Earnings / Telecom
A $6.3 Billion Franchise Charge Swings Charter to a Loss as It Targets $2 Billion in Savings
The first quarter for the combined company shows its core Internet business still shrinking after the Cox deal - and management answering with a redesign built to restore growth.
TickerGrove Newsroom · Published
Charter Communications swung to a $2.4 billion third-quarter loss after a $6.3 billion franchise impairment overwhelmed the first contribution from Cox Communications.
Analysts polled by FactSet had expected earnings of $8.94 a share.
The loss is a reported, GAAP result driven by a non-cash charge, not an operating collapse.
Charter closed its Cox acquisition on August 19, so reported results count Cox only from August 20.
The charge that drove the loss
Charter recorded a franchise impairment of $6.33 billion in the quarter, against none a year earlier.
A gain on extinguishment of debt of $1.39 billion, from debt exchanges, partly offset the charge.
Net loss attributable to Charter shareholders was $2.4 billion, versus net income of $1.14 billion a year earlier.
Diluted loss per share was $20.50, versus diluted earnings of $8.34 a share a year earlier.
Like for like, the combined core shrank
Pro forma results treat the Cox deal as if it had closed on January 1, 2024, for both periods.
On that basis, revenue fell 1.5% to $16.51 billion, driven by lower residential revenue.
Residential revenue fell 4.1% to $12.23 billion on a pro forma basis.
Pro forma Internet revenue fell 3.7%, and pro forma video revenue fell 9.8%.
Mobile service revenue rose 17.3% pro forma, and advertising revenue rose 21.0% on political spending.
Pro forma adjusted EBITDA fell 4.0% to $6.59 billion, and fell 3.0% excluding transition expenses.
Transition expenses for the Cox integration totaled $76 million in the quarter.
Pro forma programming costs fell by $271 million, a decline of 10.3%, as video customers shrank.
In short, the reported growth came from consolidation, not from the underlying business.
Reported adjusted EBITDA rose 6.9% to $5.94 billion, lifted by the weeks of Cox results included.
Adjusted EBITDA is a non-GAAP measure; Charter reconciles it to net income in its release.
Sources & evidence
Sources used for this piece.
Charter Communications (via PR Newswire)
Charter Announces Third Quarter 2026 Results and Launches New Operating Model
Wall Street Journal
Charter Continues to Lose Internet, Video Customers; Plans New Savings Program
Finnhub
Finnhub - Charter Communications, Inc. (CHTR) quote, November 6, 2026
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