
|
530 |
|
661 |
|
668 |
|
Other, net |
371 |
|
220 |
|
588 |
|
673 |
|
711 |
|
799 |
|
Adjusted EBITDA (a) |
$ 5,943 |
|
$ 5,561 |
|
$ 17,029 |
|
$ 17,017 |
|
$ 22,720 |
|
$ 22,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
$ 4,027 |
|
$ 4,480 |
|
$ 12,256 |
|
$ 12,316 |
|
$ 16,017 |
|
$ 15,776 |
|
Less: Purchases of property, plant and equipment |
(3,027) |
|
(3,051) |
|
(8,753) |
|
(8,324) |
|
(12,088) |
|
(11,386) |
|
Change in accrued expenses related to capital expenditures |
(326) |
|
192 |
|
(488) |
|
239 |
|
(141) |
|
825 |
|
Free cash flow (a) |
$ 674 |
|
$ 1,621 |
|
$ 3,015 |
|
$ 4,231 |
|
$ 3,788 |
|
$ 5,215 |
|
|
|||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|
Last Twelve Months |
||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Net income (loss) attributable to Charter shareholders |
$ (2,079) |
|
$ 952 |
|
$ (5) |
|
$ 3,039 |
|
$ (1,948) |
|
$ 4,127 |
|
Plus: Net income (loss) attributable to noncontrolling interest |
(634) |
|
625 |
|
726 |
|
1,950 |
|
(218) |
|
2,585 |
|
Interest expense, net |
1,462 |
|
1,523 |
|
4,507 |
|
4,544 |
|
6,032 |
|
6,078 |
|
Income tax (benefit) expense |
(697) |
|
356 |
|
117 |
|
1,071 |
|
(560) |
|
1,315 |
|
Depreciation and amortization |
3,044 |
|
2,993 |
|
9,008 |
|
9,016 |
|
12,035 |
|
12,073 |
|
Impairment of franchises |
6,326 |
|
— |
|
6,326 |
|
— |
|
11,930 |
|
— |
|
(Gain) loss on extinguishment of debt |
(1,391) |
|
28 |
|
(1,630) |
|
28 |
|
(1,630) |
|
36 |
|
Stock compensation expense |
177 |
|
151 |
|
518 |
|
530 |
|
661 |
|
668 |
|
Other, net |
379 |
|
234 |
|
743 |
|
805 |
|
997 |
|
1,124 |
|
Adjusted EBITDA (a) |
$ 6,587 |
|
$ 6,862 |
|
$ 20,310 |
|
$ 20,983 |
|
$ 27,299 |
|
$ 28,006 |
|
Plus: Transition expenses (c) |
76 |
|
4 |
|
165 |
|
4 |
|
180 |
|
4 |
|
Adjusted EBITDA (a) excluding transition expenses (c) |
$ 6,663 |
|
$ 6,866 |
|
$ 20,475 |
|
$ 20,987 |
|
$ 27,479 |
|
$ 28,010 |
|
The above schedules are presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.
|
|
See footnotes on page 11. |
|
UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA (dollars in millions)
|
|||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2026 |
|
2025 |
|
|
|
2026 |
|
2025 |
|
|
|
|
Actual |
|
Actual |
|
% Change |
|
Actual |
|
Actual |
|
% Change |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Internet |
$ 6,395 |
|
$ 5,971 |
|
7.1 % |
|
$ 18,023 |
|
$ 17,870 |
|
0.9 % |
|
Mobile service |
1,134 |
|
954 |
|
18.9 % |
|
3,281 |
|
2,789 |
|
17.6 % |
|
Connectivity |
7,529 |
|
6,925 |
|
8.7 % |
|
21,304 |
|
20,659 |
|
3.1 % |
|
Video |
3,292 |
|
3,389 |
|
(2.9) % |
|
9,693 |
|
10,457 |
|
(7.3) % |
|
Voice |
340 |
|
332 |
|
2.6 % |
|
1,009 |
|
1,034 |
|
(2.4) % |
|
Residential revenue |
11,161 |
|
10,646 |
|
4.8 % |
|
32,006 |
|
32,150 |
|
(0.4) % |
|
Legacy Charter small business |
1,090 |
|
1,088 |
|
0.1 % |
|
3,284 |
|
3,272 |
|
0.3 % |
|
Legacy Charter mid-market & large business |
762 |
|
747 |
|
2.1 % |
|
2,272 |
|
2,221 |
|
2.3 % |
|
Legacy Cox Communications business |
397 |
|
— |
|
n/a |
|
397 |
|
— |
|
n/a |
|
Commercial revenue |
2,249 |
|
1,835 |
|
22.6 % |
|
5,953 |
|
5,493 |
|
8.4 % |
|
Advertising sales |
460 |
|
356 |
|
29.2 % |
|
1,234 |
|
1,067 |
|
15.7 % |
|
Other |
1,052 |
|
835 |
|
26.0 % |
|
2,852 |
|
2,463 |
|
15.8 % |
|
Total Revenues |
14,922 |
|
13,672 |
|
9.1 % |
|
42,045 |
|
41,173 |
|
2.1 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Programming |
2,129 |
|
2,184 |
|
(2.5) % |
|
6,252 |
|
6,739 |
|
(7.2) % |
|
Other costs of revenue |
2,108 |
|
1,677 |
|
25.7 % |
|
5,710 |
|
4,912 |
|
16.2 % |
|
Field and technology operations |
1,520 |
|
1,329 |
|
14.4 % |
|
4,091 |
|
3,903 |
|
4.9 % |
|
Customer operations |
824 |
|
798 |
|
3.3 % |
|
2,375 |
|
2,347 |
|
1.2 % |
|
Marketing and residential sales |
1,034 |
|
976 |
|
5.9 % |
|
2,880 |
|
2,883 |
|
(0.1) % |
|
Transition expenses (c) |
76 |
|
4 |
|
n/a |
|
165 |
|
4 |
|
n/a |
|
Other expense (d) |
1,288 |
|
1,143 |
|
12.7 % |
|
3,543 |
|
3,368 |
|
5.1 % |
|
Total operating costs and expenses (d) |
8,979 |
|
8,111 |
|
10.7 % |
|
25,016 |
|
24,156 |
|
3.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a) |
$ 5,943 |
|
$ 5,561 |
|
6.9 % |
|
$ 17,029 |
|
$ 17,017 |
|
0.1 % |
|
All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 11. |
|
UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA (dollars in millions)
|
|||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2026 |
|
2025 |
|
|
|
2026 |
|
2025 |
|
|
|
|
Pro Forma (b) |
|
Pro Forma (b) |
|
% Change |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
% Change |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Internet |
$ 7,097 |
|
$ 7,366 |
|
(3.7) % |
|
$ 21,449 |
|
$ 22,168 |
|
(3.3) % |
|
Mobile service |
1,158 |
|
987 |
|
17.3 % |
|
3,384 |
|
2,877 |
|
17.6 % |
|
Connectivity |
8,255 |
|
8,353 |
|
(1.2) % |
|
24,833 |
|
25,045 |
|
(0.9) % |
|
Video |
3,609 |
|
4,003 |
|
(9.8) % |
|
11,210 |
|
12,352 |
|
(9.2) % |
|
Voice |
366 |
|
393 |
|
(6.8) % |
|
1,141 |
|
1,226 |
|
(6.9) % |
|
Residential revenue |
12,230 |
|
12,749 |
|
(4.1) % |
|
37,184 |
|
38,623 |
|
(3.7) % |
|
Legacy Charter small business |
1,090 |
|
1,088 |
|
0.1 % |
|
3,284 |
|
3,272 |
|
0.3 % |
|
Legacy Charter mid-market & large business |
762 |
|
747 |
|
2.1 % |
|
2,272 |
|
2,221 |
|
2.3 % |
|
Legacy Cox Communications business |
839 |
|
848 |
|
(1.1) % |
|
2,537 |
|
2,526 |
|
0.4 % |
|
Commercial revenue |
2,691 |
|
2,683 |
|
0.3 % |
|
8,093 |
|
8,019 |
|
0.9 % |
|
Advertising sales |
487 |
|
403 |
|
21.0 % |
|
1,376 |
|
1,218 |
|
13.0 % |
|
Other |
1,097 |
|
929 |
|
18.1 % |
|
3,067 |
|
2,755 |
|
11.3 % |
|
Total Revenues |
16,505 |
|
16,764 |
|
(1.5) % |
|
49,720 |
|
50,615 |
|
(1.8) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Programming |
2,346 |
|
2,617 |
|
(10.3) % |
|
7,318 |
|
8,119 |
|
(9.9) % |
|
Other costs of revenue |
2,268 |
|
1,973 |
|
15.0 % |
|
6,459 |
|
5,806 |
|
11.3 % |
|
Field and technology operations |
1,680 |
|
1,618 |
|
3.8 % |
|
4,816 |
|
4,787 |
|
0.6 % |
|
Customer operations |
882 |
|
900 |
|
(1.9) % |
|
2,628 |
|
2,653 |
|
(1.0) % |
|
Marketing and residential sales |
1,128 |
|
1,149 |
|
(1.8) % |
|
3,301 |
|
3,402 |
|
(2.9) % |
|
Transition expenses (c) |
76 |
|
4 |
|
n/a |
|
165 |
|
4 |
|
n/a |
|
Other expense (d) |
1,538 |
|
1,641 |
|
(6.3) % |
|
4,723 |
|
4,861 |
|
(2.9) % |
|
Total operating costs and expenses (d) |
9,918 |
|
9,902 |
|
0.2 % |
|
29,410 |
|
29,632 |
|
(0.7) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (a) |
$ 6,587 |
|
$ 6,862 |
|
(4.0) % |
|
$ 20,310 |
|
$ 20,983 |
|
(3.2) % |
|
All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 11. |
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in millions, except per share data)
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
Actual |
|
Actual |
|
Actual |
|
Actual |
|
REVENUES |
$ 14,922 |
|
$ 13,672 |
|
$ 42,045 |
|
$ 41,173 |
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
Operating costs and expenses (exclusive of items shown separately below) |
9,156 |
|
8,262 |
|
25,534 |
|
24,686 |
|
Depreciation and amortization |
2,621 |
|
2,160 |
|
7,029 |
|
6,517 |
|
Impairment of franchises |
6,326 |
|
— |
|
6,326 |
|
— |
|
Other operating expenses, net |
345 |
|
119 |
|
411 |
|
323 |
|
|
18,448 |
|
10,541 |
|
39,300 |
|
31,526 |
|
Income (loss) from operations |
(3,526) |
|
3,131 |
|
2,745 |
|
9,647 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
Interest expense, net |
(1,341) |
|
(1,268) |
|
(3,873) |
|
(3,772) |
|
Other income (expenses), net |
1,365 |
|
(129) |
|
1,453 |
|
(378) |
|
|
24 |
|
(1,397) |
|
(2,420) |
|
(4,150) |
|
Income (loss) before income taxes |
(3,502) |
|
1,734 |
|
325 |
|
5,497 |
|
Income tax benefit (expense) |
803 |
|
(418) |
|
(137) |
|
(1,277) |
|
Consolidated net income (loss) |
(2,699) |
|
1,316 |
|
188 |
|
4,220 |
|
Less: Net (income) loss attributable to noncontrolling interests |
302 |
|
(179) |
|
(130) |
|
(565) |
|
Net income (loss) attributable to Charter shareholders |
$ (2,397) |
|
$ 1,137 |
|
$ 58 |
|
$ 3,655 |
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CHARTER |
|
|
|
|
|
|
|
|
Basic |
$ (20.50) |
|
$ 8.50 |
|
$ 0.48 |
|
$ 26.52 |
|
Diluted |
$ (20.50) |
|
$ 8.34 |
|
$ 0.38 |
|
$ 25.95 |
|
Weighted average common shares outstanding, basic |
116,944,459 |
|
133,763,886 |
|
120,820,024 |
|
137,825,025 |
|
Weighted average common shares outstanding, diluted |
116,944,459 |
|
136,395,133 |
|
137,548,849 |
|
140,826,301 |
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in millions, except per share data)
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
REVENUES |
$ 16,505 |
|
$ 16,764 |
|
$ 49,720 |
|
$ 50,615 |
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
Operating costs and expenses (exclusive of items shown separately below) |
10,095 |
|
10,053 |
|
29,928 |
|
30,162 |
|
Depreciation and amortization |
3,044 |
|
2,993 |
|
9,008 |
|
9,016 |
|
Impairment of franchises |
6,326 |
|
— |
|
6,326 |
|
— |
|
Other operating expenses, net |
353 |
|
131 |
|
563 |
|
396 |
|
|
19,818 |
|
13,177 |
|
45,825 |
|
39,574 |
|
Income (loss) from operations |
(3,313) |
|
3,587 |
|
3,895 |
|
11,041 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
Interest expense, net |
(1,462) |
|
(1,523) |
|
(4,507) |
|
(4,544) |
|
Other income (expenses), net |
1,365 |
|
(131) |
|
1,450 |
|
(437) |
|
|
(97) |
|
(1,654) |
|
(3,057) |
|
(4,981) |
|
Income (loss) before income taxes |
(3,410) |
|
1,933 |
|
838 |
|
6,060 |
|
Income tax benefit (expense) |
697 |
|
(356) |
|
(117) |
|
(1,071) |
|
Consolidated net income (loss) |
(2,713) |
|
1,577 |
|
721 |
|
4,989 |
|
Less: Net (income) loss attributable to noncontrolling interests |
634 |
|
(625) |
|
(726) |
|
(1,950) |
|
Net income (loss) attributable to Charter shareholders |
$ (2,079) |
|
$ 952 |
|
$ (5) |
|
$ 3,039 |
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CHARTER |
|
|
|
|
|
|
|
|
Basic |
$ (17.78) |
|
$ 7.12 |
|
$ (0.04) |
|
$ 22.05 |
|
Diluted |
$ (17.78) |
|
$ 6.98 |
|
$ (0.04) |
|
$ 21.58 |
|
Weighted average common shares outstanding, basic |
116,944,459 |
|
133,763,886 |
|
120,820,024 |
|
137,825,025 |
|
Weighted average common shares outstanding, diluted |
116,944,459 |
|
136,395,133 |
|
120,820,024 |
|
140,826,301 |
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in millions)
|
|||
|
|
September 30, |
|
December 31 |
|
|
2026 |
|
2025 |
|
ASSETS |
(unaudited) |
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ 573 |
|
$ 477 |
|
Accounts receivable, net |
4,396 |
|
3,680 |
|
Prepaid expenses and other current assets |
1,249 |
|
987 |
|
Total current assets |
6,218 |
|
5,144 |
|
|
|
|
|
|
INVESTMENT IN CABLE PROPERTIES: |
|
|
|
|
Property, plant and equipment, net |
62,786 |
|
46,444 |
|
Customer relationships, net |
6,091 |
|
440 |
|
Franchises |
67,915 |
|
67,471 |
|
Goodwill |
29,748 |
|
29,710 |
|
Total investment in cable properties, net |
166,540 |
|
144,065 |
|
|
|
|
|
|
OTHER NONCURRENT ASSETS |
5,707 |
|
5,004 |
|
|
|
|
|
|
Total assets |
$ 178,465 |
|
$ 154,213 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Accounts payable, accrued and other current liabilities |
$ 14,644 |
|
$ 12,556 |
|
Current portion of long-term debt |
1,990 |
|
750 |
|
Total current liabilities |
16,634 |
|
13,306 |
|
|
|
|
|
|
LONG-TERM DEBT |
105,062 |
|
94,006 |
|
EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY |
1,696 |
|
1,447 |
|
DEFERRED INCOME TAXES |
18,819 |
|
19,841 |
|
OTHER LONG-TERM LIABILITIES |
6,434 |
|
5,094 |
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
Controlling interest |
10,983 |
|
16,054 |
|
Noncontrolling interests |
18,837 |
|
4,465 |
|
Total shareholders' equity |
29,820 |
|
20,519 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ 178,465 |
|
$ 154,213 |
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in millions)
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Consolidated net income (loss) |
$ (2,699) |
|
$ 1,316 |
|
$ 188 |
|
$ 4,220 |
|
Adjustments to reconcile consolidated net income (loss) to net cash flows from operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
2,621 |
|
2,160 |
|
7,029 |
|
6,517 |
|
Impairment of franchises |
6,326 |
|
— |
|
6,326 |
|
— |
|
(Gain) loss on extinguishment of debt |
(1,391) |
|
28 |
|
(1,630) |
|
28 |
|
Stock compensation expense |
177 |
|
151 |
|
518 |
|
530 |
|
Noncash interest, net |
24 |
|
7 |
|
36 |
|
22 |
|
Deferred income taxes |
(1,020) |
|
852 |
|
(603) |
|
772 |
|
Other, net |
33 |
|
120 |
|
186 |
|
470 |
|
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: |
|
|
|
|
|
|
|
|
Accounts receivable |
(80) |
|
(48) |
|
(216) |
|
(334) |
|
Prepaid expenses and other assets |
(288) |
|
(186) |
|
(284) |
|
(355) |
|
Accounts payable, accrued liabilities and other |
324 |
|
80 |
|
706 |
|
446 |
|
Net cash flows from operating activities |
4,027 |
|
4,480 |
|
12,256 |
|
12,316 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
(3,027) |
|
(3,051) |
|
(8,753) |
|
(8,324) |
|
Change in accrued expenses related to capital expenditures |
(326) |
|
192 |
|
(488) |
|
239 |
|
Purchase of businesses and asset acquisitions |
(4,158) |
|
— |
|
(4,158) |
|
— |
|
Other, net |
(27) |
|
(298) |
|
(312) |
|
(497) |
|
Net cash flows from investing activities |
(7,538) |
|
(3,157) |
|
(13,711) |
|
(8,582) |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Borrowings of long-term debt |
13,400 |
|
6,903 |
|
25,010 |
|
12,019 |
|
Borrowings of equipment installment plan financing facility |
99 |
|
59 |
|
247 |
|
292 |
|
Repayments of long-term debt |
(9,041) |
|
(6,128) |
|
(21,149) |
|
(10,921) |
|
Payments for debt issuance costs |
(53) |
|
(16) |
|
(83) |
|
(17) |
|
Purchase of treasury stock (including the Liberty Broadband Transaction) |
(21) |
|
(2,113) |
|
(1,899) |
|
(4,366) |
|
Proceeds from exercise of stock options |
— |
|
1 |
|
13 |
|
20 |
|
Purchase of noncontrolling interest |
— |
|
(121) |
|
— |
|
(373) |
|
Distributions to noncontrolling interest |
(25) |
|
— |
|
(47) |
|
(124) |
|
Other, net |
(831) |
|
(36) |
|
(619) |
|
(249) |
|
Net cash flows from financing activities |
3,528 |
|
(1,451) |
|
1,473 |
|
(3,719) |
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
17 |
|
(128) |
|
18 |
|
15 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period |
599 |
|
649 |
|
598 |
|
506 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period |
$ 616 |
|
$ 521 |
|
$ 616 |
|
$ 521 |
|
|
|
|
|
|
|
|
|
|
CASH PAID FOR INTEREST |
$ 1,294 |
|
$ 1,171 |
|
$ 3,800 |
|
$ 3,610 |
|
As of September 30, 2026, June 30, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and December 31, 2024, cash, cash equivalents and restricted cash includes |
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED SUMMARY OF OPERATING STATISTICS (in thousands, except per customer and penetration data)
|
||||||||
|
|
|
Approximate as of |
||||||
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
September 30, |
|
|
|
Actual |
||||||
|
Footprint |
|
|
|
|
|
|
|
|
|
Estimated Passings (f) |
|
70,706 |
|
58,981 |
|
58,399 |
|
57,940 |
|
Customer Relationships (g) |
|
|
|
|
|
|
|
|
|
Residential |
|
34,476 |
|
29,276 |
|
29,609 |
|
29,734 |
|
Small Business (h) |
|
2,215 |
|
2,223 |
|
2,237 |
|
2,239 |
|
Total Customer Relationships |
|
36,691 |
|
31,499 |
|
31,846 |
|
31,973 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
5,200 |
|
(176) |
|
(125) |
|
(85) |
|
Small Business (h) |
|
(8) |
|
(8) |
|
(2) |
|
(2) |
|
Total Customer Relationships Quarterly Net Additions |
|
5,192 |
|
(184) |
|
(127) |
|
(87) |
|
|
|
|
|
|
|
|
|
|
|
Total Customer Relationship Penetration of Estimated Passings (i) |
|
51.9 % |
|
53.4 % |
|
54.5 % |
|
55.2 % |
|
|
|
|
|
|
|
|
|
|
|
Monthly Residential Revenue per Residential Customer (j) |
|
$ 117.12 |
|
$ 117.52 |
|
$ 117.19 |
|
$ 119.16 |
|
Monthly Small Business Revenue per Small Business Customer (h)(k) |
|
$ 163.74 |
|
$ 165.27 |
|
$ 159.85 |
|
$ 161.97 |
|
Residential Customer Relationships Penetration (l) |
|
|
|
|
|
|
|
|
|
One Product Penetration |
|
50.8 % |
|
47.4 % |
|
48.0 % |
|
48.5 % |
|
Two Product Penetration |
|
33.1 % |
|
35.1 % |
|
34.5 % |
|
34.1 % |
|
Three or More Product Penetration |
|
16.2 % |
|
17.6 % |
|
17.5 % |
|
17.4 % |
|
Connectivity (m) |
|
|
|
|
|
|
|
|
|
Residential |
|
33,294 |
|
28,306 |
|
28,563 |
|
28,658 |
|
Small Business (h) |
|
2,064 |
|
2,069 |
|
2,077 |
|
2,077 |
|
Total Connectivity Customers |
|
35,358 |
|
30,375 |
|
30,640 |
|
30,735 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
4,988 |
|
(140) |
|
(95) |
|
(47) |
|
Small Business (h) |
|
(5) |
|
(5) |
|
— |
|
1 |
|
Total Connectivity Quarterly Net Additions |
|
4,983 |
|
(145) |
|
(95) |
|
(46) |
|
Internet |
|
|
|
|
|
|
|
|
|
Residential |
|
32,289 |
|
27,358 |
|
27,641 |
|
27,760 |
|
Small Business (h) |
|
2,025 |
|
2,030 |
|
2,039 |
|
2,039 |
|
Total Internet Customers |
|
34,314 |
|
29,388 |
|
29,680 |
|
29,799 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
4,931 |
|
(166) |
|
(119) |
|
(108) |
|
Small Business (h) |
|
(5) |
|
(6) |
|
— |
|
(1) |
|
Total Internet Quarterly Net Additions |
|
4,926 |
|
(172) |
|
(119) |
|
(109) |
|
Mobile Lines (n) |
|
|
|
|
|
|
|
|
|
Residential |
|
12,992 |
|
12,099 |
|
11,370 |
|
10,964 |
|
Small Business (h) |
|
460 |
|
441 |
|
396 |
|
374 |
|
Total Mobile Lines |
|
13,452 |
|
12,540 |
|
11,766 |
|
11,338 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
893 |
|
385 |
|
406 |
|
462 |
|
Small Business (h) |
|
19 |
|
21 |
|
22 |
|
20 |
|
Total Mobile Lines Quarterly Net Additions |
|
912 |
|
406 |
|
428 |
|
482 |
|
Video (o) |
|
|
|
|
|
|
|
|
|
Residential |
|
13,298 |
|
12,010 |
|
12,072 |
|
12,023 |
|
Small Business (h) |
|
503 |
|
514 |
|
533 |
|
538 |
|
Total Video Customers |
|
13,801 |
|
12,524 |
|
12,605 |
|
12,561 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
1,288 |
|
(11) |
|
49 |
|
(64) |
|
Small Business (h) |
|
(11) |
|
(10) |
|
(5) |
|
(6) |
|
Total Video Quarterly Net Additions |
|
1,277 |
|
(21) |
|
44 |
|
(70) |
|
Voice |
|
|
|
|
|
|
|
|
|
Residential |
|
4,952 |
|
4,494 |
|
4,832 |
|
4,967 |
|
Small Business (h) |
|
1,191 |
|
1,200 |
|
1,214 |
|
1,219 |
|
Total Voice Customers |
|
6,143 |
|
5,694 |
|
6,046 |
|
6,186 |
|
See footnotes on page 11. |
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED SUMMARY OF OPERATING STATISTICS (in thousands, except per customer and penetration data)
|
||||||||
|
|
|
Approximate as of |
||||||
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
September 30, |
|
|
|
Pro Forma (b) |
||||||
|
Footprint |
|
|
|
|
|
|
|
|
|
Estimated Passings (f) |
|
70,706 |
|
70,313 |
|
69,662 |
|
69,156 |
|
Customer Relationships (g) |
|
|
|
|
|
|
|
|
|
Residential |
|
34,476 |
|
34,706 |
|
35,225 |
|
35,419 |
|
Small Business (h) |
|
2,215 |
|
2,223 |
|
2,237 |
|
2,239 |
|
Total Customer Relationships |
|
36,691 |
|
36,929 |
|
37,462 |
|
37,658 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
(230) |
|
(282) |
|
(194) |
|
(152) |
|
Small Business (h) |
|
(8) |
|
(8) |
|
(2) |
|
(2) |
|
Total Customer Relationships Quarterly Net Additions |
|
(238) |
|
(290) |
|
(196) |
|
(154) |
|
|
|
|
|
|
|
|
|
|
|
Total Customer Relationship Penetration of Estimated Passings (i) |
|
51.9 % |
|
52.5 % |
|
53.8 % |
|
54.5 % |
|
|
|
|
|
|
|
|
|
|
|
Monthly Residential Revenue per Residential Customer (j) |
|
$ 117.85 |
|
$ 118.40 |
|
$ 118.06 |
|
$ 119.71 |
|
Residential Customer Relationships Penetration (l) |
|
|
|
|
|
|
|
|
|
One Product Penetration |
|
50.8 % |
|
51.1 % |
|
51.6 % |
|
52.0 % |
|
Two Product Penetration |
|
33.1 % |
|
32.8 % |
|
32.3 % |
|
31.9 % |
|
Three or More Product Penetration |
|
16.2 % |
|
16.1 % |
|
16.1 % |
|
16.0 % |
|
Connectivity (m) |
|
|
|
|
|
|
|
|
|
Residential |
|
33,294 |
|
33,484 |
|
33,924 |
|
34,084 |
|
Small Business (h) |
|
2,064 |
|
2,069 |
|
2,077 |
|
2,077 |
|
Total Connectivity Customers |
|
35,358 |
|
35,553 |
|
36,001 |
|
36,161 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
(190) |
|
(241) |
|
(160) |
|
(107) |
|
Small Business (h) |
|
(5) |
|
(5) |
|
— |
|
1 |
|
Total Connectivity Quarterly Net Additions |
|
(195) |
|
(246) |
|
(160) |
|
(106) |
|
Internet |
|
|
|
|
|
|
|
|
|
Residential |
|
32,289 |
|
32,517 |
|
32,987 |
|
33,173 |
|
Small Business (h) |
|
2,025 |
|
2,030 |
|
2,039 |
|
2,039 |
|
Total Internet Customers |
|
34,314 |
|
34,547 |
|
35,026 |
|
35,212 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
(228) |
|
(269) |
|
(186) |
|
(170) |
|
Small Business (h) |
|
(5) |
|
(6) |
|
— |
|
(1) |
|
Total Internet Quarterly Net Additions |
|
(233) |
|
(275) |
|
(186) |
|
(171) |
|
Mobile Lines (n) |
|
|
|
|
|
|
|
|
|
Residential |
|
12,992 |
|
12,503 |
|
11,718 |
|
11,282 |
|
Small Business (h) |
|
460 |
|
441 |
|
396 |
|
374 |
|
Total Mobile Lines |
|
13,452 |
|
12,944 |
|
12,114 |
|
11,656 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
489 |
|
418 |
|
436 |
|
494 |
|
Small Business (h) |
|
19 |
|
21 |
|
22 |
|
20 |
|
Total Mobile Lines Quarterly Net Additions |
|
508 |
|
439 |
|
458 |
|
514 |
|
Video (o) |
|
|
|
|
|
|
|
|
|
Residential |
|
13,298 |
|
13,364 |
|
13,528 |
|
13,519 |
|
Small Business (h) |
|
503 |
|
514 |
|
533 |
|
538 |
|
Total Video Customers |
|
13,801 |
|
13,878 |
|
14,061 |
|
14,057 |
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
(66) |
|
(61) |
|
9 |
|
(115) |
|
Small Business (h) |
|
(11) |
|
(10) |
|
(5) |
|
(6) |
|
Total Video Quarterly Net Additions |
|
(77) |
|
(71) |
|
4 |
|
(121) |
|
Voice |
|
|
|
|
|
|
|
|
|
Residential |
|
4,952 |
|
5,157 |
|
5,562 |
|
5,730 |
|
Small Business (h) |
|
1,191 |
|
1,200 |
|
1,214 |
|
1,219 |
|
Total Voice Customers |
|
6,143 |
|
6,357 |
|
6,776 |
|
6,949 |
|
See footnotes on page 11. |
|
|
|||||||
|
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CAPITAL EXPENDITURES (dollars in millions)
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
Actual |
|
Actual |
|
Actual |
|
Actual |
|
|
|
|
|
|
|
|
|
|
Customer premise equipment (p) |
$ 670 |
|
$ 656 |
|
$ 1,992 |
|
$ 1,722 |
|
Scalable infrastructure (q) |
341 |
|
425 |
|
987 |
|
1,089 |
|
Upgrade/rebuild (r) |
741 |
|
484 |
|
2,073 |
|
1,336 |
|
Support capital (s) |
549 |
|
449 |
|
1,433 |
|
1,234 |
|
Capital expenditures, excluding line extensions |
2,301 |
|
2,014 |
|
6,485 |
|
5,381 |
|
|
|
|
|
|
|
|
|
|
Subsidized rural construction line extensions |
292 |
|
580 |
|
1,108 |
|
1,590 |
|
Other line extensions |
434 |
|
457 |
|
1,160 |
|
1,353 |
|
Total line extensions (t) |
726 |
|
1,037 |
|
2,268 |
|
2,943 |
|
Total capital expenditures |
$ 3,027 |
|
$ 3,051 |
|
$ 8,753 |
|
$ 8,324 |
|
|
|
|
|
|
|
|
|
|
Capital expenditures included in total related to: |
|
|
|
|
|
|
|
|
Commercial services |
$ 376 |
|
$ 336 |
|
$ 955 |
|
$ 933 |
|
Subsidized rural construction initiative (u) |
$ 292 |
|
$ 582 |
|
$ 1,110 |
|
$ 1,595 |
|
Mobile |
$ 73 |
|
$ 77 |
|
$ 202 |
|
$ 189 |
|
Transition (c) |
$ 33 |
|
$ — |
|
$ 70 |
|
$ — |
|
|
|||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
Pro Forma (b) |
|
|
|
|
|
|
|
|
|
|
Customer premise equipment (p) |
$ 705 |
|
$ 759 |
|
$ 2,171 |
|
$ 1,988 |
|
Scalable infrastructure (q) |
385 |
|
560 |
|
1,188 |
|
1,464 |
|
Upgrade/rebuild (r) |
757 |
|
520 |
|
2,148 |
|
1,438 |
|
Support capital (s) |
581 |
|
549 |
|
1,597 |
|
1,558 |
|
Capital expenditures, excluding line extensions |
2,428 |
|
2,388 |
|
7,104 |
|
6,448 |
|
|
|
|
|
|
|
|
|
|
Subsidized rural construction line extensions |
292 |
|
580 |
|
1,108 |
|
1,590 |
|
Other line extensions |
515 |
|
674 |
|
1,712 |
|
2,014 |
|
Total line extensions (t) |
807 |
|
1,254 |
|
2,820 |
|
3,604 |
|
Total capital expenditures |
$ 3,235 |
|
$ 3,642 |
|
$ 9,924 |
|
$ 10,052 |
|
|
|
|
|
|
|
|
|
|
Capital expenditures included in total related to: |
|
|
|
|
|
|
|
|
Commercial services |
$ 464 |
|
$ 479 |
|
$ 1,370 |
|
$ 1,362 |
|
Mobile |
$ 76 |
|
$ 77 |
|
$ 209 |
|
$ 189 |
|
See footnotes on page 11. |
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
FOOTNOTES
|
(a) |
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net (income) loss attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, impairment of franchises, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as restructuring costs, special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures. |
|
(b) |
Pro forma results reflect the acquisition of Cox Communications as if it occurred as of the earliest period presented. |
|
(c) |
Transition represents incremental costs incurred to prepare for the integration of Cox Communications' operations and to bring systems and processes into a uniform operating structure. |
|
(d) |
Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net. |
|
(e) |
We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at September 30, 2026, June 30, 2026, December 31, 2025 and September 30, 2025, customers included approximately 101,800, 84,000, 82,300 and 87,100 customers, respectively, whose accounts were over 60 days past due, approximately 11,700, 10,100, 9,700 and 10,500 customers, respectively, whose accounts were over 90 days past due and approximately 17,700, 13,400, 13,600 and 13,200 customers, respectively, whose accounts were over 120 days past due. Past due accounts for periods prior to September 30, 2026 are for legacy Charter only. |
|
(f) |
Legacy Charter passings represent an estimate of the number of units passed by legacy Charter's cable distribution network in areas where the indicated service is offered, such as single-family homes, apartment and condominium units, as well as small business and mid-market & large business sites. Legacy Cox Communications passings are residential only and represent an estimate of the number of units passed by legacy Cox Communications' cable distribution network in areas where the indicated service is offered, including single-family homes and apartment and condominium units. These estimates are based on the information currently available and are updated for all periods presented as new information becomes available. |
|
(g) |
Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, mobile, video and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude legacy Charter mid-market & large business customer relationships and legacy Cox Communications business customers. |
|
(h) |
Small business and mid-market & large customer statistics reflect data for legacy Charter customers only. |
|
(i) |
Penetration represents customer relationships as a percentage of the applicable estimated passings. |
|
(j) |
Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter. |
|
(k) |
Monthly small business revenue per small business customer is calculated as total small business quarterly revenue divided by three divided by average small business customer relationships during the respective quarter. |
|
(l) |
One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships. |
|
(m) |
Connectivity customers represent all customers receiving our Internet and/or mobile connectivity services. |
|
(n) |
Mobile lines include phones and tablets which require one of our standard rate plans (e.g., "Unlimited" or "By the Gig"). Mobile lines exclude wearables and other devices that do not require standard phone rate plans. |
|
(o) |
Video customers only include customers that purchase traditional or streaming linear video packages and exclude customers that only purchase streaming applications. |
|
(p) |
Customer premise equipment includes equipment and devices located at the customer's premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs. |
|
(q) |
Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment). |
|
(r) |
Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative. |
|
(s) |
Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment). |
|
(t) |
Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering). |
|
(u) |
The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation. |
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SOURCE Charter Communications, Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is Charter's new expense savings target?
Charter targets $2 billion in annualized run-rate operating expense savings over the next 18 months, in addition to more than $1 billion in anticipated Cox transaction synergies. The program focuses on eliminating nonessential activities, simplifying organizational structures and improving efficiency through vendor partnerships.
Why did Charter report a net loss in the third quarter of 2026?
Charter's $2.4 billion actual net loss attributable to shareholders was primarily driven by a $6.3 billion franchise impairment charge. On a pro forma basis, the net loss attributable to shareholders was $2.1 billion, also primarily driven by that charge.
How do Charter's actual and pro forma Q3 2026 results account for Cox?
Actual results include Cox operations from August 20 through September 30, 2026, while pro forma results include Cox for the full quarter. The pro forma presentation treats the Cox transactions as if they had closed on January 1, 2024.
What caused Charter's Q3 2026 operating cash flow decline?
The decline reflected cash-tax payment timing and one-time cash costs related to the Cox transactions. Actual operating cash flow was $4.0 billion versus $4.5 billion a year earlier. Lower operating cash flow and an unfavorable change in accrued capital-expenditure expenses primarily drove the free cash flow decline.
What customer service changes does Charter plan for former Cox markets?
Charter plans to fully return legacy Cox's customer service function to the United States over the next 18 months. Spectrum products, pricing and packaging launched across the legacy Cox footprint on September 16, 2026.