F

MarketWise, Inc. — Earnings Quality Grade F

MKTW · Financial Services

Major red flags

Revenue
$328M
2025
Net Income
$6M
2025
Gross Margin
86.5%
Free Cash Flow
$44M
01

Screening Summary

12
Passed
3
Watch
1
Failed
-0.84
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 6 days, change +5 days YoY

!
A2AR vs Revenue Growth

AR growth 205.0% exceeds revenue growth -19.7%

A3Revenue vs CFFO

Revenue -19.7%, CFFO 307.5%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

!
B2CapEx vs Revenue

CapEx growth 130.1% is >2x revenue growth -19.7%

!
B3SG&A Ratio

SG&A/Gross Profit = 73.9%, exceeds 70%

B4Gross Margin

Gross margin 86.5%, change -1.1pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 8.18. Profits backed by cash

C2Free Cash Flow

FCF $0.0B, FCF/NI = 7.90

C3Accruals Ratio

Accruals ratio = -18.5%. Low accruals

C4Cash vs Debt

Cash $0.1B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = -290% of equity. Manageable

D2Leverage

Debt/EBITDA = 0.1x. Healthy

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -2% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -0.84 (> -1.78). LIKELY MANIPULATOR

Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.

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04

Beneish M-Score

Manipulation Probability-0.84
-4.0 Clean-2.22 Grey-1.78 Danger0
3.799
DSRI
AR growing faster than revenue?
1.013
GMI
Gross margin declining?
1.088
AQI
Asset quality deteriorating?
0.803
SGI
Revenue growth rate
1.799
DEPI
Depreciation slowing?
1.037
SGAI
SG&A ratio changing?
-0.1847
TATA
Accruals level
1.07
LVGI
Leverage increasing?

Altman Z-Score — Not Applicable

MarketWise, Inc. is a financial company. Z-Score is designed for non-financial companies.

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25