MarketWise Surges on Strong Preliminary Q4 Billings Growth
The financial media company beat revenue expectations and exceeded its full-year guidance for cash flow and billings, signaling a successful operational turnaround.
Shares of MarketWise Inc. (NASDAQ: MKTW) jumped after the company released strong preliminary fourth-quarter results and announced it had surpassed its full-year 2025 guidance, reinforcing the narrative of a significant operational turnaround for the financial research publisher.
In a regulatory filing posted Wednesday, MarketWise reported preliminary fourth-quarter revenue of approximately $79 million, strongly beating analyst estimates of $69.2 million by over 14%. The results ignited investor enthusiasm, sending the stock up sharply in early trading.
The key driver of the performance was a significant acceleration in billings, a crucial metric for subscription-based businesses that indicates future revenue. Billings grew 42% year-over-year and 23% from the prior quarter. This momentum powered the company to exceed its own full-year 2025 targets, a key milestone in its recovery efforts.
MarketWise disclosed that for the full year, it now anticipates total billings of $271 million, well ahead of the $250 million it had previously guided. Even more impressively, the company projected Cash Flow from Operations to reach $45 million, a 50% beat over its $30 million guidance. The robust cash flow suggests improved operational efficiency and a healthier financial footing.
This performance provides concrete evidence that the company's turnaround strategy is bearing fruit. In recent quarters, MarketWise has focused on attracting and retaining high-value subscribers, a move that has substantially increased its Average Revenue Per User (ARPU). This strategic shift appears to be translating into more durable, profitable growth, a thesis supported by recent analyst commentary. Earlier in January, analysts highlighted the company's solid top-line momentum, noting that management's full-year targets appeared realistic.
The company, which provides financial research and investment software for self-directed investors through a portfolio of brands, has been working to regain its footing after a challenging period post-market debut. By the end of trading Wednesday, the stock was changing hands around $16.05, in the upper half of its 52-week range.
The strong preliminary figures set a positive tone for the company's official full-year earnings release, which is expected in early March. Investors will be watching closely to see if the finalized metrics confirm this positive trajectory and whether management provides an even more optimistic outlook for 2026. Given the preliminary data, Wall Street's current consensus analyst price target of $20.00 per share may see upward revisions.