MarketWise (MKTW) Q4 2025 earnings summary

Executive summary

• FY 2025 billings reached $271.2M, up 13.4% YoY, exceeding guidance; Q4 billings rose 42% YoY to $79M.

• Cash flow from operations (CFFO) for FY 2025 was $46M, up $68M from FY 2024 and beating guidance.

• Net income for FY 2025 was $64M, down from $93M in FY 2024.

• Returned $1.90 per share in dividends (13% yield) and initiated/resumed a $50M share repurchase program.

• Cash position increased to $70M with no debt at year-end.

Financial highlights

• GAAP net revenue for FY 2025 was $328.1M, a 20% decrease from $409M in FY 2024 due to deferred revenue recognition.

• Q4 2025 billings were $78.9M, up 42% YoY; CFFO for Q4 was $24.2M, up $18.2M YoY.

• Paid subscribers declined to 374K at year-end 2025 from 506K in 2024, but ARPU increased to $670.

• Operating expenses decreased across all major categories, supporting margin expansion.

• CFFO margin for FY 2025 was approximately 17%.

Outlook and guidance

• FY 2026 billings target set at $300M (+10% YoY); CFFO target of $50M (+9% YoY) with a 16% margin.

• Dividend target for FY 2026 is $1.80 per Class A share, reflecting a 13% yield at current prices.

• Tax distributions expected to decline by $15M in FY 2026, with cash balances projected to dip in H1 and recover in H2.

• Strategic focus on subscriber growth, billings growth, and margin expansion.