The loss of 233,000 customers represents a deterioration from the 171,000 pro forma losses recorded in the second quarter of 2025. Legacy Charter lost 156,000 internet customers, up from 109,000 in the same period a year earlier, while legacy Cox lost 77,000. Although mobile lines added 508,000 pro forma connections and video losses narrowed to 77,000 from 121,000, broadband remains the core business. Charter attributed the broadband exodus to fixed wireless competition, fiber overlap, customers switching to mobile-only services, and aggressive promotions by competitors.
Financial results for the quarter showed mixed signals depending on the accounting basis used. On a pro forma basis, treating Cox as owned for the full period, revenue fell 1.5% to $16.5 billion, and adjusted EBITDA declined 4.0% to $6.6 billion. Reported revenue rose 9.1% to $14.9 billion, and adjusted EBITDA increased 6.9% to $5.9 billion, as Cox joined the company only partway through the quarter. The company reported a net loss of $2.4 billion, or $20.50 per share, primarily driven by a noncash $6.3 billion franchise impairment charge. Free cash flow decreased by $947 million to $674 million, even as pro forma capital spending dropped to $3.2 billion from $3.6 billion.
CEO Chris Winfrey stated that Charter is “fundamentally rethinking how we operate and compete,” with cost savings coming from dropping non-essential projects, removing management layers, and reducing vendor usage. Winfrey clarified that the cuts are not targeted at frontline service and sales employees, though no specific headcount reduction figure was provided. Additionally, Charter expects more than $1 billion in additional synergies from the Cox deal. Spectrum pricing in Cox markets took effect on September 16, 2026, and legacy Cox customer service will transition fully to the U.S. over 18 months, coinciding with the cost-cutting timeline.
The stock’s decline follows gains of 5.68% on November 4 and 4.67% on November 5. The November 6 drop was the second-largest one-day fall for the stock since late August, behind an 8.13% decline on September 9. The share price now sits approximately 53.5% below its 52-week high of $254.11. On November 5, Morgan Stanley cut its price target for Charter to $135 from $140. Charter’s debt principal stands at $108.6 billion, and the company expects 2027 capital spending to be at or below $11 billion. The next key indicator for investors will be the fourth-quarter earnings report, where pro forma internet losses will be compared year-over-year.
