Investor Feedback and Sentiment (Post #105): Incremental Takeaways from Charter Q2‘26 Earnings

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Investor Feedback and Sentiment (Post #105): Incremental Takeaways from Charter Q2‘26 Earnings

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24 Jul 2026 15:08:37 ET │ 11 pages

Investor Feedback and Sentiment (Post #105)

Incremental Takeaways from Charter 2Q26 Earnings

Charter shares are trading down 5% intraday (12:30 pm). We believe the negative

reaction is in response to underwhelming broadband revenue performance (largely

driven by lower gross adds, lapping a rate increase, and dilution from aggressive

retention), as well as the softer-than-anticipated 2026 EBITDA outlook. Charter

shared its expectation for 2026 standalone EBITDA (ex transition expenses) to

decline 1% yoy, which represents a notable shift from its previous expectation for Michael Rollins, CFAAC

slight growth. However, this does imply positive EBITDA growth in the back half of +1-212-816-1116

the year on the heels of a positive price action on broadband (starting mid-July, but michael.rollins@citi.com

not specified), political ads, and incremental cost actions. While Charter is apt to see

some sequential benefit to broadband ARPU in 3Q and 4Q on a dollar basis,

competition seems to be weighing more heavily on ARPU monetization. We maintain

our Buy on CHTR shares given its low valuation, improving FCF prospects beginning

in 2027, and updated capital allocation to reduce net debt leverage (now to 3.5x

EBITDA) and continue share repurchases.

We share our takeaways from the earnings call and call-back.

Broadband – Broadband net losses continued to be driven by softer gross additions,

while churn remained largely stable. Charter noted two significant drivers of

broadband softness in the quarter, including the full lapping of last year's

broadband rate increase and the lingering impact of aggressive retention offers