Core Insights - Marqeta, Inc. released its sixth annual State of Payments Report, highlighting the demand for more intelligent and integrated payment solutions among consumers and businesses [1] Consumer Insights - The report is based on a survey of 3,000 consumers in the US and UK, indicating a shift in consumer preferences towards advanced payment solutions [1] Business Insights - The survey also included 1,000 small and medium-sized businesses (SMBs), revealing that these businesses are looking for payment solutions that drive engagement and growth [1]

Core Insights - The Marqeta's sixth annual State of Payments Report indicates a growing demand for smarter payment platforms among UK consumers and SMBs, driven by economic pressures and the need for integrated financial solutions [1][13] - The report highlights a significant shift in consumer behavior, with 34% of UK consumers expressing interest in AI-powered wallets that optimize payment choices based on spending habits [2][3] Consumer Trends - UK consumers are increasingly seeking intelligent payment tools that integrate seamlessly with existing methods, with 49% wanting recommendations on payment methods for purchases [2][3] - The adoption of Buy Now, Pay Later (BNPL) solutions is notable, with 54% of UK consumers having used BNPL, compared to 38% in the US, indicating a shift towards using BNPL for everyday expenses [3][5] SMB Insights - UK SMBs are actively searching for innovative payment solutions to enhance growth, with 42% relying on personal cards for business expenses due to limited access to capital [4][6] - The report reveals that 90% of UK SMBs are willing to invest in new payment solutions with higher upfront costs for long-term savings and efficiency [7] Market Dynamics - The average order value for transactions has decreased by 9% year-over-year, reflecting a trend towards smaller, non-discretionary purchases such as groceries [5] - More than half (52%) of SMBs view payments as a strategic lever to streamline expenses and improve operational efficiencies [7] Future Outlook - Marqeta's report also touches on the rise of social commerce and new approaches to rewards and loyalty programs, indicating evolving trends in the financial ecosystem [8]

Core Insights - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] Group 1 - The analysis occasionally includes large-cap companies to provide a broader perspective on equity markets [1]

Core Insights - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] Group 1 - The analysis occasionally includes large-cap companies to provide a broader perspective on equity markets [1]

Core Insights - The company has officially named Mike Milotich as CEO, indicating a stable leadership transition [1] - The focus for the last six months has been on execution and narrowing down priorities, with no significant change in strategic direction [1] Company Focus - Prior to the official appointment, the new CEO was already deeply involved in the business and its strategic planning [1] - The emphasis has been on ensuring effective execution of existing plans and maintaining alignment with previously established goals [1]

Summary of Marqeta's Conference Call Company Overview - **Company**: Marqeta - **New CEO**: Mike Milotich appointed as permanent CEO after serving as interim since February 2023 [1][3] Key Points and Arguments Strategic Focus - **Execution and Priorities**: The focus has been on execution, narrowing down priorities, and delivering efficiently on those priorities [3][4] - **Platform Capabilities**: Emphasis on expanding platform capabilities to become a full-stack service provider, improving efficiency and speed of onboarding for customers [4][5] Financial Performance - **Q2 Results**: - Total Payment Volume (TPV) grew by 29%, a three-point acceleration from previous quarters [6] - Gross profit increased by 31%, with a normalized growth of over 22% driven by strong TPV growth and favorable business mix [6][7] - Adjusted expenses declined by 7% year-over-year, leading to record EBITDA performance [8] Future Projections - **Impact of Accounting Changes**: An 8.5-point benefit in gross profit from accounting changes will turn into a headwind in Q3 and Q4 [9] - **Renewal Timing**: Major contract renewals are taking longer than expected, impacting gross profit growth projections for 2025 and 2026 [10][11] Long-term Growth Opportunities - **Market Expansion**: - Continued success with fintech customers and expansion into embedded finance [12][13] - Building a credit business, which represents a significant growth area [13] - Geographic expansion, particularly in Europe, where TPV growth exceeds 100% [14][42] - **Value-added Services**: Growth in value-added services is expected to contribute to profitability, with a focus on cross-selling to existing customers [15][16] Customer Relationships - **Block Relationship**: The concentration with Block is decreasing, with expectations of continued growth through expanded service offerings [22][25] - **Diversification**: Large customers are diversifying providers, but primary relationships remain strong [26][27] Regulatory Environment - **Bank Partnerships**: Progress in adding new bank partners to enhance service offerings, with technical integrations nearing completion [32][33] - **Regulatory Adjustments**: The regulatory environment has stabilized, allowing for more efficient operations [34] Industry Trends - **Buy Now Pay Later (BNPL)**: - BNPL has become a significant and fast-growing use case, now representing mid-teens percentage of TPV [35][36] - The adoption of BNPL is broadening, with more providers offering flexible payment options [38][39] - **Stablecoin**: Current stablecoin developments are not seen as disruptive to Marqeta's business, but the company is prepared to support potential future needs [49][50] Conversations with Financial Institutions - **Long-term Engagement**: Ongoing discussions with large financial institutions, with expectations of gradual integration over several years [53][55] Additional Important Insights - **Growth Algorithm**: The company is focusing on a "rule of 40" metric to balance growth and profitability [18][19] - **Customer Demand**: There is a shift towards customers preferring comprehensive service packages rather than piecemeal offerings [16][17] This summary encapsulates the key insights from Marqeta's conference call, highlighting the company's strategic direction, financial performance, growth opportunities, and industry trends.

OAKLAND, Calif.--(BUSINESS WIRE)--Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform that enables embedded finance solutions for the world's innovators, today announced the appointment of Mike Milotich as Chief Executive Officer and as a Director, effective immediately. Mr. Milotich has served as Interim CEO since February 2025, in addition to his role of Chief Financial Officer. "Since joining Marqeta, Mike has played a key role in strengthening the Company's operations and fi. ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Marqeta (MQ) - Marqeta currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for performance [3][4] - The stock has shown a price increase of 2.99% over the past week, outperforming the Zacks Financial Transaction Services industry, which declined by 0.69% [6] - Over the last quarter, Marqeta's shares increased by 12.59%, and over the past year, they gained 20.74%, compared to the S&P 500's increases of 8.34% and 14.94%, respectively [7] Trading Volume - Marqeta's average 20-day trading volume is 4,617,188 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for Marqeta have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.09 to -$0.07 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [10] Conclusion - Given the positive momentum indicators and earnings outlook, Marqeta is positioned as a strong buy candidate for investors seeking short-term opportunities [12]

Industry Overview - Mobile payments have evolved into a comprehensive financial ecosystem, driven by fintech innovation and smartphone adoption, with global fintech investment reaching $44.7 billion in H1 2025 despite economic challenges [2] - The global mobile payments market was valued at $3.84 trillion in 2024 and is projected to grow to $4.97 trillion in 2025, with an expected surge to $26.53 trillion by 2032, reflecting a 27% CAGR [4] Key Players - Capital One is enhancing its mobile payments capabilities through a digital-first banking platform and a robust credit card network, integrating with digital wallets like Apple Pay and Google Pay [5][7] - PayPal serves 438 million active accounts globally, leveraging unmatched transaction data to provide merchants with insights that enhance customer loyalty and sales [8] - Marqeta's next-gen card issuing platform supports businesses in embedding digital payments into their applications, with a 29% year-over-year increase in total processing volume to $91 billion in Q2 2025 [13] - NCR Voyix is innovating in mobile payments for retail and restaurant sectors, with solutions that improve speed and customer experience, achieving a 16% year-over-year growth in platform sites [16] Technological Innovations - Emerging technologies like blockchain and AI are enhancing transaction transparency, processing speed, and fraud mitigation [2] - PayPal's "Tap to Pay" feature utilizes NFC technology to convert smartphones into contactless payment terminals, facilitating seamless mobile e-commerce [10] - Marqeta's open API architecture allows for customizable payment experiences, supporting real-time processing and secure interactions [12] Market Trends - The COVID-19 pandemic accelerated the demand for contactless payment solutions, prompting regulatory responses focused on data privacy and financial inclusion [4] - The rise of "super apps" like WeChat Pay and Alipay is transforming consumer behavior by integrating various services into a single platform [2] - The growth of e-commerce and improved digital infrastructure are significant factors driving the adoption of mobile payments [3]

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, capitalizing on established price movements [1] - Marqeta (MQ) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2][11] Company Performance - Marqeta's shares have increased by 17.9% over the past week, significantly outperforming the Zacks Financial Transaction Services industry, which rose by only 0.8% during the same period [5] - Over the past quarter, Marqeta's shares have risen by 24.76%, and over the last year, they have gained 25.24%, while the S&P 500 has increased by 10.18% and 20.38%, respectively [6] - The average 20-day trading volume for Marqeta is 5,336,123 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the last two months, three earnings estimates for Marqeta have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.09 to -$0.07 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions, suggesting positive earnings momentum [9] Investment Recommendation - Given the strong performance metrics and positive earnings outlook, Marqeta is rated as a 2 (Buy) stock with a Momentum Score of A, making it a promising candidate for near-term investment [11]