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1. Company Snapshot

1.a. Company Description

Charter Communications, Inc.operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States.The company offers subscription-based video services, including video on demand, high-definition television, digital video recorder, pay-per-view services.


It provides Internet services, such as security suite that protects computers from viruses and spyware, and threats from malicious actors; in-home WiFi, which provides customers with high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; and Spectrum WiFi services, as well as video services.The company also offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations.In addition, it provides mobile services; offers video programming, static IP and business WiFi, email and security, and multi-line telephone services, as well as Web-based service management; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App for optimizes linear inventory.


Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports and news networks.It serves approximately 32 million customers in 41 states.The company was founded in 1993 and is headquartered in Stamford, Connecticut.

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1.b. Last Insights on CHTR

Breaking News: Charter Communications Inc reported Q4 earnings of $10.34 per share missing estimates of $10.4 per share. Earnings increased from $10.1 per share a year ago. Revenues declined due to weakness in video and political ads offset by growth in mobile and Internet. The company reported a revenue decline in the quarter ended December 2025. Some analysts still consider the stock a buy following recent developments. Recommendations from analysts vary with some maintaining a hold rating.

1.c. Company Highlights

2. 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.

Publication Date: Feb -02

📋 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.

3. NewsRoom

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These Analysts Increase Their Forecasts On Charter Communications Following Q4 Earnings

Feb -02

Source: benzinga.com

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Charter Communications: Way Too Cheap At 6x P/E (Upgrade)

Feb -02

Source: seekingalpha.com

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National Pension Service Boosts Stock Position in Charter Communications, Inc. $CHTR

Feb -02

Source: defenseworld.net

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Oakmark U.S. Large Value Strategy Q4 2025 Portfolio Review

Feb -01

Source: seekingalpha.com

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Charter Communications (NASDAQ:CHTR) Shares Gap Up – Still a Buy?

Feb -01

Source: defenseworld.net

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Charter Communications Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

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Charter Communications Inc (CHTR) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst Revenue Challenges

Jan -30

Source: gurufocus.com

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Charter Earnings Miss Estimates in Q4, Revenues Decline Y/Y

Jan -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Internet Telephone

Expected Growth: 7.4%

Growing demand for high-speed internet and voice services, driven by increasing adoption of streaming services and remote work, will fuel Charter's internet-based phone services growth.

7. Detailed Products

Spectrum Internet

High-speed internet services for residential and business customers

Spectrum TV

Cable television services offering live TV, On Demand, and streaming capabilities

Spectrum Voice

Home phone services with unlimited local and long-distance calling

Spectrum Business Internet

High-speed internet services for businesses of all sizes

Spectrum Business TV

Customized TV solutions for businesses, including hospitality and healthcare industries

Spectrum Enterprise

Customized network and IT solutions for large enterprises and government agencies

8. Charter Communications, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Charter Communications, Inc. faces moderate threat from substitutes due to the availability of alternative internet and TV services from competitors such as AT&T, Comcast, and Verizon.

Bargaining Power Of Customers

Charter Communications, Inc. has a large customer base, but individual customers have limited bargaining power due to the lack of alternative options and high switching costs.

Bargaining Power Of Suppliers

Charter Communications, Inc. has a diverse supplier base, and no single supplier has significant bargaining power due to the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors, including AT&T, Comcast, and Verizon, which leads to aggressive pricing and marketing strategies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 89.82%
Debt Cost 6.91%
Equity Weight 10.18%
Equity Cost 8.81%
WACC 7.11%
Leverage 881.99%

11. Quality Control: Charter Communications, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AT&T

A-Score: 7.0/10

Value: 7.5

Growth: 2.6

Quality: 5.5

Yield: 9.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Verizon

A-Score: 6.9/10

Value: 8.0

Growth: 3.1

Quality: 5.8

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

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Comcast

A-Score: 6.1/10

Value: 8.6

Growth: 5.2

Quality: 6.6

Yield: 7.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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T-Mobile US

A-Score: 5.2/10

Value: 4.5

Growth: 7.1

Quality: 5.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Charter

A-Score: 4.6/10

Value: 8.1

Growth: 7.7

Quality: 5.3

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Cogent Communications

A-Score: 4.1/10

Value: 7.7

Growth: 2.7

Quality: 2.1

Yield: 10.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

213.61$

Current Price

213.61$

Potential

-0.00%

Expected Cash-Flows