Charter Communications, Inc.
Loading chart...
Item 1. Business.
Introduction
We are a leading broadband connectivity company with services available to 58 million homes and small to large businesses across 41 states through our Spectrum® brand. Founded in 1993, we have evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, we offer Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.
Our strategy is focused on utilizing our fiber-powered network to deliver high-quality, competitively priced products, with outstanding service, allowing us to increase both the number of customers we serve over our network and the number of products we sell to each customer. This combination also reduces the number of service transactions we perform per relationship, yielding higher customer satisfaction and lower customer churn, which results in lower costs to acquire and serve customers and drives greater profitability.
Products
We offer Spectrum Internet products with speeds up to 1 gigabits per second (“Gbps”) across our entire footprint and multi-gigabit speeds in a portion of our footprint. We continue to upgrade our connectivity network, and we will offer symmetrical and multi-gigabit Internet speeds across our entire footprint in the next several years. Advanced WiFi, a managed WiFi service that provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy, is available to all of our Internet customers. Spectrum Mobile® is available to all new and existing Spectrum Internet customers and offers plans that include 5G access, do not require contracts and include taxes and fees in the price. We continue to innovate our video product and have transformed all of our affiliation agreements with major programmers. These new agreements give us greater overall packaging flexibility and the ability to include the ad-supported versions of key programmer streaming applications, at no extra cost, within our video packages, along with the ability to upgrade to ad-free versions and to sell those applications to customers a la carte for a seamless entertainment experience. Together with our Xumo Stream Boxes (“Xumo”), our goal is to deliver utility and value for our customers, irrespective of how they want to view content, and better and more stable economics for our programming partners and us.
Pricing & Packaging and Customer Commitments
Our fully deployed fiber-powered network offers ubiquitous and seamless connectivity products. It removes barriers and creates opportunities for customers, in every aspect of their lives. Our brand platform, Life Unlimited™, emphasizes the power of our advanced network and cutting-edge connectivity products and services, and our simplified pricing strategy better utilizes our seamless connectivity and entertainment products to offer lower promotional and persistent bundled pricing to drive growth. Additionally, our customer commitments focus on reliable connectivity, transparency, exceptional service and always improving. Through reliable connectivity, we are committed to keeping our customers connected 100% of the time and promptly resolving issues. Transparency at every step means we provide clear and simple pricing and timely service updates, and we take responsibility when things go wrong. Through exceptional service, we provide exceptional customer experiences. And finally, always improving means we act on our customers' feedback to improve our products and customer service.
Network Evolution
Our network and product evolution plan continues to progress, with a clear path to delivering symmetrical and multi-gig speeds to customers across our footprint, meeting the needs of today and anticipating the growing demand for faster speeds for years to come. We continue to expand the capacity of our fiber-powered network using a number of technologies, including
•spectrum expansion, initially to 1.2 GHz and then to 1.8 GHz;
•changing the bandwidth allocation to a "high split" to increase upstream speeds;
•Distributed Access Architecture ("DAA"); and
•DOCSIS 4.0 technology.
Through this process, which we expect to be largely complete by the end of 2027, we will transform our network to offer much faster Internet speeds. Those faster Internet speeds will be offered in conjunction with our Spectrum Mobile product and
1
Advanced WiFi, providing customers seamless and convenient, ultra-fast converged connectivity in attractively priced packages.
Expansion
Since inception in the beginning of 2022, we have spent $7.7 billion on our subsidized rural construction initiative and activated approximately 1.3 million passings. Rural footprint builds present strategic network expansion opportunities to deliver service to unserved and underserved passings. Our rural investments allow us to offer a suite of broadband connectivity services, including fixed Internet, WiFi and mobile to unserved areas in states where we currently operate. To accomplish all of this, we have invested in new construction teams and new equipment. These investments will allow us to generate long-term infrastructure-style returns by taking further advantage of our scale efficiencies, network quality and construction capabilities, while offering our high-quality products and services to more homes and businesses.
Our principal executive offices are located at 400 Washington Blvd., Stamford, Connecticut 06902. Our telephone number is (203) 905-7801, and we have a website accessible at ir.charter.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and all amendments thereto, are available on our website free of charge as soon as reasonably practicable after they have been filed. The information posted on our website is not incorporated into this annual report.
2
Corporate Entity Structure
The chart below sets forth our entity structure and that of our direct and indirect subsidiaries. The chart does not include all of our affiliates and subsidiaries and, in some cases, we have combined separate entities for presentation purposes. The equity ownership percentages shown below for Charter Communications Holdings, LLC (“Charter Holdings”) are approximations. Indebtedness amounts shown below are principal amounts as of December 31, 2025. See Note 9 to the accompanying consolidated financial statements contained in “Part II. Item 8. Financial Statements and Supplementary Data,” which also includes the accreted values of the indebtedness described below.
3
Footprint
We operate in geographically diverse areas which are managed centrally on a consolidated level. The map below highlights our footprint along with our planned rural expansion over the span of the initiative based on grants awarded as of December 31, 2025.
Products and Services
We offer our customers subscription-based Internet, mobile, video and voice services, with prices and related charges based on the types of service selected, whether the services are sold as a “bundle” or on an individual basis, and based on the equipment necessary to receive our services. Bundled services, including some combination of our Internet, mobile, video and/or voice products are available to substantially all of our passings.
To better reflect the converged and integrated nature of our business and operations, in the fourth quarter of 2025, we revised our customer relationship statistics to include all mobile customers, including mobile-only customers, and have added information on total connectivity customers, which represent all customers receiving our Internet and/or mobile connectivity services. In addition, in the fourth quarter of 2025, certain reporting policies related to mobile lines were revised to better align with other Charter services. Other minor changes were made to small business Internet customers and mid-market & large business primary service units (“PSUs”) to standardize reporting methodologies. Prior periods have been revised accordingly.
4
The following table summarizes our customer statistics for connectivity, Internet, mobile, video and voice as of December 31, 2025 and 2024 (in thousands except per customer data and footnotes).
| Approximate as of | |||||||||||
| December 31, | |||||||||||
2025 (a) | 2024 (a) | ||||||||||
Customer Relationships (b) | |||||||||||
| Residential | 29,609 | 29,964 | |||||||||
| Small Business | 2,237 | 2,250 | |||||||||
| Total Customer Relationships | 31,846 | 32,214 | |||||||||
Monthly Residential Revenue per Residential Customer (c) | $ | 119.05 | $ | 118.71 | |||||||
Monthly Small Business Revenue per Small Business Customer (d) | $ | 161.50 | $ | 161.97 | |||||||
| Connectivity | |||||||||||
| Residential | 28,563 | 28,763 | |||||||||
| Small Business | |||||||||||
Loading financial statements...
Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
| Line item |
|---|
| Period ending |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
General
Charter Communications, Inc. (together with its controlled subsidiaries, “Charter”) is a leading broadband connectivity company with services available to nearly 59 million homes and small to large businesses across 41 states through our Spectrum brand. Founded in 1993, we have evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, we offer Seamless Connectivity and Entertainment with Spectrum Internet, Mobile, TV and Voice products.
Charter is a holding company whose principal asset is a controlling equity interest in Charter Communications Holdings, LLC (“Charter Holdings”), an indirect owner of Charter Communications Operating, LLC (“Charter Operating”) under which substantially all of the operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated.
The Cox Transactions
On May 16, 2025, Charter, Charter Holdings, and Cox Enterprises, Inc. (“Cox Enterprises”) entered into a Transaction Agreement (the “Transaction Agreement”) pursuant to which (i) Cox Enterprises will sell and transfer to Charter 100% of the equity interests of certain subsidiaries of Cox Communications, Inc. (“Cox Communications”) that conduct Cox Communications’ commercial fiber and managed IT and cloud services businesses (the “Equity Sale”), (ii) Cox Enterprises will contribute the equity interests of Cox Communications and certain other assets (other than certain excluded assets) primarily related to Cox Communications’ residential cable business to Charter Holdings (the “Contribution”), and (iii) Cox Enterprises will pay $1.00 to Charter (collectively, the “Cox Transactions”). Under the Transaction Agreement, Charter and Cox Enterprises may designate one or more wholly owned subsidiaries to take actions with respect to Charter and Cox Enterprises, respectively.
Pursuant to the Transaction Agreement, at the closing of the Cox Transactions (the “Closing”):
•in consideration of the Equity Sale, Charter will pay $3.5 billion in cash to Cox Enterprises;
•in consideration of the Contribution, Charter Holdings will (i) pay to Cox Enterprises $650 million in cash and (ii) issue to Cox Enterprises convertible preferred units of Charter Holdings with an aggregate liquidation preference of $6.0 billion, which will pay a 6.875% dividend per annum, and approximately 33.6 million Charter Holdings common units. The Charter Holdings convertible preferred units will be convertible into Charter Holdings common units, with an initial conversion price of $477.41, subject to certain adjustments. The Charter Holdings common units will be exchangeable by the holder, in certain circumstances, for cash or, at the election of Charter, Charter Class A common stock on a one-for-one basis, subject to certain adjustments; and
•in consideration of the $1.00 payment from Cox Enterprises to Charter, Charter will issue to Cox Enterprises one share of the newly created Charter Class C common stock. The Charter Class C common stock will be equivalent, economically, to the outstanding Charter Class A common stock and the Charter Class B common stock but will have a number of votes per share that reflect the voting power of the Charter Holdings common units and the Charter Holdings convertible preferred units held by Cox Enterprises on an as-converted, as-exchanged basis.
The combined entity will assume Cox Communications’ approximately $12.4 billion in outstanding net debt and finance leases.
Overview
The competitive environment continued to challenge our Internet customer growth in the second quarter of 2026 and we lost 172,000 Internet customers. Mobile lines grew by 406,000 while video customer losses improved versus the prior year period driven by improvements to our product offerings with customers finding value in bundling our seamless connectivity and entertainment products. Our core strategy is to deliver great products, at a great value, while continuously improving service. We remain focused on improving customer results through the power of our advanced fiber-powered network and cutting-edge connectivity products and services, and our simplified pricing and packaging strategy that better utilizes our seamless connectivity and entertainment products to offer lower promotional and persistent bundled pricing to drive growth. Our Internet and mobile product bundles provide a differentiated connectivity experience by bringing together Spectrum Internet,
14
Advanced WiFi and Spectrum Mobile to offer consumers fast, reliable and secure online connections on their favorite devices at home and on the go in high-value packages. We have completed deals with major programmers to deliver better flexibility and greater value to our customers by including seamless entertainment applications with certain of our Spectrum TV packages at no additional cost. We offer the sale of these seamless entertainment applications to customers on an à la carte basis, and through our digital storefront, the Spectrum App Store, customers can easily activate, upgrade, buy and manage their streaming applications in one place. We also continue to develop other elements of our video product and are deploying Xumo stream boxes to new video customers.
Our customer commitments focus on reliable connectivity, transparency, exceptional service and always improving. By continually improving our product set and offering consumers the opportunity to save money by switching to our services, we believe we can continue to penetrate our expanding footprint and sell additional products to our existing customers. We see operational benefits from the targeted investments we made in employee wages and benefits to build employee skill sets and tenure, as well as the continued investments in digitization of our customer service platforms, all with the goal of improving the customer experience, reducing transactions and driving customer growth and retention.
We currently offer Spectrum Internet products with speeds up to 1 Gbps across our entire footprint and multi-gigabit data speeds in a portion of our footprint. Our network evolution initiative remains on track to deliver symmetrical and multi-gigabit speeds across our entire footprint with convergence everywhere we operate. We spent $391 million and $818 million on our subsidized rural construction initiative during the three and six months ended June 30, 2026, respectively, and activated approximately 127,000 and 216,000 subsidized rural passings, respectively.
We realized revenue, Adjusted EBITDA and income from operations during the periods presented as follows (in millions; all percentages are calculated using whole numbers; minor differences may exist due to rounding):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||||||||||||||||||
| Revenues | $ | 13,526 | $ | 13,766 | (1.7) | % | $ | 27,123 | $ | 27,501 | (1.4) | % | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 5,449 | $ | 5,693 | (4.3) | % | $ | 11,086 | $ | 11,456 | (3.2) | % | ||||||||||||||||||||||
| Income from operations | $ | 3,063 | $ | 3,279 | (6.5) | % | $ | 6,271 | $ | 6,516 | (3.7) | % | ||||||||||||||||||||||
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, interest expense, net, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges, merger and acquisition costs and (gain) loss on sale or retirement of assets. See “Use of Adjusted EBITDA and Free Cash Flow” for further information on Adjusted EBITDA and free cash flow.
Total revenues decreased $240 million and $378 million during the three and six months ended June 30, 2026, respectively, compared to the corresponding periods in 2025 primarily due to a higher seamless entertainment allocation and fewer customer relationships, partly offset by mobile line growth. Adjusted EBITDA decreased $244 million and $370 million during the three and six months ended June 30, 2026, respectively, compared to the corresponding periods in 2025 primarily due to lower revenue and higher transition expenses incurred as we prepare to integrate Cox Communications. Income from operations was further impacted by a decrease in merger and acquisition costs.
15
The following table summarizes our customer statistics for connectivity, Internet, mobile, video and voice as of June 30, 2026 and 2025 (in thousands except per customer data and footnotes).
| Approximate as of | |||||||||||
| June 30, | |||||||||||
2026 (a) | 2025 (a) | ||||||||||
Customer Relationships (b) | |||||||||||
| Residential | 29,276 | 29,819 | |||||||||
| Small Business | 2,223 | 2,241 | |||||||||
| Total Customer Relationships | 31,499 | 32,060 | |||||||||
Monthly Residential Revenue per Residential Customer (c) | $ | 117.52 | $ | 119.70 | |||||||
Monthly Small Business Revenue per Small Business Customer (d) | $ | 165.27 | $ | 162.91 | |||||||
Connectivity (e) | |||||||||||
| Residential | 28,306 | 28,705 | |||||||||
| Small Business | 2,069 | 2,076 | |||||||||
| Total Connectivity Customers | 30,375 | 30,781 | |||||||||
| Internet | |||||||||||
| Residential | 27,358 | 27,868 | |||||||||
| Small Business | 2,030 | 2,040 | |||||||||
| Total Internet Customers | 29,388 | 29,908 | |||||||||
Mobile Lines (f) | |||||||||||
| Residential | 12,099 | 10,502 | |||||||||
| Small Business | 441 | 354 | |||||||||
| Total Mobile Lines | 12,540 | 10,856 | |||||||||
Video (g) | |||||||||||
| Residential | 12,010 | 12,087 | |||||||||
| Small Business | 514 | 544 | |||||||||
| Total Video Customers | 12,524 | 12,631 | |||||||||
| Voice | |||||||||||
| Residential | 4,494 | 5,161 | |||||||||
| Small Business | 1,200 | 1,225 | |||||||||
| Total Voice Customers | 5,694 | 6,386 | |||||||||
Mid-Market & Large Business Primary Service Units ("PSUs") (h) | 364 | 350 | |||||||||
(a)We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, as of June 30, 2026 and 2025, customers include approximately 84,000 and 99,400 customers, respectively, whose accounts were over 60 days past due, approximately 10,100 and 11,600 customers, respectively, whose accounts were over 90 days past due and approximately 13,400 and 18,900 customers, respectively, whose accounts were over 120 days past due.
(b)Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, mobile, video and voice services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units (“MDUs”) and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude mid-market & large business customer relationships.
(c)Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter.
16
(d)Monthly small business revenue per small business customer is calculated as total small business quarterly revenue divided by three divided by average small business customer relationships during the respective quarter.
(e)Connectivity customers represent all customers receiving our Internet and/or mobile connectivity services.
(f)Mobile lines include phones and tablets which require one of our standard rate plans (e.g., "Unlimited" or "By the Gig"). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.
(g)Video customers only include customers that purchase Spectrum traditional or streaming linear video packages and exclude customers that only purchase streaming applications.
(h)Mid-market & large business PSUs represent the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
Critical Accounting Policies and Estimates
For a discussion of our critical accounting policies and the means by which we develop estimates, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K. There have been no material changes from the critical accounting policies described in our Form 10-K.
Based on our quantitative impairment analysis during the fourth quarter of 2025, the fair value of our franchise intangibles exceeded the carrying value by more than 10% in each unit of accounting. Considering the decline in Charter’s stock price during the quarter ending June 30, 2026, we continue to monitor factors that could impact the fair value of our franchises and goodwill. We do not view this recent decline as representing a fundamental change in the long-term results of our business. However, if the lower stock price persists, we may need to evaluate whether this market perception represents a sustained decline in the market value of our business and perform a quantitative impairment assessment to determine any potential impact on the carrying value of our franchises and goodwill.
17
Results of Operations
The following table sets forth the consolidated statements of operations for the periods presented (dollars in millions, except per share data):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenues | $ | 13,526 | $ | 13,766 | $ | 27,123 | $ | 27,501 | ||||||||||||||
| Costs and Expenses: | ||||||||||||||||||||||
Operating costs and expenses (exclusive of items shown separately below) | 8,215 | 8,230 | 16,378 | 16,424 | ||||||||||||||||||
| Depreciation and amortization | 2,197 | 2,176 | 4,408 | 4,357 | ||||||||||||||||||
| Other operating expenses, net | 51 | 81 | 66 | 204 | ||||||||||||||||||
| 10,463 | 10,487 | 20,852 | 20,985 | |||||||||||||||||||
| Income from operations | 3,063 | 3,279 | 6,271 | 6,516 | ||||||||||||||||||
| Other Income (Expenses): | ||||||||||||||||||||||
| Interest expense, net | (1,276) | (1,263) | (2,532) | (2,504) | ||||||||||||||||||
| Other income (expenses), net | 212 | (107) | 88 | (249) | ||||||||||||||||||
| (1,064) | (1,370) | (2,444) | (2,753) | |||||||||||||||||||
| Income before income taxes | 1,999 | 1,909 | 3,827 | 3,763 | ||||||||||||||||||
| Income tax expense | (475) | (414) | (940) | (859) | ||||||||||||||||||
| Consolidated net income | 1,524 | 1,495 | 2,887 | 2,904 | ||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | (232) | (194) | (432) | (386) | ||||||||||||||||||
| Net income attributable to Charter shareholders | $ | 1,292 | $ | 1,301 | $ | 2,455 | $ | 2,518 | ||||||||||||||
| EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS: | ||||||||||||||||||||||
| Basic | $ | 10.76 | $ | 9.41 | $ | 20.00 | $ | 18.00 | ||||||||||||||
| Diluted | $ | 10.66 | $ | 9.18 | $ | 19.81 | $ | 17.59 | ||||||||||||||
Weighted average common shares outstanding, basic | 120,121,017 | 138,205,810 | 122,789,924 | 139,889,251 | ||||||||||||||||||
Weighted average common shares outstanding, diluted | 121,255,667 | 141,684,415 | 123,969,262 | 143,098,493 | ||||||||||||||||||
Revenues. Total revenues decreased $240 million and $378 million during the three and six months ended June 30, 2026, respectively, compared to the corresponding periods in 2025. The decrease was primarily due to a higher seamless entertainment allocation and lower customer relationships, partly offset by mobile line growth.
18
Revenues by service offering were as follows (dollars in millions; all percentages are calculated using whole numbers; minor differences may exist due to rounding):
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||||||||||||||||||
| Internet | $ | 5,776 | $ | 5,969 | (3.2) | % | $ | 11,628 | $ | 11,899 | (2.3) | % | ||||||||||||||||||||||
| Mobile service | 1,095 | 921 | 18.9 | % | 2,147 | 1,835 | 17.0 | % | ||||||||||||||||||||||||||
| Connectivity | 6,871 | 6,890 | (0.3) | % | 13,775 | 13,734 | 0.3 | % | ||||||||||||||||||||||||||
| Video | 3,149 | 3,488 | (9.7) | % | 6,401 | 7,068 | (9.4) | % | ||||||||||||||||||||||||||
| Voice | 331 | 346 | (4.5) | % | 669 | 702 | (4.7) | % | ||||||||||||||||||||||||||
| Residential revenue | 10,351 | 10,724 | (3.5) | % | 20,845 | 21,504 | (3.1) | % | ||||||||||||||||||||||||||
| Small business | 1,104 | 1,096 | 0.7 | % | 2,194 | 2,184 | 0.4 | % | ||||||||||||||||||||||||||
| Mid-market & large business | 761 | 740 | 2.8 | % | 1,510 | 1,474 | 2.4 | % | ||||||||||||||||||||||||||
| Commercial revenue | 1,865 | 1,836 | 1.5 | % | 3,704 | 3,658 | 1.2 | % | ||||||||||||||||||||||||||
| Advertising sales | 416 | 371 | 12.3 | % | 774 | 711 | 9.0 | % | ||||||||||||||||||||||||||
| Other | 894 | 835 | 7.1 | % | 1,800 | 1,628 | 10.6 | % | ||||||||||||||||||||||||||
| $ | 13,526 | $ | 13,766 | (1.7) | % | $ | 27,123 | $ | 27,501 | (1.4) | % | |||||||||||||||||||||||
The decrease in Internet revenues from our residential customers is attributable to the following (dollars in millions):
| Three months ended June 30, 2026 compared to three months ended June 30, 2025 | Six months ended June 30, 2026 compared to six months ended June 30, 2025 | |||||||||
| Decrease in average residential Internet customers | $ | (104) | $ | (191) | ||||||
| Decrease related to rate | (89) | (80) | ||||||||
| $ | (193) | $ | (271) | |||||||
Residential Internet customers decreased by 510,000 customers from June 30, 2025 to June 30, 2026.
The increase in mobile service revenues from our residential customers is attributable to the following (dollars in millions):
| Three months ended June 30, 2026 compared to three months ended June 30, 2025 | Six months ended June 30, 2026 compared to six months ended June 30, 2025 | |||||||||
| Increase in average residential mobile lines | $ | 147 | $ | 311 | ||||||
| Increase related to rate | 27 | 1 | ||||||||
| $ | 174 | $ | 312 | |||||||
Residential mobile lines increased by approximately 1.6 million mobile lines from June 30, 2025 to June 30, 2026.
19
Video revenues consist primarily of revenues from video services provided to our residential customers, as well as franchise fees, equipment service fees and video installation revenue. The decrease in video revenues is attributable to the following (dollars in millions):
| Three months ended June 30, 2026 compared to three months ended June 30, 2025 | Six months ended June 30, 2026 compared to six months ended June 30, 2025 | |||||||||
| Increase in seamless entertainment allocation | $ | (184) | $ | (355) | ||||||
| Decrease related to rate and product mix changes | (124) | (227) | ||||||||
| Decrease in average residential video customers | (31) | (85) | ||||||||
| $ | (339) | $ | (667) | |||||||
Seamless entertainment allocation represents costs allocated to programmer streaming applications and netted within video revenue. The increase in seamless entertainment allocation is due to growth in seamless entertainment applications and higher activations. The decrease related to rate and product mix was primarily due to a higher mix of lower priced video packages within our video customer base and more unfavorable bundled revenue allocation, partly offset by promotional rate step-ups and video rate adjustments that pass-through programming rate increases. Residential video customers decreased by 77,000 from June 30, 2025 to June 30, 2026.
The decrease in voice revenues from our residential customers is attributable to the following (dollars in millions):
| Three months ended June 30, 2026 compared to three months ended June 30, 2025 | Six months ended June 30, 2026 compared to six months ended June 30, 2025 | |||||||||
| Decrease in average residential voice customers | $ | (45) | $ | (94) | ||||||
| Increase related to rate adjustments | 30 | 61 | ||||||||
| $ | (15) | $ | (33) | |||||||
Residential wireline voice customers decreased by 667,000 customers from June 30, 2025 to June 30, 2026.
The increase in small business revenues is attributable to the following (dollars in millions):
| Three months ended June 30, 2026 compared to three months ended June 30, 2025 | Six months ended June 30, 2026 compared to six months ended June 30, 2025 | |||||||||
| Increase related to rate and product mix changes | $ | 16 | $ | 25 | ||||||
| Decrease in average small business customers | (8) | (15) | ||||||||
| $ | 8 | $ | ||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-15 | Ramos Mauricio | Director | Buy | +9,929 | $140.93 | $1,399,308 |
| 2026-04-28 | Davis Wade | Director | Buy | +5,728 | $173.72 | $995,068 |
| 2026-04-28 | Nair Balan | Director | Buy | +1,000 | $175.46 | $175,460 |
| 2026-04-28 | Winfrey Christopher L indirect | President and CEO | Buy | +3,468 | $172.23 | $597,311 |
| 2026-04-28 | Winfrey Christopher L | President and CEO | Buy | +3,468 | $172.23 | $597,311 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-10-30 10-Q expected by 2026-11-13 (in 96 days)
- ~2027-01-29 10-K expected by 2027-02-27 (in 187 days)
- ~2027-04-23 10-Q expected by 2027-05-07 (in 271 days)
- ~2027-07-23 10-Q expected by 2027-08-06 (in 362 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-24 10-Q Quarterly Report
- 2026-07-24 8-K Earnings Release; Financial Statements and Exhibits
- 2026-07-23 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2026-05-19 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-04-24 10-Q Quarterly Report
- 2026-04-24 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-24 S-8 Employee Benefit Plan Registration
- 2026-04-23 8-K Officer/Director Change; Shareholder Vote Results; Financial Statements and Exhibits
- 2026-02-25 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-01-30 10-K Annual Report
- 2026-01-30 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-28 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-01-22 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-01-14 8-K Material Agreement Entered; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-01-06 8-K Other Events; Financial Statements and Exhibits