MarketWise (MKTW) Q3 2026 earnings summary

Executive summary

• Q3 Billings rose 26.8% YoY to $80.7M, while net revenue fell 1.5% to $80.1M; net income was $15.1M.

• Paid subscribers increased 2.8% YoY to 389K, while ARPU rose to $860; Q3 marketing spend was moderated as focus shifted to monetization.

Financial highlights

• Q3 operating income was $15.9M versus $17.8M YoY; net income was $15.1M versus $17.9M, and diluted EPS was $0.53 versus $0.58.

• Nine-month revenue fell 4.8% to $232.9M; operating income was $10.5M versus $49.4M and net income was $11.9M versus $50.1M.

• Q3 sales and marketing expense rose 5.5% to $32.9M; G&A fell 6.9% to $17.5M, including a one-time $3.0M legal fee reimbursement.

• Nine-month Billings rose 31.7% to $253.3M; nine-month CFFO increased 29.6% to $28.2M.

Outlook and guidance

• FY 2026 Billings target was affirmed at ~$330M, up ~$59M or 22% YoY, and CFFO target at $50M.

• Q4 marketing investment is planned to remain at current levels, with focus on monetization; paid subscribers could decline further as growth and margin are balanced.

• FY 2026 Class A dividend target remains $1.80 per share; FY 2027 planning anticipates continued Billings growth and meaningfully higher cash flow margins.

• $386.6M of remaining performance obligations was deferred revenue at September 30; ~48% is expected to be recognized over the next 12 months.