Marqeta(US:MQ)2025-11-05 22:08Financial 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]