Executive Summary
Charter reported solid topline stability for QQ2 2025 with revenue of $13.766 billion, up 0.59% year-over-year and 0.23% quarter-over-quarter, underscoring a resilient demand base in a competitive U.S. broadband and video market. Gross profit rose 15.7% YoY to approximately $6.392 billion, driven by favorable product mix and continued cost discipline, while gross margin held near 46.4%. Operating income stood at $3.36 billion, delivering an operating margin of about 24.4%. Net income reached $1.301 billion with EPS of $9.41, up roughly 5.7% YoY and 6.9% QoQ, supported by a relatively stable interest expense and tax rate. However, Charter continues to operate with a very high leverage profile: total debt around $96.28 billion and net debt near $95.68 billion, yielding an equity multiplier above 9x and a debt-to-capitalization of approximately 0.856. EBITDA of $5.348 billion and cash flow contributions point to meaningful cash generation, yet cash from operations, capex, and resulting free cash flow ($0.726 billion) reflect substantial funding needs to sustain large-scale broadband and video infrastructure. Management commentary (where available) did not reveal explicit QQ2 2025 forward guidance in the provided data; in this context, the quarter reinforces Charter’s ability to generate steady EBITDA and cash flow while maintaining capex intensity to support long-term network advantages. Investors should weigh the reliability of cash generation against elevated leverage, refinancing risk, and ongoing capital expenditure requirements in a competitive, regulatory-influenced landscape.
Key Performance Indicators
Key Insights
Revenue: $13.766B; YoY growth 0.59%; QoQ growth 0.23%
Gross Profit: $6.392B; YoY growth 15.71%; QoQ growth 0.22%
Operating Income: $3.36B; YoY growth 0.54%; QoQ growth 0.00%
Net Income: $1.301B; YoY growth 5.69%; QoQ growth 6.90%
EPS: $9.41; Diluted EPS $9.18; YoY growth 9.55%; QoQ growth 9.55%
Gross Margin: 46.4%; Operating Margin: 24.4%; Net Margin: 9.45%
EBITDA: $5.348B; EBITDA Margin: ~38.85%
Cash Flow from Operations: $3.60B; Capital Expenditures: $2.874B; Free Cash Flow: $0.726B
Liquidity ...
Financial Highlights
Revenue: $13.766B; YoY growth 0.59%; QoQ growth 0.23%
Gross Profit: $6.392B; YoY growth 15.71%; QoQ growth 0.22%
Operating Income: $3.36B; YoY growth 0.54%; QoQ growth 0.00%
Net Income: $1.301B; YoY growth 5.69%; QoQ growth 6.90%
EPS: $9.41; Diluted EPS $9.18; YoY growth 9.55%; QoQ growth 9.55%
Gross Margin: 46.4%; Operating Margin: 24.4%; Net Margin: 9.45%
EBITDA: $5.348B; EBITDA Margin: ~38.85%
Cash Flow from Operations: $3.60B; Capital Expenditures: $2.874B; Free Cash Flow: $0.726B
Liquidity & Balance Sheet: Cash & Equivalents $0.606B; Total Debt $96.283B; Net Debt $95.677B; Total Assets $151.589B; Total Liabilities $131.221B; Total Stockholders’ Equity $16.209B
Capital Structure: Debt-to-Capitalization ~0.856; Interest Coverage ~2.66x; Equity Multiplier ~9.35x; Dividend Payout Ratio 0%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.77B |
0.59% |
0.23% |
| Gross Profit |
6.39B |
15.71% |
0.22% |
| Operating Income |
3.36B |
0.54% |
0.00% |
| Net Income |
1.30B |
5.69% |
6.90% |
| EPS |
9.41 |
9.55% |
9.55% |
Key Financial Ratios
operatingProfitMargin
24.4%
operatingCashFlowPerShare
$26.05
freeCashFlowPerShare
$5.25
Management Commentary
Note: The earnings transcript is not included in the provided data. As a result, no direct management quotes are available in this report. Expected themes in a typical Charter QQ2 2025 call would include: 1) Strategy and execution around high-speed broadband expansion and 2.0 DOCSIS/Next-Generation technologies; 2) Subscriber trends, ARPU evolution, and churn metrics; 3) Cost discipline, operating leverage, and capex plans; 4) Regulatory and market conditions impacting capital allocation. In the absence of transcript content, the analysis relies on disclosed financials and public peer context to infer potential management emphasis.
Forward Guidance
No explicit QQ2 2025 forward guidance was provided in the supplied materials. Given the strong EBITDA base and ongoing capex requirements to sustain and extend broadband/network assets, investors should monitor: (a) trajectory of capex intensity and its impact on free cash flow generation; (b) subscriber growth, ARPU trends, and churn in core residential and business segments; (c) refinancing risk and debt maturity profile, given the elevated leverage (total debt ~$96.3B) and relatively modest interest coverage (~2.66x); (d) regulatory developments impacting pricing, spectrum, and capital deployment. A potential scenario is stable cash flow with ongoing deleveraging over multi-year horizons if balance sheet optimization and capex efficiency improve, though near-term leverage remains high.