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,
202520242023
Basic earnings per share:
Numerator:
Net income$64,041 $93,108 $54,295 
Less: Net income attributable to noncontrolling interests58,421 86,049 52,513 
Net income attributable to Class A common stockholders$5,620 $7,059 $1,782 
Denominator:
Weighted average shares outstanding (in thousands)2,333 1,921 1,585 
Basic earnings per share$2.41 $3.67 $1.12 
Diluted earnings per share:
Numerator:
Net income$64,041 $93,108 $54,295 
Less: Net income attributable to noncontrolling interests58,421 86,049 52,513 
Net income attributable to Class A common stockholders$5,620 $7,059 $1,782 
Denominator:
Weighted average shares outstanding (in thousands)2,436 1,971 1,665 
Diluted earnings per share$2.31 $3.58 $1.07 
The Company’s potentially dilutive securities and their impact on the computation of dilutive earnings per share are as follows:
Sponsor and MarketWise Management Member Earnout Shares: the 152,550 Sponsor Earnout Shares and the 99,998 MarketWise Management Member Earnout Shares held in escrow were excluded from the earnings per share computation in the 2024 periods since the earnout contingency had not been met. In July 2025, the earnout period for all 252,548 previously escrowed Management Member Earnout Shares and Sponsor Earnout Shares (“EO Shares”) expired. As a result, there was no dilution to other shareholders
related to this arrangement. As a result of the EO Shares expiration, the Company reversed $1,263 in cumulative dividends that had been accrued attributable to the EO Shares during the earnout period.
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.
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, 2025.
Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):
Year Ended December 31,
(In thousands)202520242023
Shares subject to outstanding RSUs801 625 73 
Shares subject to outstanding SARs59 70 83 
Total860 695 156 
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Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 6, 2025
2023Mar 7, 2024
2022Mar 31, 2023
2021Mar 10, 2022

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.