Summary of Marqeta FY Conference Call Company Overview - **Company**: Marqeta (NasdaqGS:MQ) - **Date of Conference**: November 18, 2025 - **Key Speaker**: Mike Milotich, CEO Key Metrics - **Total Payment Volume (TPV)**: Up 33% - **Net Revenue**: Up 28% - **Gross Profit**: Up 27% - **EBITDA Margin**: 19% [3][59] Business Segments and Growth Buy Now Pay Later (BNPL) - **Growth Rate**: Over 60%, accelerated by 10 points from the previous quarter [6][10] - **Key Drivers**: - Launch of Visa Flexible Credential, enabling a Pay Anywhere Card [6][7] - Increased distribution through wallets [9][12] - Diversification of providers among customers [9][10] - Expansion in Europe, including migration of programs for Klarna [10][24] Expense Management - **Growth Rate**: Consistently growing in the 30% range, faster than the overall company [15][17] - **Key Factors**: - Flexibility of the platform allowing unique capabilities [15][16] - Increased adoption of AP automation and corporate card issuance [16][18] On-Demand Delivery - **Growth Rate**: Doubled to double digits, driven by expansion into new merchant categories and geographic areas [20][21] Financial Services (Excluding Block) - **Growth Rate**: About twice the overall company growth, driven by neobanking use cases [22][23] International Expansion - **Growth Rate**: Over 100% in Europe, with significant success due to platform capabilities [24][30] - **TransactPay Acquisition**: Enhances program management capabilities in Europe, expected to improve gross profit take rates [25][27][28] Challenges and Risks Customer Renewals - Two significant customer renewals expected to impact gross profit growth by about two points each [32][33] - Renewals are anticipated to have less impact going forward due to pricing strategies [33][34] Block Relationship - Block accounts for 44% of revenue; their diversification may impact gross profit by high single-digit millions [39][40] - Ongoing communication and exploration of new business opportunities with Block [40][41] Future Outlook Embedded Finance - Rich pipeline for expense management and neobanking use cases, expected to drive growth for several years [44][45] Credit Offering - Growing quickly, with September credit payment volume increasing fourfold since January [47][49] - Focus on dynamic rewards to enhance customer engagement [49][50] Financial Institutions (FIs) - Increasing engagement with FIs, with expectations for gradual adoption of Marqeta's platform [55][56] Take Rates and Profitability - Gross profit take rate increased by 12 basis points; expected to remain stable with potential for improvement through TransactPay and value-added services [57][58] - Adjusted EBITDA expected to exceed $100 million in 2025, with long-term EBITDA margin goal approaching 50% [59][60] Conclusion Marqeta is experiencing robust growth across multiple segments, particularly in BNPL and international markets. The company is strategically addressing challenges related to customer renewals and its relationship with Block while positioning itself for future growth through embedded finance and credit offerings. The outlook for profitability is positive, with significant improvements anticipated in the coming years.