Charter published Cox Communications' accounts, and they carry a $5.6bn writedown of cable franchise value

The numbers arrived as an exhibit. Charter Communications filed a Form 8-K on July 23 to provide the audited consolidated financial statements of Cox Communications for 2025, 2024 and 2023, alongside unaudited first-quarter 2026 figures and pro forma statements for the combination.

Cox revenue was $12,531m in 2025, down from $13,073m in 2024 and $13,326m in 2023. Against that, an impairment of intangible assets of $5,604m turned $2,550m of operating income in 2024 into an operating loss of $2,966m in 2025. The company reported a net loss of $2,648m for the year, against net income of $1,725m the year before. Cash from operating activities was $3,826m.

The charge is against cable franchise value. Cox carried indefinite-lived cable franchise value of $15,879m at the end of 2024 and $10,275m at the end of 2025. In the notes, Cox attributes the decline in estimated fair value to updated long-term financial projections reflecting a reduction in estimated future cash flows, and cites increased competition, changes in the macroeconomic outlook, and recent declines in industry market multiples. Total assets fell to $30,729m from $36,281m, and retained earnings fell to $6,409m from $10,057m. Long-term debt was $11,474m.

The first quarter of 2026, filed as a separate unaudited exhibit, reads differently. Revenue was $3,059m against $3,183m a year earlier, and net income was $502m against $461m, with operating costs and expenses down to $1,740m from $1,922m.

The 8-K also restates the structure of the transaction. Charter Holdings acquires Cox Enterprises' commercial fiber and managed IT and cloud services businesses, Cox Enterprises contributes the equity interests of Cox Communications after a preclosing conversion to a limited liability company together with certain other assets tied to the residential cable business, and Cox Enterprises pays Charter $1.00.