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Charter: Charter Communications' Q4 2025 Earnings: A Resilient Performance Amidst a Competitive Landscape

Charter Communications reported a revenue decline of 2% year over year in Q4 2025, with a slight decline of 0.4% when excluding advertising revenue and programmer app allocation. Despite the challenging environment, the company demonstrated resilience, with adjusted EBITDA declining by only 1.2% year over year. Earnings per share (EPS) came in at $10.34, beating analyst estimates of $9.78. The company's capital expenditures totaled $3.3 billion, higher than the previous year's Q4, but in line with expectations. Free cash flow was $773 million, impacted by a less favorable change in working capital and higher CapEx.

CHTR

USD 213.61

3.63%

A-Score: 4.6/10

Publication date: January 30, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Decline: 2025 revenue fell 0.5% year-over-year, with Q4 revenue down 2% YoY, driven by political advertising challenges and customer losses.
  • Customer Metrics: Residential Internet lost 119,000 customers (better than 2024’s 135,000), while video gained 44,000 and rural markets added 46,000 net customers in Q4.
  • Capital Expenditures: Q4 CapEx rose to $3.3 billion, with 2026 guidance at $11.4 billion, but plans to reduce to under $8 billion by 2028 to boost free cash flow ($773 million in Q4).
  • EBITDA Growth: 2025 full-year adjusted EBITDA grew 0.6% YoY, with Q4 down 1.2% YoY, but 2026 guidance projects slight growth excluding transition costs.
  • Debt and Share Repurchases: Net debt/EBITDA remains at 4.5x (targeting 3.5-3.75x by 2028), with $760 million spent on 2.9 million share buybacks at $259 average price in Q4.

Operational Highlights

The company's operational performance was marked by a loss of 119,000 Internet customers, better than the previous year's Q4. Video customers grew by 44,000, while wireline voice customers declined by 140,000. The rural segment saw 46,000 net customer additions. The wireless offload strategy continued to gain traction, with an 89% offload rate, up from 88% in the previous quarter.

Financial Guidance and Outlook

Charter expects slight EBITDA growth, excluding transition costs, for the full year 2026. The company is planning for total 2026 capital expenditures to reach $11.4 billion, with a reduction to less than $8 billion by 2028. This reduction is expected to drive free cash flow growth. Analysts estimate revenue growth of 1.1% for the next year.

Valuation and Leverage

Charter's current valuation metrics indicate a P/E Ratio of 5.26, P/B Ratio of 1.63, and EV/EBITDA of 5.7. The Net Debt / EBITDA ratio stands at 4.44. The company is committed to reducing leverage to the low end of a new 3.5 to 3.75 times range within three years following the close of the Liberty Broadband transaction.

Strategic Initiatives

The company is focused on messaging its superior value and utility, and providing the best quality service to win in the residential and business connectivity marketplace. Charter has amended and modernized its long-term MVNO agreement with Verizon, supporting profitable growth for both companies. The convergence strategy is gaining traction, with Spectrum Mobile improving brand awareness and reputation.

Charter's A-Score