Mobile Growth Leads, Internet Slips in Charter's Q1 2026 Earnings

Mobile Services Show Robust Growth Despite Pressure on Core Internet Business

Charter Communications kicked off 2026 with a tale of two businesses: while Spectrum Mobile continued its impressive momentum, the company saw ongoing declines in its legacy Internet and video operations. Mobile line additions—368,000 in the quarter and up 1.8 million year-over-year—pushed total mobile connections to 12.1 million, a 17.1% jump from last year. Internet customers, meanwhile, slipped by 120,000 this quarter, mirroring a persistent downtrend in broadband signups.

Revenue Mix Shifts: Mobile and Commercial Up, Video and Internet Under Pressure

First quarter revenue dipped 1.0% year-over-year to $13.6 billion, dragged down by a 9.2% drop in video and a 1.3% dip in Internet revenue. However, mobile service revenue popped 15.1%, and commercial revenues (driven by both small business and mid-market segments) increased 1.0%. Advertising sales (+5.3%) and 'Other' revenues (+14.2%) were also highlights, thanks to higher political ad and device sales.

Customer Metrics: Mobile Offsets Declines in Internet, Video, and Voice

While mobile lines surged, Charter’s core Internet subscribers fell 1.5% year-over-year. Total video customers declined by 60,000 this quarter, an improvement over last year’s 181,000 quarterly loss. Notably, wireline voice continues its rapid decline (-11.1% YoY). Commercial business remains a bright spot, with both revenue and customer units growing slightly.

Margins and Cash Flow Dip Amid Network Investment

Adjusted EBITDA for the quarter clocked in at $5.6 billion, down 2.2% from last year, while free cash flow dropped 12.3%, reflecting heavier capital expenditures ($2.9 billion this quarter). This investment is aimed at accelerating Charter’s network evolution, including multi-gigabit service launches and rural expansion, as well as customer-premise equipment upgrades. Despite this, operating costs remained relatively flat, with programming expenses dropping sharply (-9.3%)—a silver lining for Charter’s profitability outlook.

Shareholder Moves and Balance Sheet: Buybacks Continue, Debt Remains Substantial

Charter repurchased 4.3 million shares of its stock for $963 million in Q1 2026, as the company continues to return capital to shareholders. The debt load is still substantial ($94.4 billion in principal), but Charter maintains over $4.6 billion in available liquidity on top of its $517 million cash position.

Strategic Initiatives Aim to Reinvent Customer Value Proposition

In a challenging competitive landscape, Charter is rolling out new bundled offers and technology upgrades. The $1,000 Spectrum Internet savings guarantee and Invincible WiFi™ (WiFi 7 routers with battery backup and 5G integration) showcase the company's push for customer retention and longer-term differentiation. Additionally, new streaming app integrations and the Spectrum App Store are designed to add value, particularly as traditional video declines.

Key Takeaway: Charter Leans Into Mobile and Network Evolution as Legacy Segments Decline

The first quarter’s results highlight the continuing shift in Charter’s business mix. Mobile growth and network investments indicate forward momentum, but ongoing declines in Internet and video subscribers show that competitive headwinds aren’t going away. For investors and industry watchers, the story in 2026 will be whether mobile momentum and new technologies can stabilize—and eventually reignite—top-line growth as Charter executes its network transformation and rural buildouts.

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