Charter Communications, Inc., operating under the Spectrum brand, reported a challenging first quarter of 2025, with notable declines in its Internet and video customer bases, according to the company’s financial and operating results released on April 25, 2025. The company, a leading provider of broadband, video, and mobile services, lost 60,000 Internet customers and 181,000 video customers during the three months ended March 31, 2025. Despite these setbacks, Charter highlighted strong mobile line growth and financial resilience, driven by strategic initiatives and a focus on delivering value to customers.
“We continue to execute on our long-held strategy of delivering the best network and products, at the best value, combined with unmatched service,” said Chris Winfrey, President and CEO of Charter. “That strategy is working, as evidenced by our first quarter results. We remain on track to deliver customer, EBITDA and robust free cash flow results for many years to come, driving outstanding shareholder value.”
The loss of 60,000 Internet customers in Q1 2025, which included approximately 9,000 disconnects due to January wildfires in California, marked a slight improvement from the 72,000 Internet customer decline in Q1 2024. As of March 31, 2025, Charter served 30.0 million Internet customers, down 1.6% year-over-year. The company attributed the decline to competitive pressures in the broadband market but emphasized its position as the provider of the nation’s fastest Internet speeds, as validated by Opensignal’s May 2024 report. Charter is actively upgrading its network to offer symmetrical and multi-gigabit speeds, with 2×1 Gbps service launched in two markets in January 2025 and plans for further expansion.
The video segment faced steeper challenges, with a loss of 181,000 video customers in Q1 2025, bringing the total to 12.7 million. While this was a significant improvement from the 405,000 video customers lost in Q1 2024, the decline reflects ongoing cord-cutting trends and a shift toward streaming services. Charter’s new pricing and packaging strategy, introduced in September 2024 under the “Life Unlimited” brand platform, contributed to the slower rate of video customer losses. The strategy includes bundling streaming apps like Max, Disney+, and ESPN+ at no extra cost for Spectrum TV Select customers, adding up to $70 (soon $80) in monthly retail value. However, video revenue fell 8.4% year-over-year to $3.6 billion, driven by fewer customers, a shift to lower-priced packages, and $47 million in costs allocated to streaming apps.
Despite these declines, Charter’s mobile segment provided a bright spot, adding 514,000 mobile lines in Q1 2025, compared to 486,000 in Q1 2024. As of March 31, 2025, Charter served 10.4 million mobile lines, a 26.0% year-over-year increase. Mobile service revenue surged 33.5% to $914 million, fueled by line growth and higher revenue per line. The launch of satellite-based services through a partnership with Skylo in March 2025 further strengthened Spectrum Mobile’s appeal, offering competitive, contract-free plans with 5G access.
Charter’s total customer relationships, excluding mobile-only relationships, stood at 31.4 million, down 2.0% from the prior year. The company also reported a 14.5% decline in wireline voice customers, totaling 6.6 million, and a 2.7% increase in estimated passings to 57.2 million, reflecting network expansion efforts. In rural areas, Charter activated 89,000 subsidized passings and added 39,000 customer relationships in Q1 2025.
Financially, Charter remained robust, with first-quarter revenue of $13.7 billion, up 0.4% year-over-year, driven by mobile and Internet revenue growth. Adjusted EBITDA rose 4.8% to $5.8 billion, and free cash flow soared to $1.6 billion from $358 million in Q1 2024, bolstered by lower capital expenditures and higher operating cash flows. Net income attributable to Charter shareholders increased 10.0% to $1.2 billion. Capital expenditures totaled $2.4 billion, including $878 million for line extensions, with full-year 2025 spending projected at $12 billion.
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