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    CHTR
    Earnings call· Mar 2026(Q1 FY26)

    CHARTER COMMUNICATIONS, INC. /MO/ Q1 FY26 earnings call CHTR

    Apr 24, 2026 Source

    Executive summary

    Charter Q1 FY26 — Mobile Growth and Cox Transaction Synergies

    Charter Communications navigated a competitive Q1 FY26 with strong mobile line growth and improved video customer trends, despite internet customer losses and a slight revenue decline. The company is focused on its advanced network, core operating strategy, and customer satisfaction, while preparing for the Cox transaction close and its significant synergy potential. Management is actively evaluating pricing strategies to return to broadband growth.

    Highlights

    5

    • Spectrum Mobile lines grew by 370,000 in Q1, reaching over 12 million total lines, up 17% year-over-year.

    • Video customer losses improved significantly to 60,000, less than 1/3 of prior year Q1.

    • Commercial revenue grew 1% year-over-year, with mid-market and large business up 2.1% (2.8% including wholesale).

    • Advertising revenue grew 5.3% year-over-year, driven by higher political revenue.

    • Cox transaction run-rate operating expense synergies increased to at least $800 million from $500 million.

    Concerns

    4

    • Internet customer loss totaled 120,000 in Q1 due to high competition.

    • Consolidated revenue was down 1% year-over-year.

    • Adjusted EBITDA declined 2.2% year-over-year (1.8% excluding transition expenses).

    • First quarter free cash flow totaled $1.4 billion, $200 million lower than last year.

    Guidance & targets

    6
    CategoryTargetConfidence
    Total Capital Expenditures
    approximately $11.4 billion
    high materiality
    High
    Run-rate Capital Expenditures
    below $8 billion per year
    high materiality
    High
    Net Debt to LTM Adjusted EBITDA
    at or slightly under 4.25x
    medium materiality
    High
    Net Debt to LTM Adjusted EBITDA
    low end of the 3.5 to 3.75x range
    high materiality
    High
    Calendar Year 2026 Cash Tax Payments
    between $500 million and $800 million
    medium materiality
    High
    EBITDA Growth (excluding transition costs)
    slightly positive
    high materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Residential
    Primarily driven by lower residential video revenue, $218 million of costs allocated to programmer streaming apps, and a decline in video customers. Partially offset by promotional rate step-ups, rate adjustments, and growth of Spectrum Mobile lines. Revenue declined 1.1% YoY when excluding streaming app allocation.
    Customers: declined 1.5% YoYRevenue per customer relationship: declined 1.4% YoY (grew 0.3% YoY excluding streaming app allocation)
    		declined 2.7%-2.7%——
    Commercial
    Mid-market and large business revenue showed solid growth, while small business revenue growth was mostly offset by a decline in small business customers.
    Mid-market and large business revenue growth: 2.1% YoY (2.8% including wholesale)Small business revenue growth: 0.2% YoYSmall business customers: declined 0.7% YoYRevenue per small business customer: grew 0.9% YoY
    		grew 1%1%——
    Advertising
    Growth was driven by higher political revenue year-over-year. Excluding political, advertising revenue declined 3.4% year-over-year.
    		grew 5.3%5.3%——
    Other Revenue
    Driven by higher Mobile device sales.
    		grew 14.2%14.2%——

    Operational metrics

    26
    Mobile lines
    12 million1.8 million new lines over LTM, 17% growth YoY
    Q1 FY26

    Total mobile lines, with significant growth over the last 12 months.

    Mobile net adds
    368,000lower YoY
    Q1 FY26

    Net additions were lower year-over-year due to heavy device subsidy activity by big telco competitors, including the iPhone 17.

    Video customer loss
    60,000vs 181,000 in 1Q FY25
    Q1 FY26

    Improvement primarily driven by much lower video downgrades and customer churn year-over-year, resulting from new pricing and packaging, Xumo, and Seamless Entertainment product improvements.

    Internet customer loss
    120,000
    Q1 FY26

    Driven by lower connects year-over-year, partly offset by slightly lower churn, due to competitive operating environment.

    Wireline voice customer decline
    174,000
    Q1 FY26

    Year-over-year improvement primarily driven by lower churn.

    Subsidized rural customer additions
    41,000
    Q1 FY26

    Strong customer relationship growth in the subsidized rural footprint.

    Subsidized rural passings growth
    89,000483,000 over LTM
    Q1 FY26

    Growth in passings in the subsidized rural footprint, in addition to non-rural construction.

    Residential customers in new pricing and packaging
    45%
    Q1 FY26

    Percentage of residential customers now in the pricing and packaging launched in late 2024.

    Expanded basic video customers activating streaming apps
    over 50%
    Q1 FY26

    Customers activating streaming apps take nearly 4 streaming apps on average.

    Churn for activated expanded basic customers
    1/3 lower
    Q1 FY26

    Churn is meaningfully lower across all customer tenure for customers activating streaming apps.

    Programming costs
    declined 9.3%YoY
    Q1 FY26

    Due to $218 million of costs allocated to Programmer Streaming apps, a higher mix of lighter video packages, and a 1.3% decline in video customers, partly offset by higher programming rates.

    Other cost of revenue
    increased 11.4%YoY
    Q1 FY26

    Primarily driven by mobile service direct costs, higher mobile device sales, and higher advertising sales costs given higher political revenue.

    Cost to service customers
    decreased 1.4%YoY
    Q1 FY26

    Primarily due to lower labor costs, combining field and technology operations and customer operations.

    Marketing and residential sales expense
    declined 3.2%YoY
    Q1 FY26

    Due to lower marketing expenses and labor expense.

    Transition expenses (Cox transaction)
    $24 million
    Q1 FY26

    Expenses related to the pending Cox transaction.

    Other expense
    grew 5.3%YoY
    Q1 FY26

    Primarily driven by one-time benefits of $75 million in 1Q FY25.

    Cash taxes
    $64 million
    Q1 FY26

    Cash taxes paid in the first quarter.

    Debt principal
    $94 billion
    Q1 FY26

    Total debt principal at the end of the first quarter.

    Weighted average cost of debt
    5.2%
    Q1 FY26

    The company's weighted average cost of debt.

    Annualized cash interest run rate
    $4.9 billion
    Q1 FY26

    Current run rate for annualized cash interest.

    Shares repurchased
    4.3 million
    Q1 FY26

    Number of Charter shares repurchased during the quarter.

    Buyback amount
    $963 million
    Q1 FY26

    Total value of shares repurchased during the quarter.

    Average buyback price
    $225
    Q1 FY26

    Average price paid per share for repurchases.

    Share count (pro forma for Cox/Liberty)
    about 179 million
    Q1 FY26

    Stand-alone share count at close, on an as-converted as-exchanged basis, if closed on March 31.

    Share count increase (Cox)
    just over 46 million
    Q1 FY26

    Equivalent Charter shares to be issued to Cox Enterprises (common and preferred partnership units).

    Share count reduction (Liberty)
    about 6.8 million
    Q1 FY26

    Net Charter share reduction associated with the Liberty Broadband transaction, lower than previously announced due to ongoing share repurchases.

    Industry KPIs

    8
    MetricValueDetails
    Total revenuedown 1%%
    Net income EPSbit under $1.2 billionUSD
    Adjusted EBITDAdeclined 2.2%%
    CAPEX capital program$2.9 billionUSD
    Total operating expensesdecreased 0.2%%
    Ai product feature adoptionAI tools now used by our service agents
    M a integration cost synergiesat least $800 millionUSD
    Free cash flow operating cash flow$1.4 billionUSD

    Product announcements

    3
    ProductTypeDetails
    Invincible WiFi routerlaunch
    Digital Buy Flowlaunch
    $1,000 savings guaranteelaunch

    Deals & partnerships

    1
    Cox EnterprisesAcquisition of Cox assets, with Charter issuing common and preferred partnership units.

    All necessary federal and state approvals received except from California Public Utilities Commission. The Cox network is well-maintained with mid-split process nearly complete, providing competitive runway for DOCSIS 4.0. Includes talent acquisition and unexpected capabilities in B2B and network AI.

    Risks & headwinds

    5
    Internet competitionQ1 FY26

    120,000 Internet customer loss in Q1 FY26

    Mitigation: Focus on improving service reputation, marketing, offer expressions, and leveraging mobile/video to drive broadband. New Digital Buy Flow and $1,000 savings guarantee.

    Mobile device subsidy activity from competitorsQ1 FY26

    Mobile net adds lower YoY

    Mitigation: Focus on value-rich plans, Anytime Upgrade program, and best international service plans.

    Muted housing environmentQ1 FY26

    Slow household formation, low move rates

    Mitigation: Focus on internal operational improvements and better messaging of value/utility; mover cohort is a net benefit due to footprint scale.

    Legacy reputation of cableOngoing

    Not yet reflecting reality of superior value

    Mitigation: Clearly messaging and delivering superior value, utility, and service; continuous service improvements through network upgrades, AI tools, and U.S.-based service agents.

    Supply chain for Invincible WiFiShort-term

    Supply prioritization needed

    Mitigation: Prioritizing supply to a smaller audience until adequate levels are reached.

    What to watch in Q2 FY26

    5

    Cox Transaction Close

    summer
    CurrentPending California PUC approval
    TargetTransaction closed

    Why it matters

    The Cox transaction is a major strategic move, expected to significantly expand Charter's footprint and drive long-term growth through synergies and new market penetration.

    We've now received all the necessary federal and state approvals that we need to close, except from California, and we're working with the California Public Utilities commission towards the summer close.

    Q&A highlights

    5

    What is Charter's assessment of the potential for further cable M&A from a regulatory standpoint, given the FCC's recent comments on increasing competition?

    Chris Winfrey stated that Charter views cable as a good investment and would consider acquiring more assets if conditions are appropriate. He emphasized that cable companies are regional competitors against national and global rivals (fiber, FWA, mobile, global video). He highlighted Charter's operating strategy, which has historically benefited customers and employees through lower pricing and innovative products, as a strong rationale for consolidation. He confirmed no current M&A activities beyond Cox but sees future opportunities.

    “I think the opportunity is there to do more over time, and we'll evaluate it when it's available.”

    asked by Sean Diffley · answered by Christopher Winfrey

    2 min read6 chapters

    Detailed Narrative

    01

    Mobile Performance & Strategy

    Spectrum Mobile added 368,000 lines in Q1 FY26, contributing to over 12 million total mobile lines, a 17% increase year-over-year. The company highlights its hybrid MNO capabilities, leveraging CBRS and WiFi in conjunction with the Verizon mobile network to offer seamless connectivity and market-leading Anytime Upgrade programs. This strategy aims to provide the fastest overall mobile speeds and value-rich plans in its footprint.

    02

    Internet Competition & Customer Trends

    Internet customer losses totaled 120,000 in Q1 FY26, primarily due to lower connects driven by intensified competition from fixed wireless access (including AT&T's efforts), ongoing fiber overlap growth, and mobile substitution. Despite these headwinds, Internet churn improved year-over-year and remains at very low levels. Management acknowledges the 'top of funnel' challenge and is focused on enhancing its service reputation, marketing, and offer expressions to drive broadband growth.

    03

    Advanced Network Upgrades

    Charter's high-capacity network is undergoing significant upgrades, with approximately 50% expected to offer symmetrical and multi-gig service by the end of 2026. The network is fiber-based and powered to its edge, enabling enhanced wireless opportunities and low-latency B2B applications such as Edge Cash and GPU as a service. These capabilities are designed to support increasing customer data usage, including a 20% annual growth in upstream traffic.

    04

    Cox Transaction Update & Synergies

    The Cox transaction is nearing completion, with all federal and state approvals secured except from the California Public Utilities Commission, targeting a summer close. The estimated run-rate operating expense synergies have been increased from $500 million to at least $800 million, attributed to procurement efficiencies and improved financial visibility. The Cox network, described as high-quality and well-maintained with its mid-split process nearly complete, provides a competitive runway for future DOCSIS 4.0 implementation.

    05

    Pricing, Packaging & Customer Value

    Charter launched a $1,000 savings guarantee in February, targeting new Internet and mobile customers switching from major competitors. A new Digital Buy Flow for online channels has been introduced to better showcase bundled value, resulting in improved yield. Approximately 45% of residential customers are now on newer pricing and packaging launched in late 2024, which offers increased product value, including Internet speed upgrades and mobile services, for comparable or slightly higher prices.

    06

    Invincible WiFi & Service Improvements

    The new Invincible WiFi router, launched in February, guarantees connectivity by providing battery backup and a 5G cellular connection during power outages or network disruptions. Its upgrade and attach rates have exceeded expectations, leading to temporary supply prioritization. Additionally, Charter is deploying AI tools for service agents, which has resulted in higher customer satisfaction, reduced call times, and improved employee job satisfaction.

    AI-generated summary of the company’s earnings call. Not investment advice.