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]

MarketWise CEO Dr. David Eifrig commented, "I am delighted by the results for the quarter as our teams continue to deliver against our strategic priorities of growth, efficiency, and new business. I see meaningful contributions from everywhere in the Company and could not be prouder of the dedication of our 400+ employees as we provide world-class financial research and tools to our millions of engaged subscribers." Eifrig continued, "The strength of our business model was displayed during the second quarte ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39405 MarketWise, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 87-1767914 (State or other jurisdiction of incorpora ...

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]

Core Points - MarketWise, Inc. declared a quarterly cash dividend of $0.20 per share for Class A common stock and an equivalent 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 both dividends scheduled for payment on September 25, 2025 [2] - The Record Date for the dividends is set for August 15, 2025 [2] - MarketWise plans to release its second quarter 2025 financial results on August 7, 2025, before market opening [2][3] 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][5] - 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]

Core Insights - MarketWise, Inc. is a leading multi-brand digital subscription services platform focused on providing premium financial research, software, education, and tools for self-directed investors [4][5] - The Chief Financial Officer, Erik Mickels, will participate in one-on-one meetings at the UBS 2025 Fintech One-on-One Conference on September 10, 2025, in New York City [1] - The UBS 2025 Fintech One-on-One Conference aims to provide access to management teams to discuss advancements in technology and data within the financial sector [3] Company Overview - MarketWise has over 25 years of operating history and serves millions of free and paid subscribers [5] - The company offers a range of products that are recognized as high-value sources for financial research, education, actionable investment ideas, and investment software [5] - MarketWise operates as a 100% digital, direct-to-customer company, delivering its research across various platforms including mobile, desktops, and tablets [5] - The company's vision is to become the leading financial solutions platform for self-directed investors [5]

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]