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CHARTER COMMUNICATIONS, INC. /MO/ (CHTR) Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered a modest top-line beat with revenue of $13.74B (+0.4% YoY) versus S&P Global consensus ~$13.67B, while diluted EPS of $8.42 was slightly below consensus ~$8.59; Adjusted EBITDA grew 4.8% YoY to $5.76B with a 180 bps margin expansion to 42.0% . Consensus values from S&P Global*
  • Internet net losses narrowed to 60K (vs. -177K in Q4), aided by the waning ACP headwind; mobile momentum continued (+514K lines), and video attrition improved (-181K vs. -294K in Q3 2024) as “Life Unlimited” packaging gained traction .
  • Free cash flow inflected to $1.56B (vs. $358M in Q1 2024), driven by lower capex, higher EBITDA, and lower cash interest; FY25 capex outlook was reaffirmed at ~$12B (incl. ~$4.2B line extensions, ~$1.5B network evolution) .
  • Management highlighted improving service metrics (billing/repair calls -15% YoY; truck rolls -6%), AI/ML-enabled productivity, and converged bundles reducing churn; tariffs expected to have no meaningful P&L or capex impact, and leverage to move back toward mid-4x over coming quarters .

What Went Well and What Went Wrong

  • What Went Well

    • Adjusted EBITDA growth and margin expansion: EBITDA +4.8% YoY to $5.76B; margin 42.0% (+180 bps), supported by a 10.4% decline in programming costs and cost efficiencies in service operations .
    • Mobile momentum and convergence: +514K mobile lines; ~20% of Internet customers now take mobile, with materially lower churn in converged homes; CBRS on track for 23 markets by year-end .
    • FCF strength: $1.56B FCF (vs. $358M), with capex down ~$392M YoY to $2.40B and lower cash interest; management reiterated FY25 capex ~ $12B and sees multi-year capital intensity decline .

  • What Went Wrong

    • EPS miss and non-cash items: Diluted EPS $8.42 came in below S&P Global consensus ~$8.59, with GAAP EPS affected by a non-cash impairment (Lakers RSN) in “other operating expense” . Consensus from S&P Global*
    • Persistent access headwinds: Internet customers -60K in Q1 and -1.6% YoY to 30.02M; management cited lingering mobile substitution and housing churn dynamics despite ACP headwind abating .
    • Advertising softness: Ad revenue -12.9% YoY (ex-political -5.1%), reflecting a challenged local/national market, partially offset by device sales strength in “Other” .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($B)$13.68 $13.93 $13.74
Adjusted EBITDA ($B)$5.50 $5.76 $5.76
Adjusted EBITDA Margin (%)40.2% 41.4% 42.0%
Net Income to CHTR ($B)$1.11 $1.47 $1.22
Diluted EPS ($)$7.55 $10.10 $8.42
Cash from Operations ($B)$3.21 $3.46 $4.24
Capex ($B)$2.79 $3.06 $2.40
Free Cash Flow ($B)$0.36 $0.98 $1.56

Q1 2025 vs S&P Global Consensus

MetricConsensusActual
Revenue ($B)$13.67*$13.74
Adjusted EBITDA ($B)$5.57*$5.76
Diluted EPS ($)$8.59*$8.42
Values retrieved from S&P Global*

Segment Revenue ($M)

SegmentQ1 2024Q1 2025
Internet$5,826 $5,930
Video$3,908 $3,580
Mobile Service$685 $914
Voice$374 $356
Commercial (Small Biz + Mid/Large Biz)$1,796 $1,822
Advertising$391 $340
Other$699 $793
Total$13,679 $13,735

Key KPIs

KPIQ1 2024Q4 2024Q1 2025
Estimated Passings (000s)55,687 56,861 57,167
Total Internet Customers (000s)30,516 30,080 30,020
Internet Net Adds (000s)-72 -177 -60
Total Video Customers (000s)13,717 12,892 12,711
Video Net Adds (000s)-405 -123 -181
Total Mobile Lines (000s)8,252 9,883 10,397
Mobile Net Adds (000s)486 529 514
Total Voice Customers (000s)7,726 6,884 6,606
Voice Net Adds (000s)-279 -274 -278
Monthly Residential Revenue per Residential Customer ($)120.48 121.40 123.06

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total CapexFY 2025~$12B incl. ~$4.2B line extensions and ~$1.5B network evolution Reiterated: ~$12B incl. ~$4.2B line extensions and ~$1.5B network evolution Maintained
Cash TaxesFY 2025Not previously specified in PR$1.6–$2.0B cash tax payments expected New detail
Cash Taxes (timing)Q2 2025N/A~$1.0B expected in Q2 due to two required payments and timing New detail
Leverage TargetMulti-quarter4.0x–4.5x long-term range (implied)Gradual move to middle of 4.0x–4.5x range pro forma for Liberty transaction Clarified path
Tariffs impact2025N/ANot expected to be meaningful for capex or P&L New detail
Mobile/CBRS Deployment2025N/ACBRS across 23 markets by year-end New operational milestone

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Converged bundles (Internet + Mobile)Life Unlimited launched; bundling to present lower Internet price and improve video attach ~20% Internet customers now take mobile; materially lower churn in converged homes; using mobile for both acquisition and churn reduction Improving penetration and churn benefits
Video evolution & seamless entertainmentAnnounced inclusion of DTC apps (Max, Disney+, Peacock, etc.) to increase value Most app activations live; ad-supported included; digital store launching later in 2025 to upsell/upgrade and sell to BB-only Execution progressing; marketing ramp to follow
AI/ML & service qualityFocus on execution, service investments Billing/repair calls -15% YoY; truck rolls -6%; AI/ML improving frontline efficiency; large opportunity ahead Sustained productivity gains
Access competition (fiber, FWA)Q3 internet declines tied to ACP end; competition noted Mobile substitution reverting to pre-pandemic levels; fiber impact steady over decade; not a 50/50 share in overlap Stabilizing vs. 2024 headwinds
Capex outlook2024: $11.5B; 2025 prelim ~ $12B Reaffirmed ~$12B FY25; tariffs not expected to materially impact Unchanged outlook
Rural expansion114K subsidized passings in Q3; 117K in Q4 +89K in Q1; total subsidized passings 902K; +39K net adds in subsidized footprint Continuing build and uptake

Management Commentary

  • “We continue to execute on our long-held strategy of delivering the best network and products, at the best value, combined with unmatched service… We remain on track to deliver customer, EBITDA and robust free cash flow results for many years to come” — CEO Chris Winfrey .
  • On AI/ML and service: “We’ve been investing in machine learning and AI… most of our effort is on making frontline work easier and more efficient… billing and repair calls were down 15% YoY; truck rolls down 6%” .
  • On convergence: “There is a substantial difference in Internet churn rate for customers who also take mobile lines… we’re saving these customers hundreds and even thousands of dollars” .
  • On seamless entertainment: Most DTC app inclusions are live; digital store later in 2025 to streamline upgrades and broader sales to broadband-only customers .
  • On capex and tariffs: FY25 capex ~ $12B reiterated; “don’t currently expect tariffs to have a significant impact” on capex or P&L .

Q&A Highlights

  • Convergence economics and churn: Management confirmed meaningfully lower broadband churn for mobile-attached households; ~20% of Internet customers take mobile, with benefits improving with more lines and device attachment .
  • Seamless entertainment rollout: App activations largely complete; marketing ramp in major markets forthcoming; digital store to enhance monetization and manage subscriptions in 2025 .
  • Tariffs: Expected to have no meaningful impact on capex plans or P&L; FY25 capex guide reiterated .
  • Macro/competition: Mobile substitution trending back toward pre-pandemic; housing turnover remains a swing factor; Charter’s value proposition viewed as resilient in recessionary scenarios .
  • Fiber overbuild: Impact described as consistent and steady over a decade; management disputed a 50/50 share narrative in overlap markets .

Estimates Context

  • Versus S&P Global consensus, Charter posted a modest revenue beat and an EBITDA beat, but a slight diluted EPS miss, with GAAP EPS influenced by a non-cash RSN impairment. Potential upward bias to EBITDA/FCF estimates stems from operating efficiency, mobile scale, and reiterated capex plan; ad softness and video declines remain offsets . Consensus values from S&P Global*
  • Consensus (S&P Global) vs Actual for Q1 2025: Revenue $13.67B* vs $13.74B; Adjusted EBITDA $5.57B* vs $5.76B; Diluted EPS $8.59* vs $8.42 . Values retrieved from S&P Global*

Key Takeaways for Investors

  • Execution on convergence and service quality is showing up in churn and KPIs; narrowing Internet losses and strong mobile adds are key supports for multi-year EBITDA and FCF compounding .
  • The slight EPS miss reflects GAAP noise (non-cash impairment), while underlying operating performance (EBITDA, margin, FCF) surprised positively; narrative should center on cash generation trajectory .
  • Capex trajectory is intact with FY25 at ~$12B and a pathway to lower capital intensity over time—an important lever for FCF per-share growth alongside resumed buybacks ($751M in Q1) and leverage normalization toward mid-4x .
  • Video strategy (DTC app inclusion, digital store) is moving from setup to commercialization; watch for marketing ramps and attach effects on ARPU and churn through 2H 2025 .
  • Competitive backdrop is stabilizing: ACP headwind largely behind, FWA substitution reverting, fiber impact steady; watch housing turnover and local/national ad markets as lingering variables .
  • Tariff risk is de minimis to 2025 P&L/capex; operational focus remains on AI/ML-driven productivity and CBRS deployments to enhance mobile economics .
  • Near-term trading catalysts: consensus re-calibration toward stronger EBITDA/FCF vs. soft GAAP EPS; updates on seamless entertainment monetization; continued improvement in Internet net adds and mobile penetration.

Footnote: Values retrieved from S&P Global*

Citations

  • Q1 2025 8-K/Press Release and Addendum:
  • Q1 2025 Press Release (PRNewswire copy):
  • Q1 2025 Earnings Call Transcript:
  • Q4 2024 Press Release:
  • Q3 2024 Press Release:

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