MarketWise (MKTW) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 was $81.3 million, down 16.4% year-over-year, with net income of $17.9 million and a 22.0% margin, primarily due to the wind down of Legacy Research brands and lower subscription revenue.

• Cash from operating activities improved to $2.2 million in Q3 2025, up $8.0 million from Q3 2024, with year-to-date CFFO up $49.9 million.

• Cash and cash equivalents stood at $50.5 million as of September 30, 2025, with no debt outstanding.

• Announced quarterly and special dividends totaling $0.40 per Class A share in October 2025, bringing FY 2025 dividends to $1.90 per share (13% yield).

• A proposal to acquire all outstanding equity at $17.25 per share was received in October 2025, leading to suspension of share repurchases.

Financial highlights

• Total net revenue for the nine months ended September 30, 2025 was $244.7 million, down 21.4% year-over-year.

• Net income for the nine months was $50.1 million, down from $66.7 million in the prior year.

• EBITDA for Q3 2025 was $18.9 million, down 18.2% year-over-year; for the nine months ended September 30, 2025: $52.1 million.

• Free cash flow for Q3 2025 was $1.7 million; year-to-date free cash flow was $20.7 million.

• Earnings per share (diluted) for Q3 2025 was $0.87.

Outlook and guidance

• FY 2025 billings expected to reach $260 million, exceeding the original $250 million target.

• FY 2025 CFFO expected to be approximately $31 million, above the $30 million target.

• FY 2026 preliminary targets: billings of $290 million (10% growth), CFFO of $45 million (50% YoY increase), and dividends of $1.60 per share.

• Management expects continued improvement in operating cash flows and plans to invest in operational efficiency and product development.

• No significant tax distributions or TRA payments are expected in Q4 2025.