01—Abstract
Summary
Summary of the 10-Q filed July 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Charter Communications, Inc. reported a slight revenue decline for the three and six months ended June 30, 2026, compared to the prior year, primarily driven by a decrease in Internet and Video revenues.
This was partially offset by significant growth in Mobile service revenues, which increased by 18.9%a and 17.0% for the respective periods. Net income attributable to Charter shareholders saw a modest decrease, reflecting these top-line pressures and increased transition expenses related to the anticipated integration of Cox Communications. Despite the revenue headwinds, the company's strategic focus on bundling connectivity and entertainment services, along with investments in network evolution for multi-gigabit speeds, remains a key strategic imperative.
The company is also actively managing its capital structure, with substantial debt outstanding, and is focused on maintaining its leverage ratios. Investors should monitor the progress and integration of the upcoming Cox Transactions, as well as the company's ability to navigate competitive pressures in the Internet market while capitalizing on the growth of its mobile offerings.
02—Key points
Key Highlights
- Total revenues decreased by 1.7% for Q2 2026 and 1.4% for the first six months of 2026 compared to the prior year, largely due to declines in Internet and Video segments.
- Mobile service revenues showed strong growth, increasing by 18.9% for Q2 2026 and 17.0% for the first six months of 2026, driven by a significant increase in residential mobile lines.
- Net income attributable to Charter shareholders decreased by $9 million for Q2 2026 and $63 million for the first six months of 2026, reflecting lower revenues and increased transition expenses for the Cox Transactions.
- The company experienced a net loss of 172,000 Internet customers in the second quarter of 2026, indicating ongoing competitive challenges in this segment.
- Capital expenditures were $2.87 billion for Q2 2026 and $5.73 billion for the first six months of 2026, with significant investments in network evolution and subsidized rural construction.
- Adjusted EBITDA decreased by 4.3% for Q2 2026 and 3.2% for the first six months of 2026, impacted by lower revenues and higher transition expenses.
- The company is preparing for the closing of the Cox Transactions, which involves assuming approximately $12.4 billion in net debt and finance leases.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 24, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $13.53B$13.77B | −1.7% |
| Operating Expenses | $10.46B$10.49B | −0.2% |
| Operating Income | $3.06B$3.28B | −6.6% |
| Net Income | $1.29B$1.30B | −0.7% |
| EPS (Basic) | $10.76$9.41 | +14.3% |
| EPS (Diluted) | $10.66$9.18 | +16.1% |
| Shares Outstanding (Basic) | 120.12M138.21M | −13.1% |
| Shares Outstanding (Diluted) | 121.26M141.68M | −14.4% |
05—Questions
Frequently Asked Questions
What is the impact of the Cox Transactions on Charter's financials?
The Cox Transactions, expected to close soon, will involve Charter paying $3.5 billion in cash for certain Cox commercial businesses and Charter Holdings issuing preferred units and common units to Cox Enterprises in exchange for its residential cable business. The combined entity will also assume approximately $12.4 billion in net debt and finance leases from Cox Communications. This acquisition is a significant strategic move that will expand Charter's operations but also increase its debt load and integration complexity. Transition expenses related to preparing for this integration were noted as a contributing factor to the decrease in Adjusted EBITDA.
Why are Internet revenues declining?
Internet revenues have declined primarily due to a decrease in average residential Internet customers, which fell by 510,000 from June 30, 2025, to June 30, 2026. This decline reflects ongoing competitive pressures in the broadband market, despite the company's strategy to offer multi-gigabit speeds and bundled services.
What is the company's current debt situation and leverage ratio?
Charter has a significant debt burden, with a principal amount of $93.8 billion as of June 30, 2026. This includes senior unsecured notes, senior secured notes, and credit facilities. The company's leverage ratio of net debt to last twelve months Adjusted EBITDA was 4.18 times as of June 30, 2026, and Charter plans to manage this ratio, aiming for a target of 3.5 times Adjusted EBITDA after the anticipated closing of the Liberty Broadband Combination.
How is the company addressing the decline in video customers?
While video revenues decreased due to a higher seamless entertainment allocation and fewer customers, the company is focusing on improving its product offerings. This includes adding seamless entertainment applications to certain Spectrum TV packages at no additional cost and offering these applications on an à la carte basis through the Spectrum App Store. The deployment of Xumo stream boxes is also a part of this strategy to enhance the video experience.
06—Continue