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MarketWise
(NASDAQ:MKTW)
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Rating:57Neutral
Price Target:
$21.00
▲(5.32% Upside)
Action:Reiterated
Date:06/09/26
The score is driven primarily by mixed financial quality (strong margins and currently positive free cash flow, but declining revenue and a weak balance sheet with negative equity). Valuation is a meaningful offset with a low P/E and high dividend yield, while technical indicators remain weak and recent corporate events are mixed.
Positive Factors
Very strong gross margins
Sustained mid-80% gross margins reflect a high-margin digital subscription model with low incremental costs. This structural advantage supports durable profitability as revenue scales, enabling reinvestment in content and steady gross-profit generation even if revenue growth moderates.
Negative Factors
Persistently negative stockholders' equity
Negative equity erodes financial flexibility and raises governance and solvency perception risks. It can complicate capital-raising, limit strategic options, and make balance-sheet metrics unreliable, constraining the firm's ability to absorb shocks or fund larger growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong gross margins
Sustained mid-80% gross margins reflect a high-margin digital subscription model with low incremental costs. This structural advantage supports durable profitability as revenue scales, enabling reinvestment in content and steady gross-profit generation even if revenue growth moderates.
Read all positive factors
MarketWise (MKTW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$318.18M
Dividend Yield4.57%
Average Volume (3M)8.16K
Price to Earnings (P/E)11.3
Beta (1Y)0.77
Revenue Growth-16.07%
EPS Growth-85.04%
CountryUS
Employees451
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)1.75
Shares Outstanding2,638,780
10 Day Avg. Volume7,981
30 Day Avg. Volume8,161
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)-3.00
Price to Sales (P/S)0.11
P/FCF Ratio0.77
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.87
Revenue Forecast (FY)$315.89M
MarketWise Business Overview & Revenue Model
Company Description
MarketWise, Inc. operates a comprehensive multi-brand platform that offers subscription-based financial research, educational materials, software, and specialized tools to investors across the United States and internationally. The company's diver...
How the Company Makes Money
MarketWise primarily makes money by selling paid subscriptions to its investment research and financial publishing products. The core revenue stream is subscription and newsletter publishing revenue generated from customers who pay for access to p...
MarketWise Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 321.64M | 328.12M | 408.70M | 448.18M | 512.40M | 549.18M |
| Gross Profit | 277.96M | 283.79M | 358.04M | 391.38M | 449.71M | 309.93M |
| EBITDA | 50.02M | 68.78M | 96.19M | 58.21M | 105.53M | -948.74M |
| Net Income | 4.16M | 5.62M | 7.06M | 1.78M | 17.99M | -1.01B |
Balance Sheet | ||||||
| Total Assets | 201.92M | 218.38M | 259.51M | 396.56M | 442.51M | 421.55M |
| Cash, Cash Equivalents and Short-Term Investments | 52.67M | 70.14M | 97.88M | 155.17M | 158.57M | 139.08M |
| Total Debt | 5.71M | 6.08M | 4.37M | 5.81M | 7.32M | 8.21M |
| Total Liabilities | 428.81M | 432.00M | 477.44M | 685.50M | 740.89M | 826.82M |
| Stockholders Equity | -12.24M | -11.68M | -12.54M | -11.08M | -21.20M | -48.55M |
Cash Flow | ||||||
| Free Cash Flow | 42.13M | 45.57M | -22.83M | 60.70M | 48.20M | 62.46M |
| Operating Cash Flow | 42.15M | 45.96M | -22.15M | 62.43M | 48.37M | 63.63M |
| Investing Cash Flow | -1.95M | -1.57M | -681.00K | -1.90M | -13.24M | -8.31M |
| Financing Cash Flow | -66.69M | -72.11M | -34.46M | -63.95M | -16.19M | -30.68M |
MarketWise Technical Analysis
Positive
19.94
Price Trends
18.45
Positive
17.54
Positive
16.06
Positive
Market Momentum
0.55
Positive
65.87
Neutral
44.98
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 19.94 is below the 20-day moving average (MA) of 20.19, above the 50-day MA of 18.45, and above the 200-day MA of 16.06, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 44.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKTW.
MarketWise Risk Analysis
MarketWise disclosed 47 risk factors in its most recent earnings report. MarketWise reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MarketWise Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $153.38M | 21.59 | 14.58% | 0.98% | 6.55% | 11.41% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $187.21M | 4.86 | 44.62% | ― | 5.20% | 1319.56% | |
57 Neutral | $318.18M | 11.26 | -30.68% | 4.51% | -16.07% | -85.04% | |
55 Neutral | $194.77M | -7.70 | -10.61% | ― | -9.70% | 61.30% | |
46 Neutral | $106.09M | -0.11 | 61.87% | ― | 82.80% | -243.73% |
* Financial Sector Average
MKTW
MarketWise
21.13
3.35
18.85%
EGAN
eGain
7.23
0.78
12.09%
TRAK
ReposiTrak
8.61
-7.94
-47.98%
COE
China Online Education Group
18.99
-13.36
-41.30%
SMRT
SmartRent
1.30
0.16
14.04%
MarketWise Corporate Events
Executive/Board ChangesShareholder Meetings
MarketWise Shareholders Reject Executive Pay in Annual Meeting
Negative
Jun 8, 2026
On June 4, 2026, MarketWise, Inc. held its Annual Meeting of Stockholders, where investors elected Matthew Turner as a Class II director to serve until the 2029 annual meeting and ratified Grant Thornton LLP as the independent registered public ac...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
MarketWise Posts Strong Q1, Boosts Buybacks and Dividends
Positive
May 7, 2026
On May 7, 2026, MarketWise reported unaudited first-quarter 2026 results showing net revenue of $77 million, billings of $81.4 million—its strongest quarter since 2023—and a net loss of $0.6 million, largely tied to timing differences ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.