EX-99.1 2 chtrex991earningsrelease63.htm EX-99.1 Document Charter Announces Second Quarter 2026 Results Stamford, Connecticut - July 24, 2026 - Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”), which operates the Spectrum brand, today reported financial and operating results for the three and six months ended June 30, 2026. • Second quarter Spectrum Mobile TM lines increased by 406,000 and by 1.7 million over the last twelve months. As of June 30, 2026, Charter served 12.5 million mobile lines. • During the second quarter, Spectrum Internet ® customers declined by 172,000. As of June 30, 2026, Charter served 29.4 million Internet customers. • Video customers decreased by 21,000 in the second quarter and declined by 107,000, or 0.8%, over the last twelve months. As of June 30, 2026, Charter served 12.5 million video customers. • As of June 30, 2026, customer relationships totaled 31.5 million and connectivity customers totaled 30.4 million. • Second quarter revenue of $13.5 billion declined 1.7% year-over-year, primarily driven by lower residential video revenue. • Net income attributable to Charter shareholders totaled $1.3 billion in the second quarter. • Second quarter Adjusted EBITDA 1 of $5.4 billion declined 4.3% year-over-year and by 3.2% excluding transition expenses. • Second quarter capital expenditures totaled $2.9 billion. • Second quarter net cash flows from operating activities of $3.9 billion vs. $3.6 billion in the prior year. • Second quarter free cash flow 1 of $969 million declined $77 million versus the prior year, primarily due to an unfavorable change in accrued expenses related to capital expenditures, partly offset by higher operating cash flow. • During the second quarter, Charter purchased 4.0 million shares of Charter Class A common stock for $838 million and $1.2 billion in aggregate principal amount of Charter Communications Operating, LLC and CCO Holdings, LLC notes under an open market repurchase program for $1.0 billion in cash. "We operate in a competitive environment across all of our products, and our strategy for growing connectivity services is simple -- deliver the best products, at the best overall value, with the best service,” said Chris Winfrey, President and CEO of Charter. “We look forward to delivering the benefits of that strategy to Cox's customers and communities after the transaction closes. As the nation’s leading provider of converged connectivity services, Spectrum will have additional scale to develop new products with industry and technology partners. And by saving customers money with Spectrum products, serviced by 100% US-based employees -- we will drive customer and shareholder value for years to come.” 1. Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release. 1 Key Operating Results Approximate as of June 30, 2026 (d) June 30, 2025 (d) Y/Y Change Footprint Estimated Passings (e) 58,981  57,540  2.5  % Customer Relationships (f) Residential 29,276  29,819  (1.8) % Small Business 2,223  2,241  (0.8) % Total Customer Relationships 31,499  32,060  (1.7) % Residential (176) (95) (81) Small Business (8) (5) (3) Total Customer Relationships Quarterly Net Additions (184) (100) (84) Total Customer Relationship Penetration of Estimated Passings (g) 53.4  % 55.7  % (2.3) ppts Monthly Residential Revenue per Residential Customer (h) $ 117.52  $ 119.70  (1.8) % Monthly Small Business Revenue per Small Business Customer (i) $ 165.27  $ 162.91  1.4  % Residential Customer Relationships Penetration (j) One Product Penetration 47.4  % 48.7  % (1.3) ppts Two Product Penetration 35.1  % 33.8  % 1.3 ppts Three or More Product Penetration 17.6  % 17.5  % 0.1 ppts Connectivity (k) Residential 28,306  28,705  (1.4) % Small Business 2,069  2,076  (0.4) % Total Connectivity Customers 30,375  30,781  (1.3) % Residential (140) (53) (87) Small Business (5) (4) (1) Total Connectivity Quarterly Net Additions (145) (57) (88) Internet Residential 27,358  27,868  (1.8) % Small Business 2,030  2,040  (0.5) % Total Internet Customers 29,388  29,908  (1.7) % Residential (166) (111) (55) Small Business (6) (5) (1) Total Internet Quarterly Net Additions (172) (116) (56) Mobile Lines (l) Residential 12,099  10,502  15.2  % Small Business 441  354  24.4  % Total Mobile Lines 12,540  10,856  15.5  % Residential 385  471  (86) Small Business 21  20  1  Total Mobile Lines Quarterly Net Additions 406  491  (85) Video (m) Residential 12,010  12,087  (0.6) % Small Business 514  544  (5.4) % Total Video Customers 12,524  12,631  (0.8) % Residential (11) (73) 62  Small Business (10) (7) (3) Total Video Quarterly Net Additions (21) (80) 59  Voice Residential 4,494  5,161  (12.9) % Small Business 1,200  1,225  (2.1) % Total Voice Customers 5,694  6,386  (10.8) % Mid-Market & Large Business (n) Mid-Market & Large Business Primary Service Units ("PSUs") 364  350  3.9  % Mid-Market & Large Business Quarterly Net Additions 4  6  (2) In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding. 2 Second quarter total Internet customers decreased by 172,000, compared to a decline of 116,000 during the second quarter of 2025. Spectrum Internet delivers the most reliable Internet 1 , and the Company is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in several markets. Spectrum expects to complete its network evolution initiative in 2027. In February 2026, Spectrum launched its Invincible WiFi TM product, a tri-band advanced WiFi 7 router that integrates 5G cellular and battery backup to keep customers seamlessly and fully connected during a power outage or network disruption. In the first quarter, Spectrum launched its $1,000 savings guarantee; new or existing Spectrum Internet customers switching two or more mobile lines from Verizon, AT&T or T-Mobile are now guaranteed $1,000 of savings in their first year, or Spectrum will cover the difference. During the second quarter of 2026, Charter added 406,000 total mobile lines, compared to growth of 491,000 during the second quarter of 2025. Spectrum Mobile has faster wireless speeds than the competition (AT&T, T-Mobile, Verizon). 2 Spectrum Mobile is central to Charter's converged network strategy to provide customers a differentiated connectivity experience with highly competitive, simple data plans and pricing. Total video customers decreased by 21,000 in the second quarter of 2026, compared to a decline of 80,000 in the second quarter of 2025, with the improvement driven by simplified pricing and packaging and benefits from the inclusion of programmers' streaming applications in Spectrum's expanded basic video packages. As of June 30, 2026, Charter had 12.5 million total video customers. Spectrum TV Select video customers now receive up to approximately $127 per month of programmers' streaming application retail value at no extra cost, including the ad-supported versions of Disney+, Hulu, ESPN Unlimited, HBO Max, Paramount+, Peacock, AMC+, ViX, Tennis Channel, Fox One and Discovery+. Beginning in June 2026, Spectrum customers can purchase ad-supported and ad-free versions of Netflix through the Spectrum App Store. The Spectrum App Store is an innovative digital marketplace where Spectrum TV customers can activate, manage and upgrade the streaming apps included with their video plans. The Spectrum App Store also allows Spectrum customers without a traditional TV package to purchase and manage streaming apps à la carte. During the second quarter of 2026, total wireline voice customers declined by 178,000, compared to a decline of 220,000 in the second quarter of 2025. As of June 30, 2026, Charter had 5.7 million total wireline voice customers. Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the second quarter of 2026, Charter activated 127,000 subsidized rural passings. Within Charter's subsidized rural footprint, total customer relationships increased by 47,000 in the second quarter of 2026. 1. Most reliable Internet claim based on Broadband Reliability Experience among top 5 national providers in Opensignal USA: Fixed Broadband Experience Report – May 2026. Based on Opensignal independent analysis of Internet connectivity, completion, and sufficiency. 2. Based on Download Speeds among top 5 national providers in Opensignal USA, Converged Experience, April 2026. 3 Second Quarter Financial Results (in millions) Three Months Ended June 30, 2026 2025 % Change Revenues: Internet $ 5,776  $ 5,969  (3.2) % Mobile service 1,095  921  18.9  % Connectivity 6,871  6,890  (0.3) % Video 3,149  3,488  (9.7) % Voice 331  346  (4.5) % Residential revenue 10,351  10,724  (3.5) % Small business 1,104  1,096  0.7  % Mid-market & large business 761  740  2.8  % Commercial revenue 1,865  1,836  1.5  % Advertising sales 416  371  12.3  % Other 894  835  7.1  % Total Revenues $ 13,526  $ 13,766  (1.7) % Net income attributable to Charter shareholders $ 1,292  $ 1,301  (0.7) % Net income attributable to Charter shareholders margin 9.6  % 9.4  % Adjusted EBITDA 1 $ 5,449  $ 5,693  (4.3) % Adjusted EBITDA margin 40.3  % 41.4  % Capital expenditures $ 2,871  $ 2,874  (0.1) % Net cash flows from operating activities $ 3,925  $ 3,600  9.0  % Free cash flow 1 $ 969  $ 1,046  (7.4) % All percentages are calculated using whole numbers. Minor differences may exist due to rounding. 1. Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release. Revenues Second quarter revenue decreased by 1.7% year-over-year to $13.5 billion, driven by lower residential video revenue mostly due to higher costs allocated to programmer streaming applications and netted within video revenue and lower residential Internet revenue, partly offset by an increase in residential mobile service revenue, higher mobile device revenue and higher advertising sales revenue. Excluding advertising sales revenue and costs allocated to programmer streaming applications and netted within video revenue, second quarter total revenue declined by 0.8% year-over-year. Residential revenue totaled $10.4 billion in the second quarter, a decrease of 3.5% year-over-year, driven by a year-over-year decline in residential customers of 1.8% and a decrease in monthly residential revenue per residential customer of 1.8%. Excluding costs allocated to programmer streaming applications and netted within video revenue, residential revenue declined by 1.8%. Second quarter 2026 monthly residential revenue per residential customer totaled $117.52, a decrease of 1.8% compared to the prior year period. The decline was driven by $251 million of costs allocated to programmer streaming applications and netted within video revenue versus $67 million in the prior year period, pricing and packaging mix within Charter's customer base and a decline in video customers during the last year, partly offset by the growth of Spectrum Mobile. Excluding costs allocated to programmer streaming applications and netted within video revenue, monthly residential revenue per residential customer decreased 0.1% compared to the prior year period. 4 Internet revenue declined 3.2% year-over-year to $5.8 billion, driven by a decline in Internet customers year-over year and pricing and packaging mix within Charter's customer base, partly offset by more favorable bundled revenue allocation year-over-year. Second quarter mobile service revenue totaled $1.1 billion, an increase of 18.9% year-over-year, driven by mobile line growth and rate adjustments. Video revenue totaled $3.1 billion in the second quarter, a decrease of 9.7% compared to the prior year period, driven by a higher mix of lower priced video packages within Charter's video customer base, $251 million of costs allocated to programmer streaming applications and netted within video revenue versus $67 million in the prior year period, more unfavorable bundled revenue allocation year-over-year and a decline in video customers during the last year, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases. Voice revenue decreased by 4.5% year-over-year to $331 million, driven by a decline in wireline voice customers, partly offset by voice rate adjustments. Commercial revenue increased by 1.5% year-over-year to $1.9 billion, driven by mid-market and large business revenue growth of 2.8% year-over-year and an increase in small business revenue of 0.7%. Mid-market and large business revenue excluding wholesale increased by 3.5% year-over-year, mostly reflecting PSU growth. The year-over-year increase in second quarter 2026 small business revenue was driven by a 1.4% increase year-over-year in monthly small business revenue per small business customer, partly offset by a decline of 0.8% in small business customer relationships year-over-year. Second quarter advertising sales revenue of $416 million increased by 12.3% compared to the year - ago quarter, primarily driven by higher political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 4.6% year-over-year driven by lower linear advertising revenue, partly offset by higher streaming advertising revenue. Other revenue totaled $894 million in the second quarter, an increase of 7.1% compared to the second quarter of 2025, primarily driven by higher mobile device sales, partly offset by a $45 million one-time benefit in the prior year period. Operating Costs and Expenses Second quarter total operating costs and expenses were flat year-over-year at $8.1 billion, primarily driven by lower programming costs, offset by higher other costs of revenue and higher transition expenses. Second quarter programming costs decreased by $218 million, or 9.7% as compared to the second quarter of 2025, reflecting $251 million of costs allocated to programmer streaming applications and netted within video revenue versus $67 million in the prior year period, a higher mix of lower cost packages within Charter's video customer base and fewer video customers, partly offset by contractual programming rate increases and renewals. Other costs of revenue increased by $186 million, or 11.3% year-over-year, primarily driven by higher mobile device sales, higher mobile service direct costs and higher advertising sales costs given higher political revenue. Field and technology operations expenses increased by $21 million, or 1.6% year-over-year, primarily driven by higher vehicle fuel costs and medical expenses. Customer operations expenses increased by $8 million, or 1.1% year-over-year, driven by medical expenses. 5 Marketing and residential sales expenses decreased by $31 million or 3.1% year-over-year, due to lower marketing expenses from cost savings, despite higher marketing activity. Transition expenses represent incremental costs incurred to prepare for the integration of the previously announced Cox transaction. Other expenses decreased by $27 million, or 2.5% as compared to the second quarter of 2025, primarily driven by lower professional services expense. Net Income Attributable to Charter Shareholders Net income attributable to Charter shareholders totaled $1.3 billion in the second quarter of 2026 and 2025, with lower Adjusted EBITDA offset by a gain on extinguishment of debt related to open market debt repurchases in the second quarter of 2026. Net income per basic common share attributable to Charter shareholders totaled $10.76 in the second quarter of 2026 compared to $9.41 during the same period last year. The increase was primarily the result of a 13.1% decrease in basic weighted average common shares outstanding versus the prior year period. Adjusted EBITDA Second quarter Adjusted EBITDA of $5.4 billion declined by 4.3% year-over-year, reflecting a decline in revenue of 1.7%, while operating costs and expenses remained flat. Excluding transition expenses, Adjusted EBITDA declined 3.2% year-over-year. Capital Expenditures Capital expenditures totaled $2.9 billion in the second quarter of 2026, in-line with the prior year period, with lower line extension spend offset by higher upgrade/rebuild (primarily network evolution). Charter continues to expect full year 2026 capital expenditures, excluding impacts from the previously announced Cox transaction, to total approximately $11.4 billion. The actual amount of capital expenditures in 2026 will depend on a number of factors including, but not limited to, the pace of Charter's network evolution and expansion initiatives, supply chain timing and growth rates in Charter's residential and commercial businesses. Cash Flow and Free Cash Flow During the second quarter of 2026, net cash flows from operating activities totaled $3.9 billion, an increase from $3.6 billion in the prior year. The year-over-year increase was primarily due to lower cash taxes, partly offset by lower Adjusted EBITDA. Free cash flow in the second quarter of 2026 totaled $969 million, a decrease of $77 million compared to the second quarter of 2025. The year-over-year decrease in free cash flow was driven by an unfavorable change in accrued expenses related to capital expenditures, partly offset by higher net cash flows from operating activities. Liquidity & Financing As of June 30, 2026, total principal amount of debt was $93.8 billion and Charter's credit facilities provided approximately $3.7 billion of additional liquidity in excess of Charter's $509 million cash position. 6 During the three months ended June 30, 2026, Charter purchased $1.2 billion in aggregate principal amount of various Charter Communications Operating, LLC and CCO Holdings, LLC notes under an open market repurchase program for $1.0 billion in cash. Share Repurchases During the three months ended June 30, 2026, Charter purchased 4.0 million shares of Charter Class A common stock for $838 million. 7 Webcast Charter will host a webcast on Friday, July 24, 2026 at 8:00 a.m. Eastern Time (ET) related to the contents of this release. The webcast can be accessed live via the Company's investor relations website at ir.charter.com . Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast. Additional Information Available on Website The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026, which will be posted on the “Results & SEC Filings” section of the Company's investor relations website at ir.charter.com , when it is filed with the Securities and Exchange Commission (the "SEC"). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section. Use of Adjusted EBITDA and Free Cash Flow Information The Company uses certain measures that are not defined by U.S. generally accepte