Charter Q1 2026 Results Signal Weak Broadband
Charter Q1 2026 results show revenue decline and larger-than-expected broadband losses that produced an EPS miss and complicate capital plans.
KEY TAKEAWAYS
- Charter lost 120,000 residential Internet customers, widening broadband churn and pressuring revenue.
- Revenue fell 1.0% to $13.6 billion and adjusted EBITDA slipped 2.2% to $5.6 billion.
- Spectrum Mobile added 368,000 lines while free cash flow rose to $1.4 billion.
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Charter Communications (CHTR) reported Q1 2026 results on April 24 showing a revenue decline and deeper-than-expected broadband subscriber losses as rivals’ promotions eroded Internet customers, producing an EPS miss that complicates the company’s near-term capital plans.
Revenue and Subscriber Trends
Charter’s revenue for the three months ended March 31, 2026, fell 1.0% year-over-year to $13.6 billion, driven by declines in residential video and Internet revenue partially offset by growth in residential mobile service. Diluted earnings per share rose to $9.17 from $8.42 a year earlier but missed the consensus estimate of $9.97. Adjusted EBITDA, a proxy for operating profit, slipped 2.2% to $5.6 billion.
The company lost 120,000 residential Internet customers in the quarter, widening the year-over-year decline to 455,000. Charter attributed the losses to aggressive promotions by fixed-wireless and fiber competitors. Total customer relationships fell 1.5% year-over-year to 31.7 million.
Cash Flow and Capital Plans
Spectrum Mobile added 368,000 lines in the quarter, bringing its total to 12.1 million, partially offsetting declines in video subscribers but not fully compensating for Internet churn. Free cash flow rose to $1.4 billion from $773 million in the prior quarter.
Capital expenditures totaled $2.9 billion for the quarter, with the company expecting about $11.4 billion for full-year 2026. Charter carried total debt of $94.3 billion as of March 31, leaving net leverage near 4.15 times trailing-twelve-month adjusted EBITDA. The company repurchased $1.0 billion of stock, buying 4.3 million Class A shares during the quarter, reflecting a balance between buybacks and servicing a heavy debt load amid broadband pressures.
