Charter Communications(CHTR) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for the third quarter of 2025 was $13.7 billion, a decline of 0.9% year-over-year, primarily due to lower residential video and advertising sales revenues [4]. - Adjusted EBITDA for the third quarter was $5.6 billion, down 1.5% year-over-year, with a margin of 40.7% [11]. - Net income attributable to Charter shareholders was $1.1 billion, representing an 11.2% decrease compared to the prior year [11]. - Consolidated net income for Q3 2025 was $1,316 million, a decrease of 10.7% compared to $1,474 million in Q3 2024 [57]. - Free cash flow remained consistent at $1.6 billion, supported by lower cash taxes and favorable working capital [4]. - Free cash flow for the nine months ended September 30, 2025, was $4,231 million, an increase of 29.3% from $3,273 million in the same period of 2024 [46]. Customer Metrics - Internet customers decreased by 109,000 in the third quarter, totaling 29.8 million as of September 30, 2025, while mobile lines increased by 493,000, reaching 11.4 million [4]. - Total customer relationships as of September 30, 2025, were 31,058 thousand, a decrease of 1.3% from 31,207 thousand in June 2025 [59]. - Total internet customers decreased by 109 thousand in Q3 2025, compared to a decrease of 117 thousand in Q2 2025 [59]. - Total mobile lines increased to 11,390 thousand as of September 30, 2025, up from 10,897 thousand in June 2025 [59]. - Total video customers decreased by 70 thousand in Q3 2025, compared to a decrease of 80 thousand in Q2 2025 [59]. Revenue Breakdown - Monthly residential revenue per customer increased by 1.0% year-over-year to $122.63, driven by promotional rate adjustments [14]. - Video revenue decreased by 9.3% year-over-year to $3.4 billion, impacted by a decline in video customers and a higher mix of lower-priced video packages [16]. - Spectrum Mobile service revenue grew by 19.2% year-over-year to $954 million, driven by mobile line growth [15]. - Third quarter advertising sales revenue was $356 million, a decrease of 21.3% year-over-year, primarily due to lower political revenue [19]. - Other revenue reached $836 million, reflecting a 10.7% increase compared to the previous year, driven mainly by higher mobile device sales [20]. Capital Expenditures - Capital expenditures for the third quarter totaled $3.1 billion, which included $1.0 billion for line extensions [4]. - Capital expenditures totaled $3.1 billion, an increase of $488 million year-over-year, driven by higher spending on network evolution and infrastructure [28]. - Charter expects full year 2025 capital expenditures to be approximately $11.5 billion, contingent on various operational factors [29]. - Total capital expenditures for the three months ended September 30, 2025, were $3.051 billion, an increase from $2.563 billion in the same period of 2024, representing a growth of 19% [62]. - For the nine months ended September 30, 2025, total capital expenditures reached $8.324 billion, compared to $8.207 billion in 2024, reflecting a slight increase of 1.4% [62]. Debt and Liquidity - As of September 30, 2025, total principal amount of debt was $95.0 billion, with additional liquidity of approximately $4.0 billion from credit facilities [32]. - Cash and cash equivalents as of September 30, 2025, were $464 million, compared to $459 million at the end of 2024 [54]. - Cash paid for interest in Q3 2025 was $1,171 million, a slight decrease from $1,214 million in Q3 2024 [57]. - The company reported a net cash outflow from investing activities of $3,157 million in Q3 2025, compared to $2,439 million in Q3 2024 [57]. Customer Operations - Customer operations expenses decreased by $19 million, or 2.4% year-over-year, mainly due to a reduction in bad debt expense [23]. - The number of customers with accounts over 60 days past due decreased to approximately 87,100 as of September 30, 2025, from 127,300 in the same period of 2024, a reduction of 31.6% [65]. - The company continues to align its collection procedures with industry practices, which has impacted the aging of customer accounts positively [65].