Operating margins have collapsed from a peak of 24.8% in 2024Q4 to -1.4% in 2026Q1, reflecting an inability to scale costs against a -7.8% year-over-year revenue contraction.
| Sales/Revenue | 321.64M | 328.12M | 408.7M | 448.18M | 512.4M | 549.18M | 364.18M | 272.22M |
| Revenue Growth % | -16.07% | -19.72% | -8.81% | -12.53% | -6.7% | 50.8% | 33.78% | - |
| Cost of Goods Sold | 43.68M | 44.34M | 50.66M | 56.8M | 62.7M | 239.25M | 154.6M | 42.55M |
| COGS % of Revenue | - | 13.51% | 12.4% | 12.67% | 12.24% | 43.56% | 42.45% | 15.63% |
| Gross Profit | 277.96M | 283.79M | 358.04M | 391.38M | 449.71M | 309.93M | 209.57M | 229.67M |
| Gross Margin % | 86.42% | 86.49% | 87.6% | 87.33% | 87.76% | 56.44% | 57.55% | 84.37% |
| Gross Profit Growth % | - | -20.74% | -8.52% | -12.97% | 45.1% | 47.89% | -8.75% | - |
| Operating Expenses | 233.24M | 220.81M | 269.05M | 339.57M | 362.42M | 1.28B | 748.26M | 204.1M |
| OpEx % of Revenue | - | 67.3% | 65.83% | 75.77% | 70.73% | 232.62% | 205.47% | 74.98% |
| Selling, General & Admin | 221.91M | 209.81M | 251.94M | 324.34M | 350.51M | 1.27B | 740.94M | 198.09M |
| SG&A % of Revenue | - | 63.94% | 61.65% | 72.37% | 68.41% | 230.77% | 203.45% | 72.77% |
| Research & Development | 9.18M | 8.81M | 9.91M | 8.83M | 8.82M | 7.49M | 4.77M | 3.67M |
| R&D % of Revenue | - | 2.69% | 2.42% | 1.97% | 1.72% | 1.36% | 1.31% | 1.35% |
| Other Operating Expenses | 2.15M | 2.19M | 7.2M | 6.4M | 3.09M | 2.68M | 2.55M | 2.33M |
| Operating Income | 44.72M | 62.98M | 88.99M | 51.8M | 87.28M | -967.59M | -538.69M | 25.57M |
| Operating Margin % | 13.9% | 19.19% | 21.77% | 11.56% | 17.03% | -176.19% | -147.92% | 9.39% |
| Operating Income Growth % | - | -29.23% | 71.77% | -40.65% | 109.02% | -79.62% | -2206.72% | - |
| EBITDA | 46.51M | 65.16M | 91.74M | 55.63M | 89.86M | -964.92M | -536.14M | 27.9M |
| EBITDA Margin % | 14.46% | 19.86% | 22.45% | 12.41% | 17.54% | -175.7% | -147.22% | 10.25% |
| EBITDA Growth % | -46.42% | -28.97% | 64.92% | -38.1% | 109.31% | -79.98% | -2021.36% | - |
| D&A (Non-Cash Add-back) | 1.79M | 2.19M | 2.75M | 3.82M | 2.58M | 2.68M | 2.55M | 2.33M |
| EBIT | 45.88M | 62.98M | 93.43M | 54.39M | 87.28M | -967.59M | -538.69M | 25.57M |
| Net Interest Income | 1.28M | 0 | 5.29M | 4.9M | -295K | -110K | 477K | 1.56M |
| Interest Income | 1.28M | 0 | 5.29M | 4.9M | 0 | 0 | 477K | 1.56M |
| Interest Expense | 0 | 0 | 0 | 0 | 295K | 110K | 0 | 0 |
| Other Income/Expense | 3.51M | 3.62M | 7.37M | 4.29M | 15.38M | 16.07M | -2.4M | 2.42M |
| Pretax Income | 48.23M | 66.6M | 96.36M | 56.1M | 102.66M | -951.52M | -541.09M | 27.99M |
| Pretax Margin % | 14.99% | 20.3% | 23.58% | 12.52% | 20.04% | -173.26% | -148.58% | 10.28% |
| Income Tax | 1.58M | 2.56M | 3.25M | 1.8M | 1.49M | 2.36M | 0 | 0 |
| Effective Tax Rate % | 3.28% | 3.84% | 3.38% | 3.21% | 1.45% | -0.25% | 0% | 0% |
| Net Income | 4.16M | 5.62M | 7.06M | 1.78M | 17.99M | -1.01B | -538.37M | 27.96M |
| Net Margin % | 1.29% | 1.71% | 1.73% | 0.4% | 3.51% | -184.51% | -147.83% | 10.27% |
| Net Income Growth % | -33.93% | -20.39% | 296.13% | -90.09% | 101.78% | -88.22% | -2025.72% | - |
| Net Income (Continuing) | 46.65M | 64.04M | 93.11M | 54.3M | 101.17M | -953.88M | -541.09M | 27.99M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -214.65M | -201.94M | -205.39M | -277.86M | -277.19M | -356.72M | -5.87M | -5.77M |
| EPS (Diluted) | 1.67 | 2.31 | 3.57 | 1.00 | 14.54 | -504.69 | -208.07 | 10.80 |
| EPS Growth % | -47.15% | -35.29% | 257% | -93.12% | 102.88% | -142.56% | -2026.57% | - |
| EPS (Basic) | - | 2.41 | 3.68 | 1.12 | 14.61 | -504.69 | -208.07 | 10.80 |
| Diluted Shares Outstanding | 2.49M | 2.44M | 1.97M | 1.67M | 1.24M | 1.89M | 2.59M | 2.59M |
| Basic Shares Outstanding | 2.49M | 2.33M | 1.92M | 1.59M | 1.23M | 1.89M | 2.59M | 2.59M |
| Dividend Payout Ratio | - | 84.98% | 21.33% | 322.33% | - | - | - | 73.22% |
Subscriber churn and CAC
As indicated by recent quarterly filings, MarketWise has experienced a sustained revenue decline, culminating in a -7.8% year-over-year contraction in 2026Q1, which highlights the difficulty of maintaining top-line growth amidst shifting retail investor sentiment and a cooling demand environment for financial research subscription products.
The consistent negative growth trajectory suggests that the company's core subscription model is struggling to offset the attrition of its paid user base. This trend appears to reflect a broader cyclical downturn in retail trading activity, which historically serves as the primary catalyst for new customer acquisition and retention.
Based on the provided financial data, MarketWise's operating margin has deteriorated significantly, falling to -1.4% in 2026Q1 from a peak of 24.8% in 2024Q4, illustrating the company's inability to scale its fixed cost base in proportion to the rapid decline in top-line revenue.
While gross margins remain robust at 85.5%, the collapse in operating profitability suggests that the company's marketing-heavy business model lacks the necessary flexibility to adjust to lower revenue environments. Investors should monitor whether this margin erosion is a temporary byproduct of aggressive customer acquisition or a permanent structural shift.
According to reported financial statements, the quality of net income is frequently obscured by significant stock-based compensation charges, such as the $16.8 million recorded in 2025Q4, which creates a disconnect between GAAP earnings and the underlying cash-generating capability of the core subscription business.
The wide variance in quarterly net income, ranging from losses to modest profits, suggests that non-operating items and compensation expenses are heavily influencing the bottom line. This volatility warrants further investigation into the sustainability of earnings, as the current net margin of -0.7% indicates a precarious path to profitability.
As reported in recent filings, MarketWise maintains a high-fixed-cost structure where SG&A expenses have remained stubbornly elevated despite the double-digit revenue declines, suggesting that management has yet to successfully align its operational footprint with the current, more constrained demand environment for its financial research.
The persistence of high SG&A relative to gross profit implies that the company is either prioritizing long-term market share through continued marketing spend or is unable to quickly reduce its editorial and overhead costs. This lack of expense discipline appears to be the primary driver behind the recent swing into operating losses.
Based on an analysis of the company's historical performance, short-sellers may focus on the potential for a negative feedback loop where declining revenue forces reduced marketing spend, which in turn accelerates the attrition of the 13.7 million free subscriber base and further suppresses future conversion rates.
The core risk is that the company's reliance on high-CAC marketing to drive paid conversions is becoming increasingly inefficient in the current market cycle. If the conversion funnel continues to weaken, the company may find itself with a large, non-monetizable free user base that fails to justify the ongoing operational costs.
Quick answers to the most common questions about buying MKTW stock.
For fiscal year 2025, MarketWise, Inc. (MKTW) reported total revenue of $328.1M. This represents a 20.5% increase compared to $272.2M in 2019.
MarketWise, Inc. (MKTW) is profitable, generating $5.6M in net income for the fiscal year ending 2025 with a net profit margin of 1.7%.
MarketWise, Inc. (MKTW) reported an operating income of $63.0M, resulting in an operating profit margin of 19.2%. This margin reflects the operational efficiency of the business before interest and taxes.
MarketWise, Inc. (MKTW) generated $283.8M in gross profit for the year, representing a gross profit margin of 86.5%. This demonstrates the company's core pricing power and production efficiency.