MARKETWISE, INC.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
MKTW$21.47-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001805651-26-000043
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-053921
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 148 previous paragraphs and 151 current paragraphs.
74 unchanged; 50 reworded; 22 added; 23 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 12 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Second Quarter 2026 Highlights(1)
Current report
▪Total net revenue was $75.8 million in the second quarter 2026(2)
Current report
▪Net loss was $2.6 million in the second quarter 2026
Current report
▪Cash from Operating Activities (“CFFO”) was $22.4 million in the second quarter 2026, an increase of $4.6 million compared to the second quarter 2025. On a year to date basis, CFFO improved by $0.8 million compared to first half of 2025.
Current report
As of June 30, 2026, our Paid Subscriber base was 400 thousand, an increase of 6 thousand, or 1.5%, from 394 thousand at June 30, 2025. The increase in Paid Subscribers is a result of an increased investment in customer acquisition and direct marketing in the first half 2026 of which we expect to decline in the second half of 2026 as we reduce these investments and focus on monetization of our existing subscriber base.
Current report
LTV/CAC ratio:
Current report
Total Paid Subscribers increased by 6 thousand, or 1.5%, to 400 thousand as of June 30, 2026 as compared to 394 thousand at June 30, 2025, primarily related to meaningfully increased opportunistic investment in customer acquisition that began in late first quarter 2026 and continued throughout second quarter 2026.
Current report
New Marketing Billings increased by $12.7 million, or 21.0% to $73.6 million for second quarter 2026 as compared to $60.9 million in first quarter 2026. The increase was primarily driven by sales of our higher value traditional newsletters in the second quarter 2026.
Current report
Net Renewal Billings decreased by $2.6 million, or 13.9%, to $16.4 million for second quarter 2026 as compared to $19.0 million for first quarter 2026. The decrease was driven by a far smaller base of subscriptions available for renewal in second quarter 2026 vs first quarter 2026 due to timing of campaigns in the previous year.
Current report
Other Income, Net
Current report
Interest Income, Net
Current report
The decrease in net revenue was primarily driven by a decrease of $2.1 million in membership subscription revenue, $1.9 million in term subscription revenue, and $0.2 million in non-subscription revenue.
Current report
Cost of revenue increased $0.2 million primarily driven by a $1.0 million increase in credit card fees. This increase in Cost of revenue was partially offset by a $0.4 million decrease in stock-based compensation expense, and $0.3 million in salaries, taxes and benefits and outside labor.
Current report
General and administrative expense increased $2.9 million primarily due to an increase of $1.4 million in incentive compensation, $0.8 million in professional services, $0.7 million in software expense, $0.3 million in salaries, taxes and benefits, and $1.1 million in stock-based compensation expense. This increase in general and administrative expense was offset by a $1.4 million decrease in outside labor.
Current report
Research and development expense increased $0.6 million primarily due to $0.4 million additional spending for expanded maintenance and enhancement of the Company’s SaaS platform, including increased external technical support. The increase also included $0.2 million of higher spending for freelance editorial and content development services.
Current report
Comparison of Six Months Ended June 30, 2026 and Six Months Ended June 30, 2025
Current report
Operating Expenses
Current report
Cost of revenue decreased $0.6 million primarily driven by a $1.1 million decrease in stock-based compensation expense, $0.4 million in salaries, taxes and benefits and outside labor and $0.3 million in customer service expense. This decrease in Cost of revenue was partially offset by an increase of $1.2 million in credit card fees.
Current report
Research and development expense increased $0.6 million primarily due higher spending related to expanded maintenance and enhancements, including increased external technical support and additional project scope.
Current report
For the six months ended June 30, 2026, net cash provided by operating activities was $20.3 million, attributable to net loss of $3.2 million adjusted for net non-cash items which increased cash by $6.2 million and net changes in our operating assets and liabilities which increased cash by $17.3 million (primarily driven by net changes in deferred contract costs and deferred revenue). The non-cash items include stock-based compensation expense of $5.1 million, and depreciation and amortization expense of $1.1 million.
Current report
For the six months ended June 30, 2026, net cash used in financing activities was $55.9 million, primarily driven by $33.7 million in tax distribution to noncontrolling interests, $6.7 million in other distribution to noncontrolling interests, $2.3 million in dividends to Class A shareholders and $12.2 million in one-time cash settlement payment.
Current report
For the six months ended June 30, 2025, net cash used in financing activities was $47.8 million, primarily due to $33.8 million in tax distributions to noncontrolling interests, $9.1 million in other distribution to noncontrolling interests, $2.8 million in dividends to Class A shareholders, and $1.9 million in repurchases of stock.
Removed paragraphs (23)
Previous report
First Quarter 2026 Highlights(1)
Previous report
▪Total net revenue was $77.0 million in the first quarter 2026(2)
Previous report
▪Net loss was $0.6 million in first quarter 2026
Previous report
▪Cash from Operating Activities (“CFFO”) was $(2.1) million in first quarter 2026, a decline of $3.8 million compared to first quarter 2025.
Previous report
As of March 31, 2026, our Paid Subscriber base was 381 thousand, down 92 thousand, or 19.4% as compared to 473 thousand at March 31, 2025, primarily related to elevated churn associated with the shutdown of our Legacy Research business. At the time of shutdown, paid Legacy Research subscribers were given replacement subscriptions to other affiliates within MarketWise for at least the duration of their original subscription. These subscribers accounted for 53 thousand or approximately 58% of the overall 92 thousand decrease year over year, with the remainder of the decline primarily coming from lower value subscribers.
Previous report
Total Paid Subscribers decreased by 92 thousand, or 19.4%, to 381 thousand as of March 31, 2026 as compared to 473 thousand at March 31, 2025, primarily related to elevated churn associated with the shutdown of our Legacy Research business. At the time of shutdown, paid Legacy Research subscribers were given replacement subscriptions to other affiliates within MarketWise for at least the duration of their original subscription. These subscribers accounted for 53 thousand or approximately 58% of the overall 92 thousand decrease year over year, with the remainder of the decline primarily coming from lower value subscribers
Previous report
New Marketing Billings increased by $3.4 million, or 5.9% to $60.9 million for first quarter 2026 as compared to $57.5 million in fourth quarter 2025. The increase was primarily driven by sales of our entry level and higher value products in first quarter 2026.
Previous report
Net Renewal Billings increased by $1.5 million, or 8.7%, to $19.0 million for first quarter 2026 as compared to $17.5 million for fourth quarter 2025. The increase was driven by renewals of termed subscriptions of traditional newsletters spanning all price ranges.
Previous report
Net Revenue
Previous report
Cost of Revenue
Previous report
Sales and Marketing
Previous report
General and Administrative
Previous report
Research and Development
Previous report
Other Income (Expense), Net
Previous report
Interest (Expense) Income, Net
Previous report
Net Revenue
Previous report
Cost of Revenue
Previous report
Cost of revenue decreased primarily driven by a $0.7 million decrease in stock-based compensation and a $0.1 million decrease in outsourced customer service.
Previous report
Sales and Marketing
Previous report
General and Administrative
Previous report
For the three months ended March 31, 2025, net cash provided by operating activities was $1.7 million, primarily due to net income of $16.8 million, adjusted for net non-cash items which increased cash by $4.4 million, partially offset by net changes in our operating assets and liabilities which reduced cash by $19.5 million. The non-cash items include stock-based compensation expense of $3.1 million, and noncash lease expense of $2.1 million. The changes in operating assets and liabilities were primarily driven by a decrease in deferred revenue, which reduced cash by $11.9 million due to our overall decrease in sales in prior periods being recognized in 2024 and 2023, respectrively, an increase in accounts receivable, which reduced cash by $6.9 million, a decrease in accrued expenses, which reduced cash by $4.8 million, partially offset by a net increase due to deferred contract acquisition costs, which increased cash by $8.2 million.
Previous report
For thethree months ended March 31, 2026, net cash used in financing activities was $14.8 million, primarily driven by dividends and distributions paid.
Previous report
For the three months ended March 31, 2025, net cash used in financing activities was $20.2 million, primarily driven by dividends and distributions paid.
Reworded paragraphs (50)
Previous wording
Today, we benefit from the confluence of a leading editorial team, diverse portfolio of content and brands, and a comprehensive suite of investor-centric tools that appeal to a broad subscriber base.
Current wording
Today, we benefit from the confluence of a leading editorial team, a diverse portfolio of content and brands, and a comprehensive suite of investor-centric tools that appeal to a broad subscriber base.
Previous wording
▪Total Billings were $81.4 million in first quarter 2026, a year-over-year increase of 15%
Current wording
▪Total Billings were $91.2 million in the second quarter 2026, a year-over-year increase of 57%
Previous wording
▪Cash and cash equivalents were $52.7 million as of March 31, 2026, and no debt outstanding
Current wording
▪Cash and cash equivalents were $32.9 million as of June 30, 2026, and no debt outstanding
Previous wording
(1) The first quarter 2026 and 2025 quarterly results reported herein are unaudited.
Current wording
(1) The second quarter 2026 and 2025 results reported herein are unaudited.
Previous wording
The following table presents net cash provided by operating activities, and the related margin as a percentage of net revenue, Adjusted CFFO (as defined below), a non-GAAP measure, and the related margin as a percentage of Billings, Free Cash Flow and EBITDA (as defined below), both non-GAAP measures, for each of the periods presented. For more information on our non-GAAP measures, see “— Non-GAAP Financial Measures.”
Current wording
The following table presents net cash provided by operating activities, and the related margin as a percentage of net revenue, Adjusted CFFO (as defined below), a non-GAAP measure, and the related margin as a percentage of Billings, and Free Cash Flow, a non-GAAP measure, for each of the periods presented. For more information on our non-GAAP measures, see “Non-GAAP Financial Measures.”
Previous wording
Retaining and expanding relationships with existing subscribers. We believe that we have a significant opportunity to expand our relationships with our large base of Active Free and Paid Subscribers. Thanks to the quality of our products, we believe our customers will continue their relationship with us and extend and increase their subscriptions over time. As we deepen our engagement with our subscribers, our customers tend to purchase more and higher-value products. Our ARPU (as defined below) as of March 31, 2026 was $738, which increased 76.2% from $419 as of March 31, 2025. For more information on ARPU, see “Key Business Metrics — Average Revenue Per User.”
Current wording
Retaining and expanding relationships with existing subscribers. We believe that we have a significant opportunity to expand our relationships with our large base of Active Free and Paid Subscribers. Thanks to the quality of our products, we believe our customers will continue their relationship with us and extend and increase their subscriptions over time. As we deepen our engagement with our subscribers, our customers tend to purchase more and higher-value products. Our ARPU (as defined below) as of June 30, 2026 was $822, which increased by $347, or 73.3% from $474 as of June 30, 2025. For more information on ARPU, see “Key Business Metrics — Average Revenue Per User.”
Previous wording
Our high-value composition rate reflects the percentage of Paid Subscribers that have purchased more than $600 of our products over their lifetime. We believe our high-value composition rate reflects our ability to retain existing subscribers through renewals and our ability to expand our relationship with them when those subscribers purchase higher-value subscriptions. Our ultra high-value composition rate reflects the percentage of Paid Subscribers that have purchased more than $5,000 of our products over their lifetime. We believe our ultra high-value composition rate reflects our ability to successfully build lifetime relationships with our subscribers, often across multiple products and brands. As of March 31, 2026, 62% of our Paid Subscribers were high-value subscribers and 29% of our Paid Subscribers were ultra high-value subscribers.
Current wording
Our high-value composition rate reflects the percentage of Paid Subscribers that have purchased more than $600 of our products over their lifetime. We believe our high-value composition rate reflects our ability to retain existing subscribers through renewals and our ability to expand our relationship with them when those subscribers purchase higher-value subscriptions. Our ultra high-value composition rate reflects the percentage of Paid Subscribers that have purchased more than $5,000 of our products over their lifetime. We believe our ultra high-value composition rate reflects our ability to successfully build lifetime relationships with our subscribers, often across multiple products and brands. As of June 30, 2026, 60% of our Paid Subscribers were high-value subscribers and 28% of our Paid Subscribers were ultra high-value subscribers.
Previous wording
High-value composition rate: High-value composition rate is the number of high-valued subscribers divided by Paid Subscribers. High-value subscribers are Paid Subscribers who have purchased >$600 in aggregate over their lifetime.
Current wording
High-value composition rate: High-value composition rate is the number of high-valued subscribers divided by Paid Subscribers. High-value subscribers are Paid Subscribers who have purchased greater than $600 in aggregate over their lifetime.
Previous wording
LTV/CAC ratio: We calculate LTV/CAC ratio as LTVdivided by CAC. We use LTV/CAC ratio because it is a standard metric for subscription-based businesses, and we believe that an LTV/CAC ratio above 3x is considered to be indicative of strong profitability and marketing efficiency. We believe that an increasing LTV per subscriber reflects our existing subscribers recognizing our value proposition, which will expand their relationship with us across our platform over time, either through a combination of additional product purchases or by joining our membership offerings. Investors should consider this metric when evaluating our ability to achieve a return on our marketing investment. Lifetime value (“LTV”) represents the average margin on average customer lifetime Billings (that is, the estimated cumulative spend across a customer’s lifetime). Customer acquisition cost (“CAC”) is defined as direct marketing spend, plus external revenue share expense, plus retention and renewal expenses, plus copywriting and marketing salaries, plus telesales salaries and commissions, plus customer service commissions.
Current wording
We calculate LTV/CAC ratio as LTVdivided by CAC. We use LTV/CAC ratio because we believe it is a standard metric for subscription-based businesses, and we believe that an LTV/CAC ratio above 3x is considered to be indicative of strong profitability and marketing efficiency. We believe that an increasing LTV per subscriber reflects our existing subscribers recognizing our value proposition, which will expand their relationship with us across our platform over time, either through a combination of additional product purchases or by joining our membership offerings. We believe investors should consider this metric when evaluating our ability to achieve a return on our marketing investment.
Previous wording
Active Free Subscribers decreased by 1.0 million, or 34.4%, to 2.0 million as of March 31, 2026 as compared to 3.0 million as of March 31, 2025. The year over year decrease in Active Free Subscribers is a result of fewer free subscribers in total, a reduced number of free products available as we rationalize our offerings, and more targeted email sends.
Current wording
Active Free Subscribers decreased by 0.2 million, or 6.1%, to 2.1 million as of June 30, 2026 as compared to 2.3 million as of June 30, 2025. The year over year decrease in Active Free Subscribers is a result of fewer free subscribers in total and a reduced number of free products available as we rationalize our offerings.
Previous wording
Active Free Subscribers decreased by 0.1 million, or 3.9% to 2.0 million as of March 31, 2026 as compared to 2.0 million as of December 31, 2025. The slight sequential reduction was the result of the continued targeted email sends.
Current wording
Active Free Subscribers increased by 0.1 million, or 7.9% to 2.1 million as of June 30, 2026 as compared to 2.0 million as of March 31, 2026. The sequential increase was the result of increased success with targeted email sends during the quarter.
Previous wording
Total Paid Subscribers increased by 7 thousand, or 2.0%, to 381 thousand as of March 31, 2026 as compared to 374 thousand as of December 31, 2025. The increase was a result of increased new subscriber acquisition with several successful campaigns in the quarter while churn remained at low levels relative to recent history.
Current wording
Total Paid Subscribers increased by 19 thousand, or 4.8%, to 400 thousand as of June 30, 2026 as compared to 381 thousand as of March 31, 2026. The increase was a result of increased new subscriber acquisition driven by a continuation of opportunistic investment that continued throughout the second quarter 2026. There were many successful campaigns in the quarter while churn remained at low levels relative to recent history.
Previous wording
Subscriber count churn has ranged from approximately 2.4% to 3.7% per month between 2023 and 2025. Almost all of the subscribers who churned in first quarter 2026 did so having owned only one entry level publication. This is evidenced by the fact that their ARPU approximately matched the subscription price of our entry level publications. We believe our net revenue retention rate, which improved from 53% in 2024 to 91% in 2025, is a more meaningful gauge of subscriber satisfaction.
Current wording
Subscriber count churn has ranged from approximately 2.4% to 3.7% per month between 2023 and 2025. Almost all of the subscribers who churned in second quarter 2026 did so having owned only one entry level publication. This is evidenced by the fact that their ARPU approximately matched the subscription price of our entry level publications. We believe our net revenue retention rate, which improved from 53% in 2024 to 91% in 2025, is a more meaningful gauge of subscriber satisfaction.
Previous wording
ARPU increased by $319, or 76.2%, to $738 as of March 31, 2026 as compared to $419 as of March 31, 2025. The year-over-year increase was driven by a 21% increase in trailing four quarter Billings, while trailing four quarter Paid Subscribers decreased by 31%. The increase in trailing four quarter Billings was driven by sales of our software related content and to a lesser extent, sales of our entry level products. The decrease in trailing four quarter Paid Subscribers was driven by the winding down of our Legacy Research business during 2024. At the time of shutdown, paid Legacy Research subscribers were given replacement subscriptions to other affiliates within MarketWise for at least the duration of their original subscription. The last significant batch of these replacement subscriptions expired in second quarter 2025 and as such, those subscribers are still impacting the trailing four quarter Paid Subscribers ending first quarter 2025.
Current wording
ARPU increased by $347, or 73.3%, to $822 as of June 30, 2026 as compared to $474 as of June 30, 2025. The year-over-year increase was driven by a 35% increase in trailing four-quarter Billings, while trailing four-quarter average Paid Subscribers decreased by 22%. The Billings increase was seen across our product categories with the highest level of growth on a percentage basis coming from our software offerings. The decrease in trailing four-quarter Paid Subscribers was driven by the winding down of our Legacy Research business during 2024. At the time of shutdown, paid Legacy Research subscribers were given replacement subscriptions to other affiliates within MarketWise for at least the duration of their original subscription. The last significant batch of these replacement subscriptions expired in the second quarter 2025 and as such, those subscribers are still impacting the trailing four-quarter Paid Subscribers ending June 30, 2025.
Previous wording
ARPU increased by $69, or 10.3%, to $738 as of March 31, 2026 as compared to $670 as of December 31, 2025. The sequential increase was driven by a 6% decrease in trailing four-quarter average Paid Subscribers, while trailing four-quarter Billings were up 4%. Our ARPUs remain high relative to other subscription businesses, and we attribute this to the quality of our content and effective sales and marketing efforts regarding higher value content, bundled subscriptions and membership subscriptions.
Current wording
ARPU increased by $83, or 11.4%, to $822 as of June 30, 2026 as compared to $738 as of March 31, 2026. The sequential increase was driven by a 11.7% increase in trailing four-quarter Billings, while trailing four-quarter average Paid Subscribers were flat. Our ARPUs remain high relative to other subscription businesses, and we attribute this to the quality of our content and effective sales and marketing efforts regarding higher value content, bundled subscriptions and membership subscriptions.
Previous wording
Billings. Billings represents amounts invoiced to customers. We measure and monitor our Billings because it provides insight into trends in cash generation from our marketing campaigns. We generally bill our subscribers at the time of sale and receive full cash payment up front, and defer and recognize a portion of the related revenue ratably over time for term and membership subscriptions. For certain subscriptions, we may invoice our Paid Subscribers at the beginning of the term, in annual or monthly installments, and, from time to time, in multi-year installments. Only amounts invoiced to a Paid Subscriber in a given period are included in Billings. While we believe that Billings provides valuable insight into the cash that will be generated from sales of our subscriptions, this metric may vary from period to period for a number of reasons and, therefore, Billings has a number of limitations as a quarter-over-quarter or year-over-year comparative measure. These reasons include, but are not limited to, the following: (i) a variety of contractual terms could result in some periods having a higher proportion of annual or membership subscriptions than other periods; (ii) fluctuations in payment terms may affect the Billings recognized in a particular period; and (iii) the timing of large campaigns may vary significantly from period to period.
Current wording
Billings. Billings represent amounts invoiced to customers. We measure and monitor our Billings because it provides insight into trends in cash generation from our marketing campaigns. We generally bill our subscribers at the time of sale and receive full cash payment up front, and defer and recognize a portion of the related revenue ratably over time for term and membership subscriptions. For certain subscriptions, we may invoice our Paid Subscribers at the beginning of the term, in annual or monthly installments, and, from time to time, in multi-year installments. Only amounts invoiced to a Paid Subscriber in a given period are included in Billings. While we believe that Billings provides valuable insight into the cash that will be generated from sales of our subscriptions, this metric may vary from period to period for a number of reasons and, therefore, Billings has a number of limitations as a quarter-over-quarter or year-over-year comparative measure. These reasons include, but are not limited to, the following: (i) a variety of contractual terms could result in some periods having a higher proportion of annual or membership subscriptions than other periods; (ii) fluctuations in payment terms may affect the Billings recognized in a particular period; and (iii) the timing of large campaigns may vary significantly from period to period.
Previous wording
While Net Revenue and Billings are both related to sales of our products, there are key differences in how those sales are recognized. From a Net Revenue perspective, substantially all of the amounts invoiced to customers are originally reported as deferred revenue on our Balance Sheet and is subsequently recognized as Net Revenue over a period up to 5 years; whereas Billings, as defined above, represents amounts invoiced to customers in each period, and provides more insight from a cash generation perspective. As a result, there will be a perpetual disconnect between Billings and Net Revenue.
Current wording
While Net Revenue and Billings are both related to sales of our products, there are key differences in how those sales are recognized. From a Net Revenue perspective, substantially all of the amounts invoiced to customers are originally reported as deferred revenue on our Balance Sheet and are subsequently recognized as Net Revenue over a period up to 5 years; whereas Billings, as defined above, represents amounts invoiced to customers in each period, and provides more insight from a cash generation perspective. As a result, there will be a perpetual disconnect between Billings and Net Revenue.
Previous wording
New Marketing Billings are Billings from all new subscription sales. New Marketing Billings increased by $9.6 million, or 18.6%, to $60.9 million for first quarter 2026 as compared to $51.3 million for first quarter 2025. The increase was primarily driven by sales of our entry level and higher value products as well as sales of our software related content.
Current wording
New Marketing Billings are Billings from all new subscription sales. New Marketing Billings increased by $32.0 million, or 77.0%, to $73.6 million for second quarter 2026 as compared to $41.6 million for second quarter 2025. The increase was driven by sales across all of our categories, with the largest percentage increases coming from our entry level traditional newsletters followed by software related content and higher value traditional newsletters.
Previous wording
Net Renewal Billings are Billings from renewals and maintenance fee payments. Net Renewal Billings increased by $0.7 million, or 3.7%, to $19.0 million for first quarter 2026 as compared to $18.3 million for first quarter 2025. The increase came from renewals of premium priced term subscriptions of both traditional newsletters as well as our software related content.
Current wording
Net Renewal Billings are Billings from renewals and maintenance fee payments. Net Renewal Billings increased by $1.0 million, or 6.3%, to $16.4 million for second quarter 2026 as compared to $15.4 million for second quarter 2025. The increase was primarily driven by renewals of our higher value traditional newsletters.
Previous wording
Other Billings are Billings from revenue share, advertising and conferences. Other Billings increased by $0.7 million, or 83.6% to $1.5 million for first quarter 2026 as compared to $0.8 million for first quarter 2025 as a result of increasing revenue share activity from external parties.
Current wording
Other Billings are Billings from revenue share, advertising and conferences. Other Billings decreased by $0.1 million, or 2.2% to $1.1 million for second quarter 2026 as compared to $1.2 million for second quarter 2025.
Previous wording
Other Billings decreased by $2.4 million or 61.9% to $1.5 million for first quarter 2026 as compared to $3.9 million for fourth quarter 2025 as a result of decreasing revenue share activity with external parties as well as well as lack of conference revenue compared to fourth quarter 2025.
Current wording
Other Billings decreased by $0.4 million or 22.4% to $1.1 million for second quarter 2026 as compared to $1.5 million for first quarter 2026 as a result of decreasing revenue share activity with external parties.
Previous wording
Total Billings increased by $2.5 million, or 3.2%, to $81.4 million for first quarter 2026 as compared to $78.9 million for fourth quarter 2025. The increase was primarily driven by new marketing sales and renewals of traditional newsletter products.
Current wording
Total Billings increased by $33.0 million, or 56.7%, to $91.2 million for the second quarter 2026 as compared to $58.2 million for second quarter 2025. The increase was primarily driven by new marketing sales across all categories.
Previous wording
Total Billings increased by $10.9 million, or 15.5%, to $81.4 million for the first quarter 2026 as compared to $70.5 million for first quarter 2025. The increase was primarily driven by new marketing sales of our entry level products as well as sales of our software related content.
Current wording
Total Billings increased by $9.8 million, or 12.0%, to $91.2 million for second quarter 2026 as compared to $81.4 million for first quarter 2026. The increase was primarily driven by new marketing sales of higher value traditional newsletters and to a lesser extent, new marketing sales of entry level traditional newsletters. a
Previous wording
Impairment losses relate to impairment of leasehold improvements.
Current wording
Impairment losses relate to impairment of intangible assets.
Previous wording
Other income (expense), net primarily consists of the net gains or losses on our embedded derivative instruments.
Current wording
Other income, net primarily consists of the net gains or losses on our embedded derivative instruments and gain on sale of business unit.
Previous wording
Interest (expense) income, net primarily consists of interest income from our money market accounts.
Current wording
Interest income, net primarily consists of interest income from our money market accounts.
Previous wording
As of March 31, 2025, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 14.5% and the noncontrolling interest was 85.5%. For the three months ended March 31, 2025 net income attributable to controlling interests included a $1.0 million tax provision, which is 100% attributable to the controlling interest.
Current wording
As of June 30, 2026, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 17.0% and the noncontrolling interest was 83.0%. For the three months ended June 30, 2026, net income attributable to controlling interests included a $0.2 million tax benefit, and for six months ended June 30, 2026, net income attributable to controlling interests included a $0.1 million tax benefit both of which were 100% attributable to the controlling interest.
Previous wording
As of March 31, 2026, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 15.7% and the noncontrolling interest was 84.3%. For the three months ended March 31, 2026 net income attributable to controlling interests included a $0.1 million tax provision, which is 100% attributable to the controlling interest.
Current wording
As of June 30, 2025, MarketWise, Inc.’s controlling interest in MarketWise, LLC was 14.8% and the noncontrolling interest was 85.2%. For the three and six months ended June 30, 2025, net income attributable to controlling interests included a $0.6 million tax provision and a $1.7 million tax provision, respectively, which is 100% attributable to the controlling interest.
Previous wording
Term subscription revenue decreased during the three months ended March 31, 2026, primarily due to the wind down of Legacy Research and a decrease in Billings in prior periods causing reduced revenue recognition in the 2026 period, which contributed $3.0 million and $5.5 million to the overall term subscription revenue decrease, respectively. This is partially offset by an increase in Billings. Importantly, while Billings for the first quarter of 2026 increased 15% year over year, and represented the strongest quarterly Billings total since 2023, only a portion is recognized as Net Revenue in the current period, with the majority of the Billings recorded as Deferred Revenue to be recognized over future periods.
Current wording
Membership subscription and term subscription revenue decreased during the three months ended June 30, 2026, primarily due to the wind down of Legacy Research and a decrease in Billings in prior periods causing reduced revenue recognition in the 2026 period since revenue is deferred and recognized over the subscription term. This is partially offset by an increase in Billings. Importantly, while Billings for the second quarter of 2026 increased 56.7% year over year, and represented the strongest quarterly Billings total since 2023, only a portion is recognized as Net Revenue in the current period, with the majority of the Billings recorded as Deferred Revenue to be recognized over future periods.
Previous wording
Sales and marketing expenses increased primarily due to a $8.7 million increase in marketing expense as the Company meaningfully increased marketing efforts in the quarter due to multiple successful product launches. The increase in marketing expenses drove significantly higher customer acquisition in the quarter which also resulted in an increase in Paid Subscribers following several years of Paid Subscriber declines. From a timing perspective, the majority of Sales and marketing expenses are recognized in the period incurred whereas a majority of Billings resulting from the marketing efforts are recorded as Deferred Revenue. Additionally, sales and marketing expense increased due to a $1.0 million increase in salaries, taxes and benefits due to increased headcount. This increase in Sales and marketing expense was partially offset by a $4.6 million decrease in amortization of deferred contract acquisition costs.
Current wording
Sales and marketing expenses increased $11.2 million primarily due to a $12.8 million increase in marketing expense as the Company increased marketing efforts in the quarter due to multiple successful product launches. The increase in marketing expenses drove higher customer acquisition in the quarter which also resulted in an increase in Paid Subscribers following several years of Paid Subscriber declines. From a timing perspective, the majority of Sales and marketing expenses are recognized in the period incurred whereas a majority of Billings resulting from the marketing efforts are recorded as Deferred Revenue. Additionally, Sales and marketing expense increased due to a $1.2 million increase in salaries, taxes and benefits due to increased headcount. This increase in Sales and marketing expense was partially offset by a $2.6 million decrease in amortization of deferred contract acquisition costs.
Previous wording
The decrease in net revenue was primarily driven by a $7.1 million decrease in term subscription revenue and a $0.2 million decrease in membership subscription revenue, partially offset by a $0.8 million increase in non-subscription revenue.
Current wording
The decrease in net revenue was primarily driven by a $8.9 million decrease in term subscription revenue and a $2.3 million decrease in membership subscription revenue, partially offset by a $0.6 million increase in non-subscription revenue.
Previous wording
Non-subscription revenue increased during the three months ended March 31, 2026, primarily due to income related to revenue share agreements.
Current wording
Non-subscription revenue increased during the six months ended June 30, 2026, primarily due to income related to revenue share agreements.
Previous wording
General and administrative expense increased primarily due to a $1.8 million increase in professional services, a $1.0 million increase in incentive compensation, a $0.9 million increase in software expense, and a $0.5 million increase in salaries, taxes and benefits. Additionally, the 2025 period’s expense was reduced by one off items including a $1.6 million gain on lease termination and a $1.2 million gain on contingent consideration receivable.
Current wording
General and administrative expense increased $9.8 million primarily due to $2.5 million increase in variable compensation, $2.3 million in professional services, $1.4 million in software expense and $1.0 million in salaries, taxes and benefits. Additionally, the 2025 period’s expense was reduced by one time items including a $1.6 million gain on lease termination and a $1.7 million gain primarily from change in fair value of contingent consideration. These increases were partially offset by a $0.9 million decrease in outside labor.
Previous wording
In addition to our results determined in accordance with GAAP, we believe that the below non-GAAP financial measures are useful in evaluating operating performance. We use the below non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. This non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related
Current wording
In addition to our results determined in accordance with GAAP, we believe that the below non-GAAP financial measures are useful in evaluating operating performance. We use the below non-GAAP financial measures, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. This non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
Previous wording
CFFO and Adjusted CFFO for the three months ended March 31, 2026 was primarily due to net loss of $0.6 million, adjusted for net non-cash items which increased cash by $3.0 million. This was partially offset by net changes in our operating assets and liabilities which reduced cash by $4.5 million, including incentive compensation payouts and payments related to renegotiated employment agreements.
Current wording
CFFO and Adjusted CFFO for the three months ended June 30, 2026 was primarily due to net loss of $2.6 million, adjusted for net non-cash items which increased cash by $3.3 million. This was partially offset by net changes in our operating assets and liabilities which increased cash by $21.8 million, primarily driven by changes in deferred contract costs and deferred revenue.
Previous wording
Based on the nature of our business, and as illustrated in the chart below, CFFO fluctuates from quarter to quarter. Specifically, Q2 and Q4 tend to have higher CFFO while Q1 and Q3 tend to have lower CFFO. The amount of CFFO in any given quarter is impacted by the timing of product launches, marketing campaigns, and discrete working capital items.
Current wording
Based on the nature of our business, CFFO fluctuates from quarter to quarter. Specifically, Q2 and Q4 tend to have higher CFFO while Q1 and Q3 tend to have lower CFFO. The amount of CFFO in any given quarter is impacted by the timing of product launches, marketing campaigns, and discrete working capital items.
Previous wording
We refer to this accumulation of cash as our “float” which we view as a valuable resource that we may invest or use to expand our operations. The Company estimates that the amount of float was approximately $94.3 million and $98.2 million as of March 31, 2026 and December 31, 2025, respectively. As part of the Company's broader capital allocation strategy, our consolidated cash balance may from time to time decline below our estimate of the long term float requirement.
Current wording
We refer to this accumulation of cash as our “float” which we view as a valuable resource that we may invest or use to expand our operations. The Company estimates that the amount of “float” was approximately $97.2 million and $98.2 million as of June 30, 2026 and December 31, 2025, respectively. As part of the Company's broader capital allocation strategy, our consolidated cash balance may from time to time decline below our estimate of the long term float requirement.
Previous wording
For the three months ended March 31, 2026 and 2025, the Company earned interest income of $0.5 million and $0.9 million, respectively, on our cash portfolio which was invested solely in money market funds.
Current wording
For the three and six months ended June 30, 2026, respectively, the Company earned interest income of $0.3 million and $0.8 million, respectively, on our cash portfolio which was invested solely in money market funds.
Previous wording
As of March 31, 2026, our principal sources of liquidity were cash, cash equivalents, and restricted cash of $52.7 million. Cash and cash equivalents are comprised of bank deposits, money market funds, and certificates of deposit. We have financed our operations primarily through cash received from operations, and our sources of liquidity have enabled us to make continued investments in supporting the growth of our business. We expect that our anticipated operating cash flows, in addition to cash on hand, will enable us to continue to make investments in the future, and to pay dividends. We expect our operating cash flows to further improve as we increase our operational efficiency and experience economies of scale.
Current wording
As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $32.9 million. Cash and cash equivalents are comprised of bank deposits, money market funds, and certificates of deposit. We have financed our operations primarily through cash received from operations, and our sources of liquidity have enabled us to make continued investments in supporting the growth of our business. We expect that our anticipated operating cash flows, in addition to cash on hand, will enable us to continue to make investments in the future, and to pay dividends. We expect our operating cash flows to further improve as we increase our operational efficiency and experience economies of scale.
Previous wording
The dividends and distributions declared during the three months ended March 31, 2026, were as follows:
Current wording
The dividends and distributions declared during the six months ended June 30, 2026, were as follows:
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Current report — wording carried from elsewhere
Lifetime Value (“LTV”) represents the average margin on customer lifetime Billings (that is, the estimated cumulative spend across a customer’s lifetime). Customer Acquisition Costs (“CAC”) are comprised of: direct marketing expenses; external revenue share expenses; retention and renewal expenses, copywriting and marketing salaries; telesales salaries and commissions; and customer service commissions.
Current report — wording carried from elsewhere
Non-subscription revenue decreased during the three months ended June 30, 2026, primarily due to decrease in income related to revenue share agreements.
Current report — wording carried from elsewhere
Membership subscription and term subscription revenue decreased during the six months ended June 30, 2026, primarily due to the wind down of Legacy Research and a decrease in Billings in prior periods causing reduced revenue recognition in the 2026 period since revenue is deferred and recognized over the subscription term. This is partially offset by an increase in Billings. Importantly, while Billings for the six months ended June 30, 2026, increased 34.1% year over year, and represented the strongest quarterly Billings total since 2023, only a portion is recognized as Net Revenue in the current period, with the majority of the Billings recorded as Deferred Revenue to be recognized over future periods.
Current report — wording carried from elsewhere
Sales and marketing expenses increased $16.8 million primarily due to a $22.1 million increase in marketing expense as the Company meaningfully increased marketing efforts in the first half of 2026 due to multiple successful product launches. The increase in marketing expenses drove significantly higher customer acquisition in the quarter which also resulted in an increase in Paid Subscribers following several years of Paid Subscriber declines. From a timing perspective, the majority of Sales and marketing expenses are recognized in the period incurred whereas a majority of Billings resulting from the marketing efforts are recorded as Deferred Revenue. Additionally, Sales and marketing expense increased due to a $2.2 million increase in salaries, taxes and benefits due to increased headcount. This increase in Sales and marketing expense was partially offset by a $7.3 million decrease in amortization of deferred contract acquisition costs.
Current report — wording carried from elsewhere
On May 7, 2026, the Company announced that the Board of Directors authorized a new stock repurchase program of up to $50 million of Class A common stock.
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Previous report — wording carried elsewhere
GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures.