MarketWise 2025 Q2 Earnings Net Income Drops 27.9% Amid Revenue Decline

MarketWise (MKTW) reported its fiscal 2025 Q2 earnings on Aug 07, 2025. The company missed expectations with a 23.9% revenue decline and a 27.9% drop in net income. Despite this, CEO Dr. David Eifrig stated the company remains on track to meet FY 2025 guidance while managing a strong balance sheet.

MarketWise reported total revenue of $79.95 million in Q2 2025, a decline of 23.9% compared to $105.05 million in Q2 2024. The largest contributor to this revenue was membership subscriptions, which brought in $41.86 million. This was closely followed by term subscriptions with $37.42 million. Non-subscription revenue, the smallest segment, generated $676,000. The performance of the subscription-based business highlights the company's continued focus on recurring revenue models.

MarketWise’s EPS dropped 32.1% year-over-year to $0.55, while net income fell to $15.31 million, a 27.9% decline from $21.24 million in the same period last year. These figures indicate a challenging earnings performance, particularly concerning the significant drop in profitability relative to the prior year.

The stock price of MarketWise edged down 2.79% on the latest trading day, gained 0.43% during the most recent full trading week, and declined 0.38% month-to-date. These mixed short-term trends highlight ongoing investor uncertainty.

The post-earnings price action review revealed a poor performance for a strategy of buying shares after a revenue increase on the earnings report date and holding for 30 days. Over the past three years, the strategy delivered a CAGR of -20.96%, a total return of -50.11%, and an excess return of -101.80%. The strategy experienced a high maximum drawdown of 0.00% and a Sharpe ratio of -0.36, suggesting high risk and significant losses.

MarketWise CEO Dr. David Eifrig highlighted strong Q2 performance, noting contributions across the business and pride in the team’s execution. He emphasized the cash-generating nature of the business, with $17.8 million in Cash from Operating Activities and Adjusted CFFO margins over 30%, and noted Q2 billings increased 10% YoY on an adjusted basis. While Q2 billings were down sequentially from Q1, July billings already outperformed Q2’s average monthly results. He also underscored robust ARPU and ongoing initiatives to grow paid subscribers and improve engagement and retention.

Dr. Eifrig confirmed MarketWise is on track to meet FY 2025 guidance as previously communicated. The company expects to continue executing against strategic priorities while managing a strong balance sheet, with $69.1 million in cash and no debt, to support capital allocation, including shareholder rewards, share repurchases, and prudent business investments.

In the broader financial news, the Nigerian media outlet Punch Newspapers on Aug 8, 2025, reported several key developments. Notably, the EFCC arrested 66 suspected internet fraudsters in Lagos and Ogun, highlighting continued efforts in the fight against cybercrime. Additionally, Ivorian forward Guessand sealed a move to Aston Villa from Nice, marking a significant transfer in the sports world. Meanwhile, political developments included an appeal from a PDP leader to Peter Obi to rejoin the party ahead of the 2027 elections.