Charter shares fall 5.7% after Q3 loss on $6.3 billion impairment
Charter shares fell 5.7% at 9:54 a.m. ET. The company swung to a third-quarter loss of $20.50 per share, against a $9.24 consensus estimate for profit. Revenue of $14.92 billion was below the $15.08 billion estimate.
Key takeaways
- Charter Communications (CHTR) shares fell 5.7% at 9:54 a.m. ET. The company reported a third-quarter loss of $20.50 per share, primarily driven by a $6.3 billion franchise impairment charge. Revenue was $14.92 billion, below the $15.08 billion consensus estimate. Adjusted EBITDA was $5.94 billion.
Shares fell 5.7% at 9:54 a.m. ET, from a $125.86 close.
Charter Communications (CHTR) swung to a third-quarter loss of $20.50 per share, primarily driven by a $6.3 billion franchise impairment charge.
Charter completed its Cox Communications transactions on Aug. 19; results include Cox from Aug. 20 through Sept. 30.
Here's how the company did:
- Diluted loss per share: $20.50 vs. $8.34 profit a year earlier, against a $9.24 consensus estimate
- Revenue: $14.92 billion vs. $13.67 billion a year earlier, below the $15.08 billion consensus estimate
- Adjusted EBITDA: $5.94 billion vs. $5.56 billion a year earlier
- Free cash flow: $674 million vs. $1.62 billion a year earlier
Revenue grew 9.1% from a year earlier, driven by the Cox Transactions. On a pro forma basis, revenue fell 1.5% to $16.5 billion.
Revenue has fallen in each of the last three quarters, to $13.53 billion in the second quarter of 2026.
Operating model and savings
President and CEO Chris Winfrey said “We will return Charter to Internet customer growth and transform Charter into a simpler, faster, more agile organization.”
Charter is targeting $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. The savings program will focus on eliminating nonessential activities and simplifying organizational structures.
Customers and mobile
On a pro forma basis, Internet customers declined by 233,000 in the quarter, including a decline of 156,000 at legacy Charter.
Mobile lines rose by 508,000 on the same basis, and Charter served 13.5 million mobile lines as of Sept. 30.
Video customers decreased by 77,000 on a pro forma basis.
Spectrum launched its products, pricing and packaging across the legacy Cox footprint on Sept. 16.
Costs, debt and capital
Capital expenditures were $3.0 billion on an actual basis. The company expects pro forma full-year 2026 capital expenditures, excluding transition capital expenditures, to total about $13.0 billion.
Transition expenses were $76 million in the quarter.
Charter exchanged $5.5 billion in aggregate principal amount of secured notes and repaid $1.0 billion of legacy Cox notes at maturity.
Total debt principal was $108.6 billion as of Sept. 30. Charter bought back 139,807 shares for $19 million during the quarter.