Charter Communications (CHTR) Q3 2024 Earnings Report

Charter Communications reported Q3 2024 revenue of $13.795 billion, a 1.6% year-over-year increase, with adjusted EBITDA of $5.336 billion, up 3.6% YoY. Net income was $1.28 billion and GAAP EPS was $8.99, supported by a robust EBITDA contribution and disciplined capex. Free cash flow for the quarter was $1.342 billion, and cumulative cash flow generation improved as Exhibit CFO ($3.905 billion) outpaced CapEx ($2.563 billion). Management highlighted ongoing capital discipline, including a lower-than-guided 2024 total capex outlook of roughly $11.5 billion and a network evolution spend now expected to be $1.1 billion in 2024, with the majority of the shift deferred to 2026–2027. The quarterly results reflect ongoing ACP wind-down effects (approximately 200,000 ACP-related internet losses in Q3) and heightened competition from wireline overbuilders and wireless broadband, yet the company remains confident in returning to healthy long-term growth. A key strategic driver remains Life Unlimited and the brand relaunch, which pairs pricing innovation with superior service, aiming to lift ARPU, reduce churn, and expand product depth (gig internet, mobile, video, and programmer apps). Management signaled that 2025 will be ACP-less, with network evolution delivering multi-gig speeds to a higher percentage of passings and a continued emphasis on bundling to monetize greater share of wallet. The horizon features a materially lower risk of incremental BEAD spend versus RDOF, a potential for limited M&A in the rural cable space, and a net debt-to-adjusted-EBITDA target around mid-4x, though buyback pauses could modulate leverage trajectory in the near term.