Charter Communications (CHTR) Q3 2025 earnings summary

Executive summary

• Revenue declined 0.9% year-over-year to $13.7 billion in Q3 2025, mainly due to lower residential video and advertising sales, partially offset by growth in connectivity and mobile service revenues.

• Net income attributable to shareholders was $1.1 billion, down 11.2% year-over-year, with EPS at $8.50 versus $8.99 last year.

• Mobile lines grew by 493,000 in Q3, up 22% year-over-year to 11.4 million, while internet customers declined by 109,000 and video customer losses improved to 70,000.

• Free cash flow was $1.6 billion, flat year-over-year, as higher operating cash flow was offset by increased capital expenditures.

• Capital expenditures rose 19% year-over-year to $3.1 billion, driven by network evolution, rural expansion, and customer premise equipment.

Financial highlights

• Adjusted EBITDA was $5.6 billion, down 1.5% year-over-year, with a margin of 40.7%.

• Net income margin was 8.3%, down from 9.3% a year ago.

• Free cash flow for Q3 was $1.6 billion, with LTM free cash flow up $881 million to $5.2 billion.

• Share repurchases totaled $2.2 billion for 7.6 million shares/units at an average price of $292.

• Net cash flows from operating activities increased 14.7% to $4.5 billion.

Outlook and guidance

• 2025 capital expenditures expected to peak at ~$11.5 billion, lower than previous $12 billion outlook, with a decline expected post-Cox transaction.

• Free cash flow and free cash flow per share projected to grow rapidly over the next several years as capital spending peaks and tax benefits are realized.

• Network evolution initiative targeted for completion in 2027.

• Long-term target leverage ratio to move to 3.5x–4x post-Cox close, with deleveraging to the midpoint of that range within 2–3 years.