MarketWise (MKTW) AI Stock Analysis

• Market Cap: $256.79M
• Dividend Yield: 13.11%
• Average Volume (3M): 8.11K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.91
• Revenue Growth: -19.17%
• EPS Growth: 308.81%
• Country: US
• Employees: 439
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): 0.58
• Shares Outstanding: 2,416,640
• 10 Day Avg. Volume: 8,226
• 30 Day Avg. Volume: 8,113
• PEG Ratio: 0.01
• Price to Book (P/B): -1.73
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -0.95
• Enterprise Value/Market Cap: -0.83
• Enterprise Value/Revenue: -0.62
• Enterprise Value/Gross Profit: -0.72
• Enterprise Value/Ebitda: -2.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -2.18
• Revenue Forecast (FY): $304.19M

• Rating: 66 Neutral
• Price Target: $18.50 ▲(15.55% Upside)

MarketWise's overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield, indicating potential undervaluation. Technical analysis supports a positive momentum, although caution is advised due to high stochastic levels. Financial performance is a concern due to declining revenue and negative equity, which weigh down the overall score.

Positive Factors

Cash Flow Generation

Positive cash flow from operations suggests that MarketWise can sustain its business activities and invest in growth without relying heavily on external financing.

Gross Profit Margin

A high gross profit margin indicates efficient production and pricing strategies, providing a buffer to improve net profitability through cost management.

Dividend Declaration

The declaration of dividends reflects confidence in cash flow stability and provides an income stream to shareholders, enhancing shareholder value.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and customer retention, which could impact long-term growth prospects.

Negative Equity

Negative equity suggests financial instability and potential solvency issues, which may limit the company's ability to raise capital and invest in growth.

Free Cash Flow Decline

A sharp decline in free cash flow growth can strain financial flexibility, impacting the company's ability to fund operations and strategic initiatives.

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 generates revenue primarily through subscription sales of its investment research products and services. The company offers various subscription tiers, allowing customers access to different levels of content and resources. Key revenue streams include monthly and annual subscriptions to its newsletters and advisory services, which provide market analysis, stock recommendations, and trading strategies. Additionally, MarketWise may earn revenue through partnerships with financial institutions and affiliate marketing arrangements that promote third-party financial products. The company also leverages digital marketing strategies to attract new subscribers and retain existing customers, contributing to its overall earnings.

MarketWise Financial Statement Overview

Summary

MarketWise faces challenges with declining revenue and profitability, alongside a weak balance sheet with negative equity. While cash flow generation from operations is positive, the significant drop in free cash flow growth raises concerns. The company needs to address its financial structure and improve profitability to enhance its financial health.

Income Statement

MarketWise's income statement shows a declining revenue trend with a negative growth rate of -4.57% in the TTM period. Despite a strong gross profit margin of 86.98%, the net profit margin is relatively low at 6.51%, indicating challenges in converting revenue to profit. The EBIT and EBITDA margins are moderate, suggesting operational efficiency but also highlighting the need for improved cost management.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, resulting in a negative debt-to-equity ratio. The return on equity is also negative, reflecting financial instability. The equity ratio is not calculable due to negative equity, indicating potential solvency issues.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth at -222.60% in the TTM period. However, the operating cash flow to net income ratio is positive, indicating that the company is generating cash from operations. The free cash flow to net income ratio is close to 1, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	342.21M	408.70M	448.18M	512.40M	549.18M	364.18M
Gross Profit	297.57M	358.04M	391.38M	449.71M	309.93M	209.57M
EBITDA	81.65M	96.19M	58.21M	89.86M	-964.92M	-536.14M
Net Income	5.83M	7.06M	1.78M	17.99M	-1.01B	-538.37M
Balance Sheet
Total Assets	201.66M	259.51M	396.56M	442.51M	421.55M	284.81M
Cash, Cash Equivalents and Short-Term Investments	50.53M	97.88M	155.17M	158.57M	139.08M	114.42M
Total Debt	6.14M	4.37M	5.81M	7.32M	8.21M	8.90M
Total Liabilities	427.61M	477.44M	685.50M	740.89M	826.82M	1.21B
Stockholders Equity	-14.52M	-12.54M	-11.08M	-21.20M	-48.55M	-914.75M
Cash Flow
Free Cash Flow	27.47M	-22.83M	60.70M	48.20M	62.46M	55.59M
Operating Cash Flow	27.73M	-22.15M	62.43M	48.37M	63.63M	55.88M
Investing Cash Flow	-931.00K	-681.00K	-1.90M	-13.24M	-8.31M	-9.65M
Financing Cash Flow	-70.34M	-34.46M	-63.95M	-16.19M	-30.68M	-103.37M

MarketWise Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.01
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTW, the sentiment is Neutral. The current price of 16.01 is below the 20-day moving average (MA) of 16.19, above the 50-day MA of 15.52, and above the 200-day MA of 15.47, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MKTW.

MarketWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	74 Outperform	$279.71M	8.34	49.42%	―	-0.32%	557.28%
TRAK	73 Outperform	$245.07M	37.16	14.60%	0.56%	11.05%	18.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MKTW	66 Neutral	$256.79M	1.54	―	13.11%	-19.17%	308.81%
SMRT	62 Neutral	$391.65M	-5.80	-25.48%	―	-24.30%	-181.62%
COE	48 Neutral	$213.58M	-20.17	―	―	92.26%	-1.18%
OCFT	47 Neutral	$308.14M	-3.06	-24.21%	―	-48.61%	-2291.48%

MarketWise Corporate Events

MarketWise Engages Advisors Amid Acquisition Proposal

On November 20, 2025, MarketWise, Inc. announced that its Special Committee of the Board of Directors has retained Centerview Partners LLC as its financial advisor and Kirkland & Ellis LLP as its legal advisor. This decision follows an unsolicited non-binding proposal from Monument & Cathedral Holdings, LLC to acquire the company’s outstanding equity interests for $17.25 per share. The Special Committee is tasked with evaluating the proposal and any alternatives, though there is no assurance of a resulting transaction. MarketWise has stated it will not provide further updates unless necessary.

MarketWise Receives Acquisition Proposal from M&C Holdings

On October 29, 2025, MarketWise, Inc. announced it received an unsolicited proposal from Monument & Cathedral Holdings, LLC to acquire all outstanding equity interests not owned by M&C for $17.25 per share. The proposal’s acceptance is contingent upon the termination of MarketWise’s tax receivable agreement. The company’s Board of Directors is reviewing the proposal with advisors, and there is no guarantee a transaction will occur.