Charter Stock Falls 5% After Quarterly Loss and Loss of 233,000 Internet Subscribers
Key Facts
Charter Communications shares fell 5% on November 6 after the company reported a loss in its latest financial quarter, while analysts had expected a profit, according to The Associated Press. The move followed third-quarter results showing continued pressure on its internet subscriber base and hypothetical revenue. The company, meanwhile, announced a target of $2 billion in annualized operating savings over the next 18 months. It said those savings would be in addition to more than $1 billion in synergies expected from the Cox deal. The results leave the company facing a dual challenge: addressing customer declines and improving performance while integrating Cox’s operations and cutting expenses.
Hypothetical net losses of internet subscribers totaled 233,000 in the third quarter of 2026, compared with a loss of 171,000 in the same period a year earlier. Total internet customers reached 34.314 million on September 30. The loss included 156,000 customers at legacy Charter and 77,000 at legacy Cox. The year-over-year comparison shows a wider hypothetical net loss, while the figures reflect the contribution of the two legacy businesses to the decline during the quarter. Despite the decrease, hypothetical Spectrum Mobile service added 508,000 lines during the period, bringing the total to 13.5 million at the end of September.
On a hypothetical basis, Charter’s third-quarter revenue fell 1.5% year over year to $16.5 billion. Actual revenue rose 9.1% to $14.9 billion, driven by the Cox deal, according to the company. The divergence reflects the effect of including Cox in actual results, while the hypothetical figures compare the merged company’s performance across the periods. Hypothetical adjusted earnings before interest, taxes, depreciation and amortization fell 4% to $6.6 billion. On an actual basis, the measure rose 6.9% to $5.9 billion, according to the earnings statement.
Hypothetical internet revenue was $7.1 billion, down 3.7% year over year. Charter attributed the decline to fewer internet customers and the mix of pricing and packages. In the residential segment, hypothetical revenue fell 4.1% to $12.2 billion. The company said its residential customer base declined 2.7%, while average monthly revenue per residential customer fell 1.6%. The results combine a shrinking customer base with pressure on average revenue, two factors the company cited in explaining weakness in residential business revenue.
Chief Executive Chris Winfrey said Charter “did not achieve the customer growth and performance we expect.” The new operating model aims to return the company to internet customer growth by accelerating customer acquisition and improving retention and satisfaction. It also focuses on simplifying the organizational structure and speeding up decision-making, according to the company. Charter says the plan is intended to make it a simpler, faster and more agile organization. The announced operating expense savings remain separate from the synergies it expects from the Cox deal, with each carrying its own stated target.
Hypothetical capital expenditures were $3.2 billion in the third quarter of 2026, compared with $3.6 billion in the same period a year earlier. The company said lower spending on line extensions and scalable infrastructure was partly offset by higher spending on network upgrades. Charter expects hypothetical capital expenditures of about $13.0 billion for fiscal 2026, excluding transition expenses. On September 30, principal debt stood at $108.6 billion, while credit facilities provided about $2.4 billion in additional liquidity above a cash balance of $573 million. The stock closed at $125.86 on November 5, according to EL7 data.