Stonegate Launches Coverage of MarketWise After 13.4% Billings Rise and $46M CFFO Return
Stonegate Capital Partners initiated coverage on MarketWise, citing a FY25 billings rise to $271.2M (+13.4%) and CFFO improvement to $46.0M from a $(22.2)M loss. The firm highlighted 4Q25 billings growth of 42% to $78.9M, ARPU of $670 (+70.1%), and a $70.1M cash position with no debt.
1. Coverage Initiation
Stonegate Capital Partners initiated coverage on MarketWise, highlighting the improving operating profile after a prolonged revenue decline and signaling confidence in the company’s renewed momentum.
2. Financial Turnaround
MarketWise reported FY25 billings of $271.2M, up 13.4% year-over-year, and CFFO of $46.0M versus a $(22.2)M loss in FY24. In 4Q25, billings rose 42% to $78.9M and CFFO increased to $24.2M from $6.0M a year earlier.
3. Customer Quality and Capital Returns
Paid subscribers fell 26.1% to 374K, but net revenue retention rebounded to 91% and ARPU increased 70.1% to $670. MarketWise ended FY25 with $70.1M cash, no debt, paid $15.7M in dividends, repurchased $3.4M of stock, raised its dividend 25%, and guided to ~$300M billings and ~$50M CFFO for FY26.