MarketWise (MKTW -6.12%), a digital financial research subscription provider, reported its earnings for the second quarter of fiscal 2025 on August 7, 2025. Headline results showed GAAP revenue of $80.0 million, beating analyst projections of $73.62 million GAAP revenue by a significant margin. However, GAAP earnings per share came in at $0.53, missing Wall Street’s $0.64 GAAP forecast. This mixed showing reflected ongoing headwinds in subscriber retention and profitability despite solid top-line demand for MarketWise’s suite of digital financial products and services. Management assessed it as a period of progress in cash flow and capital allocation but noted ongoing pressure from declining user counts.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP, Diluted) | $0.53 | $0.64 | $0.80 | (33.8 %) |
| Revenue (GAAP) | $80.0 million | $73.62 million | $105.0 million | (23.8 %) |
| Billings | $58.2 million | $57.6 million | 1.0 % | |
| Net Income | $15.3 million | $21.2 million | (27.8%) | |
| Cash from Operating Activities | $17.8 million | $(3.8) million | N/M |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
MarketWise’s Business and Key Success Factors
MarketWise is a digital publisher specializing in financial research and investment analysis subscriptions. The company operates a platform with over a dozen brands, offering a wide selection of paid and free products aimed at retail investors. Subscribers access research, trading ideas, and learning resources online and through digital platforms.
Its core business revolves around expanding and retaining paid subscribers, supported by multi-brand diversity and advanced technology systems. Strategic priorities include deepening relationships with loyal users, leveraging a data-driven approach for marketing, and maintaining a scalable digital platform. Effective cost discipline and recurring billing underpin the company’s ability to generate cash. Competition remains intense, so MarketWise relies on product breadth and continuous innovation to maintain its edge.
Quarterly Results and Performance Drivers
The second quarter underscored two opposing forces: strong GAAP revenue delivery and ongoing declines in the subscriber base. GAAP revenue outperformed analyst estimates by 8.7%. Management credited effective monetization of digital research products, evidenced by a sharp increase in average revenue per user (ARPU), which rose to $474. ARPU rose to $474 versus $456 in Q2 2024, and $419 in Q1 2025. However, the subscriber count was down from 645,000 as of Q2 2024 and 473,000 as of Q1 2025, capping four consecutive quarters of persistent attrition.
Management stated, “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.” The marketing and new customer acquisition strategies continue. The company also referenced its multi-brand platform as a strength, though specific brand-level contributions were not detailed in the results.
On the operational front, MarketWise reported net income (GAAP) of $15.3 million, a decrease of 27.8% from the prior year. Billings (non-GAAP) increased 1.0% year-over-year but showed a double-digit year-over-year advance in billings after adjusting for the 2024 sale of a subsidiary, Legacy Research. Sequentially, billings fell sharply from Q1 to Q2 2025, mirroring the subscriber retreat.
The company generated $17.8 million in cash from operating activities, reversing a cash outflow seen in Q2 2024. Free cash flow (non-GAAP) also recovered strongly. On capital return, MarketWise declared a quarterly and special cash dividend totaling $0.40 per Class A share and repurchased stock following its 1-for-20 reverse stock split, completed in April 2025, though it was reduced from the higher payout in Q1 2025. There were no large one-time events or product launches cited as materially impacting these outcomes.
Product Portfolio and Technology Platform
The company’s suite of products spans investment research reports, trading idea newsletters, and digital financial education tools. These products are offered under a multi-brand model, including both general investing and specialized asset class brands, to reach a diverse array of retail investors. By operating editorial teams across several distinct brands, MarketWise aims to serve a wide variety of client investment preferences. It currently lists more than 100 paid offerings under its umbrella.
MarketWise’s digital delivery relies on scalable, cloud-based systems. The company continues to invest in artificial intelligence (AI), predictive analytics, and customer relationship management (CRM) solutions to personalize marketing and improve user experience. While the company highlighted its “agile, and scalable platform,” it did not announce any major new technology rollouts or upgrades during the quarter.
Outlook and What to Watch Ahead
Management reaffirmed its full-year guidance. It is targeting roughly 20% annual billings growth for FY2025 compared to the annualized second half of 2024, and projects around $30 million in both operating and free cash flow for FY2025 -- an improvement of more than $50 million from FY2024. For the dividend, management expects to pay $1.60 to $1.80 per share in FY2025, reflecting a high payout relative to current earnings, but with the caveat that future dividend levels remain subject to company performance and capital needs.
No earnings per share or net income guidance was provided for the second half of the year. Instead, leadership pointed to the positive billing trend at the start of Q3 2025, with July results said to be “meaningfully exceeding” the average monthly billings for Q2 2025. With ongoing weakness in paid subscriber numbers, the most critical metric remains whether strategic initiatives can stabilize and ultimately grow the subscription base. MarketWise does pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
