Charter Communications, Inc.

Charter Communications, Inc. is an American broadband connectivity company that, operating under the Spectrum brand, provides Internet, mobile, video, and voice services to approximately 32 million customer relationships across 41 states, generating $54.8 billion in revenue in fiscal 2025. The company passes 58 million homes and businesses over a fiber-powered hybrid-fiber-coaxial network it is in the process of upgrading to symmetrical multi-gigabit speeds.

This is a story about capital allocation during a business-model transition. Charter is simultaneously managing the secular decline of its legacy video product, investing $11-12 billion annually to upgrade its network for a future it insists will reward speed and convergence, executing the largest acquisition in its history, and navigating a stock price that has fallen roughly 63% from its 52-week high — compressing its equity market capitalization to approximately $15 billion against an enterprise value of roughly $110 billion. At 3.0 times trailing net income and with a free cash flow yield above 30%, the market is pricing something close to terminal decline for a business that generated $22.7 billion in Adjusted EBITDA in fiscal 2025. The file turns on whether that discount is recognition of structural obsolescence or a financing-cycle overreaction that creates an unusual return opportunity.