TLDR
- Charter stock closed at $373.65 on April 25, 2025, up 11.43% for the day.
- Revenue rose 0.4% year over year, while adjusted EBITDA grew 4.8%.
- Net income increased to $1.2 billion compared to $1.1 billion last year.
- Mobile lines added surged by 514,000 during the first quarter.
- Internet and video customer declines remain ongoing challenges.
Charter Communications Inc. (NASDAQ: CHTR) closed at $373.65 on April 25, 2025, up 11.43% following the release of its first-quarter 2025 earnings. Revenue grew by a modest 0.4% year over year to $13.7 billion. Excluding advertising revenue, revenue increased by 0.8%. Adjusted EBITDA rose 4.8%, while net income attributable to Charter shareholders climbed to $1.2 billion from $1.1 billion in the prior-year quarter.
Charter Communications Inc. (CHTR)
The company’s next earnings date is scheduled between July 24 and July 28, 2025. Management credited mobile subscriber growth and cost-cutting efforts for the strong earnings performance, helping offset declines in internet and video subscribers.
Mixed Customer Metrics and Operational Shifts
Charter’s operational metrics revealed challenges. The company added 514,000 Spectrum Mobile lines, achieving a 25% year-over-year growth in mobile lines. However, internet customers fell by 60,000 and video customers dropped by 181,000 during the quarter. These losses underline ongoing competitive pressures from fiber competitors and mobile service alternatives.
On the positive side, programming costs declined 10.4% year over year, while overall operating expenses fell 2.6%. Advertising revenue decreased 12.9%, partly due to weaker political ad spending.
Capital expenditures for Q1 2025 were $2.4 billion, down $400 million from last year, supporting improved free cash flow, which rose to $1.6 billion—up approximately $1.2 billion from the prior year.
Financial Strength and Debt Position
Charter reported $796 million in cash as of March 31, 2025. The company maintains a heavy debt load, with total principal debt of $93.6 billion and a weighted average cost of 5.2%. Its debt-to-equity ratio stands at a steep 465.63%, highlighting its leveraged balance sheet.
Profitability metrics remain solid with a 9.42% profit margin, a 5.64% return on assets, and a 33.12% return on equity. Levered free cash flow over the trailing twelve months reached $3.57 billion, providing flexibility for ongoing investments and shareholder value initiatives.
Performance Overview
Charter’s stock performance over various periods shows significant volatility. Year-to-date, as of April 25, 2025, CHTR has gained 9.01%, sharply outperforming the decline of the S&P 500 by 6.06%. Over the past year, Charter shares surged 44.21%, compared to the S&P 500’s 9.44% increase.
However, longer-term returns have been negative. Over the last three years, CHTR declined 26.30%, while the S&P 500 rose 28.61%. The five-year return paints a similar picture, with Charter dropping 26.53% against the S&P 500’s 94.77% rally.
Still, Charter’s total shareholder return over the past year was a robust 46.75%, easily surpassing the US market’s 7.9% return and outperforming the US Media industry’s 6% decline.
Strategic Initiatives and Risks
Charter is expanding its rural footprint, adding 89,000 subsidized rural passings in the first quarter to reach a total of 902,000. Investments in fiber expansion, employee training, and the adoption of AI technologies position the company for future service improvements and margin growth.
The election of Martin E. Patterson to the board of directors reflects leadership changes aimed at strengthening governance. However, competition from fiber overbuilders and mobile services presents ongoing risks. The weak advertising environment and internet subscriber losses could also weigh on future top-line growth.
With the current share price near $373.65 and a one-year analyst target estimate of $403.58, Charter offers a potential upside of around 8%. Investors will need to monitor competitive pressures closely while assessing the company’s execution on mobile expansion and rural network buildouts.
