Charter Q2 shows broadband losses, shares fall

Broadband internet routers in a telecom room as broadband losses hit cable stock CHTR in Q2

Key Points

01Q2 2026 adjusted EPS reached $10.66, topping expectations
02Revenue declined about 1.7% year over year to roughly $13.5 billion
03Charter lost 172,000 internet subscribers but added 406,000 mobile lines
04Shares fell to near 52-week lows after the earnings release

Earnings beat contrasts with revenue decline

Charter Communications reported adjusted earnings per share of $10.66 for the second quarter of 2026, exceeding market expectations. Despite the earnings beat, total revenue for the quarter declined about 1.7% year over year to roughly $13.5 billion, signaling pressure on the company’s top line. The divergence between stronger earnings and softer revenue framed investor reaction to the results.

Operational profitability also moved lower. Adjusted EBITDA for the quarter was about $5.4 billion, representing a decline of roughly 4.3% from the prior-year period. Free cash flow fell to $969 million, pointing to weaker cash generation even as earnings per share held up.

Broadband and video subscriber erosion

Charter’s core broadband business showed notable weakness in the quarter. The company lost 172,000 internet customers, leaving about 29.4 million internet subscribers as of June 30, 2026. The magnitude of the decline underscored ongoing erosion in a segment that has historically been central to the company’s growth.

Video subscriptions also continued to trend lower. Charter reported a decline of about 21,000 video customers in the quarter, bringing the total video base to roughly 12.5 million. The decreases in both internet and video subscribers contributed to the overall revenue and profit pressure.

Mobile growth provides a partial offset

While traditional connectivity services weakened, mobile remained a growth area for Charter. The company added 406,000 mobile lines during the second quarter. Total mobile lines reached about 12.5 million by the end of the period, highlighting ongoing customer adoption of its mobile offerings.

Mobile growth provided some offset to the declines in internet and video, but was not sufficient to prevent overall revenue and EBITDA from falling. The contrasting trends illustrate a shifting mix within Charter’s customer base and service portfolio.

Market reaction and outlook signals

Investors reacted negatively to the combination of subscriber losses, lower revenue, and weaker cash metrics. Shares slid in pre-market trading following the earnings release and traded at or near a new 52-week low during the session. The share price move reflected concerns about accelerating broadband losses and the impact on Charter’s core profitability.

Management emphasized continued growth in mobile and ongoing network investment, but the quarter’s results highlighted the challenges facing the company’s legacy broadband and video franchises. The balance between stabilizing core services and expanding growth segments remains central to Charter’s performance trajectory.

Key Takeaways

01Charter’s Q2 2026 results combined an EPS beat with declines in revenue, EBITDA, and free cash flow, indicating rising pressure on underlying operations.
02Broadband and video subscriber losses weighed on financial performance, showing that core connectivity businesses are under strain despite cost control and earnings strength.
03Mobile subscriber growth is becoming more important to Charter’s overall mix, but current momentum has not yet offset the drag from legacy service declines.
04The negative share price reaction, with the stock trading near 52-week lows, reflects investor concern about the pace of broadband erosion and its effect on future profitability.

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