CHTR

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Charter Communications

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Market Data

Financials

XBRL · SEC EDGAR

2010–2025(16yr)

Revenue

Net Income

Free CF

Metric	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$7.1B	$7.2B	$7.5B	$8.2B	$9.1B	$9.8B	$29.0B	$41.6B	$43.6B	$45.8B	$48.1B	$51.7B	$54.0B	$54.6B	$55.1B	$54.8B	-0.6%
Operating Income	$1.0B	$1.0B	$916.0M	$925.0M	$971.0M	$1.1B	$3.4B	$4.1B	$5.2B	$6.5B	$8.4B	$10.5B	$12.0B	$12.6B	$13.1B	$12.9B	-1.6%
Operating Margin	14.5%	14.5%	12.2%	11.3%	10.7%	11.4%	11.6%	9.9%	12.0%	14.2%	17.5%	20.4%	22.1%	23.0%	23.8%	23.6%	-0.2pp
Net Income	-$237.0M	-$369.0M	-$304.0M	-$169.0M	-$183.0M	-$271.0M	$3.5B	$9.9B	$1.2B	$1.7B	$3.2B	$4.7B	$5.1B	$4.6B	$5.1B	$5.0B	-1.9%
Net Margin	-3.4%	-5.1%	-4.1%	-2.1%	-2.0%	-2.8%	12.1%	23.8%	2.8%	3.6%	6.7%	9.0%	9.4%	8.3%	9.2%	9.1%	-0.1pp
Free Cash Flow	$719.0M	$426.0M	$131.0M	$333.0M	$138.0M	$519.0M	$2.7B	$3.3B	$2.6B	$4.6B	$7.1B	$8.6B	$5.5B	$3.3B	$3.2B	$4.4B	+39.8%
FCF Margin	10.2%	5.9%	1.7%	4.1%	1.5%	5.3%	9.4%	7.9%	6.1%	9.9%	14.9%	16.6%	10.3%	6.1%	5.7%	8.1%	+2.3pp
EPS (Diluted)	—	—	—	—	$-1.88	$-2.68	$15.94	$34.09	$5.22	$7.45	$15.40	$24.47	$30.74	$29.99	$34.97	$36.21	+3.5%

Total Debt$94.8B

Cash & Equiv.$477.0M

Net Debt$94.3B

3 min read

1. THE BIG PICTURE

Charter is no longer a cable company; it is a broadband and mobile utility fighting a war of attrition. While its legacy video business is in double-digit decline, Charter Communications is using its "fiber-powered" network to aggressively bundle mobile services, betting that "converged" connectivity will lower customer churn enough to justify its $95.4 billion net debt.

2. WHERE THE RISKS HIT HARDEST

The "converged connectivity" strategy is threatened by Charter’s $94.6 billion debt load because interest rate fluctuations could sap the cash flow required to fund the multi-year DOCSIS 4.0 and "high split" network upgrades (10-K Item 1A). Furthermore, the claimed advantage of its "fiber-powered network" is challenged by 5G mobile and fiber-to-the-home rivals; their aggressive pricing directly attacks Charter’s ability to maintain its 23.6% operating margin, which is currently the highest among its peers (XBRL). Finally, the rural construction initiative—intended to generate long-term infrastructure returns—is complicated by the pending Cox and Liberty Broadband integrations, which introduce significant execution risks during a period of revenue contraction (8-K).

3. WHAT THE NUMBERS SAY TOGETHER

Revenue fell 2.3% in the most recent quarter, a sharper decline than the -0.6% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter figure, indicating that the collapse in video (-10.3%) and voice (-10.3%) is currently outpacing the rapid gains in mobile (+13.1%) (8-K). Despite this top-line pressure, Charter maintains a peer-leading operating margin of 23.6%, suggesting it is extracting significant efficiency from its U.S.-based workforce even as its legacy business mix shifts (XBRL). However, market sentiment remains skeptical; short interest stands at 26.2% of the float, likely reflecting concerns over a 9.7% FCF margin that trails most peers and a net debt position that is nearly 18 times its annual free cash flow (Yahoo Finance).

4. IS IT WORTH IT AT THIS PRICE?

At 4.5x Forward P/E, Charter is the cheapest in its peer group, trading at a 53% discount to the peer median of 9.7x (XBRL). At this multiple, the market is pricing in a long-term growth rate of just 0.5% (CAPM analysis). This valuation is "attractively valued" because Charter is returning 16.1% of its market cap to shareholders via buybacks—the highest yield in the group—despite the current revenue contraction. For this price to be right, Charter must prove that its "Spectrum One" bundling can stabilize broadband margins; if growth were to align with broader GDP (2.5%), the justified multiple would rise to 13.1x. The primary risk that could force investors to pay even less is the 17.9x net leverage, which makes the equity highly sensitive to any further erosion in connectivity margins.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if mobile revenue growth accelerates beyond the current 13.1% to fully offset the $3.2 billion quarterly decline in video revenue.
Cautious if the leverage ratio exceeds 4.15x Adjusted EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments, signaling that debt is growing faster than Charter Communications's ability to generate earnings (10-K Item 1A).
Cautious if rural expansion fails to maintain the activation rate of 147,000 passings per quarter, stalling the "infrastructure-style returns" management has promised (8-K).

6. BOTTOM LINE

Structural Advantage: Scale-driven cost efficiencies from a proprietary fiber-powered network and an aggressive buyback program that returns 16.1% of market cap to shareholders. Bottom Line: Charter is a high-leverage bet on the "converged bundle" surviving the structural death of cable television.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Competitive Environment: Charter Communications operates in a highly competitive market where rivals offer fiber-to-the-home, satellite, and 5G mobile services. This competition, often characterized by aggressive pricing and marketing, threatens Charter Communications's ability to attract and retain customers.
Indebtedness: With a total principal debt of approximately $94.6 billion and a leverage ratio of 4.15 times Adjusted EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments as of December 31, 2025, Charter Communications faces risks related to its ability to raise capital, refinance existing debt at favorable rates, and maintain sufficient cash flow for operations.
Programming Costs: Programming expenses represent one of the largest cost items for Charter Communications. Charter Communications faces pressure from annual contractual rate increases that it may be unable to fully pass on to video customers, potentially compressing operating margins.
Cybersecurity and System Disruptions: Charter Communications’s reliance on complex network and information systems exposes it to risks from cyberattacks, power outages, and natural disasters. Such events could lead to service disruptions, reputational damage, and significant repair or replacement expenditures.
Integration of Strategic Transactions: The pending Cox Transactions and Liberty Broadband Combination require significant management attention and capital. Failure to integrate these businesses or realize anticipated cost savings could negatively impact Charter Communications’s financial results and stock price.

2. Company-Specific Risks

Governance Influence: Liberty Broadband and Advance/Newhouse Partnership (A/N) hold significant voting stakes and governance rights, allowing them to exert substantial influence over corporate transactions and board composition, which may not always align with the interests of other stockholders.
Preemptive Rights: Existing stockholders agreements grant A/N, Liberty Broadband, and potentially Cox Enterprises preemptive rights regarding equity issuances, which may lead to further dilution for other holders of Charter Communications Class A common stock.
Vendor Dependency: Charter Communications relies on a limited number of third-party providers for hardware, software, and operational support. The loss of a sole-source vendor or a vendor's inability to meet demand could delay network evolution and rural construction initiatives.
Spectrum Licenses: Charter Communications holds CBRS PALs to support mobile services. The potential revocation or expiration of these licenses could impair Charter Communications's ability to offload mobile traffic and achieve expected cost reductions.

3. Regulatory/Legal Risks

Universal Service Fund (USF) Litigation: A petition challenging the statute governing the USF could adversely affect Charter Communications’s receipt of E-rate and Rural Health Care funds.
Subsidy Program Compliance: As a participant in the FCC’s Rural Digital Opportunity Fund (RDOF) auction, Charter Communications is subject to strict infrastructure build-out requirements. Failure to comply could result in penalties, forfeiture of funding, or suspension from future government programs.
Franchise Renewals: Cable systems operate under non-exclusive franchises that require periodic renewal. A failure to renew or the imposition of unfavorable terms by local franchising authorities could disrupt operations in specific geographic areas.
Tax and Fee Legislation: Charter Communications is subject to complex federal, state, and local tax laws. Legislative changes or administrative challenges to tax positions could increase Charter Communications’s effective tax rate or result in additional tax liabilities.

4. Financial Impact Map

Competitive Environment → Revenue → Increased customer churn and pressure on pricing strategies could reduce top-line growth. Indebtedness → Interest Expense → Approximately 13% of borrowings as of December 31, 2025, are subject to variable interest rates, exposing Charter Communications to increased costs. Programming Costs → Operating Margins → Inability to pass on rising programming rates to customers directly impacts the profitability of the video product. Cybersecurity and System Disruptions → Capital Expenditures → Significant resources may be required to repair or replace damaged networks and information systems. Integration of Strategic Transactions → Cash Flow → Charter Communications is obligated to fund $4.0 billion in cash consideration for the Cox Transactions and may incur substantial advisory, legal, and integration expenses.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
8-K	Jan 2026	—
10-K	Jan 2026	Dec 2025
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—