Free cash flow remains highly volatile, swinging from a 30.3% margin in 2025Q4 to a -3.3% margin in 2026Q1, further complicated by significant stock-based compensation charges like the $16.8 million recorded in 2025Q4.
| Cash from Operations | 42.15M | 45.96M | -22.15M | 62.43M | 48.37M | 63.63M | 55.88M | 54.2M |
| Operating CF Margin % | - | 14.01% | -5.42% | 13.93% | 9.44% | 11.59% | 15.34% | 19.91% |
| Operating CF Growth % | 792.2% | 307.49% | -135.48% | 29.05% | -23.98% | 13.88% | 3.09% | - |
| Net Income | 4.16M | 64.04M | 93.11M | 1.78M | 101.17M | -953.88M | -538.37M | 27.99M |
| Depreciation & Amortization | 2.17M | 2.19M | 2.75M | 3.82M | 3.09M | 2.68M | 2.55M | 2.33M |
| Stock-Based Compensation | 22.11M | 11.11M | 12.2M | 23.38M | 9.04M | 210.91M | 553.6M | 8.61M |
| Deferred Taxes | 3.28M | 954K | 2.87M | 1.8M | 1.49M | 2.36M | 0 | -3.26M |
| Other Non-Cash Items | -46.68M | 88K | 4.96M | 60.62M | -13.55M | 711.81M | 110.37M | 3.1M |
| Working Capital Changes | -851K | -32.42M | -138.04M | -28.98M | -52.87M | 89.76M | -72.27M | 15.42M |
| Change in Receivables | 5.3M | -2.73M | 2.65M | -488K | 3.77M | 4.59M | -5.07M | -6.51M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.64M | -123K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.95M | -1.57M | -681K | -1.9M | -13.24M | -8.31M | -9.65M | 12.39M |
| Capital Expenditures | 312K | -391K | -133K | -65K | -171K | -1.17M | -290K | -929K |
| CapEx % of Revenue | 0.1% | 0.12% | 0.03% | 0.01% | 0.03% | 0.21% | 0.08% | 0.34% |
| Acquisitions | 0 | 0 | 0 | -170K | -13.07M | -7.14M | -9.16M | 13.32M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -2.26M | -1.18M | -548K | -1.66M | 0 | 0 | -195K | 0 |
| Cash from Financing | -66.69M | -72.11M | -34.46M | -63.95M | -16.19M | -30.68M | -103.37M | -27.34M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 1.16M | 0 | -5.39M | -1.93M |
| Equity Issued (Net) | -4.57M | -2.96M | -10.5M | 678K | -12.23M | -3.34M | 0 | 0 |
| Dividends Paid | -3.93M | -4.78M | -1.51M | -5.74M | 0 | -135.45M | -101.77M | -20.47M |
| Share Repurchases | -4.99M | -3.38M | -10.8M | -5.74M | -13.05M | -3.34M | 0 | 0 |
| Other Financing | -58.18M | -64.37M | -22.45M | -58.89M | -5.12M | 108.11M | 3.79M | -4.94M |
| Net Change in Cash | -26.51M | -27.74M | -57.3M | -3.4M | 19M | 24.65M | -57.16M | 39.21M |
| Free Cash Flow | 42.59M | 45.57M | -22.83M | 60.7M | 48.2M | 62.46M | 55.59M | 53.27M |
| FCF Margin % | 13.24% | 13.89% | -5.59% | 13.54% | 9.41% | 11.37% | 15.26% | 19.57% |
| FCF Growth % | 1758.45% | 299.58% | -137.61% | 25.93% | -22.83% | 12.37% | 4.34% | - |
| FCF per Share | 17.10 | 18.71 | -11.59 | 36.44 | 38.96 | 33.05 | 21.48 | 20.59 |
| FCF Conversion (FCF/Net Income) | 10.25x | 8.18x | -3.14x | 35.03x | 2.69x | -0.06x | -0.10x | 1.94x |
| Interest Paid | 5K | 0 | 0 | 0 | 0 | 0 | 339K | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Subscriber churn and CAC
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from a massive 126.09 in 2023Q4 to a negative -11.17 in 2024Q1, signaling significant volatility in the company's ability to convert accounting profits into actual cash.
The extreme variance in the OCF/NI ratio suggests that GAAP net income is a poor proxy for the underlying cash-generating health of the business. Investors should monitor the impact of non-cash items and working capital swings, which appear to mask the true cash-flow-generating capacity of the subscription model.
Based on recent SEC filings, MarketWise's FCF trajectory is characterized by extreme instability, with margins fluctuating from a peak of 30.3% in 2025Q4 to a deep trough of -17.2% in 2024Q1, reflecting the company's sensitivity to cyclical retail investor engagement and high marketing-driven cash outflows.
The inability to maintain consistent positive free cash flow suggests that the business model remains highly dependent on aggressive, lumpy marketing spend to sustain its subscriber base. This volatility warrants caution, as the company appears unable to decouple its cash generation from the high costs of customer acquisition.
According to historical cash flow data, working capital changes have frequently acted as a significant drag on liquidity, with a massive $46.8 million outflow in 2024Q1, indicating that the timing of subscription billings and deferred revenue recognition creates substantial, unpredictable pressure on the company's cash position.
The recurring negative working capital adjustments suggest that the company's cash collection cycle is highly sensitive to the timing of multi-year subscription renewals. This dynamic implies that reported revenue may significantly lead actual cash receipts, potentially overstating the company's immediate liquidity during periods of declining subscriber interest.
As evidenced by the provided data, stock-based compensation remains a material non-cash adjustment, reaching $16.8 million in 2025Q4, which effectively obscures the true economic cost of talent retention and dilutes the cash flow available to shareholders despite the company's reported net income figures.
The reliance on stock-based compensation to manage the cost structure suggests that the company may be understating its true operating expenses to preserve the appearance of profitability. Investors should consider the impact of this dilution on future cash flow per share, as it represents a persistent, albeit non-cash, claim on the enterprise value.
Quick answers to the most common questions about buying MKTW stock.
MarketWise, Inc. (MKTW) generated $46.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MarketWise, Inc. (MKTW) generated $45.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
MarketWise, Inc. (MKTW) spent $0.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MarketWise, Inc. (MKTW) returned $4.8M to shareholders via cash dividends and spent $3.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.