Executive Summary
Charter Communications reported Q4 2024 revenue of $13.926 billion, up 1.57% year over year and 0.95% quarter over quarter, supported by a stable subscriber base and continued demand for high‑speed broadband and video services. Gross margin remained robust at approximately 63.6%, with EBITDA of $5.489 billion and an EBITDA margin near 39.4%, underscoring the company’s ability to convert revenue into meaningful cash flow even as capital intensity remains high. Net income was $1.467 billion, translating to an EPS (diluted) of $10.09, up meaningfully from the prior year and quarter, driven by the operating performance and offset by a significant negative other income component that affected pretax income.
Operating cash flow reached $3.46 billion in the quarter, while capital expenditures were $3.062 billion, resulting in a free cash flow (FCF) of approximately $398 million. The balance sheet shows substantial leverage, with total debt of $95.76 billion and net debt of $95.30 billion, and a cash balance of $506 million at period end. Cash flow metrics point to a cash-generative core business but with debt service and capital spending needs that constrain near‑term deleveraging. The company continued to allocate capital to buybacks (net share repurchases of $114 million) rather than paying a dividend, signaling a preference for returning capital to shareholders in a manner consistent with its capital structure and growth outlook.
Overall, Charter remains a leading broadband and video services provider in the U.S. with resilient cash flows, but the investment thesis hinges on managing a very large debt burden while sustaining high CAPEX to maintain network leadership and competitive positioning. Investors should monitor ARPU trends, subscriber dynamics, and the pace of deleveraging given the current interest-rate environment and capital intensity.
Key Performance Indicators
Key Insights
Revenue: $13.926B in Q4 2024, YoY +1.57%, QoQ +0.95%.
Gross Profit: $8.854B, margin 63.58%; YoY margin change -2.42%, QoQ +58.67%
Operating Income: $3.454B, margin 24.80%; YoY +5.72%, QoQ +2.92%
EBITDA: $5.489B, margin ~39.41%
Net Income: $1.467B, net margin 10.53%; YoY +38.56%, QoQ +14.53%
EPS (basic): $10.32; EPS (diluted): $10.09; YoY EPS growth +42.74%, QoQ +14.79%
Interest Expense: $1.274B; Depreciation & Amortization: $2.169B; Total other income/expenses: -$1.408B
Income Before Tax: $2...
Financial Highlights
Revenue: $13.926B in Q4 2024, YoY +1.57%, QoQ +0.95%.
Gross Profit: $8.854B, margin 63.58%; YoY margin change -2.42%, QoQ +58.67%
Operating Income: $3.454B, margin 24.80%; YoY +5.72%, QoQ +2.92%
EBITDA: $5.489B, margin ~39.41%
Net Income: $1.467B, net margin 10.53%; YoY +38.56%, QoQ +14.53%
EPS (basic): $10.32; EPS (diluted): $10.09; YoY EPS growth +42.74%, QoQ +14.79%
Interest Expense: $1.274B; Depreciation & Amortization: $2.169B; Total other income/expenses: -$1.408B
Income Before Tax: $2.046B; Income Tax Expense: $0.370B; Effective tax rate ~18.1%
Net Cash Provided by Operating Activities: $3.46B; Capital Expenditures: $3.062B; Free Cash Flow: $0.398B
Balance Sheet (selected): Cash & Equivalents $0.459B; Total Assets $150.02B; Total Liabilities $130.31B; Total Stockholders’ Equity $15.59B; Long‑Term Debt $93.21B; Short‑Term Debt $2.56B; Net Debt $95.30B; Goodwill $29.67B; Intangibles $68.44B; Total Current Assets $4.233B; Total Current Liabilities $13.486B; Current Ratio 0.314; Quick Ratio 0.314.
Valuation & Efficiency: EV/EBITDA ~26.3x; Price to Sales 3.49x; P/E ~8.28x; P/FCF ~122x; FCF per share $2.80; Operating cash flow per share $24.38; Cash per share $3.56; Debt/Capitalization 86%; ROE 9.41%; ROA 0.97%; Interest Coverage 2.71x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.93B |
1.57% |
0.95% |
| Gross Profit |
8.85B |
-2.42% |
58.67% |
| Operating Income |
3.45B |
5.72% |
2.92% |
| Net Income |
1.47B |
38.56% |
14.53% |
| EPS |
10.32 |
42.74% |
14.79% |
Key Financial Ratios
operatingProfitMargin
24.8%
operatingCashFlowPerShare
$24.38
freeCashFlowPerShare
$2.8
Management Commentary
Note: No earnings call transcript data were provided in the available material. Consequently, there are no management quotes to extract or themes to summarize from the call. If transcript data becomes available, a themes-based synthesis (strategy, operations, market conditions) with direct quotes and context will be added.
Forward Guidance
No formal forward guidance was included in the provided data. Based on the Q4 2024 results and ongoing industry dynamics, the forward outlook hinges on: (1) sustaining broadband ARPU growth and subscriber retention amid competitive intensity, (2) continued ramp of high‑capex network initiatives to preserve scale and service quality, (3) cash flow generation to support deleveraging given the magnitude of total debt. Risks include higher interest rates, slower-than-expected subscriber growth, and potential regulatory or competitive pressures that could impact pricing power. Investors should monitor quarterly trends in ARPU, churn, capital expenditure intensity, and the company’s ability to translate EBITDA into meaningful FCF capable of reducing net debt over time.