Charter Communications Inc. (CHTR) is navigating a tricky reality: its traditional internet business is bleeding customers while its newer wireless offering is taking off. The company's stock jumped more than 8% on Friday after fourth-quarter results showed the wireless momentum might be enough to offset the broadband struggles.

Charter reported quarterly revenue of $13.60 billion, down 2.3% from a year earlier and missing the analyst consensus of $13.74 billion. But earnings per share came in at $10.34, comfortably ahead of the $9.90 estimate. The revenue miss reflected lower residential video and political advertising revenues, which anyone following the industry could have seen coming.

The internet customer losses tell an important story about what's happening in broadband. Charter shed 119,000 internet subscribers during the quarter, an improvement from the 177,000 decline in the same period last year. But that year-ago comparison included disconnects from the end of the FCC's Affordable Connectivity Program in mid-2024, so the improvement isn't quite as dramatic as it looks.

Here's where things get interesting: Charter added 44,000 video customers after losing 123,000 in the prior-year quarter. That turnaround came from pricing and packaging changes launched in September 2024, plus the inclusion of streaming apps in Spectrum's expanded basic packages. Essentially, Charter is acknowledging that if you can't beat the cord-cutters, you might as well bundle their streaming services.

The Wireless Bright Spot

The real winner was mobile. Charter added 428,000 mobile lines during the quarter, bringing its total to 11.8 million as of December 31. That's substantial growth in a business that didn't even exist for Charter a few years ago, and it's helping offset the structural challenges in broadband.

The company's adjusted EBITDA margin expanded 40 basis points to 41.8%, showing that even with revenue pressure, Charter is managing to maintain profitability. Free cash flow came in at $773 million, down from $984 million a year earlier due to higher capital expenditures. Operating cash flow for the quarter totaled $3.76 billion.

The Competition Problem

Charter is facing intensifying pressure from fixed wireless and fiber broadband providers who are steadily eating away at its home internet base. At the same time, cord-cutting continues to hammer the traditional TV business as viewers migrate to streaming platforms. The company's response has been to meet customers where they're going, rolling out a video app marketplace last year that bundles streaming apps with traditional TV packages.

As of year-end, Charter served 29.7 million internet customers and held $477 million in cash and equivalents.

Looking Ahead

For 2026, Charter expects capital expenditures of approximately $11.4 billion, down from $11.7 billion in fiscal 2025. That's a modest reduction, but it suggests the company feels comfortable it can maintain its network without the same level of investment.

The stock closed up 8.54% at $207.87 on Friday as investors decided the wireless growth story outweighs the broadband challenges, at least for now.