Charter Communications(CHTR) - 2025 Q4 - Annual Results

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]