Detailed financial statements for MarketWise, Inc. (MKTW): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
MarketWise, Inc. operates a comprehensive multi-brand platform that offers subscription-based financial research, educational materials, software, and specialized tools to investors across the United States and internationally. The company's diverse portfolio includes independent investment analysis and a variety of analytical software, all provided on a subscription basis.
Analysis Summary
MarketWise, Inc. reported revenue of $328.1M in the most recent fiscal year, growing at a 5-year CAGR of -2.1%.
Trailing-twelve-month margins: gross margin 86.2%, operating margin 8.1%, net margin 0.7%. Free cash flow grew at -3.9% CAGR over 5 years.
At the current price of $17.71, MKTW trades at a P/E of 18.45 and an ROE of -12.41%. Market capitalisation stands at $47M.
Balance sheet quality for MKTW: current ratio of 0.6, net cash position of $64.1M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $45.6M represents 811% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $238.4M | $272.2M | $364.2M | $549.2M | $512.4M | $448.2M | $408.7M | $328.1M |
| Cost of Revenue | $57.6M | $42.6M | $154.6M | $239.3M | $62.7M | $56.8M | $50.7M | $44.3M |
| Gross Profit | $180.8M | $229.7M | $209.6M | $309.9M | $449.7M | $391.4M | $358.0M | $283.8M |
| Research & Development | $2.3M | $3.7M | $4.8M | $7.5M | $8.8M | $8.8M | $9.9M | $8.8M |
| Selling, General & Admin | $157.6M | $198.1M | $740.9M | $1.27B | $350.5M | $324.3M | $251.9M | $209.8M |
| Operating Expenses | $162.5M | $204.1M | $748.3M | $1.28B | $362.4M | $339.6M | $269.1M | $220.8M |
| Operating Income | $18.3M | $25.6M | -$538.7M | -$967.6M | $87.3M | $51.8M | $89.0M | $63.0M |
| EBITDA | $20.9M | $27.9M | -$536.1M | -$948.7M | $105.5M | $58.2M | $96.2M | $68.8M |
| Interest Expense | 0 | 0 | 0 | $110000 | $295000 | 0 | 0 | 0 |
| Pre-tax Income | $18.7M | $28.0M | -$541.1M | -$951.5M | $102.7M | $56.1M | $96.4M | $66.6M |
| Income Tax | 0 | 0 | 0 | $2.4M | $1.5M | $1.8M | $3.3M | $2.6M |
| Net Income | $18.6M | $28.0M | -$538.4M | -$1.01B | $18.0M | $1.8M | $7.1M | $5.6M |
| EPS | $7.19 | $10.80 | $-208.07 | $-504.69 | $14.61 | $1.12 | $3.68 | $2.41 |
| EPS (Diluted) | $7.19 | $10.80 | $-208.07 | $-504.69 | $14.54 | $1.00 | $3.57 | $2.31 |
| Shares Outstanding (Diluted) | $2.6M | $2.6M | $2.6M | $1.9M | $1.2M | $1.7M | $2.0M | $2.4M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $81.3M | $83.4M | $77.0M | $75.8M |
| Gross Profit | $70.5M | $72.5M | $65.9M | $64.7M |
| Operating Income | $17.8M | $13.2M | -$1.1M | -$4.3M |
| EBITDA | $19.2M | $14.3M | $26000 | -$3.7M |
| Net Income | $1.5M | $1.9M | -$573000 | -$629000 |
| EPS | $0.60 | $0.83 | $-0.23 | $-0.24 |
| EPS (Diluted) | $0.58 | $0.79 | $-0.23 | $-0.24 |
Balance Sheet (10y)
| Year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $170.5M | $114.4M | $139.1M | $158.6M | $155.2M | $97.9M | $70.1M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $7.3M | $13.3M | $8.6M | $5.6M | $9.7M | $2.4M | $6.6M |
| Inventory | 0 | 0 | 0 | $111.7M | 0 | 0 | 0 |
| Total Current Assets | $205.7M | $180.6M | $246.4M | $279.2M | $267.8M | $168.8M | $131.7M |
| Property, Plant & Equipment | $16.1M | $13.8M | $12.1M | $10.4M | $8.0M | $3.8M | $7.1M |
| Goodwill | $18.1M | $18.1M | $23.3M | $31.3M | $31.0M | $30.0M | $30.0M |
| Intangible Assets | $7.2M | $5.3M | $8.6M | $16.0M | $6.3M | $4.7M | $3.8M |
| Total Assets | $276.2M | $284.8M | $421.6M | $442.5M | $396.6M | $259.5M | $218.4M |
| Accounts Payable | $5.0M | $12.0M | $4.8M | $686000 | $559000 | $4.0M | $3.9M |
| Short-term Debt | $4.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | $254.4M | $345.5M | $395.5M | $385.5M | $373.9M | $260.2M | $234.2M |
| Long-term Debt | $1.1M | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | $544.3M | $1.21B | $826.8M | $740.9M | $685.5M | $477.4M | $432.0M |
| Retained Earnings | 0 | 0 | -$146.1M | -$128.1M | -$126.3M | -$119.3M | -$113.7M |
| Total Equity | -$262.3M | -$914.7M | -$48.5M | -$21.2M | -$11.1M | -$12.5M | -$11.7M |
| Total Debt | $16.0M | $8.9M | $8.2M | $7.3M | $5.8M | $4.4M | $6.1M |
| Net Debt | -$154.6M | -$105.5M | -$130.9M | -$151.3M | -$149.4M | -$93.5M | -$64.1M |
| Working Capital | -$48.7M | -$164.9M | -$149.1M | -$106.3M | -$106.1M | -$91.4M | -$102.5M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $50.5M | $70.1M | $52.7M | $32.9M |
| Total Assets | $201.7M | $218.4M | $201.9M | $185.9M |
| Total Liabilities | $427.6M | $432.0M | $428.8M | $453.1M |
| Total Equity | -$14.5M | -$11.7M | -$12.2M | -$33.5M |
| Total Debt | $6.1M | $6.1M | $5.7M | $5.5M |
Cash Flow (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Net Income | $18.7M | $28.0M | -$538.4M | -$953.9M | $101.2M | $1.8M | $93.1M | $64.0M |
| Depreciation & Amortization | $2.5M | $2.3M | $2.6M | $2.7M | $3.1M | $3.8M | $2.8M | $2.2M |
| Stock-based Compensation | $5.3M | $8.6M | $553.6M | $210.9M | $9.0M | $23.4M | $12.2M | $11.1M |
| Change in Working Capital | $39.6M | $15.4M | -$72.3M | $89.8M | -$52.9M | -$29.0M | -$138.0M | -$32.4M |
| Operating Cash Flow | $76.5M | $54.2M | $55.9M | $63.6M | $48.4M | $62.4M | -$22.1M | $46.0M |
| Capital Expenditure | -$1.5M | -$929000 | -$290000 | -$1.2M | -$171000 | -$1.7M | -$681000 | -$391000 |
| Acquisitions | -$15.0M | $13.3M | -$9.2M | -$7.1M | -$13.1M | -$170000 | 0 | 0 |
| Stock Repurchased | 0 | 0 | 0 | -$3.3M | -$13.1M | -$5.7M | -$10.8M | -$3.4M |
| Dividends Paid | -$22.0M | -$20.5M | -$101.8M | -$135.5M | 0 | -$5.7M | -$1.5M | -$4.8M |
| Free Cash Flow | $75.0M | $53.3M | $55.6M | $62.5M | $48.2M | $60.7M | -$22.8M | $45.6M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $2.2M | $24.2M | -$2.1M | $22.4M |
| Capital Expenditure | -$477000 | $1.0M | -$473000 | -$27000 |
| Free Cash Flow | $1.7M | $25.3M | -$2.5M | $22.4M |
| Dividends Paid | -$1.0M | -$974000 | -$1.1M | -$1.2M |
| Stock-based Compensation | $2.8M | $16.8M | $2.2M | $2.9M |
Growth & Margins (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +14.2% | +33.8% | +50.8% | -6.7% | -12.5% | -8.8% | -19.7% | |
| Net Income Growth (YoY) | +50.3% | -2025.7% | -88.2% | +101.8% | -90.1% | +296.1% | -20.4% | |
| EPS Growth (YoY) | +50.2% | -2026.6% | -142.6% | +102.9% | -92.3% | +228.6% | -34.5% | |
| Shares Change (YoY) | +0.0% | +0.0% | -27.0% | -34.5% | +34.6% | +18.3% | +23.6% | |
| FCF Growth (YoY) | -29.0% | +4.3% | +12.4% | -22.8% | +25.9% | -137.6% | +299.6% | |
| Gross Margin | 75.8% | 84.4% | 57.5% | 56.4% | 87.8% | 87.3% | 87.6% | 86.5% |
| Operating Margin | 7.7% | 9.4% | -147.9% | -176.2% | 17.0% | 11.6% | 21.8% | 19.2% |
| EBITDA Margin | 8.7% | 10.3% | -147.2% | -172.8% | 20.6% | 13.0% | 23.5% | 21.0% |
| Net Margin | 7.8% | 10.3% | -147.8% | -184.5% | 3.5% | 0.4% | 1.7% | 1.7% |
| FCF Margin | 31.4% | 19.6% | 15.3% | 11.4% | 9.4% | 13.5% | -5.6% | 13.9% |
| Effective Tax Rate | 0.0% | 0.0% | -0.0% | -0.2% | 1.5% | 3.2% | 3.4% | 3.8% |
Per-Share Data (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $28.98 | $20.59 | $21.48 | $33.05 | $38.96 | $36.44 | $-11.59 | $18.71 |
| Dividends Per Share | $8.51 | $7.91 | $39.33 | $71.67 | $0.00 | $3.45 | $0.76 | $1.96 |
| Shares Outstanding (Basic) | $2.6M | $2.6M | $2.6M | $1.9M | $1.2M | $1.6M | $1.9M | $2.3M |
What to look at in Financial Services
Asset managers, brokers, fintech, exchanges. They are not banks — look at AUM, fees and FCF quality.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — Good asset managers have >30% margins thanks to scalability
- ROE — Quality financial services have a consistent ROE >15%
- FCF / Net Income — Earnings quality — >90% expected in capital-light businesses
- Debt / Equity — Fintech and brokers with high D/E are time bombs in crises
- P/E vs own 5y — Asset managers have stable multiples in well-known ranges
- Dividend yield + buybacks — These businesses return a lot of capital — look at total yield (div + buybacks)
Profitability
| Return on Equity | -12.41% |
| Return on Invested Capital | -40.86% |
| Return on Assets | 1.20% |
| Gross Margin | 86.19% |
| Operating Margin | 8.08% |
| Net Margin | 0.70% |
Financial Health
| Debt / Equity | -0.17 |
| Current Ratio | 0.35 |
Key Ratios (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| P/E | 27.45 | 18.28 | -0.99 | -0.30 | 2.30 | 48.75 | 3.08 | 6.23 |
| P/B | 0.00 | -1.95 | -0.58 | -5.87 | -1.95 | -7.81 | -1.73 | -3.00 |
| P/S | 2.14 | 1.88 | 1.46 | 0.52 | 0.08 | 0.19 | 0.05 | 0.11 |
| Gross Margin | 75.8% | 84.4% | 57.5% | 56.4% | 87.8% | 87.3% | 87.6% | 86.5% |
| Operating Margin | 7.7% | 9.4% | -147.9% | -176.2% | 17.0% | 11.6% | 21.8% | 19.2% |
| Net Margin | 7.8% | 10.3% | -147.8% | -184.5% | 3.5% | 0.4% | 1.7% | 1.7% |
Related companies: AWRE · BLIV · LPSN · MFI · NTWK · NUKK · NXTT
Explore sector: Financial Services · Financial - Data & Stock Exchanges
More sections of MKTW: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Radar — undervalued stock signals · Investment Academy — learn to analyze stocks