CCO Holdings' Q3 Net Income Dips, Eyes Major Cox Acquisition

TL;DR

**CCO Holdings is making a massive bet on Cox to fuel growth, but watch that rising debt and quarterly profit dip.**

AI Summary

CCO Holdings Capital Corp. reported a slight revenue decrease for the three months ended September 30, 2025, to $13,672 million from $13,795 million in the prior year, a 0.9% decline. However, for the nine months ended September 30, 2025, revenues saw a marginal increase to $41,173 million from $41,159 million, up 0.03%. Net income attributable to CCO Holdings member decreased by 7.9% to $1,712 million for the three-month period, down from $1,858 million in 2024, but increased by 2.1% to $5,479 million for the nine-month period, up from $5,369 million. Operating costs and expenses remained relatively stable at $8,283 million for the quarter and $24,757 million for the nine months. A significant strategic development is the proposed Cox Transactions, where Charter will acquire Cox Communications' commercial fiber and managed IT services businesses for $3.5 billion in cash and contribute Cox Communications' residential cable business to Charter Holdings, assuming approximately $12.4 billion in Cox Communications' net debt. This transaction is expected to significantly expand CCO Holdings' operational footprint and service offerings. The company's long-term debt increased to $94,413 million as of September 30, 2025, from $92,134 million at December 31, 2024, reflecting increased borrowings of $12,019 million during the nine-month period.

Why It Matters

This filing reveals CCO Holdings' mixed financial performance, with a quarterly net income dip but year-to-date growth, alongside a transformative acquisition of Cox Communications' assets. For investors, the Cox Transactions represent a significant expansion into commercial fiber and residential cable, potentially boosting market share and revenue streams, but also adding substantial debt. Employees of both CCO Holdings and Cox Communications face integration challenges and opportunities. Customers could see expanded service offerings and potentially improved infrastructure due to the combined entity's scale. The broader market will observe how this consolidation impacts the competitive landscape in the broadband and cable sectors, particularly against rivals like AT&T and Verizon.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in long-term debt to $94,413 million as of September 30, 2025, from $92,134 million at December 31, 2024, and the assumption of approximately $12.4 billion in Cox Communications' net debt as part of the Cox Transactions. While the company has stable operating cash flow of $12,958 million for the nine months ended September 30, 2025, the substantial debt load and the complexities of integrating a major acquisition present financial and operational risks.

Analyst Insight

Investors should closely monitor the progress and integration of the Cox Transactions, paying particular attention to how the assumed $12.4 billion in debt impacts CCO Holdings' leverage ratios and interest expenses. Evaluate the company's ability to generate sufficient free cash flow to service its increased debt obligations and realize the anticipated synergies from the acquisition. Consider the competitive response from other major players in the broadband and cable industry.

Financial Highlights

revenue

$41,173 million

total Assets

$150,739 million

total Debt

$94,413 million

net Income

$5,479 million

cash Position

$235 million

revenue Growth

0.03%

Revenue Breakdown

Key Numbers

• $13.67B — Q3 2025 Revenues (Down 0.9% from $13.795 billion in Q3 2024)
• $1.71B — Q3 2025 Net Income (Down 7.9% from $1.858 billion in Q3 2024)
• $41.17B — YTD 2025 Revenues (Up 0.03% from $41.159 billion in YTD 2024)
• $5.48B — YTD 2025 Net Income (Up 2.1% from $5.369 billion in YTD 2024)
• $94.41B — Long-Term Debt (Increased from $92.134 billion at Dec 31, 2024)
• $12.4B — Assumed Cox Debt (Part of the Cox Transactions, adding to existing debt)
• $3.5B — Cash Payment for Cox Equity Sale (Part of the Cox Transactions consideration)
• $12.96B — Net Cash from Operating Activities (For the nine months ended September 30, 2025)
• $8.32B — Purchases of Property, Plant and Equipment (For the nine months ended September 30, 2025)
• $4.67B — Net Cash from Financing Activities (Negative for the nine months ended September 30, 2025)

Key Players & Entities

• CCO Holdings, LLC (company) — registrant and parent company
• CCO Holdings Capital Corp. (company) — registrant and subsidiary of CCO Holdings, LLC
• Charter Communications, Inc. (company) — indirect parent company of CCO Holdings, LLC
• Cox Enterprises, Inc. (company) — seller in the Cox Transactions
• Cox Communications, Inc. (company) — target of the Cox Transactions
• $13,672 million (dollar_amount) — revenues for three months ended September 30, 2025
• $1,712 million (dollar_amount) — net income attributable to CCO Holdings member for three months ended September 30, 2025
• $41,173 million (dollar_amount) — revenues for nine months ended September 30, 2025
• $5,479 million (dollar_amount) — net income attributable to CCO Holdings member for nine months ended September 30, 2025
• $94,413 million (dollar_amount) — long-term debt as of September 30, 2025

FAQ

Risk Factors

• Increased Long-Term Debt [high — financial]: Long-term debt increased to $94,413 million as of September 30, 2025, from $92,134 million at December 31, 2024. This increase of $2,279 million reflects increased borrowings of $12,019 million during the nine-month period, partially offset by repayments and other adjustments. The significant debt load, especially with the assumption of $12.4 billion in Cox Communications' net debt as part of the Cox Transactions, poses a financial risk.
• Regulatory Compliance and Changes [medium — regulatory]: As a broadband connectivity company, CCO Holdings operates in a heavily regulated industry. Changes in regulations related to net neutrality, data privacy, or spectrum allocation could impact operations and profitability. The company's compliance with FCC regulations and other governmental requirements is critical.
• Competition and Technological Advancements [high — market]: The broadband and telecommunications market is highly competitive, with evolving technologies and new entrants. CCO Holdings faces competition from other cable providers, telecommunication companies, and emerging technologies like 5G. Failure to adapt to technological advancements and maintain a competitive service offering could lead to market share erosion.
• Integration of Cox Transactions [high — operational]: The proposed acquisition of Cox Communications' commercial fiber and managed IT services businesses, along with the contribution of its residential cable business, represents a significant operational undertaking. Successful integration of these assets, systems, and employees is crucial for realizing the expected benefits and avoiding disruptions.
• Interest Rate Sensitivity [medium — financial]: With a substantial amount of long-term debt ($94,413 million as of September 30, 2025), CCO Holdings is exposed to interest rate fluctuations. An increase in interest rates could lead to higher interest expenses, impacting net income. The company's interest expense for the nine months ended September 30, 2025, was $3,744 million.
• Potential Litigation and Legal Proceedings [low — legal]: Like many large corporations, CCO Holdings may be subject to various legal proceedings and litigation. Adverse outcomes in such matters could result in significant financial liabilities and reputational damage. The company does not explicitly detail specific ongoing litigation in this 10-Q excerpt.

Industry Context

CCO Holdings operates as a leading broadband connectivity company under the Spectrum brand, offering a converged experience of internet, mobile, TV, and voice services. The industry is characterized by intense competition from traditional cable providers, telecommunications companies, and emerging wireless technologies. Key trends include the increasing demand for high-speed internet, the shift towards streaming services, and the expansion of fiber optic networks to support higher bandwidth needs.

Regulatory Implications

As a major player in the telecommunications sector, CCO Holdings is subject to significant regulatory oversight from bodies like the FCC. Compliance with regulations concerning network access, data privacy, and service quality is paramount. Potential changes in regulatory frameworks, such as net neutrality rules or spectrum allocation policies, could materially affect the company's operations and competitive landscape.

What Investors Should Do

1. Monitor the integration progress and financial impact of the proposed Cox Transactions.
2. Analyze the company's debt management strategy in light of increasing long-term debt and the assumption of Cox's debt.
3. Evaluate the company's ability to maintain revenue growth and profitability amidst competitive pressures and evolving technology.
4. Assess the impact of potential regulatory changes on the company's business model and operations.

Key Dates

• 2025-09-30: End of Third Quarter — Reporting period for the 10-Q, showing financial results and position as of this date.
• 2025-12-31: End of Fiscal Year 2024 — Prior period balance sheet comparison point for September 30, 2025.
• 2025-09-30: Nine Months Ended — Period for year-to-date financial performance comparison.
• 2024-09-30: Nine Months Ended — Prior year period for year-to-date financial performance comparison.
• 2025-09-30: Proposed Cox Transactions — Significant strategic development involving Charter acquiring Cox Communications' businesses, impacting CCO Holdings' footprint and debt.

Glossary

CCO Holdings, LLC

The operating entity that provides broadband connectivity and related services under the Spectrum brand. (The primary operating company whose financial results are reported.)

Charter Communications, Inc.

The ultimate parent company of CCO Holdings, LLC. (Provides context for CCO Holdings' ownership structure and potential strategic initiatives.)

Noncontrolling interests

The portion of equity in a subsidiary that is not owned by the parent company. (Represents a small portion of CCO Holdings' equity, indicating partial ownership by other parties in some subsidiaries.)

Depreciation and amortization

The systematic allocation of the cost of tangible assets (depreciation) and intangible assets (amortization) over their useful lives. (Significant expense items reflecting the wear and tear and obsolescence of the company's extensive infrastructure and customer relationships.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (A substantial intangible asset on the balance sheet, indicating past acquisitions where the purchase price exceeded the fair value of net assets acquired.)

Cox Transactions

A proposed strategic deal where Charter will acquire certain businesses from Cox Communications, including commercial fiber and managed IT services, and contribute Cox's residential cable business to Charter Holdings. (A major event expected to significantly expand CCO Holdings' operational footprint and service offerings.)

Senior secured notes and debentures

Debt instruments that are backed by specific collateral or assets of the company, giving lenders a claim on those assets in case of default. (A significant portion of CCO Holdings' long-term debt, indicating the company's reliance on secured borrowing.)

Year-Over-Year Comparison

Compared to the prior year, CCO Holdings reported a slight revenue decrease of 0.9% for the three months ended September 30, 2025, to $13,672 million, though year-to-date revenues saw a marginal increase of 0.03% to $41,173 million. Net income attributable to the member decreased by 7.9% for the quarter to $1,712 million but increased by 2.1% year-to-date to $5,479 million. Long-term debt has increased to $94,413 million from $92,134 million at the end of the previous fiscal year, reflecting significant borrowings. New risks related to the proposed Cox Transactions, including the assumption of $12.4 billion in debt, are now prominent.

Filing Documents

• ccoh-20250930.htm (10-Q) — 938KB
• ccoh9302025exh-221.htm (EX-22.1) — 19KB
• ccoh9302025exh-311.htm (EX-31.1) — 9KB
• ccoh9302025exh-312.htm (EX-31.2) — 10KB
• ccoh9302025exh-321.htm (EX-32.1) — 4KB
• ccoh9302025exh-322.htm (EX-32.2) — 4KB
• 0001271833-25-000018.txt ( ) — 3979KB
• ccoh-20250930.xsd (EX-101.SCH) — 29KB
• ccoh-20250930_cal.xml (EX-101.CAL) — 54KB
• ccoh-20250930_def.xml (EX-101.DEF) — 132KB
• ccoh-20250930_lab.xml (EX-101.LAB) — 308KB
• ccoh-20250930_pre.xml (EX-101.PRE) — 201KB
• ccoh-20250930_htm.xml (XML) — 486KB

Financial Statements CCO Holdings, LLC and Subsidiaries

Financial Statements CCO Holdings, LLC and Subsidiaries Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Consolidated Statements of Changes in Member's Equity for the three and nine months ended September 30, 2025 and 2024 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3 Quantitative and Qualitative Disclosure About Market Risk 26 Item 4

Controls and Procedures

Controls and Procedures 26 PART II OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 28 Item 1A

Risk Factors

Risk Factors 28 Item 6 Exhibits 32

Signatures

Signatures S- 1 Exhibit Index E- 1 This quarterly report on Form 10-Q is for the three and nine months ended September 30, 2025. The United States Securities and Exchange Commission ("SEC") allows us to "incorporate by reference" information that we file with the SEC, which means that we can disclose important information to you by referring you directly to those documents. In this quarterly report, "CCO Holdings," "we," "us" and "our" refer to CCO Holdings, LLC and its subsidiaries. i CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This quarterly report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial including, without limitation, the forward-looking statements set forth in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this quarterly report. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" in Part I, Item 1A of our most recent Form 10-K filed with the SEC. Many of the forward-looking statements contained in this quarterly report may be identified by the use of forward-looking words such as "believe," "future," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on"

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. CCO HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (dollars in millions) September 30, 2025 December 31, 2024 (unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 235 $ 254 Accounts receivable, less allowance for doubtful accounts of $ 234 and $ 204 , respectively 3,371 3,038 Receivables from related party 118 66 Prepaid expenses and other current assets 599 622 Total current assets 4,323 3,980 INVESTMENT IN CABLE PROPERTIES: Property, plant and equipment, net of accumulated depreciation of $ 41,025 and $ 39,216 , respectively 44,370 42,084 Customer relationships, net of accumulated amortization of $ 17,759 and $ 17,319 , respectively 555 975 Franchises 67,468 67,462 Goodwill 29,710 29,674 Total investment in cable properties, net 142,103 140,195 OTHER NONCURRENT ASSETS 4,313 4,196 Total assets $ 150,739 $ 148,371 LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES: Accounts payable, accrued and other current liabilities $ 11,363 $ 10,790 Current portion of long-term debt 750 1,799 Total current liabilities 12,113 12,589 LONG-TERM DEBT 94,413 92,134 EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY 1,365 1,072 DEFERRED INCOME TAXES 89 88 OTHER LONG-TERM LIABILITIES 3,259 3,227 MEMBER'S EQUITY: CCO Holdings member's equity 39,475 39,235 Noncontrolling interests 25 26 Total member's equity 39,500 39,261 Total liabilities and member's equity $ 150,739 $ 148,371 The accompanying notes are an integral part of these consolidated financial statements. 1 CCO HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in millions) Unaudited Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 REVENUES $ 13,672 $ 13,795 $ 41,173 $ 41,159 COSTS AND EXPENSES: Operating costs and expenses (exclusive of items shown separately below) 8,283 8,316 24,757 24,936 Depreciation and amortization 2,153 2,138 6,495 6,483 Other oper

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except where indicated) 1. Organization and Basis of Presentation Organization CCO Holdings, LLC (together with its subsidiaries, "CCO Holdings," or the "Company") is a leading broadband connectivity company with services available to homes and small to large businesses through its Spectrum brand. The Company has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet , Mobile, TV and Voice products. CCO Holdings is a holding company whose principal assets are the equity interests in its operating subsidiaries. CCO Holdings is a direct subsidiary of CCH I Holdings, LLC, which is an indirect subsidiary of Charter Communications, Inc. ("Charter"), Charter Communications Holdings, LLC ("Charter Holdings") and Spectrum Management Holding Company, LLC ("Spectrum Management"). All of the outstanding capital stock of CCO Holdings Capital Corp. is owned by CCO Holdings. The consolidated financial statements include the accounts of CCO Holdings and all of its subsidiaries where the underlying operations reside. All significant intercompany accounts and transactions among consolidated entities have been eliminated. Charter, Charter Holdings and Spectrum Management have performed financing, cash management, treasury and other services for CCO Holdings on a centralized basis. Changes in member's equity in the consolidated balance sheets related to these activities have been considered cash receipts (contributions) and payments (distributions) for purposes of the consolidated statements of cash flows and are reflected in financing activities. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance wi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except where indicated) Pursuant to the Transaction Agreement, at the closing of the Cox Transactions: in consideration of the Equity Sale, Charter will pay $ 3.5 billion in cash to Cox Enterprises; in consideration of the Contribution, Charter Holdings will (i) pay to Cox Enterprises $ 500 million in cash and (ii) issue to Cox Enterprises convertible preferred units of Charter Holdings with an aggregate liquidation preference of $ 6.0 billion, which will pay a 6.875 % dividend per annum, and approximately 33.6 million Charter Holdings common units. The Charter Holdings convertible preferred units will be convertible into Charter Holdings common units, with an initial conversion price of $ 477.41 , subject to certain adjustments. The Charter Holdings common units will be exchangeable by the holder, in certain circumstances, for cash or, at the election of Charter, Charter Class A common stock on a one-for-one basis, subject to certain adjustments; and in consideration of the $ 1.00 payment from Cox Enterprises to Charter, Charter will issue to Cox Enterprises one share of the newly created Charter Class C common stock. The Charter Class C common stock will be equivalent, economically, to the outstanding Charter Class A common stock and the Charter Class B common stock but will have a number of votes per share that reflect the voting power of the Charter Holdings common units and the Charter Holdings convertible preferred units held by Cox Enterprises on an as-converted, as-exchanged basis. The combined entity will assume Cox Communications' approximately $ 12.4 billion in outstanding net debt and finance leases. 3. Accounts Payable, Accrued and Other Current Liabilities Accounts payable, accrued and other current liabilities consist of the following as of September 30, 2025 and December 31, 2024: September 30, 2025 December 31, 2024 Accounts payable – trade $ 909 $ 847 D

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (dollars in millions, except where indicated) 2025 and December 31, 2024, respectively, and is included in short-term borrowings. Cash outflows to the financial institutions are classified as cash flows from financing activities. 4. Total Debt A summary of our debt as of September 30, 2025 and December 31, 2024 is as follows: September 30, 2025 December 31, 2024 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Senior unsecured notes $ 27,250 $ 27,193 $ 25,853 $ 27,250 $ 27,182 $ 24,881 Senior secured notes and debentures (a) 55,414 55,662 49,440 56,195 56,475 47,896 Credit facilities (b) 12,359 12,308 12,211 10,334 10,276 10,079 $ 95,023 $ 95,163 $ 87,504 $ 93,779 $ 93,933 $ 82,856 (a) Includes the Company's 625 million fixed-rate British pound sterling denominated notes (the "Sterling Notes") (remeasured at $ 840 million and $ 782 million as of September 30, 2025 and December 31, 2024, respectively, using the exchange rate at the respective dates) and the Company's 650 million aggregate principal amount of Sterling Notes (remeasured at $ 874 million and $ 813 million as of September 30, 2025 and December 31, 2024, respectively, using the exchange rate at the respective dates). (b) The Company has availability under the Charter Communications Operating, LLC ("Charter Operating") credit facilities of approximately $ 4.0 billion as of September 30, 2025. The estimated fair value of the Company's senior unsecured and secured notes and debentures as of September 30, 2025 and December 31, 2024 is based on quoted market prices in active markets and is classified within Level 1 of the valuation hierarchy, while the estimated fair value of the Company's credit facilities is based on quoted market prices in inactive markets and is classified within Level 2. In September 2025, Charter Operating and Charter Communications Operating Capital Corp. jointly issued $

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