Core Viewpoint - MarketWise, Inc. received an unsolicited non-binding acquisition proposal from Monument & Cathedral Holdings, LLC for $17.25 per share, contingent upon the termination of the Company's tax receivable agreement [1]. Group 1: Acquisition Proposal - The proposal involves acquiring all outstanding equity interests of MarketWise and Marketwise, LLC not owned by M&C [1]. - A Special Committee of the Board of Directors is reviewing the proposal with the assistance of financial and legal advisors [2]. Group 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 [4]. - The company has over 25 years of operating history and serves millions of free and paid subscribers, offering its products through various digital platforms [5].

Core Insights - MarketWise, Inc. reported strong financial results for Q3 2025, with earnings per share of $0.58, significantly surpassing the estimated -$1.32 [1][6] - The company's revenue reached $81.3 million, exceeding the estimated $69.2 million, supported by a 30% year-over-year increase in billings, totaling $63.7 million [2][6] - MarketWise achieved a net income of $17.9 million, demonstrating its ability to generate profit despite market challenges [2] Financial Health - Cash from operating activities improved by $8 million compared to Q3 2024, with cash and cash equivalents amounting to $50.5 million as of September 30, 2025, and increased to $65.5 million by the end of October [3] - The company has no outstanding debt, showcasing strong cash management [3] Dividends and Investment Potential - MarketWise announced a quarterly and special dividend totaling $0.40 per Class A share, contributing to a total dividend of $1.90 per share for fiscal year 2025, representing a 13% cash yield [4] - The earnings yield of 15.28% further highlights its potential as a lucrative investment [4] Future Outlook - Preliminary targets for fiscal year 2026 include a planned 50% increase in cash flow from operations [5] - Despite a negative enterprise value to sales ratio of -0.06 and a current ratio of 0.54, the company remains focused on improving its financial position [5]

Financial Performance - Total net revenue for Q3 2025 was $81.3 million, with net income of $17.9 million[4] - The net income for the third quarter of 2025 was $17.9 million, a decrease of 21.2% compared to the same period in 2024[42] - Total net revenue for the nine months ended September 30, 2025, was $244.7 million, down 21.4% from $311.2 million in 2024[42] - Net revenue for Q3 2025 was $81,271,000, a decrease of 16.4% compared to $97,186,000 in Q3 2024[47] - Year-to-date net revenue for 2025 reached $244,728,000, down 21.4% from $311,223,000 in the same period of 2024[47] - EBITDA for the nine months ended September 30, 2025, was $52.1 million, a decrease of 22.3% compared to $67.0 million in 2024[42] Revenue and Billings - Billings increased by 30% year-over-year to $63.7 million in Q3 2025, and were 9% higher than the previous quarter[3][4] - The company reported billings of $63.7 million for the third quarter of 2025, a 30.2% increase from $48.9 million in the same quarter of 2024[42] - For FY 2025, the company expects billings to be approximately $260 million, exceeding the original target of $250 million[28] - For FY 2026, preliminary targets include billings of approximately $290 million, indicating a 10% growth from FY 2025[35] Cash Flow and Liquidity - Cash from Operating Activities (CFFO) improved by $8.0 million year-over-year to $2.2 million in Q3 2025, with a year-to-date improvement of $49.9 million[16] - Cash and cash equivalents stood at $50.5 million as of September 30, 2025, with no debt outstanding[4] - Cash and cash equivalents decreased to $50,535,000 as of September 30, 2025, from $97,876,000 at the end of 2024, a decline of 48.3%[48] - Net cash provided by operating activities for the year to date 2025 was $21,744,000, contrasting with a net cash used of $28,135,000 in the same period of 2024[49] - The company reported a net cash used in financing activities of $68,013,000 for the year to date 2025, compared to $32,131,000 in 2024, indicating increased cash outflows[49] Shareholder Returns - A quarterly and special dividend of $0.40 per Class A share was announced, totaling $1.90 per share for FY 2025, representing a 13% cash yield[4] - Total dividends for FY 2025 are expected to be $1.90 per share, resulting in a dividend yield of 13% based on the stock price as of October 29, 2025[28] Strategic Initiatives - The company has repurchased $2.9 million worth of shares under its buyback program at an average price of approximately $16 per share[4][22] - A proposal from Monument & Cathedral Holdings, LLC to acquire the company is under review, which may impact future strategic direction[22] - The company has a disciplined approach to capital allocation, focusing on dividends and prudent investments in its business[27] Subscriber Metrics - Paid subscriber totals have stabilized, with customer acquisition offsetting churn, despite a decline in recent quarters[9][12] - Average Revenue Per User (ARPU) increased significantly, contributing to the overall increase in billings[12] Operating Expenses - Operating expenses totaled $63,451,000 in Q3 2025, a reduction of 15.7% from $75,284,000 in Q3 2024[47] - Net income attributable to MarketWise, Inc. for Q3 2025 was $1,505,000, compared to $1,720,000 in Q3 2024, reflecting a decline of 12.5%[47] - Earnings per share (diluted) for Q3 2025 was $0.58, down from $0.87 in Q3 2024, representing a decrease of 33.3%[47] Assets and Liabilities - Total assets decreased to $201,656,000 as of September 30, 2025, down from $259,515,000 at the end of 2024, a reduction of 22.3%[48] - Total liabilities were $427,607,000 as of September 30, 2025, compared to $477,439,000 at the end of 2024, a decrease of 10.5%[48]

Financial Performance - Total net revenue for Q3 2025 was $81.3 million, a decrease of 16.4% compared to $97.2 million in Q3 2024[129] - Total billings increased by 30.2% year-over-year to $63.7 million in Q3 2025, up from $48.9 million in Q3 2024[129] - Net income attributable to MarketWise, Inc. was $1.5 million for the third quarter of 2025, compared to $1.7 million for the same period in 2024[177] - For the three months ended September 30, 2025, net income decreased by 21.2% to $17.9 million compared to $22.7 million in 2024[204] - For the nine months ended September 30, 2025, net income was $50.1 million, down 24.9% from $66.7 million in 2024[204] - EBITDA for the three months ended September 30, 2025, was $18,949,000, a decrease of $4,220,000 or 18.2% compared to $23,169,000 in 2024[203] - The company reported EBITDA of $18.9 million for the three months ended September 30, 2025, a decrease of 18.2% from $23.2 million in 2024[204] - For the nine months ended September 30, 2025, net revenue was $244,728,000, a decrease of $66,495,000 or 21.4% compared to $311,223,000 in 2024[186] Subscriber Metrics - The paid subscriber base decreased by 214,000, or 36.1%, to 379,000 as of September 30, 2025, compared to 592,000 a year earlier[148] - Active free subscribers decreased by 1.2 million, or 36.7%, to 2.1 million as of September 30, 2025, down from 3.3 million in the same period last year[145] - Average revenue per user (ARPU) increased by 35.5% to $566 in Q3 2025, compared to $417 in Q3 2024[144] - Average Revenue Per User (ARPU) increased by $148, or 35.5%, to $566 as of September 30, 2025, compared to $417 as of September 30, 2024, driven by a 34% decrease in trailing four-quarter Paid Subscribers[152] - Subscriber churn rate ranged from approximately 2.4% to 3.3% per month between 2022 and 2024, with a net revenue retention rate averaging over 55% during the same period, indicating strong subscriber satisfaction[150] Cash Flow and Expenses - Cash from operating activities improved to $2.2 million in Q3 2025, an increase of $8.0 million compared to a cash outflow of $5.8 million in Q3 2024[129] - Cash and cash equivalents stood at $50.5 million as of September 30, 2025, with no debt outstanding[129] - Operating expenses for the third quarter of 2025 totaled $63.5 million, down from $75.3 million in the same quarter of 2024[177] - Total operating expenses for the nine months ended September 30, 2025, were $195,317,000, a decrease of $51,115,000 or 20.7% from $246,432,000 in 2024[188] - Sales and marketing expenses decreased by $5,498,000 or 15.0%, primarily due to a $7.8 million decrease in amortization of deferred contract acquisition costs[184] - Adjusted CFFO for the three months ended September 30, 2025, was $2,169,000, a decrease of $7,998,000 or 137.2% from $(5,829,000) in 2024[196] - Free Cash Flow for the three months ended September 30, 2025, was $1,692,000, down $7,361,000 or 128.8% from $(5,869,000) in 2024[202] Dividends and Shareholder Actions - The company announced a quarterly and special dividend totaling $0.40 per Class A share on October 30, 2025[129] - The company repurchased 57,224 shares totaling $1.0 million during the three months ended September 30, 2025[218] Accounting and Financial Reporting - The financial statements are prepared in accordance with GAAP, requiring management to make estimates and assumptions affecting reported amounts of assets, liabilities, revenue, costs, and expenses[230] - Significant accounting policies include "Revenue Recognition" and "Transactions and Valuation of Goodwill and Other Acquired Intangible Assets," which are critical for understanding the financial condition and results of operations[231] - There were no material changes to the accounting policies during the three and nine months ended September 30, 2025[231] Other Financial Metrics - The company incurred $68.0 million in net cash used in financing activities for the nine months ended September 30, 2025, primarily due to $50.0 million in tax distributions[228] - The company expects fluctuations in Adjusted CFFO and Adjusted CFFO Margin in future periods as it invests in its business to execute its growth strategy[198] - The company expects to incur payment obligations under the Tax Receivable Agreement (TRA) with a liability of $4.3 million as of September 30, 2025[214] - The company recorded an impairment loss on leasehold improvement assets totaling $0.4 million during the nine months ended September 30, 2025[222] - As of September 30, 2025, the company's cash float was approximately $83.4 million, down from $119.7 million as of December 31, 2024[206]

Core Points - MarketWise, Inc. declared a quarterly cash dividend of $0.20 per share for Class A common stock and a comparable distribution for Class B common stock [1][2] - A special dividend of $0.20 per share for Class A common stock was also announced, with total dividends for FY 2025 amounting to $1.90 per share, resulting in a dividend yield of 13% based on the stock price as of October 29, 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][4] - The company has over 25 years of operating history and serves millions of free and paid subscribers, offering high-value financial research and actionable investment ideas [4] - MarketWise operates as a 100% digital, direct-to-customer company, delivering its research across various platforms including mobile, desktops, and tablets [4]

Core Viewpoint - MarketWise, Inc. has received a proposal from Monument & Cathedral Holdings, LLC to acquire all outstanding equity interests for cash consideration of $17.25 per share, contingent upon the termination of MarketWise's tax receivable agreement [1] Summary by Relevant Sections Acquisition Proposal - The proposal involves acquiring all outstanding equity interests of MarketWise, Inc. and Marketwise, LLC not owned by M&C for $17.25 per share [1] - The Board of Directors is currently reviewing the proposal with its advisors [1] - There is no guarantee that this proposal will lead to a transaction, and the company will not provide updates unless a definitive agreement is reached or required by U.S. securities laws [1] Financial Considerations - The cash consideration of $17.25 per share is contingent upon the termination of MarketWise's tax receivable agreement [1]

Core Insights - MarketWise (NASDAQ: MKTW) shares have increased nearly 70% since April, driven by price appreciation and dividends [1] Company Analysis - The company is focused on undercovered companies, with a watchlist of up to 100 companies [1] - Areas of interest include technology, software, electronics, and energy transition [1] - The analysis aims to identify asymmetric investment opportunities for achieving market-beating returns [1] Investment Background - The individual has over 7 years of personal investment experience across a broad range of global companies [1] - Professional investment experience has been accumulated through extensive analysis of numerous companies [1] - The individual holds a Master's degree in Electrical Engineering and works as an automotive battery R&D engineer in Sweden [1]

Financial Performance - Total net revenue for Q2 2025 was $80.0 million, with net income of $15.3 million[4] - Billings for Q2 2025 were $58.2 million, representing a 10% year-over-year increase on an adjusted basis[4] - Average revenue per user (ARPU) increased to $474, indicating strong customer value perception[5] - Total net revenue for Q2 2025 was $79,950, down 23.9% from $105,046 in Q2 2024[29] - Net income for Q2 2025 was $15,310, down 27.9% from $21,240 in Q2 2024[34] - EBITDA for Q2 2025 was $15,654, a decrease of 26.7% from $21,347 in Q2 2024[34] - Net income for the year to date June 30, 2025, is $32,151,000, a decrease of 27% compared to $43,952,000 in 2024[36] Cash Flow and Operating Activities - Cash from operating activities improved to $17.8 million, an increase of over $20 million compared to Q2 2024[4] - Cash flows from investing activities show a net cash used of $561,000, compared to $748,000 in 2024, indicating a reduction in investment outflows[36] - Net cash provided by operating activities is $19,575,000, a significant improvement from a net cash used of $22,306,000 in the previous year[36] - Cash from operating activities and free cash flow are projected to be approximately $30 million, reflecting over a $50 million improvement compared to FY 2024[19] - Free Cash Flow for Q2 2025 was $17,503, compared to $(4,291) in Q2 2024, marking a 507.9% increase[29] Balance Sheet and Assets - The company has a strong balance sheet with $69.1 million in cash and no outstanding debt[4] - Total assets as of June 30, 2025, were $211,753, down from $259,515 as of December 31, 2024[35] - Total liabilities as of June 30, 2025, were $438,771, a decrease from $477,439 as of December 31, 2024[35] - Cash, cash equivalents, and restricted cash at the end of the period is $69,112,000, down from $109,342,000 in the previous year[36] Dividends and Shareholder Returns - A quarterly and special dividend totaling $0.40 per Class A share was announced[4] Future Outlook and Guidance - The company expects billings to increase by approximately 20% compared to the annualized 2H 2024 billings, targeting around $250 million[19] - FY 2025 guidance indicates the company is on track to meet previously communicated targets[3] - The company anticipates fluctuations in Adjusted CFFO and Adjusted CFFO Margin as it invests in its growth strategy[25] Subscriber Growth and Engagement - The company is focused on increasing the number of paid subscribers and enhancing customer engagement and retention[3] Adjusted Metrics - Adjusted CFFO for Q2 2025 was $17,842, a significant increase from $(3,795) in Q2 2024, representing a change of 570.1%[29] - Adjusted CFFO margin for Q2 2025 was 30.7%, compared to (6.6%) in Q2 2024[29] Other Financial Metrics - Capital expenditures in Q2 2025 were $(339), a decrease of 31.7% from $(496) in Q2 2024[29] - Deferred revenue decreased by $33,107,000, compared to a decrease of $86,852,000 in 2024, indicating a potential improvement in revenue recognition[36] - Stock-based compensation increased slightly to $5,698,000 from $5,464,000 in the previous year[36] - The company experienced a change in fair value of contingent consideration of $(1,441,000), contrasting with a gain of $764,000 in 2024[36] - The company’s depreciation and amortization expenses decreased to $1,031,000 from $1,362,000 in the prior year[36]

Financial Performance - Total net revenue for Q2 2025 was $80.0 million, a decrease of 23.9% compared to $105.0 million in Q2 2024[133] - Total net revenue for the second quarter 2025 was $79.95 million, a decrease from $105.05 million in the second quarter 2024[183] - Net income for Q2 2025 was $15.3 million, a decrease of 27.9% compared to $21.2 million in Q2 2024[213] - EBITDA for Q2 2025 was $15.7 million, down 26.7% from $21.3 million in Q2 2024[213] - Total net revenue for the six months ended June 30, 2025, was $163,457, a decrease of $50,580 or 23.6% compared to $214,037 in 2024[192] Subscriber Metrics - The paid subscriber base decreased by 251,000, or 39.0%, to 394,000 as of June 30, 2025, compared to 645,000 a year earlier[152] - Active free subscribers decreased by 2.5 million, or 52.9%, to 2.3 million as of June 30, 2025, down from 4.8 million a year earlier[149] - Subscriber churn rate ranged from approximately 2.4% to 3.3% per month between 2022 and 2024, with a net revenue retention rate averaging over 55% during the same period[155] Cash Flow and Operating Activities - Net cash provided by operating activities improved to $17.8 million in Q2 2025, an increase of $21.6 million compared to a cash outflow of $3.8 million in Q2 2024[133] - Adjusted CFFO for the three months ended June 30, 2025, was $17,842, a significant increase from $(3,795) in 2024, representing a change of 570.1%[204] - Free Cash Flow for the three months ended June 30, 2025, was $17,503, compared to $(4,291) in 2024, reflecting a change of 507.9%[211] - Net cash provided by operating activities for the six months ended June 30, 2025, was $19,575, down 187.8% from $(22,306) in 2024[209] - For the six months ended June 30, 2025, net cash provided by operating activities was $19.6 million, compared to a net cash used of $22.3 million in the same period of 2024[230][231] Revenue Composition - The average revenue per user (ARPU) increased by 3.9% to $474 in Q2 2025, compared to $456 in Q2 2024[148] - Average Revenue Per User (ARPU) increased by $18, or 3.9%, to $474 as of June 30, 2025, compared to $456 as of June 30, 2024[157] - Term subscription revenue decreased by $17.8 million, primarily due to the wind down of Legacy Research, which contributed $11.5 million to this decline[187] Expenses and Cost Management - Operating expenses for the second quarter 2025 totaled $65.14 million, down from $83.71 million in the second quarter 2024[183] - Total operating expenses for the three months ended June 30, 2025, were $65,139, down $18,573 or 22.2% from $83,712 in 2024[188] - Sales and marketing expenses decreased by $11,096 or 26.0%, primarily due to a $10.5 million decrease in amortization of deferred contract acquisition costs[190] - Operating expenses for the six months ended June 30, 2025, totaled $131,866, down $39,282 or 23.0% from $171,148 in 2024[195] Shareholder Returns and Capital Management - The company announced a quarterly and special dividend totaling $0.40 per Class A share on August 1, 2025[133] - The company repurchased 117,673 shares for a total of $1.9 million during the three and six months ended June 30, 2025[226] - Quarterly tax distributions of $22.8 million were made to MarketWise Members in Q2 2025, exceeding the corporate tax liability[223] - The company expects to incur a Tax Receivable Agreement liability of $4.3 million as of June 30, 2025[222] - Net cash used in financing activities for the six months ended June 30, 2025, was $47.8 million, primarily due to distributions to noncontrolling interests[234] Future Outlook and Strategic Initiatives - The company expects fluctuations in Adjusted CFFO and Adjusted CFFO Margin in future periods as it invests in its growth strategy[206] - The company anticipates future capital requirements will depend on subscription growth rates and the introduction of new products[221] - The payback period for customer acquisition costs was estimated at 1.7 years for 2024 and 2023, and 1.6 years for 2022[159] Other Financial Metrics - Cash and cash equivalents stood at $69.1 million as of June 30, 2025, with no debt outstanding[133] - As of June 30, 2025, the company's cash float was approximately $87.8 million, down from $119.7 million as of December 31, 2024[215] - The LTV/CAC ratio was approximately 1.3x, indicating the average customer lifetime billings relative to customer acquisition costs[136] - The high-value composition rate was 63% and the ultra high-value composition rate was 30% as of June 30, 2025[140]

Core Insights - MarketWise, Inc. has appointed Erik Mickels as Chief Operating and Financial Officer to enhance operational excellence and financial strategy [1][3] - Mickels has over 25 years of experience in strategic transformation and has successfully guided acquisitions and initiatives, including the sale of a billion-dollar subsidiary [2] - The company aims to provide trusted financial insights to self-directed investors, emphasizing the growing demand for independent financial guidance [3] Company Overview - MarketWise is a leading multi-brand subscription services platform focused on empowering self-directed investors through premium financial research, software, education, and tools [4] - The company serves millions of free and paid subscribers, offering a digital, direct-to-customer model across various platforms [5] - MarketWise's vision is to become the leading financial solutions platform for self-directed investors, leveraging its agile and scalable platform [5]