10-QPeriod: Q3 FY2025

CHARTER COMMUNICATIONS, INC. /MO/ Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 31, 2025For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) reported its third-quarter 2025 financial results, showing a slight decrease in total revenues for the quarter but remaining flat year-to-date. The company continues to navigate a competitive landscape, with improvements in mobile line additions and a moderation of video subscriber losses. However, internet subscriber losses have remained stable, and advertising sales have experienced a notable decline. Significant strategic initiatives are underway, including the pending acquisition of Cox Communications' commercial fiber and managed IT services businesses, alongside Cox's residential cable business. This transaction, expected to close, will involve substantial cash and equity consideration, along with the assumption of significant debt. The company also announced a planned combination with Liberty Broadband. Despite these ongoing developments and a solid free cash flow generation, Charter maintains a substantial debt load, with plans to manage its leverage ratio, particularly in light of these significant transactions.

Financial Highlights

46 data points
Beta

Revenue

$13.67B

Net Income

$1.14B

8.3% Net Margin

EPS (Diluted)

$8.34

Total Assets

$152.85B

Cash & Equivalents

$464.00M

Free Cash Flow

$1.43B

Financial Statements
Beta
Revenue$13.67B
Operating Expenses$10.54B
Operating Income$3.13B
Net Income$1.14B
EPS (Basic)$8.50
EPS (Diluted)$8.34
Shares Outstanding (Basic)133.76M
Shares Outstanding (Diluted)136.40M

Key Highlights

  • 1Total revenues slightly decreased by 0.9% for the three months ended September 30, 2025, compared to the prior year period, while remaining flat year-to-date.
  • 2Net income attributable to Charter shareholders decreased by 11.9% to $1.137 billion for the three months ended September 30, 2025, compared to $1.280 billion in the prior year.
  • 3Diluted earnings per share decreased to $8.34 from $8.82 for the three months ended September 30, 2025, compared to the prior year.
  • 4The company added 493,000 mobile lines in the third quarter of 2025, a significant increase year-over-year.
  • 5Video subscriber losses improved compared to the prior year period, while internet subscriber losses remained relatively flat.
  • 6Significant debt remains a focus, with total principal debt at $95.0 billion as of September 30, 2025. The company plans to manage its leverage ratio around 4.0-4.5 times Adjusted EBITDA.
  • 7The acquisition of Cox Communications' assets and the combination with Liberty Broadband are significant ongoing strategic initiatives impacting the company's structure and future operations.

Frequently Asked Questions

For the third quarter of 2025, Charter Communications reported total revenues of $13.672 billion, a slight decrease of 0.9% year-over-year. Net income attributable to Charter shareholders was $1.137 billion, down from $1.280 billion in the prior year's quarter. Diluted earnings per share were $8.34, compared to $8.82 in the same period last year. The company also added 493,000 mobile lines.

Charter entered into a Transaction Agreement with Cox Enterprises on May 16, 2025, to acquire certain subsidiaries of Cox Communications that conduct commercial fiber and managed IT/cloud services businesses, along with residential cable business assets. The transaction involves a cash payment of $3.5 billion, Charter Holdings paying $500 million in cash and issuing convertible preferred units and common units to Cox Enterprises, and the assumption of approximately $12.4 billion in Cox Communications' net debt and finance leases. The transaction is subject to various closing conditions, including regulatory approvals and shareholder votes.

Charter maintains a substantial debt load, with total principal debt at $95.0 billion as of September 30, 2025. The company's leverage ratio of net debt to last twelve months Adjusted EBITDA was 4.2 times. Charter plans to manage its leverage ratio, targeting a range of 4.0 to 4.5 times Adjusted EBITDA leading up to the closing of the Cox Transactions and Liberty Broadband Combination, with a plan to adjust this to 3.5 to 4.0 times post-closing. The company expects to incur additional debt in connection with the Cox Transactions.

Internet revenues showed a modest increase of 1.7% year-over-year for the quarter, driven by rate and product mix changes, despite a decrease in residential internet customers. Mobile service revenues saw a significant increase of 19.2%, fueled by a 2.0 million increase in residential mobile lines. However, video revenues declined by 9.3%, primarily due to a decrease in residential video customers and unfavorable rate/product mix changes. Advertising sales also experienced a substantial decline of 21.3%.