MarketWise Reports Net Revenue of $80.0 Million for Second Quarter 2025 and Net Income of $15.3 Million; Second Quarter Billings of $58.2 Million Increased 10% YoY, on an Adjusted Basis; Cash From Operating Activities were $17.8 Million, a YoY Improvement of Over $20 Million; Announced Quarterly and Special Dividend Totaling $0.40 per Class A Share
MarketWise (NASDAQ: MKTW), a digital subscription platform for financial research, reported strong Q2 2025 results with net revenue of $80.0 million and net income of $15.3 million. Total Billings reached $58.2 million, showing a 10% year-over-year increase on an adjusted basis.
The company demonstrated robust cash generation with Cash from Operating Activities of $17.8 million, marking a significant improvement of $21.6 million compared to Q2 2024. MarketWise maintains a strong balance sheet with $69.1 million in cash and no debt. The company announced a combined quarterly and special dividend totaling $0.40 per Class A share.
For FY 2025, MarketWise expects to meet or exceed its targets, including a 20% increase in Billings to approximately $250 million and Cash from Operating Activities of around $30 million.
MarketWise (NASDAQ: MKTW), una piattaforma digitale di abbonamento per la ricerca finanziaria, ha riportato risultati solidi nel secondo trimestre 2025 con un ricavo netto di 80,0 milioni di dollari e un utile netto di 15,3 milioni di dollari. Le fatturazioni totali hanno raggiunto i 58,2 milioni di dollari, registrando un aumento del 10% su base annua, rettificato.
L'azienda ha mostrato una forte generazione di cassa con un flusso di cassa operativo di 17,8 milioni di dollari, segnando un miglioramento significativo di 21,6 milioni rispetto al secondo trimestre 2024. MarketWise mantiene un bilancio solido con 69,1 milioni di dollari in contanti e nessun debito. La società ha annunciato un dividendo combinato trimestrale e speciale pari a 0,40 dollari per azione di Classe A.
Per l'anno fiscale 2025, MarketWise prevede di raggiungere o superare i suoi obiettivi, inclusa una crescita del 20% delle fatturazioni fino a circa 250 milioni di dollari e un flusso di cassa operativo attorno ai 30 milioni di dollari.
MarketWise (NASDAQ: MKTW), una plataforma digital de suscripción para investigación financiera, reportó sólidos resultados en el segundo trimestre de 2025 con ingresos netos de 80,0 millones de dólares y ingreso neto de 15,3 millones de dólares. Las facturaciones totales alcanzaron los 58,2 millones de dólares, mostrando un aumento ajustado del 10% interanual.
La compañía demostró una fuerte generación de efectivo con flujo de caja operativo de 17,8 millones de dólares, marcando una mejora significativa de 21,6 millones en comparación con el segundo trimestre de 2024. MarketWise mantiene un balance sólido con 69,1 millones de dólares en efectivo y sin deuda. La empresa anunció un dividendo combinado trimestral y especial por un total de 0,40 dólares por acción Clase A.
Para el año fiscal 2025, MarketWise espera cumplir o superar sus objetivos, incluyendo un aumento del 20% en facturaciones hasta aproximadamente 250 millones de dólares y un flujo de caja operativo de alrededor de 30 millones de dólares.
MarketWise (NASDAQ: MKTW)는 금융 리서치용 디지털 구독 플랫폼으로, 2025년 2분기에 순수익 8,000만 달러와 순이익 1,530만 달러라는 견고한 실적을 보고했습니다. 총 청구액은 5,820만 달러에 달하며, 조정 기준으로 전년 동기 대비 10% 증가했습니다.
회사는 영업활동 현금흐름 1,780만 달러를 기록하며 2024년 2분기 대비 2,160만 달러 크게 개선된 강력한 현금 창출 능력을 보여주었습니다. MarketWise는 6,910만 달러의 현금과 무부채의 견실한 재무구조를 유지하고 있습니다. 회사는 클래스 A 주당 0.40달러의 분기 및 특별 배당금 합산을 발표했습니다.
2025 회계연도에 MarketWise는 약 2억 5천만 달러의 청구액 20% 증가와 약 3,000만 달러의 영업활동 현금흐름을 포함한 목표를 달성하거나 초과할 것으로 예상합니다.
MarketWise (NASDAQ : MKTW), une plateforme d'abonnement numérique pour la recherche financière, a annoncé de solides résultats pour le deuxième trimestre 2025 avec un chiffre d'affaires net de 80,0 millions de dollars et un revenu net de 15,3 millions de dollars. Les facturations totales ont atteint 58,2 millions de dollars, affichant une augmentation ajustée de 10 % d'une année sur l'autre.
L'entreprise a démontré une forte génération de trésorerie avec un flux de trésorerie provenant des activités opérationnelles de 17,8 millions de dollars, marquant une amélioration significative de 21,6 millions par rapport au deuxième trimestre 2024. MarketWise maintient un bilan solide avec 69,1 millions de dollars en liquidités et aucune dette. La société a annoncé un dividende combiné trimestriel et spécial totalisant 0,40 dollar par action de Classe A.
Pour l'exercice 2025, MarketWise prévoit d'atteindre ou de dépasser ses objectifs, y compris une augmentation de 20 % des facturations à environ 250 millions de dollars et un flux de trésorerie provenant des activités opérationnelles d'environ 30 millions de dollars.
MarketWise (NASDAQ: MKTW), eine digitale Abonnementplattform für Finanzforschung, meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Nettoerlös von 80,0 Millionen US-Dollar und einem Nettoeinkommen von 15,3 Millionen US-Dollar. Die gesamten Rechnungsstellungen erreichten 58,2 Millionen US-Dollar und verzeichneten eine bereinigte Steigerung von 10 % gegenüber dem Vorjahr.
Das Unternehmen zeigte eine robuste Cash-Generierung mit einem Cashflow aus operativer Tätigkeit von 17,8 Millionen US-Dollar, was eine deutliche Verbesserung von 21,6 Millionen gegenüber dem zweiten Quartal 2024 darstellt. MarketWise verfügt über eine starke Bilanz mit 69,1 Millionen US-Dollar an liquiden Mitteln und keiner Verschuldung. Das Unternehmen kündigte eine kombinierte vierteljährliche und Sonderdividende von insgesamt 0,40 US-Dollar pro Klasse-A-Aktie an.
Für das Geschäftsjahr 2025 erwartet MarketWise, seine Ziele zu erreichen oder zu übertreffen, einschließlich einer Steigerung der Rechnungsstellungen um 20 % auf etwa 250 Millionen US-Dollar und einem Cashflow aus operativer Tätigkeit von rund 30 Millionen US-Dollar.
- Strong cash generation with $17.8M in Operating Activities, a $21.6M YoY improvement
- Healthy balance sheet with $69.1M cash and zero debt
- 10% YoY increase in Q2 Billings to $58.2M on adjusted basis
- Increased ARPU to $474, showing strong product monetization
- Announced combined $0.40 per share dividend (regular + special)
- On track to achieve 20% Billings growth target for FY 2025
- Declining paid subscriber base from 645K to 394K YoY
- Sequential revenue decline from $83.5M in Q1 to $80.0M in Q2 2025
- Cash balance decreased from $97.9M to $69.1M since December 2024
BALTIMORE, Aug. 07, 2025 (GLOBE NEWSWIRE) -- MarketWise, Inc. (NASDAQ: MKTW) (“MarketWise” or the “Company”), a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors, today reported financial results for second quarter 2025.(1)
Second Quarter 2025 Highlights(1)(2)
- Total net revenue was
$80.0 million in the second quarter 2025(2)
- Total Billings were
$58.2 million in second quarter 2025, a year-over-year increase of10% on an adjusted basis - Net income was
$15.3 million in second quarter 2025 - Cash from Operating Activities was
$17.8 million in second quarter 2025, an improvement of$21.6 million compared to second quarter 2024 - Cash and cash equivalents were
$69.1 million as of June 30, 2025, and no debt outstanding - Announced on August 1, 2025 quarterly and special dividend totaling
$0.40 per Class A share
| (1) | The second quarter 2025 and 2024 quarterly results reported herein are unaudited. |
| (2) | Net Revenue (a GAAP measure) represents Billings that are recognized over the term of the subscription, which can be multiple years. Billings are amounts invoiced to customers in the period and is thus indicative of the current operating environment and demand for our products. |
MarketWise CEO Dr. David Eifrig commented, “I am delighted by the results for the quarter as our teams continue to deliver against our strategic priorities of growth, efficiency, and new business. I see meaningful contributions from everywhere in the Company and could not be prouder of the dedication of our 400+ employees as we provide world-class financial research and tools to our millions of engaged subscribers.”
Eifrig continued, “The strength of our business model was displayed during the second quarter as the company generated Cash from Operating Activities of over
“At a more detailed level, our average revenue per user, or ARPU, continues to be strong which evidences the value our customers see in our products and our ability to monetize our installed base. In addition to driving ARPU higher, we are also focused on increasing the number of paid subscribers. We are developing exciting initiatives to increase customer acquisition and improve engagement and retention.”
Eifrig concluded, “From a FY 2025 Guidance perspective, I am pleased to report that we are on track to achieve the FY 2025 Targets we communicated earlier this year. Lastly, our balance sheet remains strong with
Our summary results and selected financial data are as follows:
| (Unaudited, in millions, except per share data or otherwise noted) | 2Q 2024 | 3Q 2024 | 4Q 2024 | 1Q 2025 | 2Q 2025 | TTM 2Q 2025 | ||||||||||||||
| Paid Subscribers (in thousands) | 645 | 592 | 506 | 473 | 394 | N/M | ||||||||||||||
| Total net revenue | $ | 105.0 | $ | 97.2 | $ | 97.5 | $ | 83.5 | $ | 80.0 | $ | 358.1 | ||||||||
| New "Marketing" Billings(1) | $ | 38.7 | $ | 32.3 | $ | 37.0 | $ | 51.3 | $ | 41.6 | $ | 162.3 | ||||||||
| Net "Renewal" Billings(2) | $ | 17.1 | $ | 15.7 | $ | 16.0 | $ | 18.3 | $ | 15.4 | $ | 65.5 | ||||||||
| Other Billings(3) | $ | 1.8 | $ | 0.9 | $ | 2.4 | $ | 0.8 | $ | 1.2 | $ | 5.2 | ||||||||
| Total Billings | $ | 57.6 | $ | 48.9 | $ | 55.4 | $ | 70.5 | $ | 58.2 | $ | 232.9 | ||||||||
| ARPU (in dollars) | $ | 456 | $ | 417 | $ | 394 | $ | 419 | $ | 474 | $ | 394 | ||||||||
| Net income | $ | 21.2 | $ | 22.7 | $ | 26.4 | $ | 16.8 | $ | 15.3 | $ | 81.3 | ||||||||
| CFFO | $ | (3.8 | ) | $ | (5.8 | ) | $ | 6.0 | $ | 1.7 | $ | 17.8 | $ | 19.7 | ||||||
| Adjusted CFFO | $ | (3.8 | ) | $ | (5.8 | ) | $ | 6.0 | $ | 1.7 | $ | 17.8 | $ | 19.7 | ||||||
| Free Cash Flow | $ | (4.3 | ) | $ | (5.9 | ) | $ | 6.1 | $ | 1.5 | $ | 17.5 | $ | 19.2 | ||||||
| EBITDA | $ | 21.3 | $ | 23.2 | $ | 26.8 | $ | 17.5 | $ | 15.7 | $ | 83.1 | ||||||||
| Earnings per share - basic | $ | 0.81 | $ | 0.88 | $ | 1.09 | $ | 0.43 | $ | 0.55 | $ | 2.95 | ||||||||
| Earnings per share - diluted | $ | 0.80 | $ | 0.81 | $ | 1.08 | $ | 0.41 | $ | 0.53 | $ | 2.84 | ||||||||
| Regular dividends per Class A share(4) | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 | ||||||||
| Special dividends per Class A share(4) | $ | — | $ | — | $ | — | $ | 0.60 | $ | 0.10 | $ | 0.70 | ||||||||
| Total dividends per Class A share(4) | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.30 | $ | 1.50 | ||||||||
| Class A Shares(5) | 1.9 | 2.0 | 2.0 | 2.3 | 2.4 | 2.2 | ||||||||||||||
| Class B Shares(5) | 14.0 | 14.0 | 14.0 | 13.7 | 13.6 | 13.8 | ||||||||||||||
| Total Shares(5) | 15.9 | 16.0 | 16.0 | 16.1 | 16.0 | 16.0 | ||||||||||||||
| (1)Includes billings from all new subscription sales to new and existing subscribers. | ||||||||||||||||||||
| (2)Includes billings attributable to renewal and maintenance fee payments. Excludes Membership sales. | ||||||||||||||||||||
| (3)Includes primarily billings from Revenue Share, Advertising, and Conferences. | ||||||||||||||||||||
| (4)Dividends prior to April 2, 2025 have been retroactively adjusted to give effect to the 1-for-20 reverse stock split. Does not include the regular or special dividends of | ||||||||||||||||||||
| (5)Excludes Management and Sponsor Earnout Shares. Amount in the TTM 2Q 2025 column is the average of the last four quarters | ||||||||||||||||||||
| N/M - Not Meaningful | ||||||||||||||||||||
The chart below further illustrates CFFO and Billings trends over the last several quarters:
Balance Sheet and Capital Structure
As of June 30, 2025 the consolidated Cash balance was
For the six months ended June 30, 2025, interest income earned totaled
As previously announced, the Board of Directors authorized a stock repurchase program of our Class A common stock. Since April, the Company has repurchased 117,673 shares for
MarketWise Inc.’s Class A common stock trades on the Nasdaq Global Market under the symbol "MKTW." On April 2, 2025, the Company effected a 1-for-20 reverse stock split. As of June 30, 2025, the Company had 2,357,128 Class A common shares and 13,612,641 Class B common shares issued and outstanding, totaling 15,969,769 Class A and Class B common shares on a post-split basis.
Net Income attributable to noncontrolling interests on the Income Statement is primarily associated with these B shares and is a result of our corporate structure.
As previously announced, on July 31, 2025, the Board of Directors declared a quarterly cash dividend to holders of Class A common stock of
The Company also previously announced a special dividend to shareholders of Class A common stock of
Full Year 2025 Targets
Historically, the Company has not provided forward-looking information partially due to the inherent variability in our business. However, notwithstanding the variability in our business, we believe it is useful to provide investors with a line of sight into what we believe is the general direction of the business. These forward-looking Targets are based on trends and market conditions as they exist currently, and actual results may differ materially. Based on current projections and trends, we expect to meet or exceed the Targets previously disclosed.
Selected FY 2025 Targets, as originally disclosed, are as follows:
- Billings are estimated to increase by
20% compared to the annualized 2H 2024 Billings, or approximately$250 million . - Cash from Operating Activities and Free Cash Flow are estimated to be approximately
$30 million , or over a$50 million improvement compared to FY 2024. - Dividends to Class A shareholders are estimated to be approximately
$1.60 t o$1.80 per share. This total includes both the recurring quarterly dividends (currently$0.20 per quarter) as well as additional dividends related to excess tax distributions.
About MarketWise
Founded with a mission to level the playing field for self-directed investors, today MarketWise is a leading multi-brand subscription services platform providing premium financial research, software, education, and tools for investors.
With more than 25 years of operating history, MarketWise serves a community of millions of free and paid subscribers. MarketWise’s products are a trusted source for high-value financial research, education, actionable investment ideas, and investment software. MarketWise is a
Key Business Metrics and Non-GAAP Financial Measures
In this release we discuss certain key business metrics, which we believe provide useful information about the Company’s business and the operational factors underlying the Company’s financial performance. We are not aware of any uniform standards for calculating these key metrics, which may hinder comparability with other companies who may calculate similarly titled metrics in a different way.
Billings are defined as amounts invoiced to customers.
Paid Subscribers are defined as the total number of unique subscribers with at least one paid subscription at the end of the period.
Average revenue per user or ARPU is defined as the trailing four quarters of net Billings divided by the average number of quarterly total Paid Subscribers over that period.
In addition to our results determined in accordance with GAAP, we believe that the below non-GAAP financial measures are useful in evaluating operating performance. We use the below non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. This non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
Management uses these non-GAAP measures internally to evaluate performance and make operating decisions, and we believe they provide a meaningful perspective to investors when used in conjunction with our GAAP results.
These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of other GAAP financial measures, such as cash flow from operations, operating cash flow margin, and net income. Some of the limitations of using these non-GAAP measures are that these metrics may be calculated differently by other companies in our industry.
Adjusted CFFO is defined as cash flow from operations (“CFFO”) plus or minus any non-recurring items.
Adjusted CFFO Margin is defined as Adjusted CFFO as a percentage of Billings.
We believe that Adjusted CFFO and Adjusted CFFO Margin are useful indicators that provide information to management and investors about our ability to generate cash, and for internal planning and forecasting purposes.
We expect Adjusted CFFO and Adjusted CFFO Margin to fluctuate in future periods as we invest in our business to execute our growth strategy. These activities, along with any non-recurring items as described above, may result in fluctuations in Adjusted CFFO and Adjusted CFFO Margin in future periods.
Free Cash Flow is defined as net cash provided by (used in) operating activities less capital expenditures. We define capital expenditures as purchases of property and equipment plus capitalized software development costs. Acquisitions are not included in capital expenditures.
We believe Free Cash Flow is a useful indicator that provides information to management and investors about the cash generated by the business that is available for discretionary purposes, such as dividends and strategic investments.
EBITDA is defined as net income before interest income (expense), income taxes, depreciation, and amortization. We believe EBITDA provides a useful supplemental measure of operating performance and is helpful to investors in evaluating our GAAP results.
Non-GAAP Measures
The following table provides a reconciliation of net cash provided by (used in) operating activities to Adjusted CFFO, and net cash provided by operating activities margin as a percentage of total net revenue to Adjusted CFFO Margin, net cash provided by (used in) operating activities to Free Cash Flow, and net income to EBITDA, in each case, the most directly comparable financial measure calculated in accordance with generally accepted accounting principles in the United States (“GAAP”):
| (In thousands) | Second Quarter | Six Months Ended June 30, | ||||||||||||||||||||
| 2025(1) | 2024 | % Change | 2025(1) | 2024 | % Change | |||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 17,842 | $ | (3,795 | ) | (570.1 | )% | $ | 19,575 | $ | (22,306 | ) | (187.8 | )% | ||||||||
| Total net revenue | 79,950 | 105,046 | (23.9 | )% | 163,457 | 214,037 | (23.6 | )% | ||||||||||||||
| Net cash provided by (used in) operating activities margin | 22.3 | % | (3.6 | )% | 12.0 | % | (10.4 | )% | ||||||||||||||
| Adjusted CFFO | $ | 17,842 | $ | (3,795 | ) | (570.1 | )% | $ | 19,575 | $ | (22,306 | ) | (187.8 | )% | ||||||||
| Billings | 58,192 | 57,577 | 1.1 | % | 128,648 | 134,799 | (4.6 | )% | ||||||||||||||
| Adjusted CFFO margin | 30.7 | % | (6.6 | %) | 15.2 | % | (16.5 | %) | ||||||||||||||
| Net cash provided by (used in) operating activities | $ | 17,842 | $ | (3,795 | ) | (570.1 | )% | $ | 19,575 | $ | (22,306 | ) | (187.8 | )% | ||||||||
| Capital expenditures | (339 | ) | (496 | ) | (31.7 | )% | (561 | ) | (748 | ) | (25.0 | )% | ||||||||||
| Free Cash Flow | $ | 17,503 | $ | (4,291 | ) | (507.9 | )% | $ | 19,014 | $ | (23,054 | ) | (182.5 | )% | ||||||||
| Net income | $ | 15,310 | $ | 21,240 | (27.9 | )% | 32,151 | 43,952 | (26.8 | )% | ||||||||||||
| Interest income, net | (769 | ) | (1,341 | ) | (42.7 | )% | (1,710 | ) | (2,999 | ) | (43.0 | )% | ||||||||||
| Income tax expense | 613 | 779 | (21.3 | )% | 1,651 | 1,514 | 9.0 | % | ||||||||||||||
| Depreciation and amortization | 500 | 669 | (25.3 | )% | 1,031 | 1,362 | (24.3 | )% | ||||||||||||||
| EBITDA | $ | 15,654 | $ | 21,347 | (26.7 | )% | $ | 33,123 | $ | 43,829 | (24.4 | )% | ||||||||||
| NM: Not meaningful (1) The second quarter 2025 and year-to-date results are unaudited. | ||||||||||||||||||||||
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the financial position, business strategy, and the plans and objectives of management for future operations of MarketWise. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” “target,” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including, but not limited to: our ability to attract new subscribers and to persuade existing subscribers to renew their subscription agreements with us and to purchase additional products and services from us; our ability to adequately market our products and services, and to develop additional products and product offerings; our ability to manage our growth effectively, including through acquisitions; failure to maintain and protect our reputation for trustworthiness and independence; our ability to attract, develop, and retain capable management, editors, and other key personnel; our ability to grow market share in our existing markets or any new markets we may enter; adverse or weakened conditions in the financial sector, global financial markets, and global economy; current macroeconomic events, including heightened inflation, rise in interest rates and the potential for an economic recession; failure to comply with laws and regulations or other regulatory action or investigations, including the Investment Advisers Act of 1940, as amended; our ability to respond to and adapt to changes in technology and consumer behavior; failure to successfully identify and integrate acquisitions, or dispose of assets and businesses; our public securities’ potential liquidity and trading; the impact of the regulatory environment and complexities with compliance related to such environment; our future capital needs; our ability to maintain an effective system of internal control over financial reporting, and to address and remediate existing material weaknesses in our internal control over financial reporting; and other factors beyond our control.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our filings with the U.S. Securities and Exchange Commission (the “SEC”). These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated.
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. We do not give any assurance that we will achieve our expectations.
Table 1. Income Statement
| (Unaudited, in thousands, except per share data) | Second Quarter | Year to Date June 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net revenue | $ | 79,309 | $ | 104,174 | $ | 162,323 | $ | 212,786 | ||||||
| Related party revenue | 641 | 872 | 1,134 | 1,251 | ||||||||||
| Total net revenue | 79,950 | 105,046 | 163,457 | 214,037 | ||||||||||
| Operating expenses: | ||||||||||||||
| Cost of revenue(1) | 10,950 | 13,379 | 22,885 | 26,747 | ||||||||||
| Sales and marketing(1) | 31,626 | 42,722 | 65,704 | 90,019 | ||||||||||
| General and administrative(1) | 19,744 | 24,514 | 37,072 | 48,316 | ||||||||||
| Research and development(1) | 2,141 | 2,171 | 4,487 | 4,320 | ||||||||||
| Depreciation and amortization | 500 | 669 | 1,031 | 1,362 | ||||||||||
| Impairment of intangible assets | — | — | 380 | — | ||||||||||
| Related party expense | 178 | 257 | 307 | 384 | ||||||||||
| Total operating expenses | 65,139 | 83,712 | 131,866 | 171,148 | ||||||||||
| Income from operations | 14,811 | 21,334 | 31,591 | 42,889 | ||||||||||
| Other income (expense), net | 343 | (656 | ) | 501 | (422 | ) | ||||||||
| Interest income, net | 769 | 1,341 | 1,710 | 2,999 | ||||||||||
| Income before income taxes | 15,923 | 22,019 | 33,802 | 45,466 | ||||||||||
| Income tax expense | 613 | 779 | 1,651 | 1,514 | ||||||||||
| Net income | 15,310 | 21,240 | 32,151 | 43,952 | ||||||||||
| Net income attributable to noncontrolling interests | 14,013 | 19,696 | 29,964 | 40,751 | ||||||||||
| Net income attributable to MarketWise, Inc. | $ | 1,297 | $ | 1,544 | $ | 2,187 | $ | 3,201 | ||||||
| Earnings per share – basic | $ | 0.55 | $ | 0.81 | $ | 0.99 | $ | 1.71 | ||||||
| Earnings per share – diluted | $ | 0.53 | $ | 0.80 | $ | 0.95 | $ | 1.64 | ||||||
| Weighted average shares outstanding – basic | $ | 2,357 | $ | 1,910 | $ | 2,205 | $ | 1,873 | ||||||
| Weighted average shares outstanding – diluted | $ | 2,445 | $ | 1,940 | $ | 2,302 | $ | 1,947 | ||||||
| (1) Cost of revenue, sales and marketing, general and administrative, and research and development expenses are exclusive of depreciation and amortization shown as a separate line item | ||||||||||||||
Table 2. Balance Sheet
| (in thousands, except share and per share data) | June 30, 2025 (Unaudited) | December 31, 2024 | |||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 69,112 | $ | 97,876 | |||
| Accounts receivable | 4,068 | 1,876 | |||||
| Prepaid expenses | 7,287 | 10,051 | |||||
| Related party receivables | 781 | 547 | |||||
| Deferred contract acquisition costs | 47,946 | 57,214 | |||||
| Other current assets | 850 | 1,269 | |||||
| Total current assets | 130,044 | 168,833 | |||||
| Property and equipment, net | 293 | 592 | |||||
| Operating lease right-of-use assets | 2,363 | 3,182 | |||||
| Intangible assets, net | 4,122 | 4,673 | |||||
| Goodwill | 30,043 | 30,043 | |||||
| Deferred contract acquisition costs, noncurrent | 34,597 | 42,121 | |||||
| Deferred tax assets | 10,291 | 10,071 | |||||
| Total assets | $ | 211,753 | $ | 259,515 | |||
| Liabilities and stockholders’ deficit | |||||||
| Current liabilities: | |||||||
| Trade and other payables | $ | 2,637 | $ | 4,011 | |||
| Related party payables | 439 | 338 | |||||
| Accrued expenses | 23,088 | 23,272 | |||||
| Deferred revenue and other contract liabilities | 201,141 | 217,973 | |||||
| Operating lease liabilities | 946 | 1,629 | |||||
| Other current liabilities | 11,268 | 12,985 | |||||
| Total current liabilities | 239,519 | 260,208 | |||||
| Deferred revenue and other contract liabilities, noncurrent | 192,329 | 209,013 | |||||
| Related party TRA liability, noncurrent (Note 9) | 4,260 | 2,669 | |||||
| Other liabilities, noncurrent | 2,099 | 2,811 | |||||
| Operating lease liabilities, noncurrent | 564 | 2,738 | |||||
| Total liabilities | 438,771 | 477,439 | |||||
| Commitments and Contingencies | — | — | |||||
| Stockholders’ deficit: | |||||||
| Common stock - Class A, par value of | — | — | |||||
| Common stock - Class B, par value of | 1 | 1 | |||||
| Preferred stock - par value of | — | — | |||||
| Additional paid-in capital | 101,281 | 106,691 | |||||
| Accumulated other comprehensive income | 56 | 56 | |||||
| Accumulated deficit | (117,097 | ) | (119,284 | ) | |||
| Total stockholders’ deficit attributable to MarketWise, Inc. | (15,759 | ) | (12,536 | ) | |||
| Noncontrolling interest | (211,259 | ) | (205,388 | ) | |||
| Total stockholders’ deficit | (227,018 | ) | (217,924 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 211,753 | $ | 259,515 | |||
Table 3. Cash Flows
| (Unaudited, in thousands) | Year to Date June 30, | |||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 32,151 | $ | 43,952 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 1,031 | 1,362 | ||||||
| Impairment of property and equipment, net | 380 | — | ||||||
| Stock-based compensation | 5,698 | 5,464 | ||||||
| Change in fair value of contingent consideration | (1,441 | ) | 764 | |||||
| Deferred taxes | 1,651 | 1,254 | ||||||
| Unrealized gains on foreign currency | — | (64 | ) | |||||
| Other gains | (1,908 | ) | — | |||||
| Noncash lease expense | 2,545 | 1,015 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (2,192 | ) | 53 | |||||
| Related party receivables and payables | 1,308 | 2,200 | ||||||
| Prepaid expenses | 2,764 | 1,041 | ||||||
| Other current assets and other assets | 419 | 525 | ||||||
| Deferred contract acquisition costs | 16,645 | 32,919 | ||||||
| Trade and other payables | (1,374 | ) | 3,167 | |||||
| Accrued expenses | (184 | ) | (29,317 | ) | ||||
| Deferred revenue | (33,107 | ) | (86,852 | ) | ||||
| Operating lease liabilities | (2,937 | ) | (710 | ) | ||||
| Other current and long-term liabilities | (1,874 | ) | 921 | |||||
| Net cash provided by (used in) operating activities | 19,575 | (22,306 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (163 | ) | (29 | ) | ||||
| Capitalized software development costs | (398 | ) | (719 | ) | ||||
| Net cash used in investing activities | (561 | ) | (748 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock | 283 | 213 | ||||||
| Repurchases of stock | (1,851 | ) | (10,803 | ) | ||||
| Restricted stock units withheld to pay taxes | (583 | ) | (1,172 | ) | ||||
| Dividends paid to Class A shareholders | (2,758 | ) | (724 | ) | ||||
| Distributions to noncontrolling interests | (42,869 | ) | (10,237 | ) | ||||
| Net cash used in financing activities | (47,778 | ) | (22,723 | ) | ||||
| Effect of exchange rate changes on cash | — | (55 | ) | |||||
| Net decrease in cash, cash equivalents and restricted cash | (28,764 | ) | (45,832 | ) | ||||
| Cash, cash equivalents and restricted cash — beginning of period | 97,876 | 155,174 | ||||||
| Cash, cash equivalents and restricted cash — end of period | $ | 69,112 | $ | 109,342 | ||||
MarketWise Investor Relations Contact
Erik Mickels – Chief Operating and Financial Officer
Email: ir@marketwise.com
MarketWise Media Contact
Email: media@marketwise.com
A chart accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e93781a2-0d77-403b-b311-49dca64faa14
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