Charter Communications (NASDAQ: CHTR) stock declined after it released its fiscal second-quarter 2025 results on Friday.
The company reported quarterly revenue growth of 0.6% year-on-year to $13.77 billion, beating the analyst consensus estimate of $13.76 billion.
Earnings per share of $9.18 missed the analyst consensus estimate of $9.80.
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The topline performance reflects revenue growth of 24.9% for residential mobile service, 2.8% for residential Internet, and 18.9% for other revenue.
Charter lost 117,000 internet customers, compared to a decline of 149,000 during the second-quarter of 2024 which included the impact of approximately 50,000 disconnects related to the end of the FCC’s Affordable Connectivity Program subsidies.
Charter’s residential video customers decreased by 80,000 compared to 408,000 in the previous year.
Charter’s mobile lines increased by 500,000 during the quarter, reaching 10.9 million as of June 30. AT&T (NYSE:T) added 401,000 postpaid phone customers in the second quarter, down slightly from 419,000 last year but still strong. In contrast, Verizon (NYSE:VZ) lost 9,000 postpaid phone connections, missing analyst expectations for a 13,000 gain.
Charter’s adjusted EBITDA margin remained flat at 41.4%.
The quarterly free cash flow of $1.1 billion decreased from $1.3 billion in the prior year, primarily driven by lower net cash flows from operating activities.
As of June 30, Charter served 29.9 million residential and small business Internet customers.
Net cash flow from operating activities totaled $3.6 billion during the quarter. As of June 30, the company held $606 million in cash and equivalents.
During the quarter, Charter purchased 4.5 million Charter and Charter Communications shares totaling $1.7 billion.
2025 Outlook: Charter Communications expects a capex of approximately $11.5 billion (prior $12 billion) versus $11.27 billion in fiscal 2024. The decrease primarily reflects the timing of network evolution spending and lower commercial and subsidized rural line extensions spending.
Charter stock gained 11% year-to-date compared to the NASDAQ Composite Index’s (which includes the stock) over 9% returns.
Price Action: Charter Communications stock is down 10.6% to $339.61 in the premarket at the last check on Friday.
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