Financial Analysis

Commitments and Contingencies Commitments The following table summarizes the Companys payment obligations as of December 31, 2025 for its contractual obligations which consists of guaranteed minimum commitments, including rights negotiated directly with content owners for distribution on company-owned channels or networks, commitments related to our role as an advertising and distribution sales agent for third party-owned channels or networks, commitments to our customer premise equipment and device vendors, contractual obligations related to third-party network augmentation and guaranteed minimum commitments under the Companys programming contracts. 2026 $ 4,503 2027 3,463 2028 2,762 2029 1,046 2030 1,072 Thereafter 4,276 $ 17,122 The following items are not included in the contractual obligation table due to various factors discussed below. However, the Company incurs these costs as part of its operations: The Company rents utility poles used in its operations. Generally, pole rentals are cancelable on short notice, but the Company anticipates that such rentals will recur. Rent expense incurred for pole rental attachments for the years ended December 31, 2025, 2024 and 2023 was $273 million, $243 million and $230 million, respectively. The Company pays franchise fees under multi-year franchise agreements based on a percentage of revenues generated from video service per year. The Company also pays other franchise related costs, such as public education grants, under multi-y …

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The Companys revenues by product line are as follows: Year Ended December 31, 2025 2024 2023 Internet $ 23,765 $ 23,360 $ 23,032 Mobile service 3,762 3,083 2,243 Connectivity 27,527 26,443 25,275 Video 13,703 15,129 16,353 Voice 1,350 1,437 1,510 Residential revenue 42,580 43,009 43,138 Small business 4,346 4,376 4,355 Mid-market & large business 2,969 2,878 2,767 Commercial revenue 7,315 7,254 7,122 Advertising sales 1,468 1,780 1,551 Other 3,411 3,042 2,796 $ 54,774 $ 55,085 $ 54,607 …

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Stock Compensation Plans Charters stock incentive plan provides for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plan. The stock incentive plan allows for the issuance of up to 23 million shares of Charter Class A common stock (or units convertible into Charter Class A common stock). Restricted stock, restricted stock units, stock options as well as equity awards with market conditions are measured at the grant date fair value and amortized to stock compensation expense over the requisite service period. The fair value of stock options is estimated on the date of grant using the Black-Scholes option-pricing model and the fair value of equity awards with market conditions is estimated on the date of grant using Monte Carlo simulations. The grant date weighted average assumptions used during the years ended December 31, 2025, 2024 and 2023 were: risk-free interest rate of 4.5%, 3.9% and 3.7%, respectively; expected lives of 4.6 years, 5.0 years and 4.8 years, respectively; and expected volatility of 36.5%, 33% and 31%, respectively. The Companys volatility assumptions represent managements best estimate …

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"Franchises, Goodwill and Other Intangible Assets Franchise rights represent the value attributed to agreements or authorizations with local and state authorities that allow access to homes in cable service areas. For valuation purposes, they are defined as the future economic benefits of the right to solicit and service potential customers (customer marketing rights), and the right to deploy and market new services to potential customers (service marketing rights). Management estimates the fair value of franchise rights at the date of acquisition and determines if the franchise has a finite life or an indefinite life. The Company has concluded that all of its franchises qualify for indefinite life treatment given that there are no legal, regulatory, contractual, competitive, economic or other factors which limit the period over which these rights will contribute to the Company's cash flows. The Company reassesses this determination periodically or whenever events or substantive changes in circumstances occur. All franchises are tested for impairment annually or more frequently as warranted by events or changes in circumstances. Franchises are aggregated into essentially inseparable units of accounting to conduct valuations. The franchise units of accounting are geographical clustering of cable systems into groups representing the highest and best use if sold to market participants. The Company performed a quantitative impairment analysis as of October 31, 2025 utilizing a mu …

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"Income Taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Companys assets and liabilities and expected benefits of utilizing loss carryforwards. Valuation allowances are established when management determines that it is more likely than not that some portion or the entire deferred tax asset will not be realized. In evaluating the need for a valuation allowance, management takes into account various factors, including the expected level of future taxable income, available tax planning strategies and reversals of existing taxable temporary differences. The impact on deferred taxes of changes in tax rates and tax law, if any, applied to the years during which temporary differences are expected to be settled, are reflected in the consolidated financial statements in the period of enactment. In determining the Companys tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. There is considerable judgment involved in making such a determination. The Company recognizes interest and penalties accrued on uncertain income tax positions as part of the income tax provision. Substantially all of the Companys operations are held through Charter Holdings and its direct and indirect subsidiaries. Charter …

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Leases The primary leased asset classes of the Company include real estate, dark fiber, colocation facilities and other equipment. The lease agreements include both lease and non-lease components, which the Company accounts for separately depending on the election made for each leased asset class. For real estate and dark fiber leased asset classes, the Company accounts for lease and non-lease components as a single lease component and includes all fixed payments in the measurement of lease liabilities and lease assets. For colocation facilities leased asset class, the Company accounts for lease and non-lease components separately including only the fixed lease payment component in the measurement of lease liabilities and lease assets. Lease assets and lease liabilities are initially recognized based on the present value of the future lease payments over the expected lease term. As for most leases the implicit rate is not readily determinable, the Company uses a discount rate in determining the present value of future payments based on the yield-to-maturity of the Companys secured publicly traded United States dollars denominated debt instruments interpolating the duration of the debt to the term of the executed lease. The Companys leases have base rent periods and some with optional renewal periods. Leases with base rent periods of less than 12 months are not recorded on the balance sheet. For purposes of measurement of lease liabilities, the expected lease terms may include …

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"Total Debt A summary of our debt as of December 31, 2025 and 2024 is as follows: December 31, 2025 December 31, 2024 Principal Amount Carrying Value Fair Value Weighted Average Interest Rate Principal Amount Carrying Value Fair Value Weighted Average Interest Rate Senior unsecured notes $ 27,250 $ 27,197 $ 25,634 4.9 % $ 27,250 $ 27,182 $ 24,881 4.9 % Senior secured notes and debentures (a) 55,418 55,658 48,030 5.1 % 56,195 56,475 47,896 5.1 % Credit facilities (b) 11,949 11,901 11,803 5.6 % 10,334 10,276 10,079 6.3 % Total debt $ 94,617 $ 94,756 $ 85,467 5.1 % $ 93,779 $ 93,933 $ 82,856 5.2 % (a) Includes the Company's 625 million aggregate principal amount of fixed-rate British pound sterling denominated notes (the Sterling Notes) (remeasured at $842 million and $782 million as of December 31, 2025 and 2024, respectively, using the exchange rate at the respective dates) and the Company's 650 million aggregate principal amount of Sterling Notes (remeasured at $876 million and $813 million as of December 31, 2025 and 2024, respectively, using the exchange rate at the respective dates). (b) The Company had availability under the Charter Operating credit facilities of approximately $4.4 billion as of December 31, 2025. The estimated fair value of the Companys senior unsecured and secured notes and debentures as of December 31, 2025 and 2024 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair v …

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"Employee Benefit Plans Pension Plans The Company sponsors qualified and unqualified defined benefit pension plans that provide pension benefits to a majority of employees who were employed by TWC before the merger with TWC. Pension benefits are based on formulas that reflect the employees years of service and compensation during their employment period. Actuarial gains or losses are changes in the amount of either the benefit obligation or the fair value of plan assets resulting from experience different from that assumed or from changes in assumptions. The Company has elected to follow a mark-to-market pension accounting policy for recording the actuarial gains or losses annually during the fourth quarter, or earlier if a remeasurement event occurs during an interim period. In 2023, the Company announced plans to fully terminate the qualified pension plan and purchased a buy-in group annuity contract (GAC) from a highly rated insurer. In 2025, pension obligations were distributed through lump sum payments to eligible participants who elected such payments. In December 2025, the buy-in GAC was converted to a buy-out with the remaining settlement obligation of $1.3 billion transferred to the insurer. The settlement of the qualified pension plan resulted in excess plan assets of approximately $131 million which were used as a qualified retirement plan transfer to the Companys defined contribution benefit plans. The remaining $17 million projected benefit obligation as of Decem …

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"Related Party Transactions The following sets forth certain transactions in which the Company and a director, executive officer, or other related party of the Company are involved or, in the case of the management arrangements, subsidiaries that are debt issuers that pay certain of their parent companies for services. Charter is a party to management arrangements with its subsidiary, Spectrum Management Holding Company, LLC (""Spectrum Management""), and certain of their subsidiaries. Under these agreements, Charter, Spectrum Management and Charter Holdco provide management services for the cable systems owned or operated by their subsidiaries. Costs associated with providing these services are charged directly to the Companys operating subsidiaries. All other costs incurred on behalf of Charters operating subsidiaries are considered a part of the management fee. These costs are recorded as a component of operating costs and expenses, in the accompanying consolidated financial statements. The management fee charged to the Companys operating subsidiaries approximated the expenses incurred by Spectrum Management, Charter Holdco and Charter on behalf of the Companys operating subsidiaries in 2025, 2024 and 2023. Liberty Broadband and A/N Under the terms of the Second Amended and Restated Stockholders Agreement among Charter, Liberty Broadband and A/N, dated as of May 23, 2015 (the Existing Stockholders Agreement), as amended by Amendment No. 1 to the Second Amended and Restated …

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"Revenues The Companys revenues by product line are as follows: Year Ended December 31, 2025 2024 2023 Internet $ 23,765 $ 23,360 $ 23,032 Mobile service 3,762 3,083 2,243 Connectivity 27,527 26,443 25,275 Video 13,703 15,129 16,353 Voice 1,350 1,437 1,510 Residential revenue 42,580 43,009 43,138 Small business 4,346 4,376 4,355 Mid-market & large business 2,969 2,878 2,767 Commercial revenue 7,315 7,254 7,122 Advertising sales 1,468 1,780 1,551 Other 3,411 3,042 2,796 $ 54,774 $ 55,085 $ 54,607 Residential Services Residential customers are offered Internet, mobile, video and voice services primarily on a subscription basis. Mobile services are sold under unlimited data plans or by-the-gig data usage plans. The Company often provides multiple services to a customer. The transaction price for a bundle of services may be less than the sum of the standalone selling prices of each individual service. The Company allocates the bundle discount among the services to which the discount relates based on the relative standalone selling prices of those services. Generally, directly observable standalone selling prices are used for the revenue allocation. Customers are invoiced for subscription services in advance of the service period. Each subscription service provided is accounted for as a distinct performance obligation and revenue is recognized ratably over the monthly service period as the subscription services are delivered. Residential customers may generally cancel their su …

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"Segment Reporting The Companys operations are managed and reported to its Chief Executive Officer (CEO), the Companys chief operating decision maker (""CODM""), on a consolidated basis. The Company provides broadband connectivity services with all of its services delivered to customers over an advanced communications network. The CODM assesses performance and allocates resources based on the Companys consolidated statements of operations, as the converged network requires the CODM to manage and evaluate the results of the business in a consolidated manner to drive efficiencies and develop uniform strategies. Accordingly, key components and processes of the Companys operations are managed centrally, including contracting for programming, capital and new technology development and deployment, plant engineering, customer service, marketing, legal and government affairs. Segment asset information is not used by the CODM to allocate resources. Under this organizational and reporting structure, the Company has one reportable segment. As a single reportable segment entity, the Companys segment performance measure is net income attributable to Charter shareholders. See Note 14 for a description of the Company's disaggregated revenues by product line. Significant segment expenses are presented in the Companys consolidated statements of operations. Additional disaggregated significant segment expenses on a functional basis, that are not separately presented on the Companys consolidate …

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Summary of Significant Accounting Policies Information on other accounting policies and methods that the Company uses in the preparation of its consolidated financial statements are included, where applicable, in their respective footnotes. Below is a discussion of accounting policies and methods used in the Company's consolidated financial statements that are not presented within other footnotes. Consolidation The accompanying consolidated financial statements include the accounts of Charter and all entities in which Charter has a controlling interest, including variable interest entities (VIEs) where Charter is the primary beneficiary. The Company consolidates based upon evaluation of the Companys power, through voting rights or similar rights, to direct the activities of another entity that most significantly impact the entitys economic performance; its obligation to absorb the expected losses of the entity; and its right to receive the expected residual returns of the entity. Charter controls and consolidates Charter Holdings. The noncontrolling interest on the Companys balance sheet primarily represents Advance/Newhouse Partnership's (A/N) minority equity interests in Charter Holdings. See Note 12. All significant intercompany accounts and transactions among consolidated entities have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Thes …

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The Companys revenues by product line are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Internet $ 5,776 $ 5,969 $ 11,628 $ 11,899 Mobile service 1,095 921 2,147 1,835 Connectivity 6,871 6,890 13,775 13,734 Video 3,149 3,488 6,401 7,068 Voice 331 346 669 702 Residential revenue 10,351 10,724 20,845 21,504 Small business 1,104 1,096 2,194 2,184 Mid-market & large business 761 740 1,510 1,474 Commercial revenue 1,865 1,836 3,704 3,658 Advertising sales 416 371 774 711 Other 894 835 1,800 1,628 $ 13,526 $ 13,766 $ 27,123 $ 27,501 …

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Stock Compensation Plans Charters stock incentive plans provide for grants of nonqualified stock options, incentive stock options, stock appreciation rights, dividend equivalent rights, performance units and performance shares, share awards, phantom stock, restricted stock units and restricted stock. Directors, officers and other employees of the Company and its subsidiaries, as well as others performing consulting services for the Company, are eligible for grants under the stock incentive plans. Charter granted the following equity awards for the periods presented. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Stock options 52,100 39,600 2,431,100 1,447,300 Restricted stock 15,000 11,500 15,300 11,500 Restricted stock units 136,700 28,300 2,177,300 1,183,500 Stock options and restricted stock units generally cliff vest three years from the date of grant. Certain stock options and restricted stock units vest based on achievement of stock price hurdles. Stock options generally expire ten years from the grant date and restricted stock units have no voting rights. Restricted stock generally vests one year from the date of grant. As of June 30, 2026, total unrecognized compensation remaining to be recognized in future periods totaled $253 million for stock options, $549 million for restricted stock units and $3 million for restricted stock and the weighted average period over which they are expected to be recognized is two years for stock options and r …

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Total Debt A summary of our debt as of June 30, 2026 and December 31, 2025 is as follows: June 30, 2026 December 31, 2025 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 26,734 $ 26,663 $ 24,931 $ 27,250 $ 27,197 $ 25,634 Senior secured notes and debentures (a) 54,658 54,886 46,451 55,418 55,658 48,030 Credit facilities (b) 12,453 12,410 12,168 11,949 11,901 11,803 $ 93,845 $ 93,959 $ 83,550 $ 94,617 $ 94,756 $ 85,467 (a) Includes the Company's 625 million fixed-rate British pound sterling denominated notes (the Sterling Notes) (remeasured at $829 million and $842 million as of June 30, 2026 and December 31, 2025, respectively, using the exchange rate at the respective dates) and the Company's 650 million aggregate principal amount of Sterling Notes (remeasured at $862 million and $876 million as of June 30, 2026 and December 31, 2025, respectively, using the exchange rate at the respective dates). (b) The Company has availability under the Charter Operating credit facilities of approximately $3.7 billion as of June 30, 2026. The estimated fair value of the Companys senior unsecured and secured notes and debentures as of June 30, 2026 and December 31, 2025 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Companys credit facilities is based on quoted market prices in inactive markets and is classified within Level 2 …

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Related Party Transactions On November 12, 2024, Charter, Liberty Broadband, Fusion Merger Sub 1, LLC, a wholly owned subsidiary of Charter, and Fusion Merger Sub 2, Inc., a wholly owned subsidiary of Fusion Merger Sub 1, LLC, entered into an Agreement and Plan of Merger (as it may be amended or supplemented from time to time, the Merger Agreement), pursuant to which, subject to the terms and conditions set forth therein, Charter will acquire Liberty Broadband through the merger of Fusion Merger Sub 2, Inc. with and into Liberty Broadband (the Merger), with Liberty Broadband surviving the Merger and becoming an indirect wholly owned subsidiary of Charter. Immediately following the Merger, Liberty Broadband, as the surviving corporation of the Merger, will merge with and into Fusion Merger Sub 1, LLC (the Upstream Merger and together with the Merger, the Liberty Broadband Combination), with Fusion Merger Sub 1, LLC surviving the Upstream Merger as a wholly owned subsidiary of Charter. On November 12, 2024, Charter and Liberty Broadband also entered into Amendment No. 1 to the Second Amended and Restated Stockholders Agreement and the Letter Agreement (the Stockholders and Letter Agreement Amendment). The Stockholders and Letter Agreement Amendment sets forth, among other things, the terms of Liberty Broadbands participation in Charters share repurchases during the period between the execution of the Merger Agreement and the effective time of the Merger. Pursuant to the Stockho …

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Revenues The Companys revenues by product line are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Internet $ 5,776 $ 5,969 $ 11,628 $ 11,899 Mobile service 1,095 921 2,147 1,835 Connectivity 6,871 6,890 13,775 13,734 Video 3,149 3,488 6,401 7,068 Voice 331 346 669 702 Residential revenue 10,351 10,724 20,845 21,504 Small business 1,104 1,096 2,194 2,184 Mid-market & large business 761 740 1,510 1,474 Commercial revenue 1,865 1,836 3,704 3,658 Advertising sales 416 371 774 711 Other 894 835 1,800 1,628 $ 13,526 $ 13,766 $ 27,123 $ 27,501 As of June 30, 2026 and December 31, 2025, accounts receivable, net on the consolidated balance sheets includes approximately $1.4 billion and $1.3 billion of current equipment installment plan receivables, respectively, and other noncurrent assets includes approximately $1.2 billion and $1.1 billion of noncurrent equipment installment plan receivables, respectively. …

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Segment Reporting The Companys operations are managed and reported to its Chief Executive Officer (CEO), the Companys chief operating decision maker (CODM), on a consolidated basis. The Company provides broadband connectivity services with all of its services delivered to customers over an advanced communications network. The CODM assesses performance and allocates resources based on the Companys consolidated statements of operations, as the converged network requires the CODM to manage and evaluate the results of the business in a consolidated manner to drive efficiencies and develop uniform strategies. Accordingly, key components and processes of the Companys operations are managed centrally, including contracting for programming, capital and new technology development and deployment, plant engineering, customer service, marketing, legal and government affairs. Segment asset information is not used by the CODM to allocate resources. Under this organizational and reporting structure, the Company has one reportable segment. As a single reportable segment entity, the Companys segment performance measure is net income attributable to Charter shareholders. See Note 9 for a description of the Company's disaggregated revenues by product line. Significant segment expenses are presented in the Companys consolidated statements of operations. Additional disaggregated significant segment expenses on a functional basis, that are not separately presented on the Companys consolidated stat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing