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Earnings analysis · 10-Q

MKTW earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

MarketWise reported a decline in total net revenue to $77 million for Q1 2026, down 7.8% from $83.5 million in Q1 2025. The significant drop in revenue was attributed to reduced term subscription revenue following the…

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MarketWise reported a decline in total net revenue to $77 million for Q1 2026, down 7.8% from $83.5 million in Q1 2025. The significant drop in revenue was attributed to reduced term subscription revenue following the shutdown of its Legacy Research business, alongside an increase in sales and marketing expenses. The company experienced a negative operating cash flow of $2.1 million and recorded a net loss of $0.6 million, compared to a profit of $16.8 million in the same quarter last year.

Read the original on SEC.gov

Reported figures

Earnings per share
$-0.57

What stood out

  • Revenue Decline

    Total net revenue decreased to $77.0 million, down 7.8% from $83.5 million year-over-year.

  • Increased Billings

    Total billings rose to $81.4 million, up 15.5% compared to $70.5 million in Q1 2025.

  • High ARPU Growth

    Average Revenue Per User (ARPU) increased by 76.2% to $738 from $419 year-over-year.

  • Cost Management

    Cost of revenue decreased by 6.6% to $11.1 million, offsetting some SG&A increases.

  • Subscriber Base Challenges

    Paid Subscribers decreased to 381,000, a 19.4% decline year-over-year, largely due to Legacy Research impacts.

  • Cash Position

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

What to watch

  • Subscriber Churn

    The number of Paid Subscribers dropped by 92,000 from last year, primarily due to churn related to the Legacy Research business.

  • Operating Cash Flow Loss

    Operating cash flow was $(2.1) million, a decline of $3.8 million compared to Q1 2025.

  • Increased Marketing Expenses

    Sales and marketing costs increased significantly by 16.5% to $39.7 million, impacting profitability.

Management's outlook

The outlook for the remainder of the year remains cautious, focusing on subscriber retention and new marketing effectiveness.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.