CCO Holdings' Q3 Net Income Dips Amidst Major Cox Deal

TL;DR

**CCO Holdings is making a massive, debt-fueled bet on Cox assets, which could pay off big or sink them in a competitive market.**

AI Summary

CCO Holdings LLC 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 2.0% to $5,479 million for the nine-month period, up from $5,369 million. Operating costs and expenses decreased slightly to $8,283 million for the quarter, down from $8,316 million. A significant strategic development is the Cox Transactions, where Charter will acquire Cox Communications' commercial fiber and managed IT services for $3.5 billion in cash, and Cox's residential cable business will be contributed to Charter Holdings, with Cox Enterprises receiving $500 million in cash and $6.0 billion in convertible preferred units. The company's long-term debt increased to $94,413 million as of September 30, 2025, from $92,134 million at December 31, 2024, indicating increased leverage. Cash and cash equivalents decreased from $254 million to $235 million over the same 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 of Charter's footprint and service offerings, potentially boosting long-term revenue streams but also adding substantial debt, including $12.4 billion from Cox. Employees of Cox Communications' acquired businesses will see new ownership under Charter, while customers could experience service integration and expanded offerings. The deal intensifies competition in the broadband and IT services market, particularly against rivals like AT&T and Verizon, as Charter aims to solidify its market position through strategic consolidation.

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' outstanding net debt and finance leases as part of the Cox Transactions. This increased leverage, combined with a quarterly net income decrease of 7.9% to $1,712 million, presents financial risks, although year-to-date net income improved by 2.0%.

Analyst Insight

Investors should closely monitor the integration of the Cox Communications assets and the associated debt management strategies. Given the increased leverage, a cautious approach is warranted; consider holding existing positions while awaiting clearer signs of successful integration and debt reduction, or look for entry points if the market overreacts to short-term debt concerns.

Financial Highlights

revenue

$41.17B

total Assets

$150.74B

total Debt

$94.41B

net Income

$5.48B

cash Position

$235M

revenue Growth

+0.03%

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 2.0% from $5.369 billion in YTD 2024)
• $94.41B — Long-Term Debt (Increased from $92.134 billion at Dec 31, 2024)
• $3.5B — Cash Payment for Cox Equity Sale (Part of the Cox Transactions)
• $6.0B — Convertible Preferred Units Issued (Part of the Cox Transactions consideration)
• $12.4B — Assumed Cox Net Debt (Significant increase in total debt post-acquisition)
• $235M — Cash and Cash Equivalents (Decreased from $254 million at Dec 31, 2024)
• 7.9% — Q3 Net Income Decrease (Year-over-year decline for the quarter)

Key Players & Entities

• CCO Holdings, LLC (company) — Registrant and leading broadband connectivity company
• Charter Communications, Inc. (company) — Indirect parent company of CCO Holdings, Inc.
• Cox Enterprises, Inc. (company) — Seller in the Cox Transactions
• Cox Communications, Inc. (company) — Target of the Cox Transactions
• $13,672 million (dollar_amount) — CCO Holdings' revenues for the three months ended September 30, 2025
• $1,712 million (dollar_amount) — Net income attributable to CCO Holdings member for the three months ended September 30, 2025
• $94,413 million (dollar_amount) — Long-term debt as of September 30, 2025
• $3.5 billion (dollar_amount) — Cash payment from Charter to Cox Enterprises for the Equity Sale
• $6.0 billion (dollar_amount) — Aggregate liquidation preference of convertible preferred units issued to Cox Enterprises
• $12.4 billion (dollar_amount) — Cox Communications' outstanding net debt and finance leases to be assumed

FAQ

Risk Factors

• Increased Leverage [medium — financial]: Long-term debt increased to $94,413 million as of September 30, 2025, from $92,134 million at December 31, 2024. This indicates a growing reliance on debt financing, which could increase financial risk and interest expense.
• Decreased Cash Position [low — financial]: Cash and cash equivalents decreased to $235 million as of September 30, 2025, from $254 million at December 31, 2024. This reduction in readily available funds could impact the company's short-term liquidity and ability to meet immediate obligations.
• Cox Transactions Integration [high — operational]: The acquisition of Cox Communications' commercial fiber and managed IT services, along with the contribution of its residential cable business, involves significant cash outlays ($3.5 billion cash to Cox Enterprises) and the issuance of substantial convertible preferred units ($6.0 billion). Successful integration and realization of synergies are critical.
• Revenue Stagnation [medium — market]: Revenue for the three months ended September 30, 2025, decreased by 0.9% to $13,672 million, while the nine-month period saw only a 0.03% increase to $41,173 million. This indicates a lack of significant top-line growth in a competitive broadband market.
• Net Income Decline in Q3 [medium — financial]: Net income attributable to CCO Holdings member decreased by 7.9% to $1,712 million for the three months ended September 30, 2025. This decline, despite relatively stable revenues, suggests potential pressure on margins or increased operating costs not fully offset by efficiencies.

Industry Context

CCO Holdings operates in the broadband connectivity and entertainment sector, a highly competitive and capital-intensive industry. Key trends include the convergence of services (internet, mobile, TV), the expansion of fiber networks, and increasing demand for high-speed data. Competition comes from other cable providers, telecommunications companies offering fiber and 5G, and satellite providers.

Regulatory Implications

As a major broadband provider, CCO Holdings is subject to various regulatory frameworks concerning telecommunications services, net neutrality, data privacy, and franchise agreements. Changes in these regulations could impact service offerings, pricing, and operational costs. The company's scale also makes it a potential subject of antitrust scrutiny in certain markets.

What Investors Should Do

1. Monitor integration of Cox Transactions
2. Analyze debt levels and servicing capacity
3. Evaluate revenue growth drivers
4. Assess operating margin trends

Key Dates

• 2025-09-30: End of Q3 2025 reporting period — Marks the period for which the latest financial results are reported, showing slight revenue decline for the quarter but marginal year-to-date growth, alongside a decrease in Q3 net income.
• 2025-12-31: End of Fiscal Year 2024 — Provides the comparative balance sheet figures, showing a decrease in cash and cash equivalents and an increase in long-term debt from this prior period.
• 2025-09-30: Consolidated Balance Sheets — Shows total assets of $150,739 million and total liabilities and member's equity of $150,739 million, with long-term debt at $94,413 million.
• 2025-09-30: Consolidated Statements of Operations — Reports revenues of $13,672 million for Q3 2025 and $41,173 million for YTD 2025, with net income attributable to CCO Holdings member at $1,712 million for Q3 2025 and $5,479 million for YTD 2025.

Glossary

CCO Holdings member's equity

Represents the equity attributable to the owner(s) of CCO Holdings, LLC, after accounting for liabilities and noncontrolling interests. (Shows a slight increase from $39,235 million at December 31, 2024, to $39,475 million as of September 30, 2025, indicating retained earnings or capital contributions.)

Noncontrolling interests

Represents the portion of equity in a subsidiary that is not owned by the parent company (CCO Holdings member). (Remained minimal, decreasing slightly from $26 million to $25 million, suggesting limited subsidiary ownership by external parties.)

Convertible preferred units

A type of security that pays a fixed dividend and can be converted into a specified number of common units of the issuing entity. (Charter Holdings will issue $6.0 billion in these units to Cox Enterprises as part of the Cox Transactions, representing a significant financing component.)

Franchises

Represents the value of operating rights and licenses granted by governmental authorities to operate cable systems in specific geographic areas. (A substantial intangible asset on the balance sheet, valued at $67,468 million as of September 30, 2025, reflecting the long-term nature of the cable business.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. (Reported at $29,710 million as of September 30, 2025, indicating past acquisitions where the purchase price exceeded the fair value of identifiable net assets.)

Depreciation and amortization

The systematic allocation of the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives. (Totaled $2,153 million for Q3 2025 and $6,495 million for YTD 2025, representing significant non-cash expenses impacting operating income.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, CCO Holdings reported a slight revenue decrease of 0.9% for the three months ended September 30, 2025 ($13,672M vs $13,795M), though year-to-date revenues saw a marginal increase of 0.03% ($41,173M vs $41,159M). Net income attributable to the member experienced a more pronounced decline of 7.9% for the quarter ($1,712M vs $1,858M), but showed a modest 2.0% increase year-to-date ($5,479M vs $5,369M). The company's balance sheet reflects increased leverage with long-term debt rising to $94.4B from $92.1B, while cash reserves slightly diminished.

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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