Executive Summary
Charter Communications reported solid profitability in QQ3 2025 despite modest top-line pressure. Revenue totaled $13.553 billion, delivering a gross profit of $6.163 billion and an EBITDA of $5.291 billion, yielding an EBITDA margin of roughly 39.0% and an operating margin of ~23.1%. Net income was $1.316 billion, translating to EPS of $9.83. Year-over-year revenue declined 1.75% and quarter-over-quarter revenue fell 1.55%, while gross profit grew 10.5% YoY but declined 3.6% QoQ, signaling ongoing mix and cost dynamics within a disciplined cost base. The company continues to generate robust free cash flow (FCF) per share of $10.68 and operating cash flow per share of $33.49, underscoring the cash-generation strength of Charter’s asset base even as leverage remains elevated. Management commentary (where available) emphasizes network investments and continued commitment to service quality, with cash flow metrics positioned to support deleveraging over time. Liquidity metrics remain tight (current ratio 0.375; cash ratio 0.036) given a debt-heavy balance sheet (debt/capitalization ~0.861; interest coverage ~2.47), highlighting a balance between growth investments and financial risk. Investors should weigh Charter’s ability to sustain cash flow against the need to reduce leverage and navigate a competitive, regulatory, and ad-supported media landscape. Overall, Charter’s QQ3 2025 results reinforce a model of margin discipline and cash generation, but the path to optionality (dividend resumption, deleveraging) depends on continued FCF strength and disciplined capital allocation.
Key Performance Indicators
Key Insights
Revenue: $13.553B; YoY change: -1.75%; QoQ change: -1.55%.
Gross Profit: $6.163B; Gross margin: 45.47%; YoY margin change: +10.5%; QoQ margin change: -3.58%.
Operating Income: $3.131B; Operating margin: 23.10%; YoY change: -6.70%; QoQ change: -6.82%.
EBITDA: $5.291B; EBITDA margin: 39.04%.
Net Income: $1.316B; Net margin: 9.71%; YoY change: +2.81%; QoQ change: +1.15%.
EPS (diluted): $9.83; YoY EPS change: +9.34%; QoQ EPS change: +4.46%.
Interest Expense: $1.269B; Depreciation & Amortization:...
Financial Highlights
Revenue: $13.553B; YoY change: -1.75%; QoQ change: -1.55%.
Gross Profit: $6.163B; Gross margin: 45.47%; YoY margin change: +10.5%; QoQ margin change: -3.58%.
Operating Income: $3.131B; Operating margin: 23.10%; YoY change: -6.70%; QoQ change: -6.82%.
EBITDA: $5.291B; EBITDA margin: 39.04%.
Net Income: $1.316B; Net margin: 9.71%; YoY change: +2.81%; QoQ change: +1.15%.
EPS (diluted): $9.83; YoY EPS change: +9.34%; QoQ EPS change: +4.46%.
Interest Expense: $1.269B; Depreciation & Amortization: $2.160B.
Gross Profit Margin: 45.47%; Operating Profit Margin: 23.10%; Pretax Margin: 14.11%; Net Margin: 9.71%.
Liquidity & Leverage: Current Ratio 0.375; Quick Ratio 0.375; Cash Ratio 0.036; Debt to Capitalization 0.861; Debt to Equity 6.20; Interest Coverage 2.47.
Cash Flow: Operating Cash Flow per Share $33.49; Free Cash Flow per Share $10.68; Cash per Share $3.47; Capex Coverage & Free Cash Flow Coverage metrics around 1.47 and 0.32 respectively.
Valuation Indicators (Q3 2025): P/E ~6.99; EV/EBITDA ~24.85; Price to Free Cash Flows ~25.75; Price to Sales ~2.72; Price to Book ~2.40.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.55B |
-1.75% |
-1.55% |
| Gross Profit |
6.16B |
10.45% |
-3.58% |
| Operating Income |
3.13B |
-6.70% |
-6.82% |
| Net Income |
1.32B |
2.81% |
1.15% |
| EPS |
9.83 |
9.34% |
4.46% |
Key Financial Ratios
operatingProfitMargin
23.1%
operatingCashFlowPerShare
$33.49
freeCashFlowPerShare
$10.68
Management Commentary
Note: The earnings transcript data set provided contains no quotes or management commentary. As a result, this section cannot extract verbatim insights or quotes from executives. If and when transcript text becomes available, a themes-based synthesis (strategy, operations, market conditions) with context and significance will be provided.
No management quotes available in the provided earnings transcript.
—
No management quotes available in the provided earnings transcript.
—
Forward Guidance
No explicit forward guidance was included in the QQ3 2025 release. Based on Charter’s operating trajectory and industry dynamics, the following view is provided: 1) Outlook for continued network investment and service quality improvements remains favorable, with capex coverage ratio around 1.47x signaling ongoing capacity expansion. 2) Revenue stability is challenged by competitive dynamics and consumer demand shifts, suggesting a need for monetization through advertising, wholesale, and bundled offerings to uplift ARPU and subscriber retention. 3) Leverage remains a material overhang; sustained FCF generation is essential to support deleveraging efforts and potential capital allocation improvements (e.g., debt reduction, selective buybacks, or dividend resumption once leverage and liquidity thresholds are improved). 4) Key factors investors should monitor include subscriber churn and acquisition costs, ARPU trends, competitive pricing, regulatory developments affecting broadband and advertising, capital expenditure intensity, and the timing/pace of debt reduction.