Charter Announces Second Quarter 2025 Results
STAMFORD, Conn., July 25, 2025 /PRNewswire/ -- Charter Communications, Inc. (along with its subsidiaries, the "Company" or "Charter"), which operates the Spectrum brand, today reported financial and operating results for the three and six months ended June 30, 2025.
Second quarter total Internet customers decreased by 117,000. As of June 30, 2025, Charter served 29.9 million Internet customers.
Second quarter total mobile lines increased by 500,000. As of June 30, 2025, Charter served 10.9 million mobile lines.
As of June 30, 2025, customer relationships totaled 31.2 million, excluding mobile-only relationships.
Second quarter revenue of $13.8 billion grew by 0.6% year-over-year, driven by residential mobile service revenue growth of 24.9%, residential Internet revenue growth of 2.8% and other revenue growth of 18.9%.
Net income attributable to Charter shareholders totaled $1.3 billion in the second quarter.
Second quarter Adjusted EBITDA1 of $5.7 billion grew by 0.5% year-over-year.
Second quarter capital expenditures totaled $2.9 billion and included $1.0 billion of line extensions.
Second quarter net cash flows from operating activities totaled $3.6 billion, compared to $3.9 billion in the prior year.
Second quarter free cash flow1 of $1.0 billion decreased from $1.3 billion in the prior year, primarily due to an unfavorable change in mobile device working capital and the timing of cash taxes and cash interest.
During the second quarter, Charter purchased 4.5 million shares of Charter Class A common stock and Charter Communications Holdings, LLC ("Charter Holdings") common units totaling $1.7 billion.
On May 16, 2025, Charter and Cox Communications announced that they had entered into a definitive agreement to combine their businesses, creating an industry leader in mobile and broadband communications services, and seamless video entertainment.
"Our converged connectivity revenue grew by over 5% in the second quarter, with a long runway for growth," said Chris Winfrey, President and CEO of Charter. "Our seamless connectivity products offer the fastest speeds at the best price. And our strategic investments in network evolution and convergence, rural build, U.S.-based service and seamless entertainment innovation, will accelerate future customer and revenue growth."
1.
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the "Use of Adjusted EBITDA and Free Cash Flow Information" section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
Key Operating Results
Approximate as of
June 30, 2025 (c)
June 30, 2024 (c)
Y/Y Change
Footprint
Estimated Passings (d)
57,540
56,110
2.5 %
Customer Relationships (e)
Residential
29,006
29,615
(2.1) %
Small Business
2,201
2,222
(1.0) %
Total Customer Relationships
31,207
31,837
(2.0) %
Residential
(154)
(182)
28
Small Business
(8)
3
(11)
Total Customer Relationships Quarterly Net Additions
(162)
(179)
17
Total Customer Relationship Penetration of Estimated Passings (f)
54.2 %
56.7 %
(2.5) ppts
Monthly Residential Revenue per Residential Customer (g)
$ 122.86
$ 120.77
1.7 %
Monthly Small Business Revenue per Small Business Customer (h)
$ 165.44
$ 165.28
0.1 %
Residential Customer Relationships Penetration
One Product Penetration (i)
47.2 %
47.7 %
(0.5) ppts
Two Product Penetration (i)
34.8 %
33.2 %
1.6 ppts
Three or More Product Penetration (i)
18.0 %
19.2 %
(1.2) ppts
% Residential Non-Video Customer Relationships
58.3 %
57.1 %
1.2 ppts
Internet
Residential
27,868
28,318
(1.6) %
Small Business
2,035
2,049
(0.7) %
Total Internet Customers
29,903
30,367
(1.5) %
Residential
(111)
(154)
43
Small Business
(6)
5
(11)
Total Internet Quarterly Net Additions
(117)
(149)
32
Video
Residential
12,087
12,718
(5.0) %
Small Business
544
591
(8.0) %
Total Video Customers
12,631
13,309
(5.1) %
Residential
(73)
(393)
320
Small Business
(7)
(15)
8
Total Video Quarterly Net Additions
(80)
(408)
328
Mobile Lines (j)
Residential
10,542
8,531
23.6 %
Small Business
355
278
27.7 %
Total Mobile Lines
10,897
8,809
23.7 %
Residential
479
539
(60)
Small Business
21
18
3
Total Mobile Lines Quarterly Net Additions
500
557
(57)
Voice
Residential
5,161
6,170
(16.4) %
Small Business
1,225
1,276
(4.0) %
Total Voice Customers
6,386
7,446
(14.2) %
Residential
(211)
(268)
57
Small Business
(9)
(12)
3
Total Voice Quarterly Net Additions
(220)
(280)
60
Mid-Market & Large Business (k)
Mid-Market & Large Business Primary Service Units ("PSUs")
331
312
6.1 %
Mid-Market & Large Business Quarterly Net Additions
7
4
3
In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
In September 2024, Spectrum launched a new and simplified pricing and packaging strategy that better utilizes its seamless connectivity and entertainment products to offer lower promotional and persistent bundled pricing to drive growth. Additionally, Spectrum announced new customer commitments focused on reliable connectivity, transparency, exceptional service and a focus on always improving. To fix any service disruptions quickly, Spectrum committed to dispatching a technician the same day, if the customer requests it prior to 5 p.m. If a customer needs a professional installation, a technician will be available the same or next day.
Second quarter total Internet customers decreased by 117,000, compared to a decline of 149,000 during the second quarter of 2024, which included the impact of approximately 50,000 disconnects related to the end of the FCC's Affordable Connectivity Program subsidies in the second quarter of 2024. Spectrum Internet® delivers the fastest Internet speeds1 in the nation. Spectrum is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in eight markets. In 2025, Spectrum launched 2x1 Gbps service in the same eight markets, completing Step 1 of Charter's network evolution initiative. Unlike competitors, Spectrum upgrades its network to serve all of its passings and can do so at a much lower cost. Spectrum Advanced WiFi provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy.
Total video customers decreased by 80,000 in the second quarter of 2025, compared to a decline of 408,000 in the second quarter of 2024, with the improvement driven by new and simplified pricing and packaging launched in September 2024 and early benefits from the inclusion of programmers' streaming applications in Spectrum's expanded basic packages. As of June 30, 2025, Charter had 12.6 million total video customers. Spectrum TV Select video customers now receive up to approximately $75 per month (soon to be over $100 per month) of programmers' streaming application retail value at no extra cost, including the ad-supported versions of Disney+, ESPN+, HBO Max, Paramount+, Peacock, AMC+, ViX and Tennis Channel, with ESPN Unlimited, Hulu, Discovery+ and BET+ launching later this year. This programmer streaming application inclusion is part of Charter's broader video evolution strategy to provide flexible packages with enhanced value, whether through full packages with seamless entertainment, smaller video packages or a suite of a-la-carte programmers' streaming application options for broadband customers (which Charter launched in July 2025).
During the second quarter of 2025, Charter added 500,000 total mobile lines, compared to growth of 557,000 during the second quarter of 2024. Spectrum MobileTM is available to all new and existing Spectrum Internet customers and offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter's converged network strategy to provide customers a differentiated connectivity experience with highly competitive, simple data plans and pricing.
During the second quarter of 2025, total wireline voice customers declined by 220,000, compared to a decline of 280,000 in the second quarter of 2024. As of June 30, 2025, Charter had 6.4 million total wireline voice customers.
Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the second quarter of 2025, Charter activated 123,000 subsidized rural passings. Within Charter's subsidized rural footprint, total customer relationships increased by 47,000 in the second quarter of 2025.
1.
Based on Broadband Download Speed among the top 5 national providers in Opensignal USA: Fixed Broadband Experience Report, National View, May 2024. Based on Opensignal independent analysis of mean download speed. © 2025 Opensignal Limited.
2.
Based on analysis by Spectrum of Ookla® Speedtest Intelligence® data for overall Mobile WiFi and Cellular performance for Q3-Q4 2024 in Spectrum's cable footprint. Ookla trademarks used under license and reprinted with permission.
Second Quarter Financial Results(in millions)
Three Months Ended June 30,
2025
2024
% Change
Revenues:
Internet
$ 5,969
$ 5,806
2.8 %
Video
3,484
3,867
(9.9) %
Mobile service
921
737
24.9 %
Voice
346
350
(0.8) %
Residential revenue
10,720
10,760
(0.4) %
Small business
1,094
1,101
(0.6) %
Mid-market & large business
742
721
2.9 %
Commercial revenue
1,836
1,822
0.8 %
Advertising sales
371
397
(6.7) %
Other
839
706
18.9 %
Total Revenues
$ 13,766
$ 13,685
0.6 %
Net income attributable to Charter shareholders
$ 1,301
$ 1,231
5.7 %
Net income attributable to Charter shareholders margin
9.4 %
9.0 %
Adjusted EBITDA1
$ 5,693
$ 5,665
0.5 %
Adjusted EBITDA margin
41.4 %
41.4 %
Capital expenditures
$ 2,874
$ 2,853
0.7 %
Net cash flows from operating activities
$ 3,600
$ 3,853
(6.6) %
Free cash flow1
$ 1,046
$ 1,296
(19.3) %
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
1.
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the "Use of Adjusted EBITDA and Free Cash Flow Information" section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
Revenues
Second quarter revenue increased by 0.6% year-over-year to $13.8 billion, driven by growth in residential mobile service, residential Internet and other revenues, partly offset by lower residential video and advertising sales revenues.
Residential revenue totaled $10.7 billion in the second quarter, a decrease of 0.4% year-over-year, driven by a year-over-year decline in residential customers of 2.1%, partly offset by a year-over-year increase in monthly residential revenue per residential customer of 1.7%.
Second quarter 2025 monthly residential revenue per residential customer totaled $122.86, an increase of 1.7% compared to the prior year period. The growth was driven by promotional rate step-ups, rate adjustments and the growth of Spectrum Mobile, partly offset by a lower mix of video customer relationships, a higher mix of lower priced video packages within Charter's video customer base and $67 million of costs allocated to programmer streaming applications and netted within video revenue.
Internet revenue grew by 2.8% year-over-year to $6.0 billion, driven by promotional rate step-ups, rate adjustments and a favorable change in bundled revenue allocation year-over-year, partly offset by a decline in Internet customers year-over-year.
Video revenue totaled $3.5 billion in the second quarter, a decrease of 9.9% compared to the prior year period, driven by a decline in video customers during the last year, a higher mix of lower priced video packages within Charter's video customer base, $67 million of costs allocated to programmer streaming applications and netted within video revenue and more unfavorable bundled revenue allocation year-over-year, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases.
Second quarter mobile service revenue totaled $921 million, an increase of 24.9% year-over-year, driven by mobile line growth, partly offset by less favorable bundled revenue allocation year-over-year.
Voice revenue decreased by 0.8% year-over-year to $346 million, driven by a decline in wireline voice customers, mostly offset by voice rate adjustments.
Commercial revenue increased by 0.8% year-over-year to $1.8 billion, driven by mid-market and large business growth of 2.9% year-over-year, partly offset by a decline in small business revenue of 0.6%. Mid-market and large business revenue excluding wholesale increased by 3.5% year-over-year, mostly reflecting PSU growth. The year-over-year decrease in second quarter 2025 small business revenue was driven by a decline in small business customer relationships year-over-year.
Second quarter advertising sales revenue of $371 million decreased by 6.7% compared to the year-ago quarter, primarily driven by lower core and political revenues. Excluding political revenue in both periods, advertising sales revenue decreased by 4.4% year-over-year due to a more challenged local and national advertising market, partly offset by higher advanced advertising revenue and better inventory selling capabilities.
Other revenue totaled $839 million in the second quarter, an increase of 18.9% compared to the second quarter of 2024, primarily driven by higher mobile device sales and a one-time benefit.
Operating Costs and Expenses
Second quarter programming costs decreased by $219 million, or 8.8% as compared to the second quarter of 2024, reflecting fewer video customers, a higher mix of lower cost packages within Charter's video customer base and $67 million of costs allocated to programmer streaming applications and netted within video revenue, partly offset by contractual programming rate increases and renewals.
Other costs of revenue increased by $113 million, or 7.3% year-over-year, primarily driven by higher mobile service direct costs and mobile device sales.
Field and technology operations expenses increased by $53 million, or 4.3% year-over-year, primarily driven by higher labor-related costs, partly driven by storm activity, and higher network utility costs.
Customer operations expenses increased by $24 million, or 3.0% year-over-year, primarily due to an increase in bad debt expense and bank and card fees, partly offset by lower labor expense.
Marketing and residential sales expenses increased by $76 million, or 8.6% year-over-year, driven by higher sales, channel mix and Spectrum's continued focus on driving growth.
Other expenses increased by $6 million, or 0.6% as compared to the second quarter of 2024.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled $1.3 billion in the second quarter of 2025, compared to $1.2 billion in the second quarter of 2024, due to lower interest expense and higher Adjusted EBITDA.
Net income per basic common share attributable to Charter shareholders totaled $9.41 in the second quarter of 2025 compared to $8.58 during the same period last year. The increase was primarily the result of the factors described above in addition to a 3.6% decrease in basic weighted average common shares outstanding versus the prior year period.
Adjusted EBITDA
Second quarter Adjusted EBITDA of $5.7 billion grew by 0.5% year-over-year, reflecting growth in revenue of 0.6% and an increase in operating expenses of 0.6%.
Capital Expenditures
Capital expenditures totaled $2.9 billion in the second quarter of 2025, an increase of $21 million compared to the second quarter of 2024, driven by upgrade/rebuild (primarily network evolution) and CPE, partly offset by lower line extension spend.
Charter now expects full year 2025 capital expenditures to total approximately $11.5 billion, a decrease from Charter's previous expectation of approximately $12.0 billion. The decrease primarily reflects the timing of network evolution spend and lower commercial and subsidized rural line extensions spend. The actual amount of capital expenditures in 2025 will depend on a number of factors including, but not limited to, the pace of Charter's network evolution and expansion initiatives, supply chain timing and growth rates in Charter's residential and commercial businesses.
Cash Flow and Free Cash Flow
During the second quarter of 2025, net cash flows from operating activities totaled $3.6 billion, a decrease from $3.9 billion in the prior year. The year-over-year decrease was primarily due to an unfavorable change in mobile device working capital and the timing of cash taxes and cash interest.
Free cash flow in the second quarter of 2025 totaled $1.0 billion, a decrease of $250 million compared to the second quarter of 2024. The year-over-year decrease in free cash flow was primarily driven by lower net cash flows from operating activities.
Liquidity & Financing
As of June 30, 2025, total principal amount of debt was $94.3 billion and Charter's credit facilities provided approximately $5.8 billion of additional liquidity in excess of Charter's $606 million cash position.
Share Repurchases
During the three months ended June 30, 2025, Charter purchased 4.5 million shares of Charter Class A common stock and Charter Holdings common units for $1.7 billion.
Webcast
Charter will host a webcast on Friday, July 25, 2025 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.
The webcast can be accessed live via the Company's investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.
Additional Information Available on Website
The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2025, which will be posted on the "Results & SEC Filings" section of the Company's investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the "SEC"). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the "Results & SEC Filings" section.
Use of Adjusted EBITDA and Free Cash Flow Information
The Company uses certain measures that are not defined by U.S. generally accepted accounting principles ("GAAP") to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to ...
