Charter Communications (CHTR) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 declined 1.0% year-over-year to $13.6 billion, mainly due to lower residential video revenue, while residential connectivity revenue grew 0.9%.

• Adjusted EBITDA decreased 2.2% year-over-year to $5.6 billion, or 1.8% excluding transition expenses.

• Net income attributable to shareholders was $1.16 billion, down from $1.22 billion in Q1 2025, with EPS rising to $9.27 due to a lower share count.

• Spectrum Mobile lines grew by 368,000 in the quarter and 1.8 million year-over-year, reaching 12.1 million total lines, up 17%.

• Internet customers declined by 120,000 in the quarter, with total Internet customers at 29.6 million.

Financial highlights

• Total revenue was $13.6 billion, down from $13.7 billion in Q1 2025.

• Adjusted EBITDA was $5.6 billion, down from $5.8 billion in Q1 2025.

• Free cash flow was $1.37 billion, down $192 million year-over-year, mainly due to higher capital expenditures.

• Capital expenditures rose to $2.9 billion, up $456 million year-over-year, driven by network evolution and CPE investments.

• Net leverage was 4.15x, or 4.22x pro forma for the Liberty Broadband transaction.

Outlook and guidance

• Full-year 2026 capital expenditures expected to be approximately $11.4 billion, with a meaningful downward trajectory beyond 2026.

• Run rate CapEx projected to fall below $8 billion per year after major initiatives conclude.

• Cash tax payments for 2026 expected between $500 million and $800 million.

• Targeting net leverage of 3.5x-3.75x within three years post-Cox and Liberty Broadband transactions.

• Management remains focused on expanding network capacity, rural broadband initiatives, and product bundling to drive growth.