MKTW settles CEO arbitration for $12.2M; Q1 billings up 15% but subscribers down 19%

Filed May 7, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 8, 2025 · ~1 min read

Key Changes

• high

  Company paid $12.16M cash plus redeemed 521k units to settle arbitration with former CEO Mark Arnold, eliminating future Tax Receivables Agreement obligations. Settlement exceeded original $9M+ claim but management views TRA waiver as offsetting benefit.

  Legal Proceedings verify on EDGAR →
• high

  Q1 2026 billings rose 15% YoY to $81.4M driven by software-related content and entry-level products, but net revenue fell 7.8% to $77.0M due to $7.1M decline in term subscription revenue. Timing gap reflects deferred revenue recognition.

  MD&A: Revenue verify on EDGAR →
• high

  Paid subscribers dropped 19.4% YoY to 381k (58% from Legacy Research shutdown churn), while ARPU surged 76% to $738. High-value subscriber mix improved to 62% (from 58%), indicating shift toward fewer, higher-spending customers.

  MD&A: Subscribers & ARPU verify on EDGAR →