MarketWise (MKTW) AI Stock Analysis

• Market Cap: $226.58M
• Dividend Yield: 12.28%
• Average Volume (3M): 12.93K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 1.07
• Revenue Growth: -17.17%
• EPS Growth: 497.89%
• Country: US
• Employees: 439
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): 0.53
• Shares Outstanding: 2,758,989
• 10 Day Avg. Volume: 14,740
• 30 Day Avg. Volume: 12,931
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -1.02
• Enterprise Value/Revenue: -0.64
• Enterprise Value/Gross Profit: -0.74
• Enterprise Value/Ebitda: -2.68
• 1Y Price Target: $20.00
• Price Target Upside: 44.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $18.50 ▲(33.67% Upside)

MarketWise's overall stock score is primarily impacted by its financial challenges, including declining revenues and negative equity. While the technical analysis indicates a neutral to bearish trend, the stock's low P/E ratio and high dividend yield suggest potential undervaluation, offering some appeal to value investors.

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 faces significant financial challenges, with declining revenues, negative equity, and cash flow issues. While gross margins are strong, the company's ability to convert revenue into profit and cash is limited. The negative equity position and declining cash flows pose risks to financial stability and growth prospects.

Income Statement

MarketWise's income statement shows declining revenue with a negative growth rate of -6.55% TTM. The gross profit margin remains strong at 86.75%, indicating efficient cost management. However, the net profit margin is low at 1.69%, reflecting challenges in translating revenue into profit. EBIT and EBITDA margins are relatively healthy, but the overall revenue decline and low net profitability are concerning.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to an unusual negative debt-to-equity ratio. This indicates potential financial instability. The return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio is not calculable due to negative equity, highlighting a weak financial position.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth at -49.56% TTM, indicating cash generation issues. The operating cash flow to net income ratio is low at 0.08, suggesting limited cash conversion efficiency. The negative free cash flow to net income ratio further underscores cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	358.12M	408.70M	448.18M	512.40M	549.18M	364.18M
Gross Profit	310.68M	358.04M	391.38M	449.71M	309.93M	209.57M
EBITDA	86.05M	96.19M	58.21M	89.86M	-964.92M	-535.96M
Net Income	6.04M	7.06M	1.78M	17.99M	-1.01B	-538.37M
Balance Sheet
Total Assets	211.75M	259.51M	396.56M	442.51M	421.55M	284.81M
Cash, Cash Equivalents and Short-Term Investments	69.11M	97.88M	155.17M	158.57M	139.08M	114.42M
Total Debt	1.51M	4.37M	5.81M	7.32M	8.21M	8.90M
Total Liabilities	438.77M	477.44M	685.50M	740.89M	826.82M	1.21B
Stockholders Equity	-227.02M	-12.54M	-11.08M	-21.20M	-48.55M	-914.75M
Cash Flow
Free Cash Flow	-22.41M	-22.83M	60.70M	48.20M	62.46M	55.39M
Operating Cash Flow	19.73M	-22.15M	62.43M	48.37M	63.63M	55.88M
Investing Cash Flow	-494.00K	-681.00K	-1.90M	-13.24M	-8.31M	-9.65M
Financing Cash Flow	-59.51M	-34.46M	-63.95M	-16.19M	-30.68M	-103.37M

MarketWise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTW, the sentiment is Negative. The current price of 13.84 is below the 20-day moving average (MA) of 16.18, below the 50-day MA of 17.40, and below the 200-day MA of 14.68, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 22.94 is Positive, neither overbought nor oversold. The STOCH value of 9.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKTW.

MarketWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	80 Outperform	$343.63M	11.03	46.33%	―	-4.71%	368.66%
TRAK	74 Outperform	$261.28M	41.34	14.48%	0.52%	10.53%	21.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SMRT	58 Neutral	$261.42M	―	-25.48%	―	-28.45%	-224.48%
MKTW	53 Neutral	$226.58M	1.29	-10.56%	12.28%	-17.17%	497.89%
COE	48 Neutral	$216.45M	―	180.24%	―	91.86%	52.66%
OCFT	46 Neutral	$294.75M	50.30	-24.21%	―	-48.61%	-2291.48%

MarketWise Corporate Events

MarketWise Appoints Erik Mickels as COO and CFO

On July 31, 2025, MarketWise appointed Erik Mickels as Chief Operating and Financial Officer, a role combining his previous position as CFO with new operational responsibilities. Mickels, who has over 25 years of experience, is expected to drive operational excellence and financial strategy, enhancing MarketWise’s mission to provide world-class financial insights. His leadership is anticipated to support MarketWise’s growth and transformation, benefiting stakeholders by improving performance and fostering innovation.

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 Approves Amendment to Incentive Award Plan

On June 12, 2025, MarketWise, Inc. held its Annual Meeting of Stockholders where an amendment to the 2021 Incentive Award Plan was approved. This amendment, which had been previously adopted by the board of directors, increases the shares reserved for issuance under the plan by 1,630,554 shares, impacting the company’s stockholder incentives and potentially its market positioning.

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 Holds Annual Stockholders Meeting on June 12

On June 12, 2025, MarketWise, Inc. held its Annual Meeting of Stockholders where three key proposals were voted on. The stockholders elected Dr. David Eifrig and Van Simmons as Class I directors until 2028, approved an amendment to increase the share limit of the 2021 Incentive Award Plan, and ratified Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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.