Quick Summary
- CHTR shares plunged up to 13% in premarket hours before stabilizing; trading down approximately 1.6%
- Second-quarter revenue declined 1.7% to $13.53 billion, continuing a four-quarter negative trend
- Earnings per share of $10.66 exceeded the $10.00 forecast, though subscriber attrition dampened optimism
- Broadband subscribers decreased by 172,000 to 29.4 million; video customers declined by 21,000 to 12.5 million
- Wireless segment showed strength ā 406,000 new lines added, growing mobile customer base 15.5% annually
Charter Communications delivered a split performance in its second-quarter earnings report released Friday, surpassing profit expectations while missing on the top line amid ongoing subscriber erosion in its traditional cable businesses.
Shares of CHTR tumbled as much as 13% during premarket activity before staging a partial recovery. When regular trading commenced, the stock stabilized with losses around 1.6%.
Charter Communications, Inc., CHTR
The company reported quarterly revenue of $13.53 billion, representing a 1.7% year-over-year decline and approximately matching Wall Street projections. This extends Charter’s revenue contraction streak to four consecutive quarters.
On the bottom line, adjusted earnings per share reached $10.66, exceeding analyst expectations of $10.00. The cable operator generated net income of $1.29 billion for the period.
However, the earnings victory was overshadowed by troubling subscriber metrics. Charter shed 172,000 internet customers throughout the quarter, reducing its broadband subscriber count to 29.4 million. Internet revenue contracted 3.2% from the prior year to $5.8 billion.
The company faces intensifying competition from fixed wireless alternatives and fiber providers, which continue eroding its traditional broadband franchise. Charter has experienced broadband customer losses across multiple consecutive reporting periods.
On the video front, subscriber losses totaled 21,000, bringing the customer base to roughly 12.5 million. This represents a notable deceleration from the 80,000 video customers lost during the second quarter of 2025.
Wireless Business Provides Rare Bright Spot
The mobile segment emerged as Charter’s clear winner. Charter attracted 406,000 new wireless lines during the quarter, expanding its Spectrum Mobile subscriber base to 12.5 million ā representing 15.5% growth compared to last year.
Mobile service revenue surged 18.9% year-over-year to $1.1 billion. The wireless business has evolved into a significant revenue stream as Charter intensifies its focus on this growth area.
CEO Chris Winfrey outlined the company’s approach: “Deliver the best products, at the best overall value, with the best service.”
Adjusted EBITDA decreased 4.3% compared to the previous year, reaching $5.4 billion. When excluding transition expenses associated with the pending Cox acquisition, the year-over-year decline would have been 3.2%.
The company generated $969 million in free cash flow, down $77 million from the comparable period last year, primarily attributable to shifts in accrued capital expenditure timing.
Cox Acquisition on Track for August Completion
During the quarter, Charter bought back 4.0 million shares of its common stock for $838 million.
Management reaffirmed its full-year 2026 capital expenditure outlook of roughly $11.4 billion, not including impacts from the Cox transaction.
The $21.9 billion acquisition of Cox Communications remains on schedule to close during mid-to-late August.
Winfrey communicated to analysts his expectation that the combination will “drive better internet customer performance and unit growth, acceleration with very underpenetrated mobile and video.”
Looking ahead, Charter indicated that capital expenditures should follow a “meaningful downward trajectory” beginning after 2026.
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