MarketWise (MKTW) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was $77.0 million, down 7.8% year-over-year, while Billings rose 15.5% to $81.4 million, marking the strongest quarter since 2023 and reflecting strong new marketing sales and software-related content growth.

• Net loss was $0.6 million compared to net income of $16.8 million in Q1 2025, driven by increased sales and marketing expenses, higher general and administrative costs, and timing differences in revenue recognition.

• Paid Subscribers declined 19.4% year-over-year to 381,497, mainly due to the shutdown of the Legacy Research business, but ARPU increased 76.1% to $738, reflecting a shift to higher-priced products.

• Cash and cash equivalents stood at $52.7 million as of March 31, 2026, with no debt outstanding.

• Quarterly regular and special dividends totaling $0.45 per Class A share were declared, with a full-year dividend target of $1.80 per share reaffirmed.

Financial highlights

• Total net revenue decreased by $6.5 million year-over-year, primarily due to lower term and membership subscription revenue, partially offset by higher non-subscription revenue.

• Operating expenses increased 17.1% to $78.1 million, with sales and marketing up 16.5% and general and administrative up 39.5%.

• Adjusted CFFO was $(2.1) million, and Free Cash Flow was $(2.7) million, both reflecting declines from the prior year.

• Earnings per share (basic and diluted) were $(0.23), down from $0.43 and $0.41, respectively, in Q1 2025.

• Cash and cash equivalents stood at $52.7 million as of March 31, 2026.

Outlook and guidance

• FY 2026 billings guidance affirmed at $300 million, representing ~10% growth over FY 2025.

• FY 2026 CFFO guidance reaffirmed at $50 million, nearly a 10% increase year-over-year.

• Management expects continued investment in marketing and product launches to drive future Billings and subscriber growth.

• Quarterly special dividends are expected to continue, subject to future tax distributions and board discretion.

• Total dividends for FY 2026 targeted at $1.80 per Class A share.