Charter Communications reported fourth-quarter adjusted EPS of $1.05, missing consensus estimates by $0.08, while total revenues declined 3.2% year-over-year to $12.8 billion. Revenue weakness was driven by a 7% drop in video advertising revenues, including political ad spending that fell short of prior‐year levels by $150 million. These declines were partially offset by a 5.5% increase in residential high-speed Internet service revenues and a 4.8% rise in mobile service revenues, reflecting continued gains in data plan upgrades.

Charter added 44,000 net video subscribers in the quarter ended December 31, reversing from a net loss of 123,000 a year earlier. Broadband losses, at 29,000, were narrower than the 50,000 decline analysts expected. The company’s churn rate for residential Internet customers held steady at 0.60%, and mobile ARPU rose by $2.15 sequentially to $42.30, signaling resilience in core customer metrics despite overall industry cord-cutting trends.

Adjusted EBITDA of $5.1 billion declined 1.8% year-over-year, but free cash flow remained robust at $2.4 billion, supported by disciplined cost controls. Charter plans to reduce capital expenditures by roughly $700 million in 2026, targeting a total capex reduction of $2 billion by 2027. This capex discipline is expected to support annual free cash flow growth of 10%–12%, reinforcing Charter’s balance-sheet flexibility in addressing its $58 billion debt load and potential shareholder return initiatives.