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Sep 30, 2025
Marketwise Q3 2025 Earnings Report
MarketWise reported Q3 2025 net revenue of $81.3M and net income of $17.9M while billings increased 30% year-over-year and operating cash flow improved compared to the prior year.
Key Takeaways
MarketWise delivered solid Q3 2025 billings growth despite lower GAAP revenue and net income versus the prior year. The company benefited from a pricing strategy focused on higher-value subscribers, which boosted ARPU and billings while paid subscriber counts declined.
Net revenue totaled $81300000 in Q3 2025, declining year-over-year due to deferred revenue dynamics.
Billings reached $63700000, increasing 30% year-over-year and showing strong demand for premium subscriptions.
Net income was $17900000 with diluted EPS of $0.58.
Cash from operating activities was $2200000 while cash and cash equivalents were $50500000 at quarter end.
Forward Guidance
Management introduced preliminary FY2026 targets and maintained FY2025 expectations, signaling confidence in billings growth and improved operating cash flow.
Positive Outlook
- Billings grew 30% year-over-year, demonstrating strong demand for premium research subscriptions.
- ARPU increased significantly as the company focused on higher-value customers.
- Preliminary FY2026 billings target of approximately 290000000 implies around 10% growth.
- FY2026 cash from operating activities target of 45000000 represents roughly 50% growth versus FY2025 target.
- Continued shareholder returns through dividends and share repurchases.
Challenges Ahead
- GAAP revenue declined year-over-year due to deferred revenue recognition.
- Net income declined compared to Q3 2024.
- Paid subscriber counts continued to decline as the company shifted to higher-priced products.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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