Cable, internet, and telephone services provider Charter (NASDAQ: CHTR) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $13.67 billion. Its non-GAAP profit of $8.34 per share was 10.5% below analysts’ consensus estimates.

Is now the time to buy CHTR? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Charter's third quarter results met Wall Street's expectations on revenue but fell short on non-GAAP profit, with adjusted EPS coming in below consensus. The company attributed its performance to ongoing competition in the broadband market, subdued activity in new customer acquisitions, and a challenging advertising environment. CEO Christopher Winfrey described the operating conditions as "competitive with new competitors and the macro environment that hasn't gotten better," noting that low move rates and growing fiber and mobile overlap constrained subscriber growth. Management also highlighted improvements in video customer retention, driven by product enhancements and bundling initiatives.

Looking ahead, Charter’s strategy centers on leveraging its converged mobile and broadband offerings, investing in customer service enhancements, and rolling out new technology initiatives like Agentic AI. Management believes these efforts will provide a path to long-term cost efficiency and customer retention, even as short-term headwinds persist. Winfrey stated, “We’re leaving no stone unturned to drive customer and financial growth, including improved customer perception of our brand and products, growing mobile profitability and driving streaming video growth, all with the focus to drive connectivity revenue growth.”

Key Insights from Management’s Remarks

Management identified competitive broadband dynamics and evolving customer behavior as key drivers of Q3 results, while product bundling and technology upgrades contributed to video and mobile improvements.

• Broadband competition intensified: Charter faced heightened competition from expanded fiber and cellphone internet providers, which limited gross additions and pressured internet subscriber growth. Management cited low move rates and mobile substitution as ongoing challenges.
• Mobile growth offset by disconnects: The company continued to add Spectrum Mobile lines, achieving nearly 500,000 net additions, but noted that these gains were counterbalanced by disconnects on a larger installed base. The growing convergence between mobile and internet customers helped lower churn rates.
• Video retention improved: Video customer losses slowed substantially due to improved packaging, the integration of direct-to-consumer streaming apps, and the launch of the Spectrum App Store, which drove higher engagement and contributed to lower churn.
• Cost management and AI investment: Charter continued to invest in automation and AI-driven tools for network monitoring, customer service, and operational efficiency. Management highlighted ongoing reductions in service costs per customer and viewed Agentic AI as a potential driver of future cost savings.
• Product innovation and marketing shifts: New marketing strategies and offer expressions, such as bundling internet with multiple mobile lines or enhanced video packages, aimed to boost average revenue per user and customer lifetime value while addressing shifting consumer preferences.

Drivers of Future Performance

Charter’s forward outlook is shaped by competitive broadband dynamics, cost control measures, and the scaling of its converged connectivity platform.

• Converged product adoption: Management expects continued growth in customers using both mobile and internet services, which is anticipated to improve retention and profitability. The company is also preparing to launch new products like Advanced WiFi Complete, targeting higher-value households.
• Cost efficiency focus: Charter is prioritizing AI and automation to lower its $8 billion annual service costs. The company believes that Agentic AI could deliver significant operational savings and enhanced customer experience within the next 12 to 18 months.
• Competitive and macro risks: Management acknowledged that ongoing competition, particularly from fiber and cellphone internet providers, along with macroeconomic factors like low housing turnover, will continue to impact gross additions and subscriber growth in the near term.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) whether broadband subscriber losses stabilize or reverse as competitive dynamics evolve, (2) the adoption and monetization of new converged products like Advanced WiFi Complete and the Spectrum App Store, and (3) progress in cost efficiency through expanded use of AI and automation. Successful integration of the pending Cox acquisition and further improvements in video retention will also be critical markers.

Charter currently trades at $220.15, down from $230.95 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).

Now Could Be The Perfect Time To Invest In These Stocks

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.