MarketWise, Inc. Reports Strong Q4 2025 Results, Raises FY 2026 Guidance, Announces Major Dividend Increase and \$50M Share Buyback

Key Highlights

• Q4 2025 Net Revenue: \$83.4 million
• Q4 2025 Net Income: \$14.0 million
• Q4 Billings: Up 42% year-over-year (YoY), highest growth since IPO in 2021
• FY 2025 Billings: Beat guidance, over \$40 million in CFFO (Cash From Operating Activities), more than \$60 million improvement from FY 2024
• FY 2026 Guidance: Raised—Billings target increased from \$290M to \$300M, CFFO target increased from \$45M to \$50M
• Dividend Increase: Regular dividend to Class A shareholders increased by 25%, FY 2026 dividend target of \$1.80 per share (includes special dividends), yielding over 13% at current stock price
• Share Buyback: Board resumes \$50 million share repurchase program
• Cash Position: \$70.1 million as of December 31, 2025 (up \$20 million from Q3)
• Paid Subscribers: 374,000 at year-end 2025, down from 506,000 at year-end 2024, but revenue per user and margins improved due to price increases
• AI Strategy: Integrating AI into investment tools; confident in competitive advantages from trust and technology
• Acquisition Proposal: Monument & Cathedral Holdings’ \$17.25/share buyout proposal withdrawn after board deemed offer undervalued the company
• Standalone Strategy: Commitment to organic growth, operational efficiency, capital returns (dividends, buybacks)
• Tax Distributions: \$49.8 million paid to MarketWise, LLC partners for FY 2025
• Share Structure: 2.4M Class A shares, 13.6M Class B shares as of Dec 31, 2025
• Forward-Looking Targets: FY 2026 Billings of \$300M (+10%), CFFO of \$50M (+10%), Dividends to Class A shares of \$1.80 per share

Management Commentary

CEO Dr. David Eifrig emphasized that FY 2025 was the company’s strongest year of Billings growth since IPO, highlighted by a robust Q4. The company exceeded its guidance for both Billings and CFFO, attributing success to increased pricing and efficiency initiatives. Eifrig expressed gratitude to the company’s 400+ employees and over 2 million subscribers for their dedication and loyalty.

The company shifted its focus from subscriber count to maximizing lifetime value, with approximately 50% of paid subscribers now having spent over \$1,000 cumulatively. The pricing strategy led to higher revenue per user and improved margins.

Eifrig also addressed strategic concerns about artificial intelligence, stating MarketWise sees AI as an opportunity to enhance its investing tools. He underscored the company’s long-standing reputation for trust and independent financial research as a key competitive advantage.

Dividend and Capital Return Initiatives

• Regular quarterly dividend to Class A shareholders increased by 25%
• FY 2026 dividend target of \$1.80 per Class A share (includes \$0.20 special dividend per quarter)
• Annualized yield projected at over 13% based on current market price
• Board resumes \$50 million share repurchase program

These actions are likely to be price sensitive and could positively impact share values, as they signal capital discipline, shareholder alignment, and confidence in future cash flows.

Acquisition Proposal and Shareholder Value

In October 2025, Monument & Cathedral Holdings proposed to acquire all outstanding MarketWise equity for \$17.25/share, conditional upon termination of the company’s tax receivable agreement. In February 2026, the proposal was withdrawn after the Board’s Special Committee, citing the offer undervalued the company. The careful evaluation process, consultation with advisors, and ultimate rejection of the proposal highlight the Board’s commitment to maximizing shareholder value.

The withdrawal of the acquisition proposal removes uncertainty and reinforces management’s confidence in the company’s standalone growth strategy.

FY 2026 Guidance and Outlook

• Billings: Target of \$300M (+10% YoY)
• CFFO: Target of \$50M (+10% YoY)
• Dividend: \$1.80 per Class A share (inclusive of quarterly and special dividends)
• Share Buyback: \$50M program active

Management notes that timing of product launches and marketing can cause quarterly fluctuations, recommending investors focus on annual results.

Balance Sheet and Capital Structure

• Cash & Equivalents: \$70.1M as of Dec 31, 2025 (vs. \$50.5M as of Sep 30, 2025)
• Tax Distributions: \$49.8M paid in FY 2025
• Share Structure: 2.4M Class A shares, 13.6M Class B shares
• Stockholders’ Deficit: \$(213.6)M as of Dec 31, 2025

Risks and Forward-Looking Statements

The report includes cautionary statements regarding risks such as subscriber acquisition and retention, marketing effectiveness, technology adoption (including AI), compliance, macroeconomic factors, and capital needs. Forward-looking targets are based on current trends and subject to change.

Summary for Investors

• MarketWise delivered record Billings and cash flow, beat guidance, and is raising targets for FY 2026.
• The company is returning significant capital to shareholders via increased dividends and buybacks.
• The Board’s rejection of a buyout proposal at \$17.25/share signals confidence in higher intrinsic value.
• AI integration and pricing strategy are driving improved margins and lifetime value per subscriber.
• Cash position and disciplined capital allocation support sustained shareholder returns.
• FY 2026 guidance and dividend targets may positively influence share price, especially given the high yield and buyback activity.

Disclaimer: This article is based on MarketWise, Inc.’s official financial report and earnings release for Q4 and FY 2025. Forward-looking statements are subject to risks, uncertainties, and assumptions. Actual results may differ materially. Investors should not rely solely on this article for investment decisions and are encouraged to review official filings and consult with financial advisors.

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