Financial Performance - Total Processing Volume (TPV) for Q3 2025 reached $97,962 million, a 32.5% increase from $73,899 million in Q3 2024[133] - Net revenue for Q3 2025 was $163,306 million, up 27.6% from $127,967 million in Q3 2024[133] - Gross profit for Q3 2025 was $114,557 million, representing a 27.1% increase from $90,132 million in Q3 2024[133] - Adjusted EBITDA for Q3 2025 was $30,312 million, significantly higher than $9,019 million in Q3 2024, reflecting improved operational performance[133] - Adjusted EBITDA margin improved to 19% in Q3 2025, compared to 7% in Q3 2024[133] - Net loss for Q3 2025 was $(3,624) million, an improvement from $(28,643) million in Q3 2024[133] - Total operating expenses for Q3 2025 were $124,927 million, slightly lower than $132,363 million in Q3 2024[133] - Gross margin remained stable at 70% for both Q3 2025 and Q3 2024[133] - Net revenue for the three months ended September 30, 2025, was $163.3 million, a 28% increase from $128.0 million in the same period of 2024[158] - Total Processing Volume (TPV) for the three months ended September 30, 2025, reached $98.0 million, reflecting a 33% increase compared to $73.9 million in the same period of 2024[160] - Gross profit for the three months ended September 30, 2025, was $114.6 million, up 27% from $90.1 million in the same period of 2024, with a gross margin of 70%[163] - Net loss for the three months ended September 30, 2025, was $3.6 million, compared to a net loss of $28.6 million in the same period of 2024[158] - Total net revenue for the nine months ended September 30, 2025, was $452.8 million, a 22% increase from $371.2 million in the same period of 2024[176] - TPV for the nine months ended September 30, 2025, was $273.8 million, representing a 30% increase from $211.2 million in the same period of 2024[176] Operating Expenses - Total operating expenses rose by $114.7 million, or 48%, for the nine months ended September 30, 2025, with total operating expenses as a percentage of net revenue increasing to 79%[183] - Adjusted operating expenses for Q3 2025 were $84,245 million, compared to $81,113 million in Q3 2024, indicating a focus on cost management[133] - Operating expenses decreased by 6% to $124.9 million for the three months ended September 30, 2025, compared to $132.4 million in the same period of 2024[165] - Salaries, bonus, benefits, and payroll taxes decreased by $22.2 million, or 11%, primarily due to lower post-combination compensation expenses and increased capitalized costs[183] - Share-based compensation decreased by 28% to $25.7 million for the three months ended September 30, 2025, compared to $35.7 million in the same period of 2024[166] - Share-based compensation decreased by $24.6 million, or 24%, mainly due to higher forfeitures of stock-based awards[184] Cash Flow and Investments - Net cash provided by operating activities increased to $109.3 million for the nine months ended September 30, 2025, up from $33.4 million in the same period in 2024, driven by higher gross profit and lower operating expenses[211] - Net cash provided by investing activities rose significantly to $258.2 million for the nine months ended September 30, 2025, compared to $37.0 million in the same period in 2024, primarily due to $229.7 million in restricted cash acquired from the TransactPay acquisition[213] - Net cash used in financing activities increased to $316.4 million for the nine months ended September 30, 2025, from $165.0 million in the same period in 2024, mainly due to share repurchases under the 2024 and 2025 Share Repurchase Programs[215] Customer Concentration - The largest customer, Block, accounted for 44% of net revenue for the three months ended September 30, 2025, down from 47% in the same period of 2024[174] - The largest customer, Block, accounted for 45% of net revenue for the nine months ended September 30, 2025, down from 48% in the same period in 2024[193] Accounting and Policy Changes - The cumulative impact of revised accounting policy on Card Network incentives recognized from April 1, 2025, through September 30, 2025, was $5.5 million higher than previously recognized[149] Future Outlook - The company anticipates continued operating losses for the foreseeable future, reflecting significant historical operating losses[202] Acquisition - The acquisition of TransactPay was completed for a total purchase price of approximately $59.9 million, consisting of $53.0 million in cash at closing and $3.6 million in contingent consideration[203] Cash Position - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $830.5 million[201] - As of September 30, 2025, the company had $830.5 million in cash and cash equivalents, sufficient to meet working capital and capital expenditure needs for at least the next 12 months[207] - As of September 30, 2025, the company had $235.4 million in restricted cash, primarily related to customer funds held by TransactPay[208] Interest Rate and Currency Risk - A hypothetical 100 basis point change in interest rates would not have a material effect on the company's financial results due to the short-term nature of its investments[224] - Most sales and operating expenses are in U.S. dollars, indicating minimal exposure to foreign currency exchange risk[225]

Marqeta Earnings Supplement November 5, 2025 Marqeta Earnings Supplement 1 Safe Harbor Statement This earnings supplement 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 presentation 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 conti ...

Financial Performance - Total Processing Volume (TPV) reached $98 billion, a year-over-year increase of 33% from $74 billion in Q3 2024[2][6] - Net Revenue for Q3 2025 was $163 million, reflecting a 28% increase year-over-year, driven by higher volumes[2][6] - Gross Profit increased by 27% year-over-year to $115 million, with a Gross Margin of 70%[2][7] - Net Loss for the quarter was $4 million, a significant improvement from a loss of $29 million in the same period last year[2][8] - Adjusted EBITDA was $30 million, up 236% year-over-year, with an Adjusted EBITDA Margin of 19%[2][8] - Net revenue for Q3 2025 reached $163.3 million, a 27.6% increase from $128.0 million in Q3 2024[18] - Gross profit for Q3 2025 was $114.6 million, up 27.1% from $90.1 million in Q3 2024[18] - Net loss for Q3 2025 was $3.6 million, compared to a net loss of $28.6 million in Q3 2024[18] - Adjusted EBITDA for Q3 2025 was $30.31 million, a significant increase of 236% compared to $9.02 million in Q3 2024[33] - Net Loss for Q3 2025 was $3.62 million, a reduction of 87% compared to a loss of $28.64 million in Q3 2024[26] Operating Expenses - The company reported a 48% increase in Total Operating Expenses year-over-year, totaling $355 million for the nine months ended September 30, 2025[5] - Total operating expenses decreased to $124.9 million in Q3 2025 from $132.4 million in Q3 2024, a reduction of 5.5%[18] - Total Operating Expenses decreased by 6% to $124.93 million in Q3 2025 from $132.36 million in Q3 2024[26] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, were $747.2 million, down from $923.0 million at the end of 2024[21] - Total assets increased to $1.49 billion as of September 30, 2025, compared to $1.46 billion at the end of 2024[21] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $109.3 million, significantly higher than $33.4 million in the same period of 2024[23] - The company reported a significant increase in cash flows from investing activities, totaling $258.2 million for the nine months ended September 30, 2025, compared to $37.0 million in 2024[23] - Cash and cash equivalents as of September 30, 2025, totaled $747.25 million, a decrease of 16% from $886.42 million a year earlier[26] - Total Assets increased by 4% to $1.49 billion in Q3 2025 from $1.44 billion in Q3 2024[26] Strategic Developments - Marqeta signed a global Fortune 500 company for electronic supplier payments, enhancing its market presence[4] - The company expanded its relationship with an expense management customer into Europe, leveraging the TransactPay acquisition[4] - The company plans to continue investing in technology and product development to drive future growth[18] Future Outlook - The company expects Q4 2025 Net Revenue growth of 22-24% and Gross Profit growth of 17-19%[9] - Marqeta's platform processed nearly $300 billion in annual payments volume in 2024, demonstrating its scalability[15] - The accumulated deficit as of September 30, 2025, was $810.4 million, compared to $797.9 million at the end of 2024[21] - Stockholders' equity decreased by 23% to $839.23 million in Q3 2025 from $1.10 billion in Q3 2024[26]

Industry Overview - Mobile payments are transforming financial transactions, moving from physical cash to digital transactions through smartphones, tablets, and wearables, creating a dynamic financial ecosystem [2][3] - The global mobile payments market is projected to grow from $3.84 trillion in 2024 to $26.53 trillion by 2032, reflecting a 27% CAGR, indicating strong momentum in the sector [6] Technological Advancements - Emerging technologies like blockchain and artificial intelligence are enhancing transparency, fraud detection, and transaction speeds, while "super apps" are integrating messaging and shopping into seamless financial experiences [3][4] - Companies are leveraging advanced technologies such as Near Field Communication (NFC) and QR codes to facilitate mobile payments [2] Key Players - Capital One is enhancing its mobile payments leadership with a digital-first banking ecosystem, integrating its mobile app with digital wallets and offering a comprehensive financial hub [8][9][10] - NCR Voyix is innovating in mobile payments for retail and restaurants, introducing solutions like Aloha Pay-At-Table, which improves transaction speed and customer experience [11][12][13] - Affirm is expanding its mobile payments presence through its Buy Now, Pay Later platform, integrating with digital wallets and planning international expansion [14][15][16] - Marqeta is powering mobile payments with its card-issuing platform and has seen a 29% year-over-year increase in total payments volume, while also bridging crypto and fiat transactions [17][18][19] Market Dynamics - The rise of e-commerce and improved digital infrastructure are driving the adoption of modern payment platforms, which serve as comprehensive financial dashboards [5] - Regulatory initiatives are evolving to enhance security, data privacy, and financial inclusion, keeping pace with the rapid growth of mobile payments [6]

Marqeta Inc. (NASDAQ:MQ) is one of the best NASDAQ stocks under $5 to buy now. On October 23, Citi analyst Bryan Keane initiated coverage of Marqeta with a Neutral rating and a $5 price target. The firm sees low visibility into the company sustaining its H2 2025 revenue growth rates in 2026. Earlier on October 13, Goldman Sachs downgraded Marqeta to Sell from Neutral with a price target of $5, which was down from $7.50. Marqeta (MQ) Gets Neutral Initiation from Citi on Growth, Customer Concentration Conc ...

Core Insights - Goldman Sachs downgraded Marqeta, Inc. from Neutral to Sell and reduced its price target from $7.50 to $5.00 due to changes in its relationship with Block, Inc. and potential loss of processing share for new accounts [1][2] - Concerns include delayed contract renewals, which could lead to a 4% gross profit headwind in 2026, and a potential 2% headwind to gross profit due to the new issuing partner [1][2] - Marqeta is recognized as a leading outsourced card issuance platform, particularly for cloud-based fintechs, but faces challenges from premium pricing and increasing competition [3] Company Overview - Marqeta, Inc. is a financial technology company that offers a modern open API platform for businesses to issue cards and process payments [4]

Summary of Key Points Core Viewpoint - Goldman Sachs analyst Will Nance downgraded PayPal Holdings, Inc. and Marqeta, Inc. due to downside risks to their 2026 forecasts, with increasing investor caution as the fourth quarter approaches [1][2]. PayPal Holdings, Inc. (PYPL) - PYPL shares are under pressure due to tougher year-end comparisons following last year's spending surge, renewed pressure on lower-income consumers, and a rotation from cyclical sectors to large-cap tech [2]. - Nance downgraded PayPal to Sell from Neutral with a price forecast of $70, indicating that management commentary suggests branded checkout growth is unlikely to improve soon [3]. - The analyst forecasts approximately 3% total margin growth in 2026, which is below the ~5% consensus, and anticipates ongoing valuation pressure amid competitive challenges in online commerce [4]. Marqeta, Inc. (MQ) - Marqeta was also downgraded to Sell from Neutral, with concerns over its heavy reliance on Block, which could lead to a 2% reduction in gross profit next year [5]. - The change highlights broader total addressable market (TAM) pressures as fintechs internalize processing and competition from Stripe and slow modernization by banks [6].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Marqeta, Inc. due to a class action lawsuit alleging that the company made false or misleading statements regarding its business outlook and regulatory challenges [1][2]. Group 1: Lawsuit Details - The class action complaint was filed on December 9, 2024, covering a Class Period from May 7, 2024, to November 4, 2024 [1]. - Allegations include that Marqeta understated regulatory challenges, leading to a necessary cut in guidance for Q4 2024, and that public statements made by the defendants were materially false or misleading [2]. Group 2: Next Steps for Investors - Long-term stockholders of Marqeta are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and the ongoing investigation [3]. Group 3: About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm with a focus on representing individual and institutional investors in complex litigation across various courts [4].

Core Viewpoint - Marqeta Inc. is highlighted as a promising tech stock under $10, with a current Hold rating and a price target of $6.50 maintained by analyst Sanjay Sakhrani from Keefe, Bruyette & Woods [1][2] Leadership Changes - Marqeta appointed Mike Milotich as the permanent CEO on September 8, 2025, after he served as interim CEO since February 2025 and has been CFO since 2022 [2][3] - The Board of Directors emphasized Milotich's contributions to enhancing Marqeta's operations and financial performance over the past year, leveraging his experience from Visa, PayPal, and American Express [3] Financial Performance - Under Milotich's leadership, Marqeta's stock has experienced a significant rally of nearly 42% this year [3] - The company operates a card-issuing platform that provides infrastructure and tools for payment solutions, enabling businesses to create customized debit, credit, and prepaid card programs [4]

Core Insights - Fintech companies are actively hiring and promoting executives to establish strategic partnerships and drive revenue growth [1][3] Company Developments - Marqeta appointed Mike Milotich as its new CEO after he served as interim CEO following the exit of the former CEO [2][3] - Marqeta is currently searching for a new CFO to support its growth initiatives [3] Executive Appointments - Extend hired Francois Horikawa, a former PayPal executive, as its first CFO to help the company achieve profitability [4] - Sunbit appointed Shai Terem as its CFO, who brings extensive experience in leading public companies through growth phases [5] - Pipe named Vijay Vachani as its chief revenue officer to oversee global partnerships and merchant sales, enhancing its global expansion efforts [5][6]