Stamford – November 06, 2026 -- Charter Communications is targeting $2 billion in annualized run-rate operating expense savings over the next 18 months, on top of more than $1 billion in anticipated Cox Transactions synergies, after third-quarter pro forma Internet customers fell by 233,000 and a $6.3 billion franchise impairment pushed the company to a loss.
Charter rebuilds its operating model around Internet growth and cost discipline
The company is reformulating its go-to-market approach for core Internet, marketing and distribution, while leaning on its mobile and video products to lift revenue per passing. The savings program will eliminate nonessential activities, simplify organizational structures and extract efficiencies through vendor partnerships. Charter expects the effort to support significantly higher free cash flow over time.
CEO Chris Winfrey called the moves "decisive steps to unlock our full potential."
Cox deal adds 11 million passings and 5 million customer relationships
Charter completed the Cox Transactions on August 19, 2026. The deal added more than 11 million passings and over 5 million customer relationships, and extends Charter's reach into markets including Phoenix and Las Vegas. Actual results include Cox only from August 20 through September 30; pro forma figures treat the deal as closed on January 1, 2024.
On September 16, Charter launched Spectrum products, pricing and packaging across the legacy Cox footprint, covering more than 11 million homes and businesses. The package includes Internet with no data caps, a year of free Spectrum Mobile for eligible customers, a $1,000 Savings Guarantee for customers bundling Internet and two mobile lines, and TV plans with up to $132 per month in streaming app value. Charter will return legacy Cox's customer service function fully to the U.S. over the next 18 months. The company reports strong consumer demand and improved customer trends since launch.
Internet losses deepen while mobile additions hold near prior-year levels
Pro forma Internet customers declined by 233,000 in the quarter, against a 171,000 loss a year earlier. Legacy Charter lost 156,000 Internet customers, versus 109,000 in the third quarter of 2025, and legacy Cox lost 77,000. Charter served 34.3 million Internet customers at September 30.
Mobile added 508,000 lines on a pro forma basis, compared with 514,000 a year earlier, and 1.8 million over the last twelve months. Legacy Charter contributed 440,000, down from 482,000. Total mobile lines reached 13.5 million.
Video losses narrowed. Pro forma video customers fell by 77,000, versus 121,000 in the prior-year quarter, and by 256,000, or 1.8%, over twelve months. Legacy Charter lost 38,000 video customers, compared with 70,000 a year earlier, which the company attributes to streaming applications in expanded basic packages and simplified pricing. Charter ended the quarter with 13.8 million video customers, 36.7 million customer relationships and 35.4 million connectivity customers.
Pro forma revenue slips 1.5% and EBITDA falls 4.0%
Pro forma revenue was $16.5 billion, down 1.5% year over year, mainly on lower residential revenue. Actual revenue rose 9.1% to $14.9 billion, driven by the Cox Transactions. Pro forma Adjusted EBITDA of $6.6 billion declined 4.0%, or 3.0% excluding transition expenses; actual Adjusted EBITDA grew 6.9% to $5.9 billion.
Net loss attributable to Charter shareholders was $2.1 billion pro forma and $2.4 billion on an actual basis, both driven primarily by the $6.3 billion franchise impairment charge.
Free cash flow drops $947 million to $674 million
Actual free cash flow fell $947 million year over year to $674 million, reflecting lower operating cash flow and an unfavorable change in accrued capital expenditure expenses. Net cash flows from operating activities were $4.0 billion versus $4.5 billion, affected by cash tax payment timing and one-time Cox Transactions costs. Pro forma capital expenditures declined to $3.2 billion from $3.6 billion; actual capital expenditures were $3.0 billion.
Charter exchanged $5.5 billion in aggregate principal amount of secured notes for approximately $4.0 billion in cash and new secured notes, cutting roughly $1.5 billion of debt. It also repaid $1.0 billion of legacy Cox notes at maturity.