MarketWise (MKTW) Q2 2026 earnings summary

Executive summary

• Q2 2026 billings rose 57% year-over-year to $91.2M, the highest since 2023, driven by strong customer acquisition and retention, while net revenue declined 5.2% to $75.8M due to deferred revenue recognition lag.

• Net loss for Q2 2026 was $2.6M, compared to net income of $15.3M in Q2 2025, primarily from increased marketing and administrative expenses and timing differences in revenue recognition.

• Paid subscribers increased to 400K as of June 30, 2026, up 4.8% sequentially and 1.5% year-over-year, with ARPU up 73.3% to $822, reflecting a shift to higher-value offerings.

• Cash from operating activities was $22.4M in Q2 2026, up 25.7% year-over-year, with cash and equivalents at $33M and no debt.

Financial highlights

• Total net revenue for the six months ended June 30, 2026, was $152.8M, down 6.5% year-over-year.

• Billings for the six months were $172.5M, up 34.1% year-over-year.

• Operating expenses increased 22.9% in Q2 2026, mainly due to a 35.4% rise in sales and marketing and a 14.9% increase in general and administrative costs.

• Free cash flow for Q2 2026 was $21.4M, with a margin of 28.7%.

• Adjusted CFFO margin improved to 29.6% in Q2 2026 from 22.3% in Q2 2025.

Outlook and guidance

• FY 2026 billings guidance raised by 10% to $330M, representing a 21.7% increase over FY 2025, with a CFFO target of $50M and margins expected to increase in the second half of 2026 as marketing spend moderates.

• Management expects continued strong billings growth, focusing on monetizing the existing subscriber base and reducing customer acquisition spend.

• Regular quarterly dividends are expected to continue, with a new $0.45 per share dividend declared for Q3 2026 and a full-year target of $1.80 per share.