Charter Announces Third Quarter 2026 Results and Launches New Operating Model
CHARTER COMMUNICATIONS, INC. /MO/ (CHTR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Charter Announces Third Quarter 2026 Results and Launches New Operating Model New operating model designed to return Charter to growth and transform organization for speed and efficiency. Will strengthen core Internet offerings and leverage differentiated mobile and video product
How this was made
The 30-second read
Why it matters
The earnings miss and net loss are likely to trigger a sell‑off, while the $2B expense savings plan may provide a catalyst for a rebound if executed successfully.
Market read
First‑report earnings with material loss and a major cost‑reduction initiative; high relevance for traders monitoring telecom stocks.
What to watch
Synergies from the Cox acquisition and potential pricing power in high‑growth markets may improve future margins.
Charter Announces Third Quarter 2026 Results and Launches New Operating Model
Actual revenue and Adjusted EBITDA increased following the Cox Transactions, but pro forma revenue and Adjusted EBITDA declined, Internet customers declined, free cash flow fell, and the quarter included a $6.3 billion franchise impairment charge.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026, actualGAAP | $14.92B | – | 9.1 % |
| Total revenues, three months ended September 30, 2026, pro formaother | $16.50B | – | (1.5) % |
| Total revenues, nine months ended September 30, 2026, actualGAAP | $42.05B | – | 2.1 % |
| Total revenues, nine months ended September 30, 2026, pro formaother | $49.72B | – | (1.8) % |
| Income (loss) from operations, three months ended September 30, 2026, actualGAAP | −$3.53B | – | – |
| Net income (loss) attributable to Charter shareholders, three months ended September 30, 2026, actualGAAP | −$2.40B | – | (310.8) % |
| Net income (loss) attributable to Charter shareholders, three months ended September 30, 2026, pro formaother | −$2.08B | – | (318.4) % |
| Net income attributable to Charter shareholders, nine months ended September 30, 2026, actualGAAP | $58M | – | – |
| Basic earnings (loss) per common share attributable to Charter shareholders, three months ended September 30, 2026, actualGAAP | $ (20.50) | – | – |
| Diluted earnings (loss) per common share attributable to Charter shareholders, three months ended September 30, 2026, actualGAAP | $ (20.50) | – | – |
| Basic earnings per common share attributable to Charter shareholders, nine months ended September 30, 2026, actualGAAP | $ 0.48 | – | – |
| Diluted earnings per common share attributable to Charter shareholders, nine months ended September 30, 2026, actualGAAP | $ 0.38 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026, actualnon-GAAP | $5.94B | – | 6.9 % |
| Adjusted EBITDA, three months ended September 30, 2026, pro formanon-GAAP | $6.59B | – | (4.0) % |
| Adjusted EBITDA, nine months ended September 30, 2026, actualnon-GAAP | $17.03B | – | 0.1 % |
| Adjusted EBITDA margin, three months ended September 30, 2026, actualnon-GAAP | 39.8 % | – | – |
| Adjusted EBITDA margin, three months ended September 30, 2026, pro formanon-GAAP | 39.9 % | – | – |
| Capital expenditures, three months ended September 30, 2026, actualGAAP | $3.03B | – | (0.8) % |
| Capital expenditures, three months ended September 30, 2026, pro formaother | $3.23B | – | (11.2) % |
| Net cash flows from operating activities, three months ended September 30, 2026GAAP | $4.03B | – | (10.1) % |
| Free cash flow, three months ended September 30, 2026non-GAAP | $674M | – | (58.4) % |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $3.02B | – | – |
| Impairment of franchises, three months ended September 30, 2026GAAP | $6.33B | – | – |
| Gain on extinguishment of debt, three months ended September 30, 2026GAAP | $1.39B | – | – |
| Total Internet Customers, September 30, 2026, pro formaother | 34.31M | – | (2.5) % |
| Pro forma total Internet Quarterly Net Additions, third quarter 2026other | −233K | – | – |
| Total Mobile Lines, September 30, 2026, pro formaother | 13.45M | – | 15.4 % |
| Pro forma total Mobile Lines Quarterly Net Additions, third quarter 2026other | 508K | – | – |
| Total Video Customers, September 30, 2026, pro formaother | 13.80M | – | (1.8) % |
| Pro forma total Video Quarterly Net Additions, third quarter 2026other | −77K | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Internet revenue, three months ended September 30, 2026, actualThe Cox Transactions. | $6.39B | – | 7.1 % |
| Mobile service revenue, three months ended September 30, 2026, actualThe Cox Transactions. | $1.13B | – | 18.9 % |
| Connectivity revenue, three months ended September 30, 2026, actualInternet and mobile service revenue. | $7.53B | – | 8.7 % |
| Video revenue, three months ended September 30, 2026, actualThe Cox Transactions partly offset the decrease. | $3.29B | – | (2.9) % |
| Voice revenue, three months ended September 30, 2026, actualThe Cox Transactions. | $340M | – | 2.6 % |
| Residential revenue, three months ended September 30, 2026, actualThe Cox Transactions. | $11.16B | – | 4.8 % |
| Commercial revenue, three months ended September 30, 2026, actualThe Cox Transactions. | $2.25B | – | 22.6 % |
| Advertising sales, three months ended September 30, 2026, actualHigher political advertising revenue and the Cox Transactions. | $460M | – | 29.2 % |
| Other revenue, three months ended September 30, 2026, actualHigher mobile device sales and the Cox Transactions. | $1.05B | – | 26.0 % |
| Internet revenue, three months ended September 30, 2026, pro formaDeclining Internet customers and pricing and packaging mix, partly offset by bundled revenue allocation, promotional rate step-ups and rate adjustments. | $7.10B | – | (3.7) % |
| Mobile service revenue, three months ended September 30, 2026, pro formaMobile line growth and rate adjustments. | $1.16B | – | 17.3 % |
| Video revenue, three months ended September 30, 2026, pro formaCosts allocated to programmer streaming applications, bundled revenue allocation, lower-priced package mix and fewer video customers. | $3.61B | – | (9.8) % |
| Commercial revenue, three months ended September 30, 2026, pro formaLegacy Charter mid-market and large business growth partly offset by a decline in legacy Cox Communications business revenue. | $2.69B | – | 0.3 % |
| Advertising sales, three months ended September 30, 2026, pro formaHigher political advertising revenue. | $487M | – | 21.0 % |
| Other revenue, three months ended September 30, 2026, pro formaHigher mobile device sales. | $1.10B | – | 18.1 % |
full year 2026 outlook
- NotePro forma full year 2026 capital expenditures, excluding transition capital expenditures, to total approximately $13.0 billion.
- Note$2 billion in annualized run-rate operating expense savings over the next 18 months.
- NoteMore than $1 billion in anticipated Cox Transactions synergies.
Capital returns
- During the third quarter, Charter purchased 139,807 shares of Charter Class A common stock for $19 million.
What drove it
- The Cox Transactions closed on August 19, 2026, and actual results include Cox Communications from August 20, 2026 through September 30, 2026.
- On September 16, 2026, Charter launched Spectrum products, pricing and packaging across the legacy Cox footprint.
- Pro forma mobile service revenue growth reflected mobile line growth and rate adjustments.
- Pro forma advertising sales growth was primarily driven by higher political advertising revenue.
- Pro forma programming costs decreased by $271 million, or 10.3%, reflecting costs allocated to programmer streaming applications, fewer video customers and a higher mix of lower cost packages.
- The quarter's loss was primarily driven by a $6.3 billion franchise impairment charge, partly offset by a $1.4 billion gain on extinguishment of debt.
Concerns
- Pro forma total revenue declined 1.5% year-over-year and pro forma Adjusted EBITDA declined 4.0% year-over-year.
- Pro forma Internet customers declined by 233,000 during the third quarter, compared to a decline of 171,000 during the third quarter of 2025.
- Pro forma residential revenue declined 4.1% and monthly residential revenue per residential customer decreased 1.6%.
- Actual free cash flow declined $947 million versus the prior year to $674 million.
- Total principal amount of debt was $108.6 billion as of September 30, 2026.
- Transition expenses totaled $76 million.
What to watch
- Execution of the new operating model and the $2 billion annualized run-rate operating expense savings target over the next 18 months.
- Realization of more than $1 billion in anticipated Cox Transactions synergies.
- Internet customer trends across legacy Charter and the legacy Cox footprint after the September 16, 2026 Spectrum launch.
- Mobile line growth, which totaled 508,000 pro forma quarterly net additions.
- Free cash flow generation as Charter targets pro forma full year 2026 capital expenditures, excluding transition capital expenditures, of approximately $13.0 billion.
- Integration costs and transition expenses related to the Cox Transactions.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 573 million.
- Total principal amount of debt as of September 30, 2026: $108.6 billion.
- Charter's credit facilities provided approximately $2.4 billion of additional liquidity in excess of Charter's $573 million cash position.
- Long-term debt as of September 30, 2026: $ 105,062 million.
- Current portion of long-term debt as of September 30, 2026: $ 1,990 million.
- During the quarter, Charter exchanged approximately $5.5 billion in aggregate principal amount of senior secured notes for $622 million in cash and approximately $1.7 billion of 7.087% senior secured notes due September 2038 and approximately $1.7 billion of 7.337% senior secured notes due September 2041.
- Charter repaid $1.0 billion of legacy Cox notes at maturity.
Analysis
Charter reported actual third-quarter revenue of $ 14,922 million, up 9.1 %, and actual Adjusted EBITDA of $ 5,943 million, up 6.9 %, with the Cox Transactions driving the reported growth. On a pro forma basis, which presents the Cox Transactions as if they had closed on January 1, 2024, revenue was $ 16,505 million, down 1.5 %, and Adjusted EBITDA was $ 6,587 million, down 4.0 %. The contrast shows that acquired scale lifted reported results while underlying combined-company revenue and EBITDA declined.
Customer trends remained the central operating issue. Pro forma Internet quarterly net additions were (233) thousand, versus (171) thousand in the prior-year period, while total Internet Customers were 34,314 thousand. Mobile remained the primary growth product, with 508 thousand pro forma quarterly net additions and Total Mobile Lines of 13,452 thousand, up 15.4 %. Video quarterly net additions improved to (77) thousand from (121) thousand, while total video customers were down 1.8 % year-over-year to 13,801 thousand.
Revenue mix was pressured in core residential products. Pro forma Internet revenue declined 3.7 % to $ 7,097 million and pro forma video revenue declined 9.8 % to $ 3,609 million. Mobile service revenue rose 17.3 % to $ 1,158 million, advertising sales rose 21.0 % to $ 487 million on higher political advertising revenue, and other revenue rose 18.1 % to $ 1,097 million on higher mobile device sales. Pro forma residential revenue declined 4.1 %, with the decline in monthly residential revenue per residential customer to $ 117.85 also reflecting $286 million of costs allocated to programmer streaming applications and netted within video revenue.
The reported net loss of $ (2,397) million was primarily driven by a $ 6,326 million impairment of franchises. Cash generation weakened despite lower actual capital expenditures of $ 3,027 million: net cash flows from operating activities were $ 4,027 million and free cash flow was $ 674 million, compared with $ 1,621 million in the prior-year quarter. Charter also reported $108.6 billion of total principal debt and $ 573 million of cash and cash equivalents, while repurchasing 139,807 shares for $19 million.
Management's response is a new operating model focused on Internet growth, service execution and simpler operations. The company targets $2 billion in annualized run-rate operating expense savings over the next 18 months, in addition to more than $1 billion in anticipated Cox Transactions synergies. Charter expects pro forma full year 2026 capital expenditures, excluding transition capital expenditures, to total approximately $13.0 billion. The key reported markers are whether the Spectrum launch across legacy Cox markets improves Internet trends and whether cost savings offset continuing pressure in residential revenue and cash flow.
Management, verbatim
With the combination of Charter and Cox, we have the scale and network capabilities to connect more Americans than ever before.
Chris Winfrey, President and CEO of Charter
We are fundamentally rethinking how we operate and compete, with a renewed focus on delivering the best products and services. We will return Charter to Internet customer growth and transform Charter into a simpler, faster, more agile organization – and reignite our culture to win.
Chris Winfrey, President and CEO of Charter
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Non-GAAP EPS was not reported.
- Dividend amount was not reported.
- Prior-quarter revenue, net income, EPS, Adjusted EBITDA, operating cash flow and free cash flow were not reported on the same financial-statement rows.
- Revenue, gross margin, operating expense, and tax-rate guidance were not reported.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- A CFO commentary was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Charter Communications filed an 8‑K announcing its third‑quarter 2026 financial results and a new operating model aimed at growth and efficiency.
Ticker impact
Charter Communications reported Q3 2026 results, $14.9B revenue, $2.4B net loss and announced a $2B annualized expense savings plan.
likely downward pressure as investors digest the loss, tempered by potential long‑term benefit from expense reductions.
The primary disclosure of a loss and revenue decline is material; cost‑saving initiatives are positive but may not offset immediate reaction.
Market effects
Highlights pressure on the telecom sector as integrated operators face integration costs and margin compression.
U.S. broadband and cable providers may see short‑term valuation adjustments.
Limited to U.S. telecom equities; no broader macro impact.
Counterpoint
Cost‑saving plan could accelerate free cash flow, making the stock a longer‑term buy despite the quarterly loss.
Key entities
- CompanyCharter Communications, Inc.
U.S. cable and broadband provider (ticker CHTR).
