Charter Communications (CHTR) Stock Tumbles on Broadband Customer Exodus and Declining Q2 Revenue

Key Takeaways

• CHTR shares plunged up to 13% in premarket before recovering to close down approximately 1.6%
• Second quarter revenue declined 1.7% to $13.53 billion, the fourth consecutive quarterly revenue drop
• Earnings per share of $10.66 surpassed analyst expectations of $10.00, though subscriber declines stole the spotlight
• Broadband customers decreased by 172,000 to 29.4 million; video subscribers fell 21,000 to 12.5 million
• Wireless service provided a silver lining — 406,000 new lines added, pushing mobile base up 15.5% annually

Charter Communications delivered mixed second quarter results on Friday, surpassing earnings expectations while missing on revenue as the cable giant continued to hemorrhage broadband and video customers.

Shares of CHTR plummeted as much as 13% during early premarket hours before staging a partial recovery. By the opening bell, the stock had stabilized somewhat, trading down about 1.6%.

Charter Communications, Inc., CHTR

The company reported quarterly revenue of $13.53 billion, representing a 1.7% year-over-year decrease and roughly matching analyst projections. This marked Charter’s fourth consecutive quarter of shrinking revenue.

Adjusted earnings per share reached $10.66, topping Wall Street’s consensus forecast of $10.00. The company posted net income of $1.29 billion for the period.

The earnings beat couldn’t mask the challenging subscriber trends. Charter shed 172,000 internet customers throughout the quarter, reducing its total broadband subscriber count to 29.4 million. Internet revenue declined 3.2% compared to the prior year, totaling $5.8 billion.

The company’s traditional broadband business continues facing headwinds from fixed wireless and fiber competitors. Charter has reported broadband subscriber losses across multiple consecutive quarters.

The video segment saw a decline of 21,000 subscribers to roughly 12.5 million. However, this represents progress when compared to the 80,000 video customer loss recorded during Q2 2025.

Wireless Division Delivers Bright Spot

The mobile business emerged as the quarter’s highlight. Charter brought on 406,000 new mobile lines during the period, expanding its Spectrum Mobile customer base to 12.5 million — representing a 15.5% jump from the previous year.

Mobile service revenue surged 18.9% year-over-year to $1.1 billion. This segment has evolved into a significant revenue driver as Charter intensifies its wireless expansion efforts.

CEO Chris Winfrey outlined a clear approach: “Deliver the best products, at the best overall value, with the best service.”

Adjusted EBITDA dropped 4.3% versus the prior year to $5.4 billion. When stripping out transition expenses related to the pending Cox acquisition, the decrease would have measured 3.2%.

The company generated free cash flow of $969 million, down $77 million compared to the same quarter last year, primarily driven by shifts in accrued capital expenditure expenses.

Cox Acquisition on Track for August Completion

During the quarter, Charter bought back 4.0 million shares for $838 million.

The company maintained its full-year 2026 capital expenditure forecast of roughly $11.4 billion, not including impacts from the Cox transaction.

Charter’s $21.9 billion acquisition of Cox Communications remains on schedule for completion in mid-to-late August.

Winfrey informed analysts he anticipates the combination will “drive better internet customer performance and unit growth, acceleration with very underpenetrated mobile and video.”

Charter indicated that capital expenditures should follow a “meaningful downward trajectory” following 2026.

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