Charter Communications (0HW4.L) Q1 2025 Earnings Report

Charter Communications reported a solid start to 2025 with a modest revenue uptick and a strong EBITDA margin, underscoring the cash-flow durability of its large-scale broadband and video platforms. For the quarter ended March 31, 2025, revenue was USD 13.735 billion, up 0.41% year-over-year but down 1.37% quarter-over-quarter, while gross margin reached 46.4% and EBITDA of USD 5.276 billion translating to an EBITDA margin of 38.4%. Operating income stood at USD 3.36 billion and net income at USD 1.217 billion, equating to basic EPS of USD 8.59 and diluted EPS of USD 8.42. Free cash flow generated was USD 1.837 billion, with operating cash flow of USD 4.236 billion and capital expenditures of USD 2.399 billion. These cash-flow dynamics support ongoing deleveraging potential despite a substantial debt load. From a balance-sheet perspective, Charter carries a very heavy capitalization with total debt of USD 95.6 billion and cash of USD 0.8 billion, yielding net debt around USD 94.8 billion. The firm’s debt-to-capitalization and debt-to-enterprise-value metrics remain elevated (debt-to-capitalization ~0.855; enterprise value multiple ~27.9x), suggesting leverage remains the principal constraint on the equity value proposition. Management did not publish explicit 2025 guidance in the QQ1 release, limiting forward-looking targets, but the quarterly results indicate a cash-generative engine that could support deleveraging over time if capex intensity moderates and ARR/advertising momentum improves. Overall, Charter demonstrates resilient cash generation and a diversified product mix (broadband, video, voice, mobile, and advertising) but the near-term investment thesis is balanced by substantial leverage and refinancing risk. Investors should monitor subscriber trends, ARPU evolution, ongoing capital intensity, and any shifts in capital allocation strategy (debt reduction versus potential shareholder returns).