Stonegate Capital Partners Initiates Coverage on MarketWise (MKTW)

By: Newsfile
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Dallas, Texas--(Newsfile Corp. - March 23, 2026) - Stonegate Capital Partners Initiates Coverage on MarketWise (NASDAQ: MKTW). MarketWise exited FY25 with a stronger operating profile, as improving demand and execution helped offset the lagged impact of weaker prior-period billings on reported revenue. FY25 billings increased to $271.2M (+13.4% y/y) and CFFO improved to $46.0M from $(22.2)M in FY24, while revenue declined to $328.1M (-19.7% y/y) and net income fell to $64.0M (-31.2% y/y). Management identified 4Q24 as the inflection point after 12 quarters of decline, with momentum accelerating through FY25. In 4Q25, billings rose to $78.9M (+42.0% y/y) and CFFO increased to $24.2M from $6.0M in 4Q24, while revenue declined to $83.3M and net income fell to $14.0M. Overall, FY25 showed a clear turnaround in billings and cash flow despite GAAP revenue pressure.

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Key Takeaways:

  • Underlying turnaround is real despite lagged GAAP revenue. FY25 billings rose 13.4% to $271.2M and CFFO improved to $46.0M from $(22.2)M, while 4Q25 billings jumped 42.0% y/y to $78.9M, showing operating momentum even as reported revenue continued to reflect older cohorts.
  • Customer quality improved meaningfully. Paid subscribers fell 26.1% y/y to 374K, but net revenue retention rebounded to 91% from 53%, ARPU rose 70.1% to $670, and higher-spend subscribers became a larger share of the base, pointing to a smaller but stronger customer base.
  • Balance sheet and capital return story remain attractive. MarketWise ended FY25 with $70.1M cash and no debt, paid $15.7M in dividends, repurchased $3.4M of stock, raised the regular dividend by 25%, and guided to ~$300M billings and ~$50M CFFO in FY26.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/289537

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