Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the respective periods:


	Year Ended December 31,
	2024		2023		2022
Basic earnings per share:
Numerator:
Net income	$	93,108	$	54,295	$	101,170
Less: Net income attributable to noncontrolling interests	86,049		52,513		83,180
Net income attributable to Class A common stockholders	$	7,059	$	1,782	$	17,990

Denominator:
Weighted average shares outstanding (in thousands)	38,324		31,707		24,635

Basic earnings per share	$	0.18	$	0.06	$	0.73

Diluted earnings per share:
Numerator:
Net income	$	93,108	$	54,295	$	101,170
Less: Net income attributable to noncontrolling interests	86,049		52,513		83,180
Net income attributable to Class A common stockholders	$	7,059	$	1,782	$	17,990

Denominator:
Weighted average shares outstanding (in thousands)	39,407		33,312		24,747

Diluted earnings per share	$	0.18	$	0.05	$	0.73

The Company’s potentially dilutive securities and their impact on the computation of dilutive earnings per share are as follows:

•Public Warrants and Private Placement Warrants: the Public and Private Placement Warrants were "out of the money" during the portion of the year ended December 31, 2022 prior to the warrant exchange transaction in September 2022, therefore, earnings per share excludes any impact of the 20,699,993 Public Warrants and 10,280,000 Private Placement Warrants. After the warrant exchange transaction in September 2022 there are no warrants outstanding thereafter. For more details on the warrant exchange, see Note 18 – Warrant Exchange.

•Sponsor and MarketWise Management Member Earnout Shares: the 3,051,000 Sponsor Earnout Shares and the 2,000,000 MarketWise Management Member Earnout Shares (as defined and discussed in our Current Report on Form 8-K filed with the SEC on July 28, 2021) held in escrow are excluded from the earnings per share computation in both periods since the earnout contingency has not been met.

•Restricted stock units: The basic earnings per share calculation includes the impact of vested RSUs. The diluted earnings per share calculation includes the impact of unvested RSUs, where the impact is dilutive, unless the Company has a net loss. The diluted earnings per share calculations above exclude certain RSUs

with performance conditions, since the performance conditions were not met, and such RSUs were forfeited as of December 31, 2022.

•Stock appreciation rights: The diluted earnings per share calculation excludes the impact of SARs since the effect was antidilutive.

•ESPP: The basic earnings per share calculation includes the impact of the shares that were issued under the ESPP as of December 31, 2024.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

MARKETWISE, INC. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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