BALTIMORE, Aug. 01, 2025 (GLOBE NEWSWIRE) -- MarketWise, Inc. (NASDAQ: MKTW) (“MarketWise” or “the Company”), a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors, today announced that its Board of Directors declared a quarterly cash dividend to holders of Class A common stock of $0.20 per share on July 31, 2025. An equivalent and proportionate distribution of $0.20 per unit has also been approved to ...

BALTIMORE, July 29, 2025 (GLOBE NEWSWIRE) -- MarketWise, Inc. (NASDAQ: MKTW) (“MarketWise” or “the Company”), a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors, today announced that Chief Financial Officer, Erik Mickels, will host one-on-one meetings at the UBS 2025 Fintech One-on-One Conference on Wednesday, September 10, 2025 in New York City, New York. If you have questions about MarketWise or ...

Group 1 - MarketWise (NASDAQ: MKTW) is currently experiencing a positive period, presenting an attractive potential return for investors [1] - The company faced a volatile year in 2024, with declining free cash flows impacting investor confidence [1]

Core Insights - MarketWise, Inc. has appointed Dr. David "Doc" Eifrig as the permanent Chief Executive Officer, effective immediately, after serving as interim CEO since August 2024 [1][2] - Dr. Eifrig has achieved improved financial performance during his interim tenure and has gained the confidence of the Board, employees, and shareholders [2][3] - The company aims to continue building momentum and pursue new opportunities under Dr. Eifrig's leadership, emphasizing the importance of self-directed investing [3][5] Company Overview - MarketWise is a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for investors [7][8] - The company has a 25-year operating history, consisting of 11 primary customer-facing brands and over 140 products, serving a community of more than 3 million subscribers [8] - MarketWise operates as a 100% digital, direct-to-customer company, offering its research across various platforms including mobile, desktops, and tablets [8]

```markdown PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for MarketWise, Inc. as of March 31, 2025, and for the three months ended March 31, 2025 and 2024, reflect a decrease in total assets and liabilities compared to December 31, 2024, with net revenue of **$83.5 million** and net income of **$16.8 million** for Q1 2025, and improved positive cash flow from operations of **$1.7 million** [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets to **$239.6 million** as of March 31, 2025, from **$259.5 million** at year-end 2024, primarily due to a reduction in cash and cash equivalents, while total liabilities also decreased to **$457.3 million** from **$477.4 million**, mainly from a reduction in deferred revenue Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $79,178 | $97,876 | | Total current assets | $152,910 | $168,833 | | Total assets | $239,560 | $259,515 | | **Liabilities & Stockholders' Deficit** | | | | Deferred revenue (current) | $213,004 | $217,973 | | Total current liabilities | $248,192 | $260,208 | | Total liabilities | $457,291 | $477,439 | | Total stockholders' deficit | $(217,731) | $(217,924) | [Condensed Consolidated Statement of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) For the three months ended March 31, 2025, total net revenue was **$83.5 million**, a **23.4%** decrease from **$109.0 million** in the same period of 2024, resulting in net income of **$16.8 million** and diluted net income per Class A common share of **$0.41** Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total net revenue | $83,507 | $108,991 | | Total operating expenses | $66,727 | $87,436 | | Income from operations | $16,780 | $21,555 | | Net income | $16,841 | $22,712 | | Net income attributable to MarketWise, Inc. | $890 | $1,657 | | Net income per Class A common share – diluted | $0.41 | $0.85 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated **$1.7 million** in cash from operating activities in Q1 2025, a significant improvement from the **$18.5 million** used in Q1 2024, resulting in a net decrease in cash of **$18.7 million** for the quarter, ending with a cash balance of **$79.2 million** Q1 2025 vs Q1 2024 Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,733 | $(18,511) | | Net cash used in investing activities | $(222) | $(252) | | Net cash used in financing activities | $(20,209) | $(5,198) | | **Net decrease in cash** | **$(18,698)** | **$(23,999)** | | **Cash at end of period** | **$79,178** | **$131,175** | [Notes to the Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20the%20financial%20statements%20%28unaudited%29) The notes provide detailed explanations of accounting policies and financial statement components, including a **1-for-20** reverse stock split, **$415.1 million** in remaining performance obligations, a **$50 million** share repurchase program, and a Tax Receivable Agreement (TRA) liability of **$3.7 million** - Effective April 2, 2025, the company executed a **1-for-20** reverse stock split for its Class A and Class B common stock. All share and per-share data in the financial statements have been retroactively adjusted[40](index=40&type=chunk)[45](index=45&type=chunk) - As of March 31, 2025, the company had **$415.1 million** in remaining performance obligations (deferred revenue), with approximately **51%** expected to be recognized as revenue over the next twelve months[54](index=54&type=chunk) - In February 2025, the Board authorized a stock repurchase program of up to **$50 million** of Class A common stock. Subsequent to the quarter end, the company repurchased **20,306** shares for **$219 thousand** through May 8, 2025[97](index=97&type=chunk)[107](index=107&type=chunk) - The liability under the Tax Receivable Agreement (TRA) increased to **$3.7 million** as of March 31, 2025, following the exchange of **261,634** LLC Units for Class A common stock during the quarter[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the year-over-year decline in revenue and paid subscribers primarily to the shutdown of the Legacy Research business, despite which Q1 2025 Billings increased **27.3%** sequentially to **$70.5 million**, and cash from operations improved by **$20.2 million** year-over-year, with new non-GAAP measures and a **$50 million** share repurchase program introduced [Key Business Metrics](index=31&type=section&id=Key%20Business%20Metrics) Key metrics show a decline in subscribers year-over-year, largely due to the shutdown of the Legacy Research business, with Paid Subscribers falling **30.7%** to **473 thousand**, while Total Billings decreased **8.8%** YoY to **$70.5 million** but showed strong sequential growth of **27.3%** from Q4 2024, and Average Revenue Per User (ARPU) decreased **14.8%** YoY to **$419** Key Business Metrics Comparison | Metric | Q1 2025 | Q1 2024 | % Change (YoY) | Q4 2024 | % Change (QoQ) | | :--- | :--- | :--- | :--- | :--- | :--- | | Paid Subscribers | 473,407 | 683,436 | (30.7)% | 505,889 | (6.4)% | | ARPU | $419 | $492 | (14.8)% | $394 | 6.3% | | Total Billings (in thousands) | $70,456 | $77,222 | (8.8)% | $55,355 | 27.3% | - The decline in Paid Subscribers is primarily attributed to lower customer acquisition and elevated churn associated with the shutdown of the Legacy Research business[136](index=136&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Net revenue decreased by **23.4%** to **$83.5 million** in Q1 2025 from **$109.0 million** in Q1 2024, primarily driven by a **$17.7 million** decrease in term subscription revenue and a **$7.7 million** decrease in membership subscription revenue due to the wind-down of Legacy Research, while total operating expenses fell **23.7%** to **$66.7 million** - The decrease in net revenue was primarily driven by the wind-down of the Legacy Research business, which contributed **$11.6 million** to the decrease in term subscription revenue and **$7.3 million** to the decrease in membership subscription revenue[171](index=171&type=chunk) - Sales and marketing expenses decreased by **$13.2 million** (**27.9%**), mainly due to a **$10.2 million** decrease in amortization of deferred contract acquisition costs and a **$2.0 million** decrease in salaries, taxes, and benefits[173](index=173&type=chunk)[175](index=175&type=chunk) - General and administrative expenses decreased by **$6.5 million** (**27.2%**), driven by a **$1.6 million** gain on lease termination, a **$1.2 million** gain on contingent consideration, and a **$1.4 million** decrease in stock-based compensation[173](index=173&type=chunk)[176](index=176&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) The company introduced two new non-GAAP measures, Free Cash Flow and EBITDA, with Adjusted CFFO at **$1.7 million**, Free Cash Flow at **$1.5 million**, and EBITDA at **$17.5 million** for Q1 2025, providing additional insight into liquidity and operating performance - Two new non-GAAP financial measures were introduced this quarter: **Free Cash Flow** and **EBITDA**, to supplement existing measures and provide additional insight into liquidity and operating performance[178](index=178&type=chunk) Non-GAAP Financial Measures Reconciliation (in thousands) | Measure | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,733 | $(18,511) | | **Adjusted CFFO** | **$1,733** | **$(18,511)** | | **Free Cash Flow** | **$1,511** | **$(18,763)** | | Net income | $16,841 | $22,712 | | **EBITDA** | **$17,469** | **$22,482** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's principal source of liquidity is its cash balance of **$79.2 million** as of March 31, 2025, supplemented by a cash 'float' from upfront subscription payments estimated at **$107.7 million**, and supported by a **$50 million** share repurchase program authorized in February 2025 - The company manages a cash 'float' from upfront subscription payments, estimated at approximately **$107.7 million** as of March 31, 2025, which it may invest or use to expand operations[192](index=192&type=chunk) - A stock repurchase program of up to **$50 million** of Class A common stock was authorized on February 28, 2025, with repurchases authorized for the next **12** months[203](index=203&type=chunk) - In March 2025, as part of the Legacy Research reorganization, the company terminated an office lease, resulting in a **$380 thousand** impairment loss on assets and a **$1.6 million** gain on the termination[206](index=206&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has stated that this item is not applicable for the reporting period - No quantitative and qualitative disclosures about market risk were provided, as the item was deemed not applicable[215](index=215&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[216](index=216&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[217](index=217&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company reported that this item is not applicable, indicating no material legal proceedings during the period - Not applicable[221](index=221&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes in the risk factors disclosed in the company's Annual Report[222](index=222&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported that this item is not applicable - Not applicable[223](index=223&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) The company reported that this item is not applicable, indicating no other material information to disclose for the period - Not applicable[226](index=226&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications by the CEO and CFO, and XBRL data files ```

Company Overview - MarketWise, Inc. is a leading multi-brand digital subscription services platform that provides premium financial research, software, education, and tools for self-directed investors [4] - The company has over 25 years of operating history and serves millions of free and paid subscribers [5] - MarketWise operates as a 100% digital, direct-to-customer company, offering its research across various platforms including mobile, desktops, and tablets [5] Upcoming Events - The Chief Financial Officer, Erik Mickels, will host virtual meetings at the UBS SMID-Cap Multisector Virtual Conference on June 24, 2025 [1] - The inaugural UBS SMID-Cap Multisector Virtual Conference aims to showcase small and mid-cap companies and connect them with diverse investors across multiple US regions [3]

Core Points - MarketWise, Inc. declared a quarterly cash dividend of $0.20 per share for Class A common stock and a comparable distribution for MarketWise, LLC units [1] - A special dividend of $0.10 per share for Class A common stock was also announced, totaling approximately $0.3 million [2] - Both the regular and special dividends will be paid on June 25, 2025, with a Record Date of May 15, 2025 [2] Company Overview - MarketWise is a leading multi-brand digital subscription services platform focused on providing premium financial research, software, education, and tools for self-directed investors [3] - The company has over 25 years of operating history and serves millions of free and paid subscribers [4] - MarketWise operates as a 100% digital, direct-to-customer company, offering its research across various platforms including mobile, desktops, and tablets [4] - The company's vision is to become the leading financial solutions platform for self-directed investors [4]

Core Insights - MarketWise (NASDAQ: MKTW) is identified as an interesting business but is described as a "mess" [1] - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] Company Offerings - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] - A promotional offer is available for a two-week free trial to engage with oil and gas investment opportunities [3]

Core Insights - MarketWise, Inc. reported preliminary financial and operational updates for Q1 2025, highlighting a strong performance with a focus on strategic priorities [1][4] - The company experienced a billings increase of over 26% compared to Q4 2024, totaling approximately $70 million for Q1 2025 [4][8] - MarketWise has a solid balance sheet with estimated cash and cash equivalents of $79 million and no debt, allowing for operational flexibility [5][4] Financial Performance - Billings for Q1 2025 reached approximately $70 million, representing a sequential increase of over 26% compared to Q4 2024 [4][8] - Dividends paid in the last twelve months totaled $1.60 per share, equating to a cash yield of over 16% based on the stock price as of March 31, 2025 [4][8] - The company has initiated share buybacks in Q2 2025 under a previously announced buyback program [8] Subscriber Metrics - As of March 31, 2025, MarketWise had 473 thousand consolidated paid subscribers and 3.0 million active free subscribers [8] Capital Structure - Following a 1-for-20 reverse stock split on April 2, 2025, the company had approximately 2,572,676 Class A common shares and 13,732,864 Class B common shares outstanding, totaling 16,305,540 shares on a post-split basis [6]

Financial Updates - MarketWise, Inc. announced preliminary selected unaudited financial and operational updates for Q1 2025 on April 11, 2025[6]. - The press release detailing the financial results is included as Exhibit 99.1[8]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4].