Marqeta Reports Second Quarter 2025 Financial Results

About this update from Marqeta, Inc.

The global modern card issuer reported Total Processing Volume growth of 29% and Gross Profit growth of 31% in the second quarter of 2025. OAKLAND, Calif. --(BUSINESS WIRE)-- Marqeta, Inc. (NASDAQ: MQ ), the global modern card issuing platform, today reported financial results for the second quarter ended June 30, 2025 . The Company reported Total Processing Volume (TPV) of $91 billion , representing a year-over-year increase of 29%. The Company reported Net Revenue of $150 million and Gross Profit of $104 million , representing increases of 20% and 31%, respectively, year-over-year. The increase in Gross Profit growth was partly driven by a revised accounting policy for estimating and recognizing Card Network Incentives effective Q2'25, which contributed 8.6 percentage points to the Gross Profit growth. GAAP Net Loss for the quarter was $0.6 million and Adjusted EBITDA was $29 million . “Our Q2 results demonstrate our ability to deliver strong growth while also making great progress towards our profitability objectives,” said Mike Milotich , Interim CEO and CFO of Marqeta . “We continue to deepen our customer relationships and enable their growth through innovative card programs, seamless geographic expansion and value-added services.” Marqeta highlighted several recent business updates that demonstrate its current business momentum, including: Marqeta enabled the KlarnaOne Card, a new debit card which allows consumers to choose to pay later for any purchase where the card is accepted. This makes Klarna the second provider to offer consumers a card enabled with Visa Flexible Credential (VFC) to seamlessly deliver the option to toggle between payment methods. The card, which builds on years of collaboration with Klarna , is currently in a trial phase with a broader rollout in the U.S. expected later this year. Marqeta announced the July 31st close of the TransactPay acquisition, which will strengthen Marqeta’s program management capabilities in Europe . This acquisition will provide BIN sponsorship and card issuance in the United Kingdom ( UK ) and the European Union (EU) through electronic money institution (EMI) licenses. With the combined capabilities of Marqeta and TransactPay, customers will be able to take advantage of card program management features in the UK and EU, and avoid the added complexity associated with engaging multiple partners. This acquisition will allow for greater control of the offering and will support the delivery of a comparable solution in Europe to that in the U.S. and Canada . Operating Highlights In thousands, except percentages and per share data. % change is calculated over the comparable prior-year period (unaudited) Three Months Ended June 30 , % Change Six Months Ended June 30 , % Change 2025 2024 2025 2024 Financial metrics: Net revenue $ 150,392 $ 125,270 20% $ 289,465 $ 243,237 19% Gross profit $ 104,061 $ 79,353 31% $ 202,740 $ 163,512 24% Gross margin 69 % 63 % 6 ppts 70 % 67 % 3 ppts Total operating expenses (benefit) $ 113,289 ($ 25,689 ) 541% $ 230,506 $ 108,323 113% Net (loss) income ($ 647 ) $ 119,108 (101%) ($ 8,907 ) $ 83,048 (111%) Net (loss) income margin — % 95 % (95 ppts) (3 %) 34 % (37 ppts) Net (loss) income per share - basic and diluted $ — $ 0.23 (100%) ($ 0.02 ) $ 0.16 (113%) Key operating metric and Non-GAAP financial measures: Total Processing Volume (TPV) (in millions) 1 $ 91,386 $ 70,627 29% $ 175,857 $ 137,294 28% Adjusted EBITDA 2 $ 28,509 ($ 1,817 ) 1,669% $ 48,590 $ 7,409 556% Adjusted EBITDA margin 2 19 % (1 %) 20 ppts 17 % 3 % 14 ppts Adjusted operating expenses 2 $ 75,552 $ 81,170 (7%) $ 154,150 $ 156,103 (1%) 1 TPV represents the total dollar amount of payments processed through our platform, net of returns and chargebacks. We believe that TPV is a key indicator of the market adoption of our platform, growth of our brand, growth of our customers' businesses and scale of our business. 2 See "Information Regarding Non-GAAP Measures" for definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted operating expenses and the reconciliations of the net loss to Adjusted EBITDA, and of the total operating expenses to Adjusted operating expenses. Second Quarter 2025 Financial Results: Total Processing Volume increased by 29% year-over-year, rising to $91 billion from $71 billion in the second quarter of 2024. Net Revenue of $150 million increased by $25 million , or 20%, year-over-year, primarily driven by increased volumes, partially offset by unfavorable mix due to faster growth of card programs where we provide processing services with minimal or no program management. Gross Profit increased by 31% year-over-year to $104 million from $79 million in the second quarter of 2024. The increase was partly driven by a revised accounting policy for estimating and recognizing Card Network incentives, effective Q2'25, which contributed 8.6 percentage points to the Gross Profit growth. The remaining growth in Gross Profit was driven by our TPV growth. Gross Margin was 69% in the second quarter of 2025. Net Loss of $0.6 million in the quarter, compared to net income of $119.1 million in the same period in the prior year, resulted in a year-over-year decline of $120 million . This year-over-year change was primarily due to a one-time reversal of $158 million in share-based compensation in the second quarter of 2024, stemming from the forfeiture of the Executive Chairman Long-Term Performance Award. The net loss margin was 0% in the second quarter of 2025. Adjusted EBITDA was $29 million in the second quarter of 2025, increasing by $30 million year-over year. Adjusted EBITDA margin was 19% in the second quarter of 2025, an increase of 20 percentage points versus last year. Financial Guidance The following summarizes Marqeta's guidance for the third quarter and fiscal 2025: Third Quarter 2025 Fiscal Year 2025 Net Revenue Growth 15 - 17% 17 - 18% Gross Profit Growth 15 - 17% 18 - 19% Adjusted EBITDA Margin (1) 12 - 13% 14 - 15% (1) See "Information Regarding Non-GAAP Measures" for the definition of Adjusted EBITDA Margin and for information regarding non-availability of a forward reconciliation. Conference Call Marqeta will host a live conference call today at 1:30 p.m. Pacific time ( 4:30 p.m. Eastern time ). To join the call, please dial-in 10 minutes in advance: toll-free at 1-877-407-4018 or direct at 1-201-689-8471. The conference call will also be available live via webcast online at http://investors.marqeta.com . The telephone replay dial-in numbers are 1-844-512-2921 and 1-412-317-6671 and will be available until August 13, 2025 , 8:59 p.m. Pacific time ( 11:59 p.m. Eastern time ). The confirmation code for the replay is 13754201. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements relating to Marqeta’s quarterly and annual guidance; statements regarding Marqeta’s business plans, business strategy and the continued success and growth of our customers; statements regarding Marqeta's partnerships, new product introductions, and product capabilities, including credit card issuing; and statements made by Marqeta’s interim CEO and CFO. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: the effect of uncertainties related to our business, results of operations, financial condition, and demand for our platform; the risk that Marqeta’s anticipated accounting treatment may be subject to further changes or developments; the risk that Marqeta is unable to further attract, retain, diversify, and expand its customer base; the risk that Marqeta is unable to drive increased profitable transactions on its platform; the risk that consumers and customers will not perceive the benefits of Marqeta’s products, including credit card issuing; the risk that Marqeta's platform does not operate as intended resulting in system outages; the risk that Marqeta will not be able to achieve the cost structure that Marqeta currently expects; the risk that Marqeta’s solution will not achieve the expected market acceptance; the risk that competition could reduce expected demand for Marqeta’s services, including credit card issuing; the risk that changes in the regulatory landscape could adversely affect Marqeta's operations and revenues, including heightened scrutiny of the banking environment and specific customer program changes; the risk that Marqeta may be unable to maintain relationships with issuing banks and card networks; the risk that Marqeta is not able to identify and recognize the anticipated benefits of any acquisition; the risk that Marqeta is unable to successfully integrate any acquisition; the risk of financial services and banking sector instability and follow on effects to fintech companies; the impact of macroeconomic factors, including various geopolitical conflicts, uncertainty related to global elections, changes in inflation and interest rates, and uncertainty in global economic conditions; and the risk that Marqeta may be subject to additional risks due to its international business activities. Detailed information about these risks and other factors that could potentially affect Marqeta’s business, financial condition and results of operations are included or incorporated by reference in the “Risk Factors” disclosed in Marqeta's Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC , available at www.sec.gov and Marqeta’s website at http://investors.marqeta.com . The forward-looking statements in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required by law. Disclosure Information Investors and others should note that Marqeta announces material financial information to its investors using its investor relations website, SEC filings, press releases, public conference calls and webcasts. Marqeta also uses social media to communicate with its customers and the public about Marqeta , its products and services and other matters relating to its business and market. It is possible that the information Marqeta posts on social media could be deemed to be material information. Therefore, Marqeta encourages investors, the media, and others interested in Marqeta to review the information we post on social media channels including the Marqeta X feed (@Marqeta), the Marqeta Instagram page (@lifeatmarqeta), the Marqeta Facebook page, and the Marqeta LinkedIn page. These social media channels may be updated from time to time. Use of Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures". About Marqeta, Inc. Marqeta makes it possible for companies to build and embed financial services into their branded experience—and unlock new ways to grow their business and delight users. The Marqeta platform puts businesses in control of building financial solutions, enabling them to turn real-time data into personalized, optimized solutions for everything from consumer loyalty to capital efficiency. With compliance and security built-in, Marqeta’s platform has been proven at scale, processing nearly $300 billion in annual payments volume in 2024. Marqeta is certified to operate in more than 40 countries worldwide and counting. Visit www.marqeta.com to learn more. Marqeta® is a registered trademark of Marqeta, Inc. Marqeta, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 Net revenue $ 150,392 $ 125,270 $ 289,465 $ 243,237 Costs of revenue 46,331 45,917 86,725 79,725 Gross profit 104,061 79,353 202,740 163,512 Operating expenses (benefit): Compensation and benefits 81,409 103,166 167,459 198,156 Technology 16,102 14,769 30,913 27,887 Professional services 4,219 4,808 9,914 8,678 Occupancy 843 1,204 1,760 2,298 Depreciation and amortization 6,653 3,956 11,984 7,493 Marketing and advertising 711 728 1,180 1,106 Other operating expenses 3,352 3,418 7,296 7,322 Executive chairman long-term performance award — (157,738 ) — (144,617 ) Total operating expenses (benefit) 113,289 (25,689 ) 230,506 108,323 (Loss) income from operations (9,228 ) 105,042 (27,766 ) 55,189 Other income, net 8,787 14,216 19,300 28,143 (Loss) income before income tax expense (441 ) 119,258 (8,466 ) 83,332 Income tax expense 206 150 441 284 Net (loss) income $ (647 ) $ 119,108 $ (8,907 ) $ 83,048 Net (loss) income per share attributable to Class A and Class B common stockholders Basic $ (0.00 ) $ 0.23 $ (0.02 ) $ 0.16 Diluted $ (0.00 ) $ 0.23 $ (0.02 ) $ 0.16 Weighted-average shares used in computing net (loss) income per share attributable to Class A and Class B common stockholders Basic 461,517 515,959 481,260 516,973 Diluted 461,517 524,401 481,260 525,415 Marqeta, Inc. Condensed Consolidated Balance Sheets (in thousands) June 30 , 2025 December 31 , 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 732,722 $ 923,016 Restricted cash 7,606 8,500 Short-term investments 88,865 179,409 Accounts receivable, net 37,182 29,988 Settlements receivable, net 14,973 16,203 Network incentives receivable 85,085 66,776 Prepaid expenses and other current assets 23,800 25,405 Total current assets 990,233 1,249,297 Operating lease right-of-use assets, net 5,154 2,712 Property and equipment, net 50,238 37,523 Intangible assets, net 26,845 29,774 Goodwill 123,523 123,523 Other assets 18,597 20,375 Total assets $ 1,214,590 $ 1,463,204 Liabilities and stockholders' equity Current liabilities Accounts payable $ 3,440 $ 527 Revenue share payable 199,640 193,399 Accrued expenses and other current liabilities 158,216 177,059 Total current liabilities 361,296 370,985 Operating lease liabilities, net of current portion 2,976 870 Other liabilities 6,885 6,331 Total liabilities 371,157 378,186 Stockholders' equity: Common stock 45 50 Additional paid-in capital 1,650,305 1,883,190 Accumulated other comprehensive loss (102 ) (314 ) Accumulated deficit (806,815 ) (797,908 ) Total stockholders’ equity 843,433 1,085,018 Total liabilities and stockholders' equity $ 1,214,590 $ 1,463,204 Marqeta, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30 , 2025 2024 Cash flows from operating activities: Net (loss) income $ (8,907 ) $ 83,048 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 11,984 7,493 Share-based compensation expense 52,985 67,604 Executive chairman long-term performance award — (144,617 ) Non-cash operating leases expense 1,021 258 Accretion of discount on short-term investments (612 ) (1,823 ) Other 898 (45 ) Changes in operating assets and liabilities: Accounts receivable (7,642 ) (6,692 ) Settlements receivable 1,230 2,157 Network incentives receivable (18,309 ) 19,639 Prepaid expenses and other assets 4,278 2,478 Accounts payable 2,913 1,413 Revenue share payable 6,241 2,780 Accrued expenses and other liabilities (21,323 ) (6,484 ) Operating lease liabilities (2,223 ) (1,075 ) Net cash provided by operating activities 22,534 26,134 Cash flows from investing activities: Purchases of property and equipment (1,601 ) (2,193 ) Capitalization of internal-use software (13,598 ) (10,471 ) Maturities of short-term investments 90,918 40,000 Net cash provided by investing activities 75,719 27,336 Cash flows from financing activities: Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options 1,580 108 Proceeds from shares issued in connection with employee stock purchase plan 994 1,629 Taxes paid related to net share settlement of restricted stock units (15,887 ) (20,287 ) Repurchase of common stock (275,233 ) (91,162 ) Net cash used in financing activities (288,546 ) (109,712 ) Net decrease in cash, cash equivalents, and restricted cash (190,293 ) (56,242 ) Cash, cash equivalents, and restricted cash- Beginning of period 931,516 989,472 Cash, cash equivalents, and restricted cash - End of period $ 741,223 $ 933,230 Marqeta, Inc. Financial and Operating Highlights (in thousands, except per share data or as noted) (unaudited) 2025 2024 Year over Year Change Q2'25 vs Q2'24 Second Quarter 2025 First Quarter 2025 Fourth Quarter 2024 Third Quarter 2024 Second Quarter 2024 Operating performance: Net revenue $ 150,392 $ 139,073 $ 135,790 $ 127,967 $ 125,270 20 % Costs of revenue 46,331 40,394 37,588 37,835 45,917 1 % Gross profit 104,061 98,679 98,202 90,132 79,353 31 % Gross margin 69 % 71 % 72 % 70 % 63 % 6 ppts Operating expenses (benefit): Compensation and benefits 81,409 86,050 98,475 100,964 103,166 (21 %) Technology 16,102 14,811 15,855 16,317 14,769 9 % Professional services 4,219 5,695 6,620 4,759 4,808 (12 %) Occupancy 843 917 2,519 1,178 1,204 (30 %) Depreciation and amortization 6,653 5,331 5,519 4,448 3,956 68 % Marketing and advertising 711 469 1,298 582 728 (2 %) Other operating expenses 3,352 3,944 5,342 4,115 3,418 (2 %) Executive chairman long-term performance award — — — — (157,738 ) (100 %) Total operating expenses (benefit) 113,289 117,217 135,628 132,363 (25,689 ) 541 % (Loss) income from operations (9,228 ) (18,538 ) (37,426 ) (42,231 ) 105,042 (109 %) Other income, net 8,787 10,513 10,701 13,703 14,216 (38 %) (Loss) income before income tax expense (441 ) (8,025 ) (26,725 ) (28,528 ) 119,258 (100 %) Income tax expense 206 235 394 115 150 37 % Net (loss) income $ (647 ) $ (8,260 ) $ (27,119 ) $ (28,643 ) $ 119,108 (101 %) (Loss) income per share - basic & diluted $ — $ (0.02 ) $ (0.05 ) $ (0.06 ) $ 0.23 (100 %) TPV (in millions) $ 91,386 $ 84,472 $ 79,913 $ 73,899 $ 70,627 29 % Adjusted EBITDA $ 28,509 $ 20,081 $ 12,663 $ 9,019 $ (1,817 ) 1669 % Adjusted EBITDA margin 19 % 14 % 9 % 7 % (1 %) 20 ppts Financial condition: Cash and cash equivalents $ 732,722 $ 830,897 $ 923,016 $ 886,417 $ 924,730 (21 %) Restricted cash (1) $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 — % Short-term investments $ 88,865 $ 157,540 $ 179,409 $ 217,569 $ 228,833 (61 %) Total assets $ 1,214,590 $ 1,349,627 $ 1,463,204 $ 1,435,836 $ 1,488,283 (18 %) Total liabilities $ 371,157 $ 362,367 $ 378,186 $ 340,178 $ 345,908 7 % Stockholders' equity $ 843,433 $ 987,260 $ 1,085,018 $ 1,095,658 $ 1,142,375 (26 %) (1) As of June 30, 2025 , the balance includes $0.9 million classified within Other assets on our Condensed Consolidated Balance Sheets. ppts = percentage points Marqeta, Inc. Reconciliation of GAAP to NON-GAAP Measures (in thousands) (unaudited) Information Regarding Non-GAAP Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. Marqeta considers Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Margin based on Gross Profit and Adjusted operating expenses as supplemental measures of the company’s performance that are not required by, nor presented in accordance with GAAP. We define Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization; share-based compensation expense; executive chairman long-term performance award; payroll tax related to share-based compensation; restructuring and other one-time costs; acquisition-related expenses which consist of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and cash and non-cash postcombination compensation expenses; income tax expense; and other income, net, which consists primarily of interest income from our short-term investments and cash deposits, impairment of financial instruments, and realized foreign currency gains and losses. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of our annual employee bonus plans and performance-based restricted stock units. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net revenue, Adjusted EBITDA Margin based on Gross Profit is calculated as Adjusted EBITDA divided by Gross Profit, and Net Income (Loss) Margin based on Gross Profit is calculated as Net Income (Loss) divided by Gross Profit. These measures are used by management to evaluate our operating efficiency. We define Adjusted operating expenses as total operating expenses adjusted to exclude depreciation and amortization; share-based compensation expense; executive chairman long-term performance award; payroll tax related to share-based compensation; restructuring and other one-time costs; and acquisition-related expenses which consists of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and cash and non-cash postcombination compensation expenses. We believe that Adjusted operating expenses is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Margin based on Gross Profit, Net Income (loss) Margin based on Gross Profit, and Adjusted operating expenses should not be considered in isolation, or construed as an alternative to net loss, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EBITDA differently than Marqeta does, which limits its usefulness in comparing Marqeta’s financial results with those of other companies. The following table shows Marqeta's GAAP results reconciled to non-GAAP results included in this release: Three Months Ended June 30 , Six Months Ended June 30 , 2025 2024 2025 2024 GAAP Net revenue $ 150,392 $ 125,270 $ 289,465 $ 243,237 GAAP Gross profit $ 104,061 $ 79,353 $ 202,740 $ 163,512 GAAP Net (loss) income $ (647 ) $ 119,108 $ (8,907 ) $ 83,048 GAAP Net (loss) income margin - % of net revenue — % 95 % (3 )% 34 % GAAP Net (loss) income margin - % of gross profit (1 )% 150 % (4 )% 51 % GAAP Total operating expenses (benefit) $ 113,289 $ (25,689 ) $ 230,506 $ 108,323 Net (loss) income $ (647 ) $ 119,108 $ (8,907 ) $ 83,048 Depreciation and amortization expense 6,653 3,956 11,984 7,493 Share-based compensation expense 27,070 36,291 52,985 67,604 Executive chairman long-term performance award — (157,738 ) — (144,617 ) Payroll tax expense related to share-based compensation 791 702 1,567 1,867 Acquisition-related expenses(1) 1,249 9,930 5,488 19,873 Restructuring and other one-time costs(2) 1,974 — 4,332 — Other income, net (8,787 ) (14,216 ) (19,300 ) (28,143 ) Income tax expense 206 150 441 284 Adjusted EBITDA $ 28,509 $ (1,817 ) $ 48,590 $ 7,409 Adjusted EBITDA Margin - % of net revenue 19 % (1 )% 17 % 3 % Adjusted EBITDA Margin - % of gross profit 27 % (2 )% 24 % 5 % GAAP Total operating expenses (benefit) $ 113,289 $ (25,689 ) $ 230,506 $ 108,323 Depreciation and amortization expense (6,653 ) (3,956 ) (11,984 ) (7,493 ) Share-based compensation expense (27,070 ) (36,291 ) (52,985 ) (67,604 ) Executive chairman long-term performance award — 157,738 — 144,617 Payroll tax expense related to share-based compensation (791 ) (702 ) (1,567 ) (1,867 ) Acquisition-related expenses(1) (1,249 ) (9,930 ) (5,488 ) (19,873 ) Restructuring and other one-time costs(2) (1,974 ) — (4,332 ) — Adjusted operating expenses $ 75,552 $ 81,170 $ 154,150 $ 156,103 (1) Acquisition-related expenses, including transaction costs, integration costs, and cash and non-cash postcombination compensation expenses, are excluded from Adjusted EBITDA. These expenses are specific to a discrete transaction and do not reflect our ongoing core operations or the recurring expenses required to sustain and operate our business. (2) Restructuring and other one-time costs include the costs related to the CEO transition and one-time retention bonuses provided to other key employees. These bonuses have service requirements and are expensed over the requisite service period. A reconciliation of Adjusted EBITDA margin to the comparable GAAP measure for the third quarter and full year of 2025 is not available due to the challenges and impracticability with estimating some of the items as such items cannot be reasonably predicted and could be significant. Because of those challenges, reconciliations of such forward-looking non-GAAP financial measures are not available without unreasonable effort. View source version on businesswire.com : https://www.businesswire.com/news/home/20250806913444/en/ IR Contact: Marqeta Investor Relations, [email protected] Source: Marqeta, Inc.

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