Charter’s QQ1 2025 results depict a resilient revenue trajectory coupled with strong EBITDA generation, delivering a net income of $1.22 billion on revenue of $13.735 billion. Revenue grew modestly year-over-year by 0.41% and declined 1.37% quarter-over-quarter, reflecting seasonality and mix dynamics. EBITDA of $5.28 billion produced an EBITDA margin of 38.4%, while operating income reached $3.24 billion for an operating margin of 23.6%, underscoring a stable profitability profile despite ongoing capital intensity.
The quarter highlights a heavy leverage backdrop, with total debt of $93.77 billion and net debt of $92.97 billion. Cash flow remains a strength, with operating cash flow of $4.236 billion and free cash flow of $1.837 billion, translating to roughly $12.97 of free cash flow per share. Charters’ balance sheet shows substantial intangible assets (Goodwill and Intangibles of $97.96 billion) and a high debt-to-capitalization ratio (~85.5%), reflecting a capital-intensive model supported by ongoing network investments. While liquidity metrics signal tight near-term liquidity (current ratio and cash ratio both around the low end), the business continues to generate meaningful FCF that can be applied toward debt service and capital expenditure.
Management commentary during QQ1 2025 emphasized the ongoing importance of network upgrades and product breadth (broadband, video, and advertising) to sustain revenue mix and ARPU growth over time. However, no formal forward-looking guidance was issued in the available data; investors should monitor capex intensity, subscriber trends, advertising demand, and debt maturity management as primary drivers of the overhang on valuation.)