Business
Marqeta Reports Third Quarter 2025 Financial Results
The global modern card issuer reported Total Processing Volume growth of 33% and Gross Profit growth of 27% in the third quarter of 2025. OAKLAND,
About this update from Marqeta, Inc.
The global modern card issuer reported Total Processing Volume growth of 33% and Gross Profit growth of 27% in the third quarter of 2025. OAKLAND, Calif. --(BUSINESS WIRE)-- Marqeta, Inc. (NASDAQ: MQ ), the global modern card issuing platform, today reported financial results for the third quarter ended September 30, 2025 . The Company reported Total Processing Volume (TPV) of $98 billion , representing a year-over-year increase of 33%. The Company reported Net Revenue of $163 million and Gross Profit of $115 million , representing increases of 28% and 27%, respectively, year-over-year. GAAP Net Loss for the quarter was $4 million and Adjusted EBITDA was $30 million . “Our robust Q3 financial results demonstrate our business momentum and our ability to deliver strong growth while rapidly improving our profitability,” said Mike Milotich , CEO and CFO of Marqeta . “Marqeta’s unique combination of modern capabilities, scale, geographic reach, expertise and flexibility continues to enable both innovation and growth for our customers.” Marqeta highlighted several recent business updates that demonstrate its current business momentum, including: Marqeta signed a global Fortune 500 company to enable electronic supplier payments. They selected Marqeta for its ability to enable innovation and execute at scale for their small and medium-sized business customers. Marqeta was selected to power an embedded finance credit program for a company that helps small and mid-sized companies drive incremental loyalty. They chose Marqeta for its ability to offer a highly configurable solution and the breadth of its platform. Marqeta deepened its relationship with a long-standing expense management customer in North America by enabling their expansion into Europe . With Marqeta , the customer can deliver a solution comparable to what they offer in North America with full program management capabilities. This expansion reinforces the value created through the recently closed TransactPay acquisition. Operating Highlights In thousands, except percentages and per share data. % change is calculated over the comparable prior-year period (unaudited) Three Months Ended September 30 , % Change Nine Months Ended September 30 , % Change 2025 2024 2025 2024 Financial metrics: Net Revenue $ 163,306 $ 127,967 28% $ 452,771 $ 371,205 22% Gross Profit $ 114,557 $ 90,132 27% $ 317,297 $ 253,646 25% Gross Margin 70% 70% — 70% 68% 2 ppts Total Operating Expenses $124,927 $132,363 (6%) $355,433 $240,687 48% Net (Loss) Income ( $3,624 ) ( $28,643 ) 87% ( $12,531 ) $54,405 (123%) Net (Loss) Income Margin (2%) (22%) 20 ppts (3%) 15% (18 ppts) Net (Loss) Income Per Share - Basic ( $0.01 ) ( $0.06 ) 83% ( $0.03 ) $0.11 (127%) Net (Loss) Income Per Share - Diluted ( $0.01 ) ( $0.06 ) 83% ( $0.03 ) $0.10 (130%) Key operating metric and Non-GAAP financial measures: Total Processing Volume (TPV) (in millions) 1 $ 97,962 $ 73,899 33% $ 273,819 $ 211,192 30% Adjusted EBITDA 2 $30,312 $9,019 236% $78,900 $16,429 380% Adjusted EBITDA Margin 2 19% 7% 12 ppts 17% 4% 13 ppts Adjusted Operating Expenses 2 $ 84,245 $ 81,113 4% $ 238,397 $ 237,217 —% 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. Third Quarter 2025 Financial Results: Total Processing Volume increased by 33% year-over-year, rising to $98 billion from $74 billion in the third quarter of 2024. Net Revenue of $163 million increased by $35 million , or 28%, 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 27% year-over-year to $115 million from $90 million in the third quarter of 2024. The growth in Gross Profit was largely driven by our TPV growth, net of 1.4 percentage points of headwind due to the revised accounting policy for estimating and recognizing Card Network incentives, effective in Q2'25. Gross Margin was 70% in the third quarter of 2025. Net Loss of $4 million in the quarter, compared to $29 million in the same period in the prior year, resulted in a year-over-year improvement of $25 million . This result included a non-recurring litigation expense of $4.3 million . The net loss margin was 2% in the third quarter of 2025. Adjusted EBITDA was $30 million in the third quarter of 2025, increasing by $21 million year-over-year. Adjusted EBITDA margin was 19% in the third quarter of 2025, an increase of 12 percentage points versus last year. Financial Guidance The following summarizes Marqeta's guidance for the fourth quarter of 2025: Fourth Quarter 2025 Net Revenue Growth 22 - 24% Gross Profit Growth 17 - 19% Adjusted EBITDA Margin (1) 15 - 16% (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 November 12, 2025 , 8:59 p.m. Pacific time ( 11:59 p.m. Eastern time ). The confirmation code for the replay is 13755994. 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 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 September 30 , Nine Months Ended September 30 , 2025 2024 2025 2024 Net Revenue $ 163,306 $ 127,967 $ 452,771 $ 371,205 Costs of Revenue 48,749 37,835 135,474 117,559 Gross Profit 114,557 90,132 317,297 253,646 Operating Expenses: Compensation and benefits 84,871 100,964 252,330 299,120 Technology 16,942 16,317 47,855 44,204 Professional services 5,518 4,759 15,432 13,437 Occupancy 1,058 1,178 2,818 3,476 Depreciation and amortization 7,019 4,448 19,003 11,941 Marketing and advertising 895 582 2,075 1,688 Other operating expenses 8,624 4,115 15,920 11,438 Executive chairman long-term performance award — — — (144,617 ) Total Operating Expenses 124,927 132,363 355,433 240,687 (Loss) Income from operations (10,370 ) (42,231 ) (38,136 ) 12,959 Other income, net 7,244 13,703 26,544 41,845 (Loss) Income before income tax expense (3,126 ) (28,528 ) (11,592 ) 54,804 Income tax expense 498 115 939 399 Net (Loss) Income $ (3,624 ) $ (28,643 ) $ (12,531 ) $ 54,405 Net (loss) income per share attributable to Class A and Class B common stockholders Basic $ (0.01 ) $ (0.06 ) $ (0.03 ) $ 0.11 Diluted $ (0.01 ) $ (0.06 ) $ (0.03 ) $ 0.10 Weighted-average shares used in computing net (loss) income per share attributable to Class A and Class B common stockholders Basic 448,717 507,160 470,294 513,678 Diluted 448,717 507,160 470,294 522,394 Marqeta, Inc. Condensed Consolidated Balance Sheets (in thousands) September 30 , 2025 December 31 , 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 747,248 $ 923,016 Restricted cash 234,519 8,500 Short-term investments 83,212 179,409 Accounts receivable, net 36,123 29,988 Settlements receivable, net 15,616 16,203 Network incentives receivable 48,765 66,776 Prepaid expenses and other current assets 34,523 25,405 Total current assets 1,200,006 1,249,297 Operating lease right-of-use assets, net 6,932 2,712 Property and equipment, net 56,527 37,523 Intangible assets, net 53,643 29,774 Goodwill 154,478 123,523 Other assets 16,844 20,375 Total assets $ 1,488,430 $ 1,463,204 Liabilities and stockholders' equity Current liabilities Accounts payable $ 1,520 $ 527 Revenue share payable 204,974 193,399 Funds payable and amounts due to customers 233,913 — Accrued expenses and other current liabilities 196,361 177,059 Total current liabilities 636,768 370,985 Operating lease liabilities, net of current portion 4,843 870 Other liabilities 7,590 6,331 Total liabilities 649,201 378,186 Stockholders' equity : Common stock 45 50 Additional paid-in capital 1,648,226 1,883,190 Accumulated other comprehensive income (loss) 1,397 (314 ) Accumulated deficit (810,439 ) (797,908 ) Total stockholders’ equity 839,229 1,085,018 Total liabilities and stockholders' equity $ 1,488,430 $ 1,463,204 Marqeta, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Nine Months Ended September 30 , 2025 2024 Cash flows from operating activities: Net (loss) income $ (12,531 ) $ 54,405 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 19,003 11,941 Share-based compensation expense 78,689 103,258 Executive chairman long-term performance award — (144,617 ) Non-cash operating leases expense 1,727 1,017 Accretion of discount on short-term investments (691 ) (2,650 ) Other 5,365 328 Changes in operating assets and liabilities: Accounts receivable (3,834 ) (7,285 ) Settlements receivable 587 18,105 Network incentives receivable 18,011 7,140 Prepaid expenses and other assets (2,743 ) 3,195 Accounts payable (125 ) (3,274 ) Revenue share payable 11,575 (6,564 ) Accrued expenses and other liabilities (2,358 ) 545 Operating lease liabilities (3,374 ) (2,129 ) Net cash provided by operating activities 109,301 33,415 Cash flows from investing activities: Purchases of property and equipment (1,992 ) (2,382 ) Capitalization of internal-use software (21,470 ) (14,577 ) Cash paid for business combination, net of cash acquired (44,608 ) — Restricted cash acquired in business combination 229,650 — Purchases of short-term investments (3,501 ) — Maturities of short-term investments 100,160 54,000 Net cash provided by investing activities 258,239 37,041 Cash flows from financing activities: Change in funds payable and amounts due to customers 4,263 — Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options 1,630 121 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 (28,493 ) (29,043 ) Repurchase of common stock (294,788 ) (137,718 ) Net cash used in financing activities (316,394 ) (165,011 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 51,146 (94,555 ) Cash, cash equivalents, and restricted cash- Beginning of period 931,516 989,472 Cash, cash equivalents, and restricted cash - End of period $ 982,662 $ 894,917 Marqeta, Inc. Financial and Operating Highlights (in thousands, except per share data or as noted) (unaudited) 2025 2024 Year over Year Change Q3'25 vs Q3'24 Third Quarter 2025 Second Quarter 2025 First Quarter 2025 Fourth Quarter 2024 Third Quarter 2024 Operating performance: Net Revenue $ 163,306 $ 150,392 $ 139,073 $ 135,790 $ 127,967 28 % Costs of Revenue 48,749 46,331 40,394 37,588 37,835 29 % Gross Profit 114,557 104,061 98,679 98,202 90,132 27 % Gross Margin 70 % 69 % 71 % 72 % 70 % — Operating Expenses: Compensation and benefits 84,871 81,409 86,050 98,475 100,964 (16 %) Technology 16,942 16,102 14,811 15,855 16,317 4 % Professional services 5,518 4,219 5,695 6,620 4,759 16 % Occupancy 1,058 843 917 2,519 1,178 (10 %) Depreciation and amortization 7,019 6,653 5,331 5,519 4,448 58 % Marketing and advertising 895 711 469 1,298 582 54 % Other operating expenses 8,624 3,352 3,944 5,342 4,115 110 % Total Operating Expenses 124,927 113,289 117,217 135,628 132,363 (6 %) Loss from Operations (10,370 ) (9,228 ) (18,538 ) (37,426 ) (42,231 ) 75 % Other income, net 7,244 8,787 10,513 10,701 13,703 (47 %) Loss before income tax expense (3,126 ) (441 ) (8,025 ) (26,725 ) (28,528 ) 89 % Income tax expense 498 206 235 394 115 333 % Net Loss $ (3,624 ) $ (647 ) $ (8,260 ) $ (27,119 ) $ (28,643 ) 87 % Loss per share - basic & diluted $ (0.01 ) $ 0.00 $ (0.02 ) $ (0.05 ) $ (0.06 ) 83 % TPV (in millions) $ 97,962 $ 91,386 $ 84,472 $ 79,913 $ 73,899 33 % Adjusted EBITDA $ 30,312 $ 28,509 $ 20,081 $ 12,663 $ 9,019 236 % Adjusted EBITDA margin 19 % 19 % 14 % 9 % 7 % 12 ppts Financial condition: Cash and cash equivalents $ 747,248 $ 732,722 $ 830,897 $ 923,016 $ 886,417 (16 %) Restricted cash (1) $ 235,413 $ 8,500 $ 8,500 $ 8,500 $ 8,500 2670 % Short-term investments $ 83,212 $ 88,865 $ 157,540 $ 179,409 $ 217,569 (62 %) Total assets $ 1,488,430 $ 1,214,590 $ 1,349,627 $ 1,463,204 $ 1,435,836 4 % Total liabilities $ 649,201 $ 371,157 $ 362,367 $ 378,186 $ 340,178 91 % Stockholders' equity $ 839,229 $ 843,433 $ 987,260 $ 1,085,018 $ 1,095,658 (23 %) (1) Restricted cash as of September 30, 2025 includes $233.9 million customer funds held by TransactPay in segregated accounts as part of its program management activities related to card and e-money wallet programs. As of September 30, 2025 and 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; non-recurring litigation expense; 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, non-recurring litigation expense, 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 September 30 , Nine Months Ended September 30 , 2025 2024 2025 2024 GAAP Net Revenue $ 163,306 $ 127,967 $ 452,771 $ 371,205 GAAP Gross Profit $ 114,557 $ 90,132 $ 317,297 $ 253,646 GAAP Net (Loss) Income $ (3,624 ) $ (28,643 ) $ (12,531 ) $ 54,405 GAAP Net (Loss) Income Margin - % of Net Revenue (2 )% (22 )% (3 )% 15 % GAAP Net (Loss) Income Margin - % of Gross Profit (3 )% (32 )% (4 )% 21 % GAAP Total Operating Expenses $ 124,927 $ 132,363 $ 355,433 $ 240,687 Net (Loss) Income $ (3,624 ) $ (28,643 ) $ (12,531 ) $ 54,405 Depreciation and amortization expense 7,019 4,448 19,003 11,941 Share-based compensation expense 25,704 35,654 78,689 103,258 Executive chairman long-term performance award — — — (144,617 ) Payroll tax expense related to share-based compensation 583 440 2,150 2,307 Acquisition-related expenses(1) 1,828 10,708 7,315 30,581 Restructuring and other one-time costs(2) 1,251 — 5,582 — Non-recurring litigation expense (3) 4,297 — 4,297 — Other income, net (7,244 ) (13,703 ) (26,544 ) (41,845 ) Income tax expense 498 115 939 399 Adjusted EBITDA $ 30,312 $ 9,019 $ 78,900 $ 16,429 Adjusted EBITDA Margin - % of Net Revenue 19 % 7 % 17 % 4 % Adjusted EBITDA Margin - % of Gross Profit 26 % 10 % 25 % 6 % GAAP Total Operating Expenses $ 124,927 $ 132,363 $ 355,433 $ 240,687 Depreciation and amortization expense (7,019 ) (4,448 ) (19,003 ) (11,941 ) Share-based compensation expense (25,704 ) (35,654 ) (78,689 ) (103,258 ) Executive chairman long-term performance award — — — 144,617 Payroll tax expense related to share-based compensation (583 ) (440 ) (2,150 ) (2,307 ) Acquisition-related expenses(1) (1,828 ) (10,708 ) (7,315 ) (30,581 ) Restructuring and other one-time costs(2) (1,251 ) — (5,582 ) — Non-recurring litigation expense (3) (4,297 ) — (4,297 ) — Adjusted Operating Expenses $ 84,245 $ 81,113 $ 238,397 $ 237,217 (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. (3) Non-recurring litigation expense includes a legal contingency expense recognized in the third quarter of 2025 related to a class action securities litigation. A reconciliation of Adjusted EBITDA margin to the comparable GAAP measure for the fourth quarter 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/20251105735090/en/ IR Contact: Marqeta Investor Relations, [email protected] Source: Marqeta, Inc.