Charter Communications Inc. (NASDAQ:CHTR) stock gained after it reported mixed fiscal fourth-quarter 2025 results on Friday.
The company clocked a quarterly revenue decline of 2.3% year-on-year to $13.60 billion, missing the analyst consensus estimate of $13.74 billion. EPS of $10.34 topped the analyst consensus estimate of $9.90.
The topline performance reflects lower residential video and political advertising revenues.
The company lost 119,000 internet customers compared to a decline of 177,000 in the year-ago period, which included the impact of disconnects related to the end of the FCC’s Affordable Connectivity Program in the second quarter of 2024.
Charter’s total video customers increased by 44,000 compared to a decline of 123,000 in the previous year, driven by pricing and packaging launched in September 2024 and the inclusion of programmers’ streaming applications in Spectrum’s expanded basic packages.
The company’s total mobile lines increased by 428,000 during the quarter, reaching 11.8 million as of Dec. 31, 2025.
Its adjusted EBITDA margin expanded by 40 bps to 41.8%.
Cash Flow and Capital Spending
The quarterly free cash flow of $773 million declined from $984 million Y/Y, driven by higher capital expenditures.
As of Dec. 31, Charter served 29.7 million Internet customers.
Net cash flow from operating activities totaled $3.76 billion during the quarter.
As of Dec. 31, the company held $477 million in cash and equivalents.
Charter is contending with intensifying competition from fixed wireless and fiber broadband providers, which are eroding its home internet subscriber base, even as its mobile business continues to add customers.
At the same time, cord-cutting is weighing on the company’s TV segment as viewers shift toward streaming services.
To counter that trend, Charter rolled out a video app marketplace last year that lets customers access streaming apps bundled with their traditional TV packages.
2026 Outlook
Charter Communications now expects capital expenditures (capex) of approximately $11.4 billion versus $11.7 billion in fiscal 2025.
CHTR Price Action: Charter Communications shares were up 8.54% at $207.87 at the time of publication on Friday, according to Benzinga Pro data.
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