MarketWise, Inc. reported its financial results for the second quarter of 2025, revealing a significant decline in both revenue and profitability compared to the same period in the previous year. The company generated total net revenue of $79.95 million, a decrease of 23.9% from $105.05 million in Q2 2024. For the first half of 2025, net revenue was $163.46 million, down 23.6% from $214.04 million in the prior year. The decline in revenue was primarily attributed to a substantial drop in subscription revenue, particularly from the wind-down of the Legacy Research business, which contributed significantly to the overall decrease.
In terms of profitability, MarketWise reported a net income of $15.31 million for the second quarter, down from $21.24 million in the same quarter last year. For the first half of 2025, net income was $32.15 million, compared to $43.95 million in the first half of 2024. The company's earnings per share for the second quarter were $0.55 on a basic basis, down from $0.81 in the prior year. The decrease in profitability was influenced by a reduction in operating expenses, which totaled $65.14 million in Q2 2025, down 22.2% from $83.71 million in Q2 2024.
MarketWise's operational metrics also reflected challenges, with the total number of paid subscribers decreasing by 39% year-over-year to 394,000 as of June 30, 2025. This decline was attributed to lower customer acquisition and elevated churn rates associated with the closure of the Legacy Research business. The company reported a significant drop in active free subscribers, which fell by 52.9% to 2.25 million compared to the previous year. Despite these challenges, the average revenue per user (ARPU) increased by 3.9% to $474, indicating that remaining subscribers are generating higher revenue.
Strategically, MarketWise has been focusing on improving its marketing efficiency and subscriber retention. The company has adjusted its marketing spend to drive profitable customer acquisition and has emphasized the importance of expanding relationships with existing subscribers. In addition, MarketWise announced a quarterly and special dividend totaling $0.40 per Class A share, reflecting its commitment to returning value to shareholders despite the operational challenges faced in recent quarters. Looking ahead, the company aims to enhance its operational efficiency and capitalize on its existing subscriber base to drive future growth.
About MARKETWISE, INC.
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