Key Takeaways
- CHTR shares plunged as much as 13% during premarket hours before recovering to trade down approximately 1.6%
- Second quarter revenue declined 1.7% to $13.53 billion, representing the company’s fourth consecutive quarterly revenue contraction
- Earnings per share hit $10.66, surpassing analyst expectations of $10.00, though subscriber declines stole the spotlight
- Broadband customer base shrank by 172,000 to 29.4 million; video subscribers decreased by 21,000 to 12.5 million
- Spectrum Mobile emerged as a growth driver with 406,000 new lines added and total subscriber base growing 15.5% annually
Charter Communications delivered a complicated second-quarter performance on Friday, exceeding earnings expectations while missing on revenue amid ongoing challenges in its core broadband and video businesses.
Shares of CHTR plummeted up to 13% in premarket trading before staging a partial recovery. As regular trading commenced, the stock had stabilized to roughly 1.6% below the previous close.
Charter Communications, Inc., CHTR
The cable giant reported quarterly revenue of $13.53 billion, representing a 1.7% year-over-year decrease and approximately matching Wall Street projections. This marks the fourth consecutive quarter Charter has reported declining top-line results.
On the bottom line, adjusted earnings per share reached $10.66, comfortably exceeding the analyst consensus estimate of $10.00. The company reported quarterly net income of $1.29 billion.
However, the earnings success couldn’t mask troubling subscriber trends. The company shed 172,000 internet customers throughout the quarter, reducing its total broadband subscriber count to 29.4 million. Revenue from internet services decreased 3.2% compared to the prior year, totaling $5.8 billion.
Intensifying competition from fixed wireless and fiber providers continues to weigh heavily on Charter’s traditional broadband operations. The company has experienced broadband customer losses across multiple consecutive quarters.
On the video front, Charter lost 21,000 subscribers, bringing the total to roughly 12.5 million. While still negative, this represents a notable improvement from the 80,000 video customer defections recorded during Q2 2025.
Wireless Segment Provides Bright Spot
The wireless division emerged as the quarter’s success story. Charter attracted 406,000 new mobile lines during the three-month period, expanding its Spectrum Mobile subscriber base to 12.5 million — representing 15.5% growth compared to the same quarter last year.
Mobile service revenue surged 18.9% year-over-year to reach $1.1 billion. The wireless segment has evolved into a significant revenue stream as Charter intensifies its focus on mobile services.
Chief Executive Chris Winfrey outlined a clear approach: “Deliver the best products, at the best overall value, with the best service.”
Adjusted EBITDA decreased 4.3% compared to the previous year, landing at $5.4 billion. When excluding transition expenses associated with the upcoming Cox acquisition, the decline would have been limited to 3.2%.
The company generated free cash flow of $969 million, down $77 million from the comparable period in 2025, primarily attributed to shifts in accrued capital expenditure timing.
Cox Acquisition on Track for August Completion
During the quarter, Charter executed a stock buyback program, repurchasing 4.0 million shares for a total of $838 million.
Management also confirmed its 2026 full-year capital expenditure forecast of approximately $11.4 billion, not including the impact of the Cox transaction.
The $21.9 billion acquisition of Cox Communications remains on schedule to finalize between mid-to-late August.
Winfrey informed analysts that he anticipates 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” following 2026.
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