$CHTR · CHARTER COMMUNICATIONS, INC. /MO/
Charter's Q3 FY2026 10-Q shows revenue of $14.922B (+9.1% YoY), but a $6.326B impairment of franchises drove a $2.397B net loss attributable to shareholders (GAAP EPS -$20.50), versus $1.137B profit ($8.50 EPS) a year earlier. The impairment stems from the Cox Transactions, whose acquired franchises were recorded at fair value and are exposed to impairment on any subsequent decline in estimated fair value. Excluding Cox, total revenues fell $118M in the quarter.
- Q3 revenue rose 9.1% YoY to $14.922B, driven by the Cox Transactions adding $1.4B.
- A $6.326B franchise impairment flipped operating income to a $3.526B loss.
- GAAP EPS was -$20.50 versus +$8.50 a year ago.
- Excluding Cox, total revenues declined $118M in the quarter.
- Residential Internet customers fell 553,000 excluding Cox-acquired customers.
Extended-hours trading shows CHTR at $118.75, down 5.65% from the $125.86 regular close, signaling a negative reaction to the impairment-driven loss.
A $6.3B impairment immediately after the Cox acquisition signals the deal's fair-value assets are already under pressure.
The impairment highlights how cable M&A at fair value can quickly reverse into writedowns as legacy video and broadband subscriber bases erode.
The Cox-acquired franchises are carried at fair value and face further impairment on any decline in estimated fair value. Higher indebtedness from the Cox and Liberty Broadband transactions raises interest expense and reduces operating flexibility.