Mastercard Q4 Earnings Call Highlights

Core Insights - Mastercard reported a 7% year-over-year increase in worldwide gross dollar volume (GDV) on a local currency basis, with 4% growth in the U.S. and 9% growth outside the U.S. [1] - The company achieved a 15% increase in net revenues for Q4 on a non-GAAP currency-neutral basis, driven by a 22% growth in value-added services and solutions [2][6] - Mastercard executives highlighted a strong performance in 2025, emphasizing double-digit revenue growth and continued momentum in value-added services [3] Financial Performance - For Q4 2025, Mastercard's net revenues rose approximately 15% on a non-GAAP, currency-neutral basis, with value-added services growth of around 22% [6] - Full-year 2025 results showed value-added services and solutions delivering net revenue growth of 21%, or 18% excluding acquisitions, on a currency-neutral basis [11] - The company expects high-end low-double-digit net revenue growth for 2026, with a one-time restructuring charge of approximately $200 million affecting about 4% of employees [4][13] Strategic Initiatives - Mastercard secured hundreds of new issuing deals globally, including an extension with Capital One and multiple regional wins in Türkiye, Latin America, and South Africa [5][9] - The company is focusing on emerging opportunities such as stablecoins and agentic commerce, with ongoing investments in digital assets and partnerships [12] - Mastercard's tokenization efforts have reached nearly 40% of all transactions, indicating a strong emphasis on security and innovation [11] Government Grants and Expense Management - Mastercard received multi-year government grants that are expected to benefit operating expenses primarily in 2025 and 2026, improving operating expense growth by around 5.5 percentage points [7][8] - Total adjusted operating expenses increased by 12% in Q4, with a 5 percentage point impact from acquisitions, while underlying expense growth was attributed to strategic initiatives [8] Capital Return and Shareholder Value - The company repurchased $3.6 billion of stock in the quarter, with an additional $715 million repurchased through January 26, 2026 [4][16] - Fourth-quarter EPS was reported at $4.76, including a $0.10 contribution from share repurchases [16]