Charter Targets $2 Billion in Savings After Losing 233,000 Internet Customers in Third Quarter
Key Facts
Charter Communications reported third-quarter 2026 results on November 6, disclosing a pro forma consolidated decline of 233,000 internet customers, alongside the launch of a new operating model targeting $2 billion in annual savings over 18 months. Internet customers totaled 34.3 million as of September 30, while pro forma consolidated revenue fell 1.5% year over year to $16.5 billion. The company attributed the revenue decline mainly to lower residential revenue, as it faces pressure on its core customer base. The announcement puts the cost-cutting plan alongside figures showing continued contraction in internet activity, with growth in mobile service. Charter shares closed at $125.86 in the November 5 session, according to EL7 data.
The decline in internet customers comprised 156,000 at legacy Charter and 77,000 at legacy Cox, on the pro forma consolidated comparison basis used by the company. The breakdown reflects the inclusion of Cox in the comparable quarter’s figures after Charter completed the deal on August 19. The transaction added more than 11 million passings and more than 5 million customer relationships to the company’s footprint. In the third quarter of 2025, legacy Charter recorded a decline of 109,000 internet customers, and its total customer relationships stood at 29.8 million at the end of September that year. The current pro forma consolidated total includes 34.3 million customers at the end of September 2026, with Charter and Cox counted for a full period.
The decline extended to video service, where customers fell by 77,000 in the third quarter on a pro forma consolidated basis, compared with a loss of 121,000 in the same period a year earlier. Total video customers were 13.8 million as of September 30. By contrast, Spectrum Mobile lines increased by 508,000 during the quarter, reaching 13.5 million at the end of September. The figures show diverging trends, with internet and video customer bases shrinking while new mobile lines were added. Chief Executive Chris Winfrey said the company would refocus on internet customer growth and work to become a simpler, faster and more flexible organization.
Pro forma consolidated residential revenue was $12.2 billion in the third quarter, down 4.1% year over year. Charter linked the decline to a 2.7% decrease in residential customer relationships and a 1.6% drop in average monthly revenue per residential customer. Total pro forma consolidated revenue fell to $16.5 billion, down 1.5% from the same period, which the company attributed mainly to weaker residential revenue. The actual net loss attributable to Charter shareholders was $2.4 billion, and the company said the main factor was a $6.3 billion impairment of franchises. Actual free cash flow was also $674 million, down $947 million from the third quarter of 2025.
The new plan targets $2 billion in annualized operating savings over the next 18 months, in addition to more than $1 billion in expected synergies from the Cox transaction. On September 16, Charter began rolling out Spectrum products, pricing and packages across the Cox footprint, bringing internet, mobile and video offers to more than 11 million homes and businesses. The company said demand for the offers was strong and customer trends in the legacy Cox footprint improved after their launch. In its filing, it said it was reshaping consumer offers and sales channels to increase new internet subscriptions through simpler, more transparent offers. Its plan includes bundling mobile and video with internet offers, while focusing on reducing customer churn and improving customer service.
The company scheduled its investor call to discuss third-quarter results for November 6, 2026, at 8:30 a.m. Eastern time. The call follows the release of results and the new operating model plan, and gives management an opportunity to present details on performance and its outlook for the customer base and targeted savings. Charter completed the Cox transaction on August 19, then launched Spectrum offers in the Cox footprint in September. Integrating operations and offers across the added footprint is part of the path the company is counting on to deliver savings and change the trajectory of internet growth. In the market, EL7 data showed the stock closed at $125.86 on November 5.