01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Charter Communications, Inc. (CHTR) reported a slight year-over-year decrease in total revenues for the first quarter of 2026, primarily driven by higher seamless entertainment allocations impacting video revenue, while connectivity revenue saw modest growth.
Despite the revenue dip, the company's operational efficiency is evident through managed cost controls, with operating costs and expenses seeing a marginal decrease. Net income attributable to Charter shareholders declined slightly, impacted by increased interest expenses and a lack of favorable one-time adjustments seen in the prior year period. The company continues to invest heavily in its network, with capital expenditures increasing year-over-year, supporting its long-term strategy of network evolution and expansion, including subsidized rural construction.
Significant strategic initiatives remain at the forefront, including the pending Cox Transactions, which are expected to significantly expand Charter's operations and leverage. The company also announced a merger agreement with Liberty Broadband.
Liquidity remains a focus, with substantial debt outstanding, but the company believes it has sufficient resources from free cash flow and credit facilities to meet its obligations and fund its strategic plans. Investors should monitor the progress of the Cox Transactions and the Liberty Broadband combination, as well as the company's ability to manage its significant debt load while executing its growth strategy.
02—Key points
Key Highlights
- Total revenues decreased by 1.0% to $13.6 billion for the three months ended March 31, 2026, compared to $13.7 billion in the prior year period.
- Net income attributable to Charter shareholders decreased to $1.16 billion ($9.17 diluted EPS) from $1.22 billion ($8.42 diluted EPS) in the prior year period.
- The company experienced a loss of 120,000 Internet customers but saw growth in mobile lines, adding 368,000.
- Capital expenditures increased to $2.9 billion from $2.4 billion, driven by network evolution and customer premise equipment.
- Charter Communications has significant debt, with long-term debt totaling $94.4 billion as of March 31, 2026.
- The company is actively pursuing strategic transactions, including the pending Cox Transactions and the Liberty Broadband merger, which are expected to significantly impact its scale and operations.
- Free cash flow decreased to $1.37 billion from $1.56 billion in the prior year period, primarily due to higher capital expenditures and a decrease in Adjusted EBITDA.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 24, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $13.60B$13.73B | −1.0% |
| Operating Expenses | $10.39B$10.50B | −1.0% |
| Operating Income | $3.21B$3.24B | −0.9% |
| Net Income | $1.16B$1.22B | −4.4% |
| EPS (Basic) | $9.27$8.59 | +7.9% |
| EPS (Diluted) | $9.17$8.42 | +8.9% |
| Shares Outstanding (Basic) | 125.49M141.59M | −11.4% |
| Shares Outstanding (Diluted) | 126.85M144.57M | −12.3% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Charter Communications in Q1 2026?
In the first quarter of 2026, Charter Communications saw a slight decline in total revenues ($13.6 billion vs. $13.7 billion in Q1 2025) primarily due to video revenue softness offset by growth in connectivity and mobile. Net income attributable to shareholders also decreased to $1.16 billion from $1.22 billion. The company incurred higher capital expenditures and experienced a decrease in free cash flow compared to the prior year.
What are the key customer trends observed in the report?
Charter experienced a net loss of 120,000 Internet customers in the quarter. However, mobile lines showed strong growth, adding 368,000, and video customer losses improved year-over-year. This suggests a continued shift in customer preferences towards mobile and away from traditional video, with internet services facing competitive pressures.
What is the status of the Cox Transactions and the Liberty Broadband merger?
Charter has entered into definitive agreements for both the Cox Transactions and the Liberty Broadband merger. The Cox Transactions involve Charter acquiring significant assets from Cox Communications for cash and equity, while the Liberty Broadband merger will result in Liberty Broadband becoming an indirect wholly-owned subsidiary of Charter. These transactions are key strategic initiatives expected to reshape the company's operational footprint and market position.
How is Charter managing its significant debt load?
Charter Communications carries substantial debt, totaling $94.4 billion as of March 31, 2026. The company's strategy involves utilizing its free cash flow, available credit facilities, and potentially refinancing transactions to manage its debt maturities and leverage. The reported leverage ratio was 4.15x net debt to last twelve months Adjusted EBITDA.
06—Continue