Item 1. Financial Statements.

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Item 1. Financial Statements.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in millions, except share data)


	June 30, 2026		December 31, 2025
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	509	$	477
Accounts receivable, less allowance for doubtful accounts of $238 and $219, respectively	3,651		3,680
Prepaid expenses and other current assets	813		987
Total current assets	4,973		5,144

INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net of accumulated depreciation of $41,990 and $41,514, respectively	47,955		46,444
Customer relationships, net of accumulated amortization of $18,078 and $17,875, respectively	238		440
Franchises	67,471		67,471
Goodwill	29,710		29,710
Total investment in cable properties, net	145,374		144,065

OTHER NONCURRENT ASSETS	5,271		5,004

Total assets	$	155,618	$	154,213
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable, accrued and other current liabilities	$	12,779	$	12,556
Current portion of long-term debt	999		750
Total current liabilities	13,778		13,306

LONG-TERM DEBT	92,960		94,006
EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY	1,596		1,447
DEFERRED INCOME TAXES	20,237		19,841
OTHER LONG-TERM LIABILITIES	5,146		5,094

SHAREHOLDERS’ EQUITY:
Class A common stock; $0.001 par value; 900 million shares authorized;
129,602,238 and 126,631,549 shares issued, respectively	—		—
Class B common stock; $0.001 par value; 1,000 shares authorized;
1 share issued and outstanding	—		—
Preferred stock; $0.001 par value; 250 million shares authorized; no shares issued and outstanding	—		—
Additional paid-in capital	21,765		21,447
Accumulated deficit	(2,938)		(5,393)
Treasury stock at cost; 10,324,746 and no shares, respectively	(1,875)		—
Total Charter shareholders’ equity	16,952		16,054
Noncontrolling interests	4,949		4,465
Total shareholders’ equity	21,901		20,519

Total liabilities and shareholders’ equity	$	155,618	$	154,213

The accompanying notes are an integral part of these consolidated financial statements.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in millions, except per share data)

Unaudited


	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

The accompanying notes are an integral part of these consolidated financial statements.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(dollars in millions)

Unaudited


	Class A Common Stock		Class B Common Stock		Additional Paid-in Capital		Accumulated Deficit		Treasury Stock		Total Charter Shareholders’ Equity		Non-controlling Interests		Total Shareholders’ Equity
BALANCE, December 31, 2025	$	—	$	—	$	21,447	$	(5,393)	$	—	$	16,054	$	4,465	$	20,519
Consolidated net income	—		—		—		1,163		—		1,163		200		1,363
Stock compensation expense	—		—		203		—		—		203		—		203
Exercise of stock options	—		—		2		—		—		2		—		2
Purchases of treasury stock, including excise tax	—		—		—		—		(1,020)		(1,020)		—		(1,020)

Change in noncontrolling interest ownership, net of tax	—		—		(17)		—		—		(17)		22		5
Distributions to noncontrolling interest	—		—		—		—		—		—		(2)		(2)
BALANCE, March 31, 2026	—		—		21,635		(4,230)		(1,020)		16,385		4,685		21,070
Consolidated net income	—		—		—		1,292		—		1,292		232		1,524
Stock compensation expense	—		—		138		—		—		138		—		138
Equity issued pursuant to employee stock purchase plan	—		—		20		—		—		20		—		20
Exercise of stock options	—		—		11		—		—		11		—		11
Purchases of treasury stock, including excise tax	—		—		—		—		(855)		(855)		—		(855)

Change in noncontrolling interest ownership, net of tax	—		—		(39)		—		—		(39)		52		13
Distributions to noncontrolling interest	—		—		—		—		—		—		(20)		(20)
BALANCE, June 30, 2026	$	—	$	—	$	21,765	$	(2,938)	$	(1,875)	$	16,952	$	4,949	$	21,901


	Class A Common Stock		Class B Common Stock		Additional Paid-in Capital		Accumulated Deficit		Treasury Stock		Total Charter Shareholders’ Equity		Non-controlling Interests		Total Shareholders’ Equity
BALANCE, December 31, 2024	$	—	$	—	$	23,337	$	(7,750)	$	—	$	15,587	$	4,120	$	19,707
Consolidated net income	—		—		—		1,217		—		1,217		192		1,409
Stock compensation expense	—		—		222		—		—		222		—		222
Exercise of stock options	—		—		17		—		—		17		—		17
Purchases of treasury stock, including excise tax	—		—		—		—		(806)		(806)		—		(806)
Purchase of noncontrolling interest, net of tax	—		—		(5)		—		—		(5)		(14)		(19)
Change in noncontrolling interest ownership, net of tax	—		—		15		—		—		15		(20)		(5)
Distributions to noncontrolling interest	—		—		—		—		—		—		(3)		(3)
BALANCE, March 31, 2025	—		—		23,586		(6,533)		(806)		16,247		4,275		20,522
Consolidated net income	—		—		—		1,301		—		1,301		194		1,495
Stock compensation expense	—		—		157		—		—		157		—		157
Exercise of stock options	—		—		2		—		—		2		—		2
Purchases of treasury stock, including excise tax	—		—		—		—		(1,467)		(1,467)		—		(1,467)
Purchase of noncontrolling interest, net of tax	—		—		(45)		—		—		(45)		(171)		(216)
Change in noncontrolling interest ownership, net of tax	—		—		14		—		—		14		(18)		(4)
Distributions to noncontrolling interest	—		—		—		—		—		—		(121)		(121)
BALANCE, June 30, 2025	$	—	$	—	$	23,714	$	(5,232)	$	(2,273)	$	16,209	$	4,159	$	20,368

The accompanying notes are an integral part of these consolidated financial statements.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)

Unaudited


	Six Months Ended June 30,
	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$	2,887	$	2,904
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization	4,408		4,357
Stock compensation expense	341		379
Noncash interest, net	12		15
Deferred income taxes	417		(80)
Other, net	(86)		350
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable	(136)		(286)
Prepaid expenses and other assets	4		(169)
Accounts payable, accrued liabilities and other	382		366
Net cash flows from operating activities	8,229		7,836

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(5,726)		(5,273)
Change in accrued expenses related to capital expenditures	(162)		47
Other, net	(285)		(199)
Net cash flows from investing activities	(6,173)		(5,425)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt	11,610		5,116
Borrowings of equipment installment plan financing facility	148		233
Repayments of long-term debt	(12,108)		(4,793)
Payments for debt issuance costs	(30)		(1)
Purchase of treasury stock	(1,878)		(2,253)
Proceeds from exercise of stock options	13		19
Purchase of noncontrolling interest	—		(252)
Distributions to noncontrolling interest	(22)		(124)
Other, net	212		(213)
Net cash flows from financing activities	(2,055)		(2,268)

NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	1		143
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	598		506
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	$	599	$	649

CASH PAID FOR INTEREST	$	2,506	$	2,439

As of June 30, 2026, December 31, 2025, June 30, 2025 and December 31, 2024, cash, cash equivalents and restricted cash includes $90 million, $121 million, $43 million and $47 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets, respectively.

The accompanying notes are an integral part of these consolidated financial statements.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

1. Organization and Basis of Presentation

Organization

Charter Communications, Inc. (together with its controlled subsidiaries, “Charter,” or the “Company”) is a leading broadband connectivity company with services available to homes and small to large businesses through its Spectrum® brand. Founded in 1993, the Company has 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 the Company’s 100% U.S.-based employees, the Company offers 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.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures typically included in the Company's Annual Report on Form 10-K have been condensed or omitted for this quarterly report. The accompanying consolidated financial statements are unaudited and are subject to review by regulatory authorities. However, in the opinion of management, such financial statements include all adjustments, which consist of only normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. Interim results are not necessarily indicative of results for a full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Areas involving significant judgments and estimates include capitalization of labor and overhead costs, valuation and impairment of franchise assets and goodwill, and income taxes. Actual results could differ from those estimates.

Comprehensive income equaled net income attributable to Charter shareholders for the three and six months ended June 30, 2026 and 2025.

2. Mergers and Acquisitions

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:

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 COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

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.

3. Accounts Payable, Accrued and Other Current Liabilities

Accounts payable, accrued and other current liabilities consist of the following as of June 30, 2026 and December 31, 2025:


	June 30, 2026		December 31, 2025
Accounts payable – trade	$	1,066	$	1,034
Deferred revenue	428		422
Accrued and other current liabilities:
Programming costs	1,581		1,575
Labor	1,302		1,365
Capital expenditures	3,162		3,296
Interest	1,279		1,259
Taxes and regulatory fees	567		521
Short-term borrowings	1,155		918
Other	2,239		2,166
	$	12,779	$	12,556

Under a supply chain finance program, the Company has agreements with third parties that allow its participating vendors to finance payment obligations from the Company with designated third-party financial institutions who act as its paying agent. As a result, the Company has generally extended its payment terms with vendors. A participating vendor may request a participating financial institution to finance one or more of the Company's payment obligations to such vendor prior to the scheduled due date thereof priced at a discount to the original payment obligation from the Company. The Company is not required to provide collateral to the financial institutions. The Company's obligations to participating vendors, including amounts due and scheduled payment dates, are not impacted by the vendors’ decisions to finance amounts due under these financing arrangements. The Company's outstanding payment obligations to participating vendors were $725 million and $735 million as of June 30, 2026 and December 31, 2025, respectively, and are included in accounts payable - trade and accrued capital expenditures above. Cash outflows to the financial institutions are classified as cash flows from operating and investing activities.

Under a deferred payment program, the Company has agreements with third parties to pay certain invoices when due, and the Company pays the third parties at a later date, the invoice amount plus interest. The Company's outstanding payment obligation to participating vendors under the deferred payment plan was $1.2 billion and $918 million as of June 30, 2026 and December 31, 2025, respectively, and is included in short-term borrowings. Cash outflows to the financial institutions are classified as cash flows from financing activities.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

4. 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 Company’s 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 Company’s credit facilities is based on quoted market prices in inactive markets and is classified within Level 2.

In February 2026, CCO Holdings and CCO Holdings Capital Corp. redeemed $750 million in aggregate principal amount of the outstanding 5.500% senior notes due 2026 and $2.25 billion in aggregate principal amount of the outstanding 5.125% senior notes due 2027. The transactions resulted in a loss on extinguishment of debt of approximately $4 million during the six months ended June 30, 2026 recorded in other income (expenses), net in the consolidated statement of operations.

During the three and six months ended June 30, 2026, the Company repurchased $1.2 billion in aggregate principal amount of various series of notes under an open market repurchase program. The transactions resulted in a gain on extinguishment of debt of approximately $243 million during the three and six months ended June 30, 2026 recorded in other income (expenses), net in the consolidated statement of operations.

5. Equipment Installment Plan Financing Facility

CCO EIP Financing, LLC (the “SPV Borrower”), a bankruptcy remote special purpose vehicle and consolidated subsidiary of the Company, is the borrower of a senior secured revolving credit facility to finance the purchase of equipment installment plan receivables (“EIP Receivables”) with a number of financial institutions (the “EIP Financing Facility”).

The revolving credit facility under the EIP Financing Facility bears interest on the outstanding borrowings based on lenders’ cost of funds plus an applicable margin and was 4.82% and 5.14% as of June 30, 2026 and December 31, 2025, respectively. The EIP Financing Facility has a final maturity date of November 3, 2029, comprised of a twelve-month revolving loan period subject to renewal, and if not renewed, cash flows on EIP Receivables are applied to amortize the loan which may occur over a period of up to three years. SPV Borrower may borrow up to $2.0 billion under the EIP Financing Facility. As of June 30, 2026 and December 31, 2025, the carrying value of the EIP Financing Facility was $1.6 billion and $1.4 billion, respectively, and is included in the Company’s consolidated balance sheets.

The SPV Borrower’s sole business consists of the purchase or acceptance through capital contributions of the EIP Receivables from Spectrum Mobile Equipment, LLC, (the sole direct parent entity of SPV Borrower that originates the EIP Receivables) and the subsequent retransfer of or granting of a security interest in such EIP Receivables to the administrative agent under the EIP Financing Facility. The SPV Borrower is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of the SPV Borrower’s assets prior to any assets or value in the SPV Borrower becoming

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

available to the SPV Borrower’s equity holders, and the assets of the SPV Borrower are not available to pay creditors of any other affiliate of the Company.

The EIP Financing Facility is accounted for on a consolidated basis as a secured borrowing. As of June 30, 2026 and December 31, 2025, pledged EIP Receivables with an unpaid principal balance of $2.3 billion and $2.2 billion, respectively, included in accounts receivable, net and other noncurrent assets, and restricted cash of $90 million and $121 million, respectively, included in prepaid expenses and other current assets, are held by the SPV Borrower and reflected in the Company’s consolidated balance sheets. Receipts from mobile customers related to the underlying EIP Receivables are reflected as cash flows from operating activities and borrowings and repayments under the EIP Financing Facility are reflected as cash flows from financing activities in the Company’s consolidated statements of cash flows.

6. Common Stock

The following represents the Company's purchase of Charter Class A common stock and the effect on the consolidated statements of cash flows during the three and six months ended June 30, 2026 and 2025.


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	Shares	$		Shares	$		Shares	$		Shares	$
Share buybacks	3,996,545	$	838	3,832,505	$	1,443	8,284,640	$	1,801	5,837,900	$	2,174
Income tax withholding	61,213	14		19,342	8		390,125	77		221,416	79
Exercise cost	1,585,169	—		92,580	—		1,649,981	—		161,746	—
	5,642,927	$	852	3,944,427	$	1,451	10,324,746	$	1,878	6,221,062	$	2,253

Share buybacks above include shares of Charter Class A common stock purchased from Liberty Broadband Corporation (“Liberty Broadband”) as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Number of shares purchased	1,936,837		808,841		2,807,590		1,634,261
Amount of shares purchased	$	405	$	300	$	595	$	600

As of June 30, 2026, Charter had remaining board authority to purchase an additional $365 million of Charter’s Class A common stock and/or Charter Holdings common units, excluding purchases from Liberty Broadband. The Company also withholds shares of its Class A common stock in payment of income tax withholding owed by employees upon vesting of equity awards as well as exercise costs owed by employees upon exercise of stock options.

In 2025, Charter’s board of directors approved the retirement of the then currently held treasury stock and those shares were retired as of December 31, 2025. The Company accounts for treasury stock using the cost method and includes treasury stock as a component of total shareholders’ equity.

7. Noncontrolling Interests

Noncontrolling interests represents consolidated subsidiaries of which the Company owns less than 100%. The Company is a holding company whose principal asset is a controlling equity interest in Charter Holdings, the indirect owner of the Company’s cable systems. Noncontrolling interests on the Company’s balance sheet consist primarily of Advance/Newhouse Partnership's (“A/N”) equity interests in Charter Holdings, which is comprised of a common ownership interest.

Net income of Charter Holdings attributable to A/N’s common noncontrolling interest for financial reporting purposes is based on the weighted average effective common ownership interest of approximately 11%, and was $232 million and $431 million for the three and six months ended June 30, 2026, respectively, and $194 million and $385 million for the three and six months ended June 30, 2025, respectively.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

The following table represents Charter Holdings' purchase of Charter Holdings common units from A/N and the effect on total shareholders' equity during the three and six months ended June 30, 2025. Charter Holdings did not purchase any Charter Holdings common units from A/N during the three and six months ended June 30, 2026.


	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025

Number of units purchased	631,663		683,336
Purchase of noncontrolling interest	$	232	$	252
Carrying value of noncontrolling interest purchased	$	(171)	$	(185)
Excess purchased recorded to additional paid-in-capital, net of tax	$	(45)	$	(50)

Total shareholders' equity was also adjusted during the three and six months ended June 30, 2026 and 2025 due to the changes in Charter Holdings' ownership as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Change in noncontrolling interest	$	52	$	(18)	$	74	$	(38)
Change in additional paid-in-capital, net of tax	$	(39)	$	14	$	(56)	$	29

8. Accounting for Derivative Instruments and Hedging Activities

Cross-currency derivative instruments are used to manage foreign exchange risk on the Sterling Notes by effectively converting £1.275 billion aggregate principal amount of fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. The fair value of the Company's cross-currency derivatives, which are classified within Level 2 of the valuation hierarchy, was $442 million and $406 million and is included in other long-term liabilities on its consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.

The effect of financial instruments are recorded in other income (expenses), net in the consolidated statements of operations and consisted of the following.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Change in fair value of cross-currency derivative instruments	$	41	$	124	$	(35)	$	111
Foreign currency remeasurement of Sterling Notes to U.S. dollars	(4)		(104)		27		(156)
Gain (loss) on financial instruments, net	$	37	$	20	$	(8)	$	(45)

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

9. Revenues

The Company’s 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.

10. Segment Reporting

The Company’s operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s 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 Company’s 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 Company’s 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 Company’s 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 Company’s consolidated statements of operations. Additional disaggregated significant segment

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

expenses on a functional basis, that are not separately presented on the Company’s consolidated statements of operations, are presented below.

Operating Costs and Expenses


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Programming	$	2,035	$	2,253	$	4,123	$	4,555
Other costs of revenue	1,837		1,651		3,602		3,235
Field and technology operations	1,313		1,292		2,571		2,574
Customer operations	785		777		1,551		1,549
Marketing and residential sales	927		958		1,846		1,907
Stock compensation expense (see Note 11)	138		157		341		379
Transition expenses	65		—		89		—
Other expense	1,115		1,142		2,255		2,225
	$	8,215	$	8,230	$	16,378	$	16,424

Programming costs consist primarily of costs paid to programmers for basic, premium, video on demand and pay-per-view programming. Other costs of revenue include costs directly related to providing Internet, mobile, video and voice services including mobile device costs, payments to franchise and regulatory authorities, payments for sports, local and news content produced by the Company and direct costs associated with selling advertising. Also included in other costs of revenue are content acquisition costs for the Los Angeles Lakers’ basketball games and Los Angeles Dodgers’ baseball games, which are recorded as games are exhibited over the contract period. Field and technology operations costs include indirect costs incurred to manage the Company's inside and outside cable network, including labor for the non-capitalizable portion of customer installations and service and repairs. Customer operations costs include call center labor costs for customer care, billing costs, bad debt expense, and collections. Marketing and residential sales costs represent the costs of marketing residential and business Internet, mobile, video and voice services and costs to sell to current and potential non-bulk residential customers, including labor cost. Transition expenses represent incremental costs incurred to prepare for the integration of Cox Communications’ operations and to bring systems and processes into a uniform operating structure. See Note 2. Other expense includes corporate overhead costs, as well as certain indirect costs associated with Spectrum Business, Spectrum Reach, Spectrum Networks and Spectrum Community Solutions, including related sales expenses.

Other Operating Expenses, Net


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Special charges, net	$	43	$	29	$	41	$	60
Merger and acquisition costs	8		43		23		44
Loss on disposal of assets, net	—		9		2		100
	$	51	$	81	$	66	$	204

Special charges, net primarily includes severance costs and net amounts of litigation settlements. Merger and acquisition costs represent costs incurred primarily in connection with the Cox Transactions, such as advisory, legal and accounting fees, among others. Loss on disposal of assets, net includes a $90 million impairment on non-strategic assets during the six months ended June 30, 2025.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

Other Income (Expenses), Net

Other income (expenses), net consist of the following for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Loss on equity investments, net	$	(68)	$	(127)	$	(143)	$	(204)
Gain (loss) on financial instruments, net (see Note 8)	37		20		(8)		(45)
Gain on extinguishment of debt, net (see Note 4)	243		—		239		—
	$	212	$	(107)	$	88	$	(249)

11. Stock Compensation Plans

Charter’s 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 restricted stock units and ten months for restricted stock.

12. Earnings Per Share

Basic earnings per common share is computed by dividing net income attributable to Charter shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share considers the impact of potentially dilutive securities using the treasury stock and if-converted methods and is based on the weighted average number of shares used for the basic earnings per share calculation, adjusted for the dilutive effect of stock options, restricted stock units, restricted stock, equity awards with market conditions and Charter Holdings common units. Charter Holdings common units of 16 million for the three and six months ended June 30, 2026 and 2025 were not included in the computation of diluted earnings per share as their effect would have been antidilutive.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in millions, except per share amounts and where indicated)

The following is the computation of diluted earnings per common share for the periods presented.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income attributable to Charter shareholders	$	1,292	$	1,301	$	2,455	$	2,518




Denominator:
Weighted average common shares outstanding, basic	120,121,017		138,205,810		122,789,924		139,889,251
Effect of dilutive securities:
Assumed exercise or issuance of shares relating to stock plans	1,134,650		3,478,605		1,179,338		3,209,242
Weighted average common shares outstanding, diluted	121,255,667		141,684,415		123,969,262		143,098,493

Basic earnings per common share attributable to Charter shareholders	$	10.76	$	9.41	$	20.00	$	18.00
Diluted earnings per common share attributable to Charter shareholders	$	10.66	$	9.18	$	19.81	$	17.59

13. 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 Broadband’s participation in Charter’s share repurchases during the period between the execution of the Merger Agreement and the effective time of the Merger. Pursuant to the Stockholders and Letter Agreement Amendment, each month during the pendency of the proposed transaction, Charter will repurchase shares of Charter Class A common stock from Liberty Broadband in an amount equal to the greater of (i) $100 million and (ii) the Liberty Broadband minimum liquidity threshold as set forth in the Stockholders and Letter Agreement Amendment, provided that if any repurchase would reduce Liberty Broadband’s equity interest in Charter below 25.25% after giving effect to such repurchase or if all or a portion of such repurchase is not permitted under applicable law, then Charter shall instead loan to Liberty Broadband an amount equal to the lesser of (x) the repurchase amount that cannot be repurchased and (y) the Liberty Broadband minimum liquidity threshold as set forth in the Stockholders and Letter Agreement Amendment less the repurchase amount that is repurchased, with such loan on the terms set forth in the Stockholders and Letter Agreement Amendment. Pursuant to the Merger Agreement and Stockholders and Letter Agreement Amendment, in May 2026, Charter advanced a term loan to Liberty Broadband in the aggregate principal amount of approximately $359 million included in other noncurrent assets on the consolidated balance sheets as of June 30, 2026.

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