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# Charter Targets $2 Billion In New Cost Cuts As $6.3 Billion Franchise Write-Down Drives Loss
- URL: https://www.bullished.co/charter-targets-2-billion-in-new-cost-cuts-as-6-3-billion-franchise-write-down-drives-loss-9103b385/
- Published: 2026-11-06T12:22:10.000Z
- Updated: 2026-11-06T12:22:10.000Z
- Description: Charter lost 233,000 Internet customers on a pro forma basis in its first quarter with Cox and unveiled a new operating model.
- Author: Matteo Parrino
- Tags: Earnings, CHTR, Industry: Communication Services

[Charter Communications](https://www.bullished.co/tag/chtr/), which sells Internet, mobile, TV and voice service under the Spectrum brand, is [targeting $2 billion in annualized run-rate operating expense savings](https://www.sec.gov/Archives/edgar/data/0001091667/000109166726000072/chtrex991earningsrelease93.htm?ref=bullished.co) over the next 18 months, on top of more than $1 billion in planned Cox synergies. The company announced the plan Friday with third-quarter results that showed a fresh loss of Internet customers and a $6.3 billion franchise impairment.

## A new operating model

Charter said it is redesigning how it operates and reformulating its go-to-market approach for Internet, marketing and distribution. The savings program will focus on cutting nonessential activities, simplifying organizational structures and getting more from vendor partnerships.

"We are fundamentally rethinking how we operate and compete," said Chris Winfrey, President and CEO of Charter. He said the company will return to Internet customer growth and become "a simpler, faster, more agile organization."

## Internet losses deepen

On a pro forma basis, which treats Cox as if it had closed on January 1, 2024, Charter lost 233,000 Internet customers in the quarter, against a loss of 171,000 a year earlier. Legacy Charter lost 156,000 and legacy Cox 77,000.

Mobile lines grew by 508,000, compared with 514,000 a year earlier. Video losses narrowed to 77,000 from 121,000.

Pro forma revenue fell 1.5% to $16.5 billion, driven mainly by lower residential revenue. Actual revenue rose 9.1% to $14.9 billion, because Cox is included only from August 20\. Pro forma adjusted EBITDA, the company's operating profit measure, fell 4.0% to $6.6 billion.

## The $6.3 billion write-down

A $6.3 billion franchise impairment drove a net loss to Charter shareholders of $2.4 billion on an actual basis and $2.1 billion pro forma. A $1.4 billion gain on debt extinguishment partly offset it. Actual net loss per basic share was $20.50.

Actual free cash flow was $674 million, down $947 million from a year earlier. As of September 30, total debt principal was $108.6 billion, against $573 million in cash and about $2.4 billion of additional credit-facility liquidity.

## Cox integration

Charter completed the Cox deal on August 19, adding more than 11 million passings, the homes and businesses its network reaches, and over 5 million customer relationships. It launched Spectrum pricing and packaging across the legacy Cox footprint on September 16 and says customer trends there have improved since.

Charter expects pro forma 2026 capital spending of about $13.0 billion, excluding transition capital expenditures.

Charter hosted a webcast at 8:30 a.m. ET on Friday to discuss the results.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — CHARTER COMMUNICATIONS, INC. /MO/ (CHTR)](https://www.sec.gov/Archives/edgar/data/0001091667/000109166726000072/chtr-20261106.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit chtrex991earningsrelease93.htm — CHARTER COMMUNICATIONS, INC. /MO/ 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001091667/000109166726000072/chtrex991earningsrelease93.htm?ref=bullished.co) — SEC EDGAR
- [Charter Announces Third Quarter 2026 Results and Launches New Operating Model](https://www.prnewswire.com/news-releases/charter-announces-third-quarter-2026-results-and-launches-new-operating-model-302931669.html?ref=bullished.co) — prnewswire.com

### More on Charter Communications

- [Charter's Debt Arm Adds KPMG And Deloitte Consents To 2038 And 2041 Notes Exchange](https://www.bullished.co/charters-debt-arm-adds-kpmg-and-deloitte-consents-to-2038-and-2041-notes-exchange-f1429d96/)
- [Charter Gives Interim CFO Kevin Howard A $925,000 Salary And A 175% Target Bonus](https://www.bullished.co/charter-gives-interim-cfo-kevin-howard-a-925-000-salary-and-a-175-target-bonus-e9ab9aa2/)
- [Charter Posts Pro Forma Schedule Treating Cox Deal As Closed On January 1, 2024](https://www.bullished.co/charter-posts-pro-forma-schedule-treating-cox-deal-as-closed-on-january-1-2024-cc9887bf/)

[All Charter Communications (CHTR) coverage →](https://www.bullished.co/tag/chtr/)