MarketWise(MKTW) - 2025 Q3 - Quarterly Results

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]