MarketWise Billings Rise 15.5% to $81.4M While ARPU Hits $738 in 1Q26
MKTW•MarketWise’s billings jumped 15.5% year on year to $81.4M in 1Q26, while ARPU climbed to $738 from $419, signalling a shift to higher-value subscribers. The company holds $52.7M cash, no debt, and plans a $1.80 dividend and $50M buyback, reaffirming FY26 cash flow targets.
1. 1Q26 Operational Highlights
MarketWise reported billings of $81.4M in 1Q26, a 15.5% increase year on year, driven by improving subscriber demand. Average revenue per user rose to $738 from $419 a year earlier, reflecting a strategic shift toward a smaller base of higher-value subscribers.
2. Strong Balance Sheet and Shareholder Returns
The company ended the quarter with $52.7M in cash and zero debt, supporting its proposal of a $1.80 annual dividend and a $50M share buyback program. These actions align with MarketWise’s thesis of meaningful capital return as subscriber monetization improves.
3. Underlying Trends Versus GAAP Metrics
GAAP revenue declined due to multi-year subscription recognition and older billings cohorts, while negative cash flow from operations resulted from front-loaded marketing investments. Management reaffirmed full-year 2026 cash flow targets, citing broadening FY25 recovery into paid subscriptions and higher ARPU.
