MarketWise Inc (NASDAQ:MKTW) Reports Mixed Q2 2025 Earnings with Revenue Beat and EPS Miss

MarketWise Inc (NASDAQ:MKTW) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company, which provides financial research and tools for self-directed investors, posted revenue of $80.0 million, surpassing the consensus estimate of $75.1 million. However, earnings per share (EPS) of $0.53 fell short of the $0.65 forecasted by analysts.

Key Financial Highlights

• Revenue: $80.0 million (up from $75.1 million estimate, +6.5% beat)
• EPS: $0.53 (below $0.65 estimate, -18.5% miss)
• Billings: $58.2 million, a 10% year-over-year increase on an adjusted basis
• Cash from Operating Activities: $17.8 million, a significant improvement from a loss of $3.8 million in Q2 2024
• Dividend: Announced a quarterly and special dividend totaling $0.40 per Class A share

Market Reaction

The stock saw a 9.98% increase in pre-market trading, suggesting investor optimism despite the EPS miss. This reaction may be attributed to the revenue beat, strong cash flow generation, and the company’s dividend announcement. Over the past month, shares have gained 4.99%, while weekly performance has been relatively flat.

Outlook vs. Analyst Estimates

Management reaffirmed its full-year 2025 targets, including:

• Billings growth of ~20% (aligned with analyst expectations)
• Cash from Operating Activities of ~$30 million (a $50 million improvement over 2024)
• Dividends of $1.60–$1.80 per share

Analysts currently project full-year 2025 revenue at $313.9 million and Q3 2025 revenue at $74.1 million, with an EPS estimate of $0.68. MarketWise’s guidance suggests confidence in maintaining momentum, though execution will be key given the Q2 EPS shortfall.

Press Release Summary

• Strong cash generation: Operating cash flow improved by $21.6 million YoY.
• Subscriber monetization: Average revenue per user (ARPU) remains robust at $474.
• Balance sheet strength: $69.1 million in cash with no debt.
• Shareholder returns: Dividend payouts and a $1.9 million share repurchase in Q2.

For a deeper dive into MarketWise’s earnings and future estimates, view the full earnings details here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.