Charter Communications lost 233K internet customers in the third quarter, worse than the 171K it lost a year earlier.
The damage split between the two halves of the newly merged company, with 156K leaving legacy Charter and 77K leaving legacy Cox, on a pro forma basis that treats the Cox deal as if it closed in January 2024.
Charter closed its $34.5B acquisition of Cox Communications in August, expanding its footprint to 45 states and adding more than 5M customer relationships. The core internet base still shrank, finishing September at 34.3M.
Charter's Internet Customer Losses Deepened
Net internet customers lost in the third quarter, thousands, pro forma, as of Sept. 30 2026
Bar chart. Customers lost (thousands). Q3 2025: Customers lost (thousands) 171. Q3 2026: Customers lost (thousands) 233.
Source: Investing.com, Cord Cutters News
Revenue rose 9.1% to $14.9B on an actual basis, carried almost entirely by the merger. A $6.3B franchise impairment charge pushed the company to a net loss of $2.4B, against net income of $1.1B a year earlier.
Wireless remains the one line going the right way. Charter added 508K mobile lines in the quarter to reach 13.5M wireless customers. Video losses narrowed to 77K from 121K, leaving 13.8M television subscribers.
The cuts protect cash, not growth
Management's answer is a "fundamental redesign" targeting $2B in annualized operating cost savings over 18 months, on top of more than $1B in expected Cox synergies. Most of it comes from killing projects that don't contribute to internet growth and from flattening the leadership structure.
Two executives are going with it. Spectrum Chief Commercial Officer Adam Ray and Chief Marketing Officer Sharon Peters both leave at the end of the year. CEO Chris Winfrey told analysts the cuts aren't aimed at frontline service and sales staff, and that Cox service calls will move from offshore to Charter's US employee base without adding headcount.
The cash line needs the discipline. Free cash flow fell to $674M from $1.62B a year earlier, while total debt sat at $108.6B against $573M in cash at Sept. 30. Charter expects about $13B in capital spending for full-year 2026, excluding Cox transition costs.
Fiber and fixed wireless keep taking share
The savings can't win back broadband customers. Cable's broadband business is under attack from fiber and fixed-wireless providers, a shift the industry now calls cord cutting 2.0. Satellite services including Starlink add another front.
Pro forma internet revenue fell 3.7% to $7.10B on fewer customers and pricing changes, and pro forma adjusted earnings before interest, taxes, depreciation and amortization dropped 4% to $6.59B.
That competitive pressure keeps Comcast tie-up talk alive. The same broadband pressure has hit Comcast, which is preparing to spin off NBCUniversal. TD Cowen analyst Gregory Williams wrote that investors may not get constructive until broadband losses find a resting place, and flagged a Comcast-Charter combination as the next possible catalyst.
For now, Charter is cutting $2B in costs while its internet base keeps shrinking.
