Charter Communications — Third Quarter 2026 Earnings Summary

Financial Performance:

• Pro forma third quarter revenue was $16.5 billion, a 1.5% year-over-year decline; actual revenue was $14.9 billion, a 9.1% year-over-year increase driven by the Cox Transactions.
• Pro forma third quarter net loss attributable to Charter shareholders was $2.1 billion, compared to net income of $1.0 billion in the prior year; actual net loss was $2.4 billion, compared to net income of $1.1 billion. Both results were primarily driven by a $6.3 billion franchise impairment charge.
• Pro forma third quarter Adjusted EBITDA was $6.6 billion, a 4.0% year-over-year decline; actual Adjusted EBITDA was $5.9 billion, a 6.9% year-over-year increase.
• Pro forma third quarter Adjusted EBITDA margin was 39.9%, down from 40.9% in the prior year; actual margin was 39.8%, down from 40.7%.
• Actual net cash flows from operating activities were $4.0 billion, down from $4.5 billion in the prior year.
• Actual free cash flow was $674 million, a $947 million decline year-over-year.
• Pro forma capital expenditures were $3.2 billion, down from $3.6 billion in the prior year; actual capital expenditures were $3.0 billion.
• Total principal amount of debt was $108.6 billion as of September 30, 2026.
• Monthly residential revenue per residential customer was $117.85 on a pro forma basis, a 1.6% decrease year-over-year.

Guidance and Future Outlook:

• Charter expects pro forma full-year 2026 capital expenditures, excluding transition capital expenditures, to total approximately $13.0 billion.
• 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 aims to return to Internet customer growth and transform into a simpler, faster, and more agile organization.
• The Company plans to fully return legacy Cox's customer service function to the U.S. over the next 18 months.

Business Segments and Product Lines:

• On a pro forma basis, Spectrum Mobile lines increased by 508,000 in the quarter and by 1.8 million over the last twelve months; Charter served 13.5 million mobile lines as of September 30, 2026.
• Pro forma Spectrum Internet customers declined by 233,000 in the quarter; Charter served 34.3 million Internet customers.
• Pro forma video customers decreased by 77,000 in the quarter; Charter served 13.8 million video customers.
• Legacy Charter added 440,000 mobile lines during the quarter.
• Charter launched Spectrum's products, pricing, and packaging across the legacy Cox footprint on September 16, 2026, covering more than 11 million homes and businesses.
• Spectrum launched its Invincible WiFi product in February 2026, featuring a tri-band advanced WiFi 7 router with 5G cellular and battery backup.
• Charter activated 116,000 subsidized rural passings during the third quarter.
• Revenue by segment (pro forma): Internet ($7.1 billion, -3.7% YoY), Mobile service ($1.2 billion, +17.3% YoY), Connectivity ($8.3 billion, -1.2% YoY), Video ($3.6 billion, -9.8% YoY), and Voice ($366 million, -6.8% YoY).
• Commercial revenue increased 0.3% year-over-year on a pro forma basis.
• Advertising sales revenue increased 21.0% year-over-year on a pro forma basis, driven by higher political advertising revenue.

Market and Competitive Landscape:

• The Cox Transactions, completed on August 19, 2026, added more than 11 million passings and over 5 million customer relationships, making Charter the nation's leading Internet and video provider.
• The acquisition expanded Charter's presence in high-growth markets including Phoenix and Las Vegas.
• Charter serves more than 70 million homes and businesses across 45 states.
• Spectrum Mobile offers faster wireless speeds than competitors (AT&T, T-Mobile, Verizon) based on Opensignal USA data.
• Total Customer Relationship Penetration of Estimated Passings was 51.9% as of September 30, 2026, down from 54.5% in the prior year.

Risks and Challenges:

• The Company faces risks related to sustaining and growing revenues in the face of aggressive competition from incumbent telephone companies, DBS operators, wireless broadband, and fiber providers.
• Rising programming costs, including retransmission consents and distribution requirements, pose a challenge to offsetting costs through price increases.
• The integration of the Cox Transactions involves risks regarding the ability to achieve cost synergies and growth opportunities.
• Increased indebtedness resulting from the Cox Transactions and Liberty Broadband Transaction may decrease operating flexibility and increase interest expense.
• General business conditions, economic uncertainty, and housing sector activity levels could impact the business.

Management Commentary and Tone:

• CEO Chris Winfrey stated the combination of Charter and Cox provides the scale to connect more Americans than ever before and declared the intent to return Charter to Internet customer growth.
• Management emphasized a "fundamental redesign" of operations to reduce complexity, accelerate decision-making, and focus resources on growth.
• The tone indicates urgency to deliver value to customers and stronger results for investors, describing the new operating model as "decisive steps" to unlock potential.
• Management highlighted improvements in customer trends across the legacy Cox footprint following the product launch.

Other Key Points:

• Charter exchanged $5.5 billion in aggregate principal amount of secured notes for approximately $4.0 billion in cash and new secured notes, resulting in approximately $1.5 billion in deleveraging.
• The Company repaid $1.0 billion of legacy Cox notes at maturity during the quarter.
• Charter purchased 139,807 shares of Charter Class A common stock for $19 million during the third quarter.
• The Company issued $4.75 billion in new senior secured notes during the quarter to pay cash consideration for the Cox Transactions and for general corporate purposes.
• Transition expenses totaled $76 million for the quarter.
• Pro forma total customer relationships decreased by 238,000 in the quarter, while actual total customer relationships increased by 5,192,000 due to the inclusion of Cox.