MarketWise (MKTW) AI Stock Analysis

• Market Cap: $298.12M
• Dividend Yield: 4.39%
• Average Volume (3M): 23.29K
• Price to Earnings (P/E): 1.7
• Beta (1Y): 0.88
• Revenue Growth: -11.07%
• EPS Growth: 953.01%
• Country: US
• Employees: 439
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.41
• Shares Outstanding: 2,647,468
• 10 Day Avg. Volume: 17,481
• 30 Day Avg. Volume: 23,294
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.86
• Enterprise Value/Market Cap: -0.37
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: -0.33
• Enterprise Value/Ebitda: -0.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $19.00 ▲(2.98%Upside)

MarketWise's overall score reflects strong technical indicators and positive sentiment from corporate leadership changes, offset by financial challenges. The stock appears undervalued based on valuation metrics, but financial instability and declining cash flow performance are significant concerns.

MarketWise Business Overview & Revenue Model

Company Description

MarketWise, Inc. operates a multi-brand platform of subscription businesses that provides financial research, software, education, and tools for investors in the United States and Internationally. The company offers a portfolio of independent investment research, as well as various software and analytical tools on a subscription basis. It provides its research across various platforms, including desktop and laptop, as well as mobile devices, such as tablets and mobile phones. The company serves approximately 972 thousand paid subscribers and approximately 13.7 million free subscribers. MarketWise, Inc. was founded in 1999 and is headquartered in Baltimore, Maryland.

How the Company Makes Money

MarketWise makes money primarily through subscription-based services. The company generates revenue by offering a wide range of financial research and analysis tools to individual investors and traders who subscribe to its various newsletters, investment reports, and educational content. Subscriptions are offered on a recurring basis, providing a stable and predictable revenue stream. Additionally, MarketWise monetizes its platform through strategic partnerships with financial advisors and institutions, which may involve revenue-sharing agreements or sponsorships. The company's earnings are significantly influenced by its ability to retain subscribers, expand its subscriber base, and continuously innovate its product offerings to meet the evolving needs of the investment community.

MarketWise Financial Statement Overview

Summary

MarketWise's financial statements indicate declining revenue and profitability, with a strong gross margin but a negative operating and free cash flow. The balance sheet shows negative equity, highlighting financial risk, despite a positive cash position.

Income Statement

MarketWise's income statement shows declining revenue over the past years with the latest TTM (Trailing-Twelve-Months) revenue at $382.7 million, compared to $405.4 million in the previous annual report. Gross profit margin remains strong at 86.94%, but net profit margin decreased to 11.30% from 22.97%, indicating reduced profitability. EBIT margin is stable at 22.00%, but the decline in EBITDA margin to 23.75% suggests potential operational challenges. Overall, the income statement reflects a mixed performance with strengths in gross profitability but weaknesses in revenue growth and net profitability.

Balance Sheet

MarketWise's balance sheet presents concerns due to negative stockholders' equity, which stands at -$217.7 million, indicating potential financial instability. The debt-to-equity ratio is not meaningful due to negative equity. The equity ratio is also negative, highlighting high leverage and financial risk. Despite these issues, the company maintains a positive cash position with cash and equivalents exceeding total debt.

Cash Flow

The cash flow statement highlights significant challenges, with a negative operating cash flow of -$43.58 million and a negative free cash flow of -$44.23 million in the TTM (Trailing-Twelve-Months). This marks a deterioration compared to the prior period, reflecting substantial cash outflows. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting net earnings into cash. Overall, cash flow performance is weak, with limited cash generation from operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
382.72M	405.36B	448.18M	512.40M	549.18M	364.18M
	Gross Profit
332.82M	354.69B	391.38M	449.71M	309.93M	209.57M
	EBIT
84.21M	88.99B	51.80M	87.28M	-967.59M	-538.69M
	EBITDA
90.88M	104.40B	58.21M	89.86M	-964.92M	-535.96M
	Net Income Common Stockholders
43.27M	93.11B	1.78M	101.17M	-953.88M	-537.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.18M	97.88M	155.17M	158.57M	139.08M	114.42M
	Total Assets
239.56M	259.51M	396.56M	442.51M	421.55M	284.81M
	Total Debt
1.76M	4.37M	5.81M	7.32M	8.21M	8.90M
	Net Debt
-77.42M	-93.51M	-149.36M	-151.26M	-130.87M	-105.52M
	Total Liabilities
457.29M	477.44M	685.50M	740.89M	826.82M	1.21B
	Stockholders Equity
-217.73M	-12.54M	-11.08M	-21.20M	-48.55M	-914.75M
Cash Flow		Free Cash Flow
-44.23M	-22.83M	60.70M	48.20M	62.46M	55.39M
	Operating Cash Flow
-43.58M	-22.15M	62.43M	48.37M	63.63M	55.88M
	Investing Cash Flow
12.02M	-681.00K	-1.90M	-13.24M	-8.31M	-9.65M
	Financing Cash Flow
-49.47M	-34.46M	-63.95M	-16.19M	-30.68M	-103.37M

MarketWise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTW, the sentiment is Positive. The current price of 18.45 is above the 20-day moving average (MA) of 17.50, above the 50-day MA of 14.64, and above the 200-day MA of 12.04, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKTW.

MarketWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKTW	66 Neutral	$298.12M	1.66	-10.56%	4.39%	-11.07%	953.01%
EB	63 Neutral	$240.68M	―	-9.90%	―	-6.52%	-2.19%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
LAW	59 Neutral	$259.65M	―	-33.75%	―	3.84%	-76.01%
IMMR	56 Neutral	$256.58M	3.04	35.11%	2.35%	3828.94%	129.01%
ONTF	56 Neutral	$233.61M	―	-24.47%	―	-8.39%	7.79%
EGHT	51 Neutral	$243.41M	―	-24.28%	―	-2.23%	19.48%

MarketWise Corporate Events

MarketWise Appoints Dr. David Eifrig as CEO

On May 27, 2025, MarketWise announced the appointment of Dr. David Eifrig as the permanent Chief Executive Officer, following his tenure as interim CEO since August 2024. During his interim period, Dr. Eifrig achieved improved financial performance and earned the confidence of the Board, employees, and shareholders. His leadership is expected to continue driving the company’s momentum and exploring new opportunities, with a focus on delivering value to customers, partners, and shareholders.

The most recent analyst rating on (MKTW) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on MarketWise stock, see the MKTW Stock Forecast page.

MarketWise Announces Reverse Stock Split to Boost Compliance

On March 31, 2025, MarketWise announced a 1-for-20 reverse stock split to address non-compliance with Nasdaq’s minimum bid price requirement. The reverse split, effective April 2, 2025, aims to increase the stock price to attract institutional investors and maintain Nasdaq listing. The company has already received shareholder approval and plans to adjust equity awards and authorized shares accordingly. The reverse split is expected to improve market perception and align the stock price with MarketWise’s market capitalization.