Charter Communications has recently disclosed its financial outcomes for the third quarter of 2025, revealing figures that fell short of market projections. This performance led to a notable dip in the company's stock value, as it grapples with a contraction in both its internet and video subscriber bases. The telecommunications giant's revenue and earnings per share did not meet the consensus estimates from financial analysts, highlighting challenges in key segments of its business operations.
The financial report highlighted a year-over-year revenue decrease of 0.9%, totaling $13.67 billion, which was below the $13.74 billion anticipated by analysts. Concurrently, the diluted earnings per share came in at $8.34, also missing the analyst forecast of $9.37. These declines are largely attributable to reduced revenues from residential video services and advertising sales, indicating a shift in consumer preferences and market dynamics.
A significant factor contributing to Charter's underperformance was the continued loss of subscribers. The company reported a decline of 109,000 internet customers during the quarter. This figure is comparable to the 110,000 subscriber loss in the same period last year, which was partly due to the discontinuation of the FCC's Affordable Connectivity Program. Furthermore, residential video customer numbers dropped by 70,000, a stark contrast to the previous year's loss of 294,000, as viewers increasingly migrate to streaming platforms.
Despite the setbacks in internet and video, Charter's mobile division showed some positive momentum, adding 493,000 mobile lines and reaching a total of 11.4 million by September 30, 2025. However, this growth was not enough to offset the losses in its core internet and video sectors. In comparison, competitors such as T-Mobile US and AT&T reported strong gains in postpaid customers, with T-Mobile achieving its highest ever increase in the third quarter.
The company's adjusted EBITDA margin also saw a slight decrease, falling by 20 basis points to 40.7%. Despite these challenges, Charter's free cash flow remained robust at $1.62 billion for the quarter, driven by strong operating cash flows. As of the end of the quarter, Charter was serving 29.79 million residential and small-to-medium business internet customers and held $464 million in cash and equivalents.
Looking ahead, Charter Communications has adjusted its capital expenditures forecast for 2025, now expecting approximately $11.5 billion, a reduction from its earlier projection of $12 billion. This revised outlook indicates the company's strategic efforts to manage costs and adapt to the evolving competitive landscape. The stock's performance reflects investor concerns regarding its ability to retain and attract subscribers in a highly competitive market, especially with the growing popularity of streaming services.