Key Highlights

  • Third-quarter 2026 Revenue was $14.922 billion, against $13.672 billion in the third quarter of 2025.
  • Diluted loss was $20.50 per share, against diluted Earnings of $8.34 a year earlier.
  • Charter recorded an Impairment of franchises of $6.326 billion in the quarter.
  • The company is targeting an incremental $2 billion in annualized run rate Operating Expense savings over 18 months.
  • Legacy Charter lost 156,000 internet customers in the third quarter.

Charter Communications (NASDAQ:CHTR), the parent of the Spectrum brand, reported third-quarter 2026 results before the market opened on Friday. Revenue was $14.922 billion, compared with $13.672 billion a year earlier. Net loss attributable to Charter shareholders was $2.397 billion, against Net Income of $1.137 billion in the third quarter of 2025.

Diluted loss per share was $20.50, compared with diluted earnings of $8.34 a year earlier. Market estimates had pointed to earnings of $8.90 per share on revenue of $13.50 billion. Weighted average diluted shares were about 116.9 million, against about 136.4 million a year earlier.

Franchise Impairment Drives the Quarterly Loss

The company recorded an impairment of franchises of $6.326 billion. In its quarterly filing, Charter said a sustained decline in its stock price was a triggering event that required an interim quantitative impairment analysis of its indefinite-lived franchises and Goodwill as of July 31, 2026.

For the nine months ended Sept. 30, net income attributable to Charter shareholders was $58 million, with diluted earnings of $0.38 per share. That compares with net income of $3.655 billion, or $25.95 per share, in the same period of 2025.

Cox Closing and a New Operating Model

Charter closed its Acquisition of Cox Communications on Aug. 19, adding 11 million passings and more than 5 million customers. The company now passes over 70 million homes and businesses, with 37 million customer relationships and 34 million internet customers. Management also presented pro forma results as if the transactions had closed at the start of the earliest period shown.

Chief Executive Chris Winfrey said Charter has not generated the customer growth and performance it expects. He announced a new operating model built on two priorities: returning to growth by winning more internet customers, and becoming a simpler, more efficient organization. Nick Jeffery, a former chief executive of Frontier and Vodafone UK, joined as Chief Operating Officer on Sept. 1.

Cost Targets, Customer Trends and Leverage

On top of more than $1 billion in expected transaction synergies from Cox, Charter is targeting an incremental $2 billion in annualized run rate operating expense savings over the next 18 months. Management said the savings are not aimed at frontline service and sales employees, and that network investments are set to decline after next year.

At legacy Charter, the company lost 156,000 internet customers in the quarter, which it attributed to lower connects year over year, with the churn rate essentially flat. Management cited fixed wireless competition, mobile substitution and fiber overlap. Leverage stood at 3.9 times, and the company is working toward a target of 3.5 times. Kevin Howard, the Chief Accounting Officer, is serving as interim Chief Financial Officer.

Customer Connects and Cost Savings Are the Measures to Watch

Charter said it will track the rate of customer connects, churn, customer lifetime, convergence and the pace of cost efficiencies. The Cox integration, the start of synergy capture in the fourth quarter and the search for a permanent Chief Financial Officer are the items management highlighted next.