MarketWise (MKTW) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 was $80.0 million, down 23.9% year-over-year, mainly due to the wind down of Legacy Research and lower subscription revenue.

• Net income for Q2 2025 was $15.3 million, a decrease from $21.2 million in Q2 2024.

• Cash from operating activities improved to $17.8 million in Q2 2025, up over $20 million year-over-year.

• Announced quarterly and special dividends totaling $0.40 per Class A share in August 2025.

• Paid subscribers declined 39% year-over-year to 394,000, mainly due to the closure of Legacy Research.

Financial highlights

• Total net revenue for the six months ended June 30, 2025 was $163.5 million, down 23.6% year-over-year.

• Adjusted CFFO for Q2 2025 was $17.8 million, with a margin of 30.7% of Billings.

• Free Cash Flow for Q2 2025 was $17.5 million, up from negative $4.3 million in Q2 2024.

• EBITDA for Q2 2025 was $15.7 million, down 26.7% year-over-year.

• Cash and cash equivalents were $69.1 million as of June 30, 2025, with no debt outstanding.

Outlook and guidance

• Management expects operating cash flows and cash on hand to be sufficient for at least the next 12 months.

• FY 2025 billings expected to increase by 20% over annualized 2H 2024, reaching $250 million.

• FY 2025 cash from operating activities and free cash flow estimated at $30 million, over $50 million improvement from FY 2024.

• FY 2025 dividends to Class A shareholders projected at $1.60 to $1.80 per share.

• No significant payments expected under the Tax Receivable Agreement in the next 12 months.