Charter Communications Fourth Quarter and Full Year 2025 Results January 30, 2026 Cautionary Statement Regarding Forward-Looking Statements This quarterly presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as ...

Core Viewpoint - Charter Communications reported a decline in fourth-quarter revenue, primarily due to reduced political advertising income and ongoing losses in internet subscribers amid heightened competition from fixed wireless providers [1] Revenue Performance - The company experienced lower fourth-quarter revenue, which was negatively impacted by a decrease in political advertising income [1] - The specific figures for the revenue decline were not provided in the excerpt, but the overall trend indicates a challenging environment for the company [1] Subscriber Trends - Charter Communications continued to see a decline in internet subscribers, reflecting increased competition in the market [1] - The competition from fixed wireless providers is identified as a significant factor contributing to the loss of subscribers [1]

Company Overview - The company serves 58 million homes and businesses across 41 states through its Spectrum brand, focusing on high-quality, competitively priced products [20]. - The company has invested $7.7 billion in its rural construction initiative since early 2022, activating approximately 1.3 million passings to expand broadband connectivity services [26]. - The company reported a total of 11,766 thousand mobile lines as of December 31, 2025, up from 9,858 thousand in 2024, indicating growth in mobile service adoption [36]. Internet and Connectivity Services - Spectrum Internet offers speeds up to 1 Gbps, with plans to provide symmetrical and multi-gigabit speeds across its entire footprint in the coming years [21]. - Spectrum Business provides Internet speeds up to 1 Gbps across its entire footprint, including a full range of video programming and business services [51]. - The mid-market and large business segment offers connectivity services with speeds up to 100 Gbps, addressing the needs of large businesses and government entities [52]. - The company offers specialized low-cost Internet services for qualified low-income households, including a 50 Mbps service and a 100 Mbps service [63]. - Spectrum plans to deploy WiFi 7 routers to unlock multi-gigabit speeds for nearly 500 million connected devices in customer homes and businesses [70]. Mobile and WiFi Services - The Advanced WiFi service is available to all Internet customers, providing enhanced security and control over connected devices [21]. - The company plans to launch the Invincible WiFi™ product in early 2026, featuring a tri-band advanced WiFi 7 router with 5G integration and battery backup [39]. - The Spectrum Mobile service utilizes a network of 49 million out-of-home WiFi access points and Verizon's cellular network, enhancing customer connectivity [41]. Video Services - The company has completed deals with major programmers to enhance video service offerings, including seamless entertainment applications at no additional cost [46]. - The Xumo stream boxes are deployed to new video customers, combining live TV with access to hundreds of content applications [47]. - The video on demand (VOD) service offers approximately 100,000 titles, accessible at no additional cost for linear subscription customers or for a fee on a transactional basis [49]. Advertising and Marketing - Spectrum Reach enables local advertising across up to 100 channels in over 90 markets, leveraging a large footprint to reach broader regional audiences [54]. - The company’s marketing strategy focuses on bundled services, aiming to increase the number of services sold per customer relationship and improve customer retention [78]. Financial Performance and Debt - As of December 31, 2025, the company had approximately 91,900 active full-time equivalent employees, with a focus on attracting and retaining highly-skilled U.S.-based talent [136]. - The company has a total debt of approximately $94.6 billion and a leverage ratio of 4.15 times Adjusted EBITDA as of December 31, 2025 [163]. - The company expects to incur additional debt, including $4.0 billion for the Cox Transactions and assuming approximately $12.6 billion of net debt from Cox Communications [163]. Regulatory and Compliance Challenges - The FCC's new rules require service providers to report broadband availability twice a year, with potential penalties for inaccurate reporting [123]. - The Communications Act imposes a cap on franchise fees of 5% of gross revenues from cable services, affecting operational costs [113]. - Federal courts have allowed states to regulate broadband Internet access services, leading to potential compliance challenges for Charter [118]. - The company is subject to various federal and state laws governing information security, with significant compliance deadlines approaching, including a cybersecurity audit certification due by April 1, 2028 [130]. Competition and Market Landscape - The company faces competition from FTTH providers like AT&T and Verizon, with approximately 27% and 16% of its operating footprint overlapping with these competitors [83]. - The company’s residential video service competes with various streaming services and traditional MVPDs, facing challenges from exclusive content offerings [86]. - The company is facing challenges in passing on programming cost increases to video customers, which is expected to adversely impact cash flow and operating margins [156]. Corporate Governance and Transactions - The company is involved in a merger with Liberty Broadband, which includes the acquisition of approximately 41.5 million shares of Charter Class A common stock [96]. - The completion of the Cox Transactions is contingent on several conditions, including regulatory approvals and the absence of adverse legal actions [186]. - The anticipated integration of Cox Communications may face challenges, including potential loss of key employees and disruption of ongoing businesses, which could delay expected cost savings [203]. Employee Compensation and Benefits - The company offers a starting minimum wage of at least $20 per hour for all hourly employees, significantly above state and federal minimum wage levels [139]. - Approximately 80% of employees are eligible for additional variable compensation based on performance, including annual bonuses for frontline supervisors and salaried employees [139]. - The company has absorbed the full premium cost increase for medical, dental, and vision coverage for the last 13 years, keeping it affordable for employees [139]. Cybersecurity and Data Privacy - The company is vulnerable to cybersecurity risks, including potential unauthorized access to networks and information systems, which could negatively impact operations and reputation [145]. - Legislative changes regarding consumer data privacy and security are ongoing, with new laws being enacted in multiple states that could impose additional requirements on the company [132].

Financial Performance - In Q4 2025, Charter reported total revenue of $13.6 billion, a decline of 2.3% year-over-year, primarily due to lower residential video and political advertising revenues[16] - For the full year 2025, net income attributable to Charter shareholders was $5.0 billion, with Q4 net income at $1.3 billion[6] - Fourth quarter Adjusted EBITDA was $5.7 billion, a decline of 1.2% year-over-year, reflecting a revenue decline of 2.3%[32] - The net income attributable to Charter shareholders for Q4 2025 was $1,332 million, a decrease from $1,466 million in Q4 2024, resulting in a diluted earnings per share of $10.34[58] - Consolidated net income for the three months ended December 31, 2025, was $1,546 million, a decrease from $1,676 million in the same period of 2024[63] Customer Metrics - As of December 31, 2025, Charter served 29.7 million Internet customers, a decrease of 119,000 from the previous quarter[6] - Charter's total customer relationships as of December 31, 2025, were 31.8 million, reflecting a year-over-year decline of 1.1%[7] - Total connectivity quarterly net additions were negative at (95) thousand for the three months ended December 31, 2025, compared to (119) thousand in the previous quarter[66] - The total number of customer relationships, including mobile customers, was revised to better reflect the integrated nature of the business, with adjustments made to prior periods[72] Revenue Breakdown - Internet revenue grew by 0.7% year-over-year to $5.9 billion, driven by promotional rate step-ups and rate adjustments, despite a decline in Internet customers[19] - Mobile service revenue increased by 13.1% year-over-year to $973 million, driven by mobile line growth[20] - Video revenue totaled $3.2 billion, a decrease of 10.3% year-over-year, impacted by a higher mix of lower-priced packages and increased costs allocated to streaming applications[21] - Voice revenue decreased by 10.3% year-over-year to $316 million, primarily due to a decline in wireline voice customers[22] - Fourth quarter 2025 monthly residential revenue per residential customer was $117.19, a decrease of 1.2% year-over-year, attributed to a higher mix of lower-priced video packages and a decline in video customers[18] Capital Expenditures and Cash Flow - Capital expenditures for 2025 amounted to $11.7 billion, including $3.9 billion for line extensions[6] - Free cash flow for the full year 2025 increased to $5.0 billion from $4.3 billion in 2024, driven by lower cash taxes and interest payments[6] - Free cash flow in the fourth quarter was $773 million, a decrease of $211 million year-over-year, driven by higher capital expenditures[36] - Total capital expenditures for the year ended December 31, 2025, were $11,659 million, up from $11,269 million in 2024[69] Debt and Liquidity - As of December 31, 2025, total principal amount of debt was $94.6 billion, with additional liquidity of approximately $4.4 billion[37] - Charter's long-term debt stood at $94,006 million as of December 31, 2025, an increase from $92,134 million in 2024[61] - Cash paid for interest for the year ended December 31, 2025, was $4,983 million, down from $5,334 million in 2024[63] Operational Initiatives - Charter activated 147,000 subsidized rural passings in Q4 2025, contributing to a total of 483,000 for the year[11] - The company plans to launch its Invincible WiFi product in early 2026, featuring a tri-band advanced WiFi 7 router with 5G integration[8] - The company continues to invest in scalable infrastructure to support growth and service enhancements, indicating a commitment to long-term expansion[72] - The subsidized rural construction initiative includes projects receiving government subsidies, highlighting the company's focus on expanding service areas[72] Customer Account Management - As of December 31, 2025, approximately 82,300 customers had accounts over 60 days past due, down from 102,500 customers a year earlier, indicating a 19.7% improvement[72] - The company reported a significant reduction in customers over 90 days past due, with 9,700 customers as of December 31, 2025, compared to 12,100 a year prior, marking a 19.8% decrease[72] - The aging of customer accounts is calculated based on the monthly billing cycle, with a focus on improving collection policies[72]

Core Insights - Charter Communications reported a decline in total Internet customers by 119,000 in Q4 2025, bringing the total to 29.7 million customers as of December 31, 2025 [1][4] - The company experienced an increase of 428,000 mobile lines in Q4 2025, resulting in a total of 11.8 million mobile lines [1][7] - Charter's Q4 2025 revenue was $13.6 billion, a decrease of 2.3% year-over-year, primarily due to lower residential video and political advertising revenues [4][15] - The net income attributable to Charter shareholders for Q4 2025 was $1.3 billion, down from $1.5 billion in Q4 2024 [4][30] - Adjusted EBITDA for Q4 2025 was $5.7 billion, reflecting a decline of 1.2% year-over-year [4][32] Financial Performance - Total revenue for the year ended December 31, 2025, was $54.8 billion, a decrease of 0.6% compared to 2024 [4][15] - Q4 2025 residential revenue totaled $10.4 billion, down 2.4% year-over-year, driven by a decline in residential customers and a decrease in monthly revenue per residential customer [4][16] - Internet revenue grew by 0.7% year-over-year to $5.9 billion, supported by promotional rate adjustments [4][19] - Mobile service revenue increased by 13.1% year-over-year to $973 million, driven by mobile line growth [4][20] - Video revenue decreased by 10.3% to $3.2 billion, impacted by a higher mix of lower-priced video packages and a decline in video customers [4][21] Customer Metrics - As of December 31, 2025, total customer relationships were 31.8 million, with connectivity customers totaling 30.6 million [4][11] - The total number of video customers increased by 44,000 in Q4 2025, contrasting with a decline of 123,000 in Q4 2024 [8] - The company activated 147,000 subsidized rural passings in Q4 2025, contributing to a total of 483,000 for the year [11] Capital Expenditures and Cash Flow - Capital expenditures for Q4 2025 were $3.3 billion, an increase of 8.9% year-over-year, driven by network evolution spending [4][33] - Free cash flow for Q4 2025 was $773 million, a decrease from $984 million in the prior year, primarily due to higher capital expenditures [4][36] - Net cash flows from operating activities totaled $3.8 billion in Q4 2025, up from $3.5 billion in Q4 2024 [4][35] Debt and Financing - As of December 31, 2025, Charter's total principal amount of debt was $94.6 billion, with additional liquidity of approximately $4.4 billion from credit facilities [4][37] - In January 2026, Charter issued $1.75 billion in senior notes due February 2033 and $1.25 billion in senior notes due February 2036 [4][38]

Core Viewpoint - Charter Communications is expected to report a decline in fourth-quarter earnings and revenue compared to the previous year [1][2] Group 1: Earnings Expectations - Analysts anticipate Charter Communications will report fourth-quarter earnings of $9.88 per share, down from $10.1 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $13.73 billion, a decrease from $13.93 billion reported in the previous year [1] Group 2: Recent Financial Activity - On January 13, Charter Communications announced the closure of $3.0 billion in aggregate principal amount of senior unsecured notes [2] - Following this announcement, shares of Charter Communications increased by 4.8%, closing at $191.52 [2]

Core Viewpoint - Charter Communications is expected to report a decline in fourth-quarter earnings and revenue compared to the previous year [1] Group 1: Earnings Expectations - Analysts anticipate Charter Communications will report fourth-quarter earnings of $9.88 per share, down from $10.1 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $13.73 billion, a decrease from $13.93 billion reported in the previous year [1] Group 2: Recent Financial Activity - On January 13, Charter Communications announced the closure of $3.0 billion in aggregate principal amount of senior unsecured notes [2] - Following this announcement, shares of Charter Communications increased by 4.8%, closing at $191.52 [2]

ToplineThe S&P 500 surpassed 7,000 points as trading opened Wednesday, the latest milestone for the nearly 70-year-old index as big tech has boosted the market in recent years. The index, tracking the largest American companies, is fueled by big tech's skyrocketing growth.AFP via Getty ImagesKey FactsThe S&P 500 briefly rose to 7,001 shortly after trading commenced on Wednesday, before gains pared back to just 0.2% below the 7,000-point threshold.Broader gains were headlined by Intel, whose shares surged 9. ...

Core Viewpoint - The communication services sector has several oversold stocks that present potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - iHeartMedia Inc (NASDAQ:IHRT) has an RSI of 29.6, with shares falling 5.8% to close at $3.39, and a 52-week low of $0.95 [3][6] - Reddit Inc (NYSE:RDDT) has an RSI of 28.8, with shares declining 8.1% to close at $196.30, and a 52-week low of $79.75 [4][6] - Charter Communications Inc (NASDAQ:CHTR) has an RSI of 27.8, with shares dropping 5.6% to close at $182.99, and a 52-week low of $182.54 [5][6]

Core Insights - Investors are showing a bearish sentiment towards Charter Communications, with 69% of trades being bearish and only 13% bullish [1] - The major market movers are focusing on a price range between $100.0 and $300.0 for Charter Communications over the last three months [2] - The mean open interest for options trades is 832.61, with a total volume of 10,825.00 [3] Options Activity - Significant options trades indicate a bearish sentiment, with multiple call options being traded at strike prices around $100.00 [6] - The total amount for put options is $893,040, while call options total $20,950,502, highlighting a preference for bearish positions [1] Company Overview - Charter Communications is the result of a merger in 2016, serving approximately 58 million homes and businesses in the US, making it the second-largest cable company [7] - The company operates under the Spectrum brand, with 29 million residential and 2 million commercial customer accounts [7] Analyst Insights - Analysts propose an average target price of $210.0, with one analyst from Wells Fargo lowering the rating to Underweight and setting a new target of $180 [9] - Another analyst from Bernstein maintains a Market Perform rating with a target price of $240 [11] Current Market Position - Charter Communications' stock is currently trading at $185.73, down by 4.16%, with an anticipated earnings release in three days [10]