What Would Charter’s CEO Say Now?

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Shareholders of Charter Communications (CHTR) would probably hear from its chief executive that the business is holding up far better than the stock. Over the past year, the shares fell 57.0%, while the S&P 500 returned 15.0%.

Yet the business itself has barely shrunk. Charter’s revenue over its latest four quarters was 1.5% below the four quarters before. What did management point to on its July call, where the profit figures came from CFO Jessica Fischer, who stepped down on October 15?

Management Says Charter’s Quarterly Profit Was Flat

Management’s first point was that profit held up in the second quarter of 2026. Net income attributable to Charter shareholders was $1.3 billion, essentially flat with a year earlier, management said on the July 24, 2026 call.

Management’s second point looked ahead. For 2026 as a whole, management expects EBITDA for Charter on its own, excluding the impact of transition costs, to “decline around 1% year-over-year.” EBITDA is a common measure of operating profit before interest, taxes, depreciation and amortization.

Those are fair points, and management was open about the details. The flat quarterly profit included a gain on debt Charter bought back in the open market, and the outlook covers Charter without Cox, whose deal the company completed on August 20, 2026.

Charter’s Price Fell Far More Than Its Profit

Charter’s net income over its latest four quarters fell to $4.92 billion from $5.26 billion a year earlier, marking a far smaller slide than the stock’s. Based on Charter’s share count at the end of June, before the Cox and Liberty Broadband deals closed, investors pay 2.6 times those earnings for the shares, against 22.6 times for the S&P 500.

On that measure, Charter’s shares are cheaper than at any quarter-end in the past ten years. Charter also carries a large debt load: at the end of June, before the Cox deal closed, it owed $96.7 billion.

Charter Is Signing Up Fewer New Internet Customers

One weak spot in the July report was Internet customers. Charter lost 172,000 of them in the second quarter, counting homes and small businesses. Management said that decline came from fewer new connections, while the rate at which customers left was essentially flat. Management pointed to more competition than a year ago from fixed wireless and fiber providers.

Management also linked this to its outlook. When asked on the call what had changed in its EBITDA outlook, management said part of it was what it expected for broadband subscribers and revenue per customer, after some offers it had hoped would work did not work out as well. In management’s own telling, broadband customers are part of where 2026 has fallen short of its plans.

Bigger Rivals Keep Less Of Each Dollar Than Charter

Charter kept 23.8 cents of operating profit from every dollar of sales over its latest four quarters, against 14.7 cents at Comcast. AT&T, Verizon and T-Mobile, all larger companies, also kept less, each over its own latest four quarters.

The business also produces a lot of cash. Over its latest four quarters, Charter generated $4.36 billion of free cash flow, the cash left after running and upgrading its network, equal to about a third of what its shares are worth. Spectrum Mobile grew as well: Charter added 1.7 million mobile lines in the twelve months to June, growth of 16%.

Management expects Charter to return to broadband growth over time. Charter’s count of Internet customers is the number to watch, and its next report is expected in November 2026.

Does This Mean You Should Act On CHTR?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

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