Charter Communications, Inc. (CHTR): Business Model Canvas [Dec-2025 Updated]

You're looking at Charter Communications, Inc. (CHTR), and honestly, the story isn't just about cable anymore; it's a high-stakes pivot where a massive, aging Hybrid Fiber-Coaxial (HFC) network meets the explosive growth of mobile. We're talking about a company pouring a peak $11.5 billion in capital expenditures in 2025 to push multi-gigabit speeds via DOCSIS 4.0, all while their Spectrum Mobile lines-fueled by a key Verizon MVNO deal-are soaring, showing a 33.5% year-over-year revenue jump in Q1 2025. To truly grasp how this giant is funding its future while managing declining video revenue and maintaining a 31.1 million customer base, you need to see the full Business Model Canvas below.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Charter Communications, Inc. (CHTR) relies on to execute its strategy in late 2025. These aren't just vendors; they are foundational to the Spectrum ecosystem.

Mobile Virtual Network Operator (MVNO) agreement with Verizon

The partnership with Verizon for the wireless network access is fueling Charter Communications, Inc.'s growth engine. As of the second quarter of 2025, Spectrum Mobile reached 10.3 million mobile subscribers, adding 500,000 net adds in that quarter alone. For the first quarter of 2025, the mobile segment added 514,000 lines. By the first quarter of 2025, Spectrum Mobile revenue hit $834 million, representing a 35% year-over-year increase. This MVNO model allows Charter Communications, Inc. to target a 20% cross-sell rate by bundling mobile with existing broadband customers.

Content providers (e.g., Disney, NBCUniversal) for video programming

To combat video subscriber attrition, Charter Communications, Inc. secured agreements to launch a streaming bundle in the first half of 2025. This package, offered to TV Select customers, includes ad-supported versions of multiple streaming services valued at approximately $80 per month. The video subscriber loss rate slowed to 80,000 in Q2 2025, down from 408,000 in Q2 2024.

The key content partners included in this bundle are:

• Max
• Disney+
• Peacock Premium
• Paramount+
• ESPN+
• AMC+
• Discovery+
• BET+
• VIX

Amazon Web Services (AWS) for Generative AI and software development

Charter Communications, Inc. established a strategic agreement with Amazon Web Services (AWS) to serve as one of its primary Generative AI providers. This collaboration standardizes software development processes to leverage GitLab Duo with Amazon Q Developer, an AI-powered assistant. The goal is to accelerate new feature development directly enhancing experiences for Spectrum Internet, TV, and Mobile customers. This move is part of a broader strategy to implement agentic AI solutions across Charter Communications, Inc.'s operations to improve overall performance and reliability.

Technology vendors for DOCSIS 4.0 and network equipment

Charter Communications, Inc. has been heavily investing in its Hybrid Fiber Coaxial (HFC) network upgrades, targeting completion of its DOCSIS 4.0 rollout by 2025. The overall planned investment for these cable upgrades was $5.5 billion, aiming for a cost of around $100 per passing. The plan aimed to offer 5/1 Gbps speeds to 85% of its footprint by the end of 2025.

Here's the quick math on the DOCSIS upgrade phases:

Phase Component	Targeted Footprint Coverage	Targeted Download Speed
Phase 1 (High-Split)	15%	Up to 2 Gbps
Phase 2 (DAA/Remote PHY)	50%	Up to 5 Gbps
Phase 3 (DOCSIS 4.0 ESD)	Remaining 35%	Up to 10 Gbps

What this estimate hides is that the company expects to offer a fiber-on-demand product capable of symmetrical speeds of 25 Gbps or more for customers who want it.

Municipal and regional governments for rural network expansion

Rural expansion is a major component of Charter Communications, Inc.'s capital plan, leveraging federal and state subsidies. For 2025, Charter Communications, Inc. projected capital expenditures of approximately $11.5 billion, with $4.2 billion budgeted for line extensions. Since 2018, Charter Communications, Inc. invested $7 billion in private capital to expand fiber infrastructure by over 100,000 miles, bringing service to 1.7 million new locations. By the end of 2024, subsidized rural passings stood at 435,000, with a target to add 450,000 more rural passings in 2025. Charter Communications, Inc. also won state-level grants for another 160,000 passings. For instance, in Cherokee County, over $3 million was awarded from RDOF funds to connect around 3,000 homes and small businesses.

Finance: draft 13-week cash view by Friday.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Key Activities

You're looking at the core actions Charter Communications, Inc. takes every day to keep the business engine running, especially as they fight off fiber and fixed wireless competitors. These aren't just plans; these are the operational realities driving their financials as of late 2025.

Network evolution and upgrade to DOCSIS 4.0 for multi-gigabit speeds.

Charter Communications, Inc. is actively executing its network evolution, though the final completion target for the full DOCSIS 4.0 deployment has shifted. The initial plan aimed for completion by the end of 2025, but the current expectation for the final phase, deploying 1.8GHz with DAA and a vCMTS for up to 10 Gbps downstream, is now targeted for 2026. However, the company expects to offer 5/1 Gbps speeds to 85% of its footprint by the end of 2025. This upgrade strategy aims to keep the cost per passing low, targeting around $100 per passing. In the second quarter of 2025, capital expenditures totaled $2.9 billion, which included spending for network evolution projects like Distributed Access Architecture (DAA) upgrades.

The key activities in this area include:

• Deploying high-split architecture across parts of the network, enabling speeds up to 2 Gbps downstream and 1 Gbps upstream.
• Rolling out Distributed Access Architecture (DAA) to cover 50% of the HFC footprint for downstream speeds up to 5 Gbps.
• Targeting top-tier speeds of up to 10 Gbps downstream via the final DOCSIS 4.0 phase.

Expanding footprint via Rural Construction Initiative.

The company is heavily invested in its $7 billion rural construction initiative to build out fiber infrastructure in underserved areas. This is a multi-year effort aiming to connect more than 1.7 million new homes and businesses upon completion. For the third quarter of 2025, Charter activated 124,000 subsidized rural passings. Within that subsidized rural footprint, total customer relationships grew by 52,000 during Q3 2025. In 2024, Charter activated approximately 393,000 subsidized rural passings.

Acquiring and retaining 11.4 million Spectrum Mobile lines (Q3 2025).

Spectrum Mobile remains a significant growth driver, central to the converged connectivity strategy. As of September 30, 2025, Charter served 11.4 million total mobile lines. The company added 493,000 new Spectrum Mobile lines during the third quarter of 2025. This represented a 21.8% increase in lines compared to the prior year. This mobile growth fueled a 19.2% surge in mobile service revenue, reaching $954 million in Q3 2025.

Bundling core services (Internet, Mobile, Video) to reduce churn.

The bundling of Internet and Mobile services is a key activity to stabilize the customer base against video cord-cutting. Video subscriber losses showed significant improvement, declining by only 70,000 in Q3 2025, a substantial reduction from the 294,000 loss recorded in Q3 2024. This stabilization is directly linked to product improvements, including the inclusion of streaming apps in video packages. Residential Average Revenue Per Customer (ARPU) reached $122.63 in Q3 2025, an increase of 1.0% year-over-year, supported by mobile growth and rate adjustments.

Here's a look at the subscriber base changes in Q3 2025:

Service Segment	Q3 2025 Net Change	Total Customers/Lines (as of 9/30/2025)
Internet Customers	Loss of 109,000	29.8 million
Video Customers	Loss of 70,000	12.6 million
Wireline Voice Customers	Loss of 200,000	6.2 million
Mobile Lines	Addition of 493,000	11.4 million

Managing programming contracts and content distribution rights.

Negotiating and managing content agreements is a critical, ongoing activity that directly impacts operating expenses and customer retention. Charter has advanced its strategy of including programmers' direct-to-consumer apps within its core video packages at no additional cost.

Specific distribution agreements active in 2025 include:

• Including Disney+ Basic in Spectrum TV Select packages.
• Including Paramount+ Essential and BET+ Essential via an extension with Paramount Global.
• Including AMC+ at no additional cost to Spectrum TV Select customers.
• Including Discovery+ and the Ad-Lite tier of Max through a partnership with Warner Bros. Discovery Inc..
• Including ad-supported Peacock through a multi-year deal with NBCUniversal.

The ability to secure these rights and manage the associated costs is a stated risk factor, as the company must balance these inclusions against the need to obtain programming at reasonable prices or raise customer prices to offset higher programming costs.

Finance: draft 13-week cash view by Friday.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Key Resources

You're looking at the core assets Charter Communications, Inc. (CHTR) relies on to run its business as of late 2025. These are the tangible and intangible things they own or control that make their value proposition possible.

Extensive Hybrid Fiber-Coaxial (HFC) network infrastructure

The physical plant is massive, built to support multi-gigabit speeds. At the end of 2024, Charter's network passed 56.9 million homes and businesses. The company's ambitious HFC network upgrade, which originally targeted completion by the end of 2025, has been delayed, with completion now targeted for 2026. This multi-phase evolution plan was designed to touch every one of the 55 million passings within its footprint, with an estimated cost of roughly $100 per home. The goal of this upgrade is to offer top-tier Internet speeds up to 5 Gbps across 85% of the footprint and up to 10 Gbps in certain areas. For the three months ended September 30, 2025, capital expenditures totaled $3.1 billion, which included $1.0 billion allocated to line extensions. The company is actively working to bring service to unserved and underserved communities, activating 124,000 subsidized rural passings in Q3 2025 alone.

Large customer base of 31.1 million relationships (Q3 2025)

The sheer volume of relationships anchors the entire operation, especially for mobile cross-selling. As of September 30, 2025, Charter served 31.1 million customer relationships, excluding mobile-only relationships. This base is segmented across its core services, as detailed below. The monthly residential revenue per customer reached $122.63 in Q3 2025.

Service Category	Customer/Line Count (as of Q3 2025)
Total Internet Customers	29.8 million
Total Video Customers	12.6 million
Total Wireline Voice Customers	6.2 million
Total Mobile Lines	11.4 million

Spectrum brand recognition across 41 US states

The Spectrum brand is the consumer face of Charter Communications. At the end of 2024, the company operated across 41 states. The brand is central to the converged strategy, bundling Internet, Mobile, and Video services.

Licensed wireless spectrum (CBRS) for self-managed mobile network

Owning spectrum is a strategic move to control mobile traffic costs and improve service. Charter spent over $460 million on Priority Access Licenses (PALs) in the Citizens Broadband Radio Service (CBRS) band back in 2020. This secured 210 PALs covering 106 counties. The company is in full deployment mode, aiming to deploy CBRS in 23 markets during 2025. This infrastructure allows Charter to offload more than 87 percent of its mobile traffic via Wi-Fi, with CBRS expected to further reduce reliance on the Verizon network.

Human capital for field operations and customer service

The workforce executes the physical build-out and manages the customer experience. Charter reported approximately 94,500 active full-time workers at the end of 2024. More recently, in late 2025, the company announced layoffs of close to 1,200 corporate management jobs, which represented just over 1% of its reported 95,000-person workforce. Importantly, no sales or service positions were eliminated in this streamlining effort.

• Sales and service roles were explicitly not impacted by the late 2025 corporate restructuring.
• The 2024 workforce of 94,500 represented a 6.53% decline from the 2023 total of 101,100 employees.

Finance: draft 13-week cash view by Friday.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Charter Communications, Inc. (CHTR) services, especially as the company pushes its converged strategy. The goal here is to lock in customers by making the switch away costly.

Converged connectivity: seamless transition between WiFi and mobile network.

• As of the third quarter of 2025, 21% of Charter Communications, Inc. Internet customers were converged, meaning they purchased both mobile and Internet products from the company.
• This strategy aims to deliver a differentiated connectivity experience by letting customers connect seamlessly between their WiFi and the mobile network.

High-speed, reliable broadband (up to multi-gigabit speeds).

• Charter Communications, Inc. is deploying next-generation DOCSIS 4.0 chipsets, developed with partners, capable of delivering speeds exceeding 25 Gbps over existing networks.
• The company has already rolled out 2x1 Gbps Internet services in select markets.
• As of September 30, 2025, Charter Communications, Inc. served 29.8 million Internet customers.
• Total customer relationships, excluding mobile-only relationships, stood at 31.1 million at the end of Q3 2025.

Guaranteed pricing for up to three years for small businesses.

• Spectrum Business offers guaranteed pricing for up to three years when customers bundle services with Ultra or Gig Internet.
• New small business customers can secure Spectrum Business Internet starting at 500 Mbps for $40 per month for 12 months, provided they bundle with two other business products.
• Current Spectrum Business Ultra Internet customers received an automatic, no-cost speed lift, moving from 600 Mbps to 750 Mbps.

Cost savings via bundled services (Internet, Mobile, Video).

• Spectrum advertises that it saves customers $1,000+/Year by offering better products.
• A specific bundle promotion allows qualified Spectrum Internet customers to get one Spectrum Mobile Unlimited phone line included for a full year at no additional price, effectively costing just $50.00/mo. for both Spectrum Internet Premier and a mobile line.
• Residential connectivity revenue grew 3.8% year-over-year in the third quarter of 2025.

Simple, contract-free Spectrum Mobile plans.

Spectrum Mobile plans are simple, offering nationwide 5G coverage and no service contracts. Here's a look at the structure as of late 2025. If onboarding takes 14+ days, churn risk rises.

Plan Name	Base Monthly Cost (Per Line)	Base Data Allowance	Hotspot Data Allowance	Overage/Throttling Detail
By The Gig	$20	1GB	N/A	Speeds reduced after 5GB used; additional data is $5 per GB.
Unlimited	$40	Unlimited (30GB high-speed)	5GB high-speed	Speeds reduced after 30GB usage per line.
Unlimited Plus	$50 (Implied: $40 base + $10 extra)	Unlimited (50GB high-speed)	10GB high-speed	Speeds reduced after 50GB usage per line.

As of September 30, 2025, Charter Communications, Inc. had 11.4 million mobile lines on its network, adding 493,000 in the third quarter alone.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Customer Relationships

You're looking at how Charter Communications, Inc. manages the people who pay for Spectrum services. It's a mix of high-touch support and digital efficiency, all while navigating significant industry churn. Honestly, keeping customers in the cable world right now takes serious effort.

Charter Communications, which operates under the Spectrum brand, maintains a massive footprint, which requires substantial dedicated resources for support. While the exact number of dedicated customer service and technical support centers isn't public, you know they have a large operational base, supported by approximately 100,000 employees across the U.S..

The acquisition strategy heavily relies on aggressive introductory offers. For instance, a new customer can secure a 500 Mbps Spectrum Internet plan starting as low as $30 per month when they bundle it with two lines of Spectrum Mobile and/or Spectrum Video service. This is complemented by offers like Spectrum One, which includes one free Unlimited mobile line for a year, driving that crucial initial service attachment.

For existing subscribers, loyalty is managed through value enhancement and rate guarantees, though some standard rate increases do occur, like the $5.00 per month increase on several Spectrum TV Select packages effective on or after July 15, 2025. To counter this, Charter enhances the value proposition. Spectrum TV Select customers now receive access to streaming apps with a retail value of up to $80 per month (soon to be up to $82 per month) at no extra cost.

The reality of churn is clear in the Q2 2025 numbers, showing the challenge in retention, even with these programs. We can look at the customer base as of June 30, 2025, to see the scale of relationships they are working to maintain:

Service/Metric	Customer Count (as of June 30, 2025)	Q2 2025 Net Change
Total Customer Relationships (Excl. Mobile-Only)	31.2 million	N/A
Internet Customers	29.9 million	Loss of 117,000
Video Customers	12.6 million	Loss of 80,000
Total Mobile Lines	10.9 million	Addition of 500,000 lines

The focus on digital self-service is key to managing the service load. The company pushes customers toward digital channels for efficiency. The Spectrum TV App remains a major digital touchpoint. While the latest specific user count is from late 2021, it showed more than 10 million users. More recently, data suggests audiences spend 128 monthly hours on the Spectrum TV app, significantly more than the 33 hours spent on Netflix.

Here's a quick look at the value-based offers designed to drive loyalty and package attachment:

• Spectrum Internet (500 Mbps) starting at $30/month when bundled.
• Spectrum One: 500 Mbps with one free Unlimited mobile line for a year.
• Spectrum TV Select value add: Up to $80/month in free streaming apps (soon $82/month).
• Residential monthly revenue per customer was $122.86 in Q2 2025.

Finance: draft 13-week cash view by Friday.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Channels

You're looking at how Charter Communications, Inc. gets its services-Internet, Mobile, Video, and Voice-into the hands of its customers. This is all about the touchpoints, from the physical store to the digital portal, and how they support the massive base of 31.1 million customer relationships as of September 30, 2025, excluding mobile-only accounts.

The physical presence remains a key channel, even as digital adoption grows. Charter Communications, Inc. was deploying in-store traffic analytics across its retail footprint, which, as of early 2024, comprised more than 700 Spectrum stores across the United States. This deployment was designed to optimize employee staffing and enhance the in-person customer experience, which is critical for complex product sales and support, especially for Spectrum Mobile, which added 493,000 lines in the third quarter of 2025 alone.

For direct sales, the effort targets both residential and commercial segments, though results are mixed. The commercial segment, which relies heavily on direct engagement, saw total revenue inch up 0.9 percent year-over-year to $1.8 billion in the third quarter of 2025, driven by a 3.6 percent increase in mid-market and large business revenue. Still, the small business revenue channel saw a 0.9 percent decline in the same period.

Digital channels are increasingly important, supported by the availability of online sales tools and self-installation options. Charter Communications, Inc. explicitly offers an easy self-install kit for its Internet service setup. The company is focused on driving customer experience improvements across all touchpoints, including the web and mobile apps, to support its 29.8 million Internet customers as of September 30, 2025.

Spectrum Reach, the local and regional advertising sales arm, operates as a distinct channel feeding revenue back into the business, though it faced headwinds in late 2025. Advertising sales revenue dropped 21.3 percent year-over-year to $356 million in the third quarter of 2025, largely due to lower political ad spending comparisons. Historically, Spectrum Reach offered service in 36 states across 91 media markets.

Call centers are the backbone for handling sales, billing, and technical support for the entire customer base. While specific call center metrics aren't public, the CEO noted that service delivery improvements, supported by technology investments, were being recognized by customers. The company employed approximately 94,500 people in 2024, and recent layoffs were stated to only impact corporate and back-office functions, suggesting frontline sales and service roles, which support call centers, were protected.

Here's a quick look at the financial scale of the services delivered through these channels for the third quarter of 2025:

Channel/Service Metric	Value (Q3 2025)	Context
Total Revenue	$13.7 billion	Total company revenue.
Internet Revenue	$6.0 billion	Revenue from the primary connectivity channel.
Advertising Sales Revenue (Spectrum Reach)	$356 million	Revenue from local/regional ad sales.
Total Customer Relationships	31.1 million	Excluding mobile-only relationships as of September 30, 2025.
Total Internet Customers	29.8 million	Total Internet subscribers as of September 30, 2025.
Total Video Customers	12.6 million	Total video subscribers as of September 30, 2025.
Total Mobile Lines	11.4 million	Total mobile lines as of September 30, 2025.
Retail Store Footprint Base	~700	Number of stores where analytics deployment was planned.

The monthly revenue generated per residential customer relationship provides a view of the value captured through these channels, which reached $122.63 in the third quarter of 2025.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Customer Segments

You're looking at the core groups Charter Communications, Inc. (CHTR) serves as of late 2025, based on their latest reported figures from the third quarter ending September 30, 2025. This company, operating under the Spectrum brand, segments its market into distinct customer types to tailor its connectivity and entertainment offerings.

Residential consumers across urban, suburban, and rural areas form the largest base, measured by total connections. As of September 30, 2025, Charter served 29.8 million Internet customers and 12.6 million total video customers. The total customer relationships, excluding mobile-only accounts, stood at 31.1 million relationships at that date. These residential customers are also the sole gateway to the growing Spectrum Mobile service, which reached 11.4 million total lines by the end of Q3 2025. The legacy wireline voice segment continued to shrink, ending Q3 2025 with 6.2 million customers.

The commercial side is split into two primary groups, Spectrum Business for smaller entities and Spectrum Enterprise for larger clients. The overall Commercial revenue for the third quarter of 2025 was $1.8 billion. You can see the distinct performance between the small and larger business tiers in the table below:

Customer Sub-Segment	Q3 2025 Year-over-Year Revenue Change	Key Metric Context
Small Business	Declined by 0.9%	Driven by a decline in small business customer relationships year-over-year.
Mid-market and Large Business (Excluding Wholesale)	Grew by 4.0%	Mostly reflecting PSU (presumably Primary Service Unit) growth.

Large enterprises, carriers, and government entities (Spectrum Enterprise) are captured within the Mid-market and Large Business category, showing revenue growth, which is a positive sign for this segment's stickiness. This segment is crucial as cloud migration challenges the traditional ISP model for smaller businesses.

Unserved and underserved rural communities via subsidized buildouts represent a major strategic investment area for Charter Communications, Inc. The company is actively deploying its network under multi-year initiatives. During the third quarter of 2025 alone, Charter activated 124,000 subsidized rural passings. This effort resulted in adding 52,000 new customer relationships within that specific rural footprint during the same quarter. The overall rural construction initiative aims to add over 1.7 million new locations nationwide, building over 100,000+ miles of fiber-optic infrastructure.

For the segment covering multifamily properties (Spectrum Community Solutions), specific revenue or unit counts weren't broken out separately in the latest reports, but these customers are included in the overall residential and business counts. The company's infrastructure footprint, which supports these segments, includes approximately 58 million network miles and roughly 75K Fiber Lit Buildings as of the Q3 2025 reporting period. This segment benefits from the overall network upgrade strategy targeting symmetrical and multi-gigabit speeds nationwide, which Charter aims to complete by 2027.

You should track the following key customer metrics:

• Total Customer Relationships (Excl. Mobile-Only): 31.1 million as of September 30, 2025.
• Total Internet Customers: 29.8 million as of September 30, 2025.
• Rural Passings Activated in Q3 2025: 124,000.
• Residential Connectivity Revenue Growth (Q3 2025): 3.8% year-over-year.

Finance: draft 13-week cash view by Friday.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Cost Structure

You're looking at the major outlays Charter Communications, Inc. (CHTR) faces to keep its network running and its services competitive as of late 2025. These costs are substantial because they support a massive, complex infrastructure and the content that keeps customers connected.

High Capital Expenditures (CapEx) for Network Upgrades

Charter Communications, Inc. (CHTR) has signaled that 2025 is the peak capital year for its investment cycle. Full-year 2025 capital expenditures are projected to total approximately $11.5 billion. This figure is slightly lower than an earlier projection of $12 billion, with some network evolution capital being pushed into 2026. The company expects total combined company capital expenditures to decline in the first full calendar year post-Cox transaction close.

Looking at the quarterly spend, the intensity is clear:

Period Ended	Capital Expenditures (in billions)	Change vs. Prior Year Period
September 30, 2025 (Q3)	$3.1 billion	Increase of $488 million
June 30, 2025 (Q2)	$2.9 billion	Increase of $21 million

For the full year 2025 projection of $11.5 billion, this included specific allocations, such as $4.2 billion for line extensions and an additional $1.5 billion for network evolution initiatives in earlier guidance.

Programming and Content Acquisition Costs for Video Services

Costs associated with securing content for the video product remain a significant, though fluctuating, expense. The pressure on these costs is partly due to the declining video customer base.

• Programming costs in the second quarter of 2025 decreased by $219 million, or 8.8%, compared to the second quarter of 2024.
• This Q2 2025 decrease reflected a 5.1% decline in video customers year-over-year, a higher mix of lighter video packages, and $67 million of costs allocated to programmer streaming applications netted within video revenue.
• For the third quarter of 2025, programming costs decreased by 6.5% year-over-year.
• Third quarter video revenue was $3.4 billion, a decrease of 9.3% compared to the prior year period.

Network Maintenance and Operational Expenses

The cost to run the network and service customers is constantly scrutinized, with management looking for efficiencies. Total operating expenses in the third quarter of 2025 declined by 0.5% year-over-year. However, specific operational categories showed increases:

• Field and technology operations expenses increased by $53 million, or 4.3% year-over-year in Q2 2025, driven by higher labor-related costs and network utility costs.
• Customer operations expenses increased by $24 million, or 3.0% year-over-year in Q2 2025, due to higher bad debt expense and bank/card fees.

Mobile Device and Service Costs (MVNO Fees and Device Subsidies)

The rapid growth in Spectrum Mobile lines contributes to both revenue and associated costs, including device purchases and underlying network access fees (MVNO fees). As of September 30, 2025, Charter served 11.4 million mobile lines. As of June 30, 2025, the company served 10.9 million mobile lines.

Costs related to mobile are embedded in several line items:

• Other revenue, which includes mobile device sales, totaled $839 million in Q2 2025, an 18.9% increase year-over-year.
• Other costs of revenue, which includes mobile service direct costs, increased by $113 million, or 7.3% year-over-year in Q2 2025.

Sales, General, and Administrative (SG&A) Expenses, Including Marketing

While a direct SG&A figure isn't isolated in the immediate reports, the overall operating expense trend gives context to these overhead costs. Charter's Adjusted EBITDA for the third quarter of 2025 was $5.6 billion, a 1.5% decline year-over-year. This decline in Adjusted EBITDA reflects the 0.9% revenue decline offset by the 0.5% decrease in total operating expenses for the quarter. Marketing spend is a component of these operating expenses, which management is focusing on improving through AI-driven customer support enhancements.

Charter Communications, Inc. (CHTR) - Canvas Business Model: Revenue Streams

You're looking at how Charter Communications, Inc. actually brings in the money as of late 2025. It's a story of high-speed connectivity driving growth while legacy services fade. The core of the business remains the monthly fee for getting customers onto the network, but the mix is shifting fast.

Residential Internet Service Fees (Core Revenue Driver)

Residential Internet is definitely the engine room for Charter Communications, Inc. revenue, even as customer counts fluctuate. For the third quarter of 2025, Internet revenue hit $6.0 billion, showing a year-over-year growth of 1.7%. This growth comes from a mix of rate adjustments and step-ups in promotional pricing, which helped offset the net loss of 109,000 Internet customers in that same quarter. The average monthly revenue per residential customer was $122.63 in Q3 2025, up 1.0% from the prior year.

Residential Mobile Service Revenue

Spectrum Mobile is the clear growth accelerant in the residential segment. For the first quarter of 2025, residential mobile service revenue saw a substantial increase of 33.5% year-over-year. That quarter, mobile service revenue totaled $914 million. By the third quarter of 2025, this stream continued its strong performance, reaching $954 million, which was a 19.2% increase year-over-year. This product is central to the converged network strategy, as it's offered exclusively to Spectrum Internet customers.

Commercial Business Services

The commercial segment provides a stable, albeit slower-growing, revenue base. In the third quarter of 2025, total Commercial revenue was $1.8 billion, a slight increase of 0.9% compared to the third quarter of 2024. This was a tale of two segments within Commercial, though.

Here's a quick look at the commercial breakdown from Q3 2025:

Commercial Segment	Q3 2025 Revenue (Approx.)	Year-over-Year Change
Mid-market and Large Business	Implied to be approximately $1.4 billion	Increased by 3.6%
Small Business	Implied to be approximately $400 million	Declined by 0.9%

The mid-market and large business category is where Charter Communications, Inc. is seeing its best commercial traction, with revenue excluding wholesale growing 4.0% in Q3 2025.

Residential Video and Voice Service Fees (Declining Segment)

These are the legacy revenue streams that are actively shrinking, though Charter Communications, Inc. is managing the decline through packaging changes. Residential revenue overall in Q3 2025 was $10.6 billion, down 1.1% year-over-year.

The decline is most pronounced in the traditional video and voice offerings:

• Residential Video Customers: Stood at 12.6 million as of September 30, 2025.
• Video Customer Loss (Q3 2025): Decreased by 70,000, an improvement from the prior year loss.
• Residential Voice Revenue (Q3 2025): Totaled $332 million, a year-over-year decrease of 7.9%.
• Residential Voice Customer Loss (Q3 2025): Declined by 200,000.

The company is trying to make the video package more attractive, for example, by including streaming apps like Max and Disney+ within Spectrum TV Select at no extra cost.

Advertising Sales Revenue from Spectrum Reach

Advertising sales, managed by Spectrum Reach, is another area experiencing a year-over-year contraction, though this can be cyclical. In the third quarter of 2025, Advertising sales revenue dropped to $356 million, a significant decrease of 21.3% compared to the same quarter last year. Management pointed to lower political revenue as the primary driver for this steep drop. Still, Spectrum Reach is making community investments, planning to invest over $3.8 million in free TV advertising for 255 small businesses in 2025 alone.

Finance: draft 13-week cash view by Friday.