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.

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over 3 percentage points from Q2 2025 [4][15][17] - Q3 net revenue was $163 million, growing 28% year-over-year, with gross profit of $115 million, a 27% increase year-over-year [5][18] - Adjusted EBITDA for Q3 was $30 million, achieving a margin of 19%, marking another all-time high for adjusted EBITDA dollars [6][22] Business Line Data and Key Metrics Changes - Lending use cases, including Buy Now, Pay Later (BNPL), saw TPV growth accelerate by 10 percentage points compared to Q2, with year-over-year growth rates approximately double that of the overall company [17][20] - Non-Block TPV is now growing 2.5 times faster than Block TPV, with Europe TPV continuing to grow over 100% year-over-year [16][18] - Expense management growth continues to outpace overall company growth, driven by customer acquisition of new end users [16][20] Market Data and Key Metrics Changes - The international business, particularly in Europe, is experiencing strong growth, with non-U.S. business representing a high teens percentage of TPV, up 5 percentage points from Q3 of the previous year [62] - Europe continues to deliver over 100% TPV growth, although this rate may not be sustainable as the base increases [62][66] - The on-demand delivery segment is growing significantly, with acceleration into double digits in Q3, primarily due to merchant category and geographic expansion [16][20] Company Strategy and Development Direction - The company aims to deepen customer relationships by enabling innovative programs and expanding geographic reach, while increasing bank supply [7][10] - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][66] - The company is focused on diversifying its business beyond debit and expanding internationally to drive future growth [14][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's trajectory, noting that TPV growth has accelerated for two consecutive quarters, indicating strong demand across various use cases [54][56] - The company anticipates challenges in Q4 due to the impact of contract renewals and potential changes in customer behavior, particularly with Cash App diversifying its new issuance [56][58] - Management expects to finish the year strong, raising expectations for Q4 and the full year based on Q3 results [25][28] Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [24] - The company ended Q3 with over $830 million in cash and short-term investments, driven by strong operating cash flows [23] Q&A Session Summary Question: What does the pipeline for new business look like? - Management indicated that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [33][34] Question: How significant is the TransactPay acquisition for European market expansion? - The acquisition simplifies the process for customers to expand into Europe and allows the company to compete in the premium market for enterprise customers [35][36] Question: What is the sustainability of the 100%+ growth in Europe? - While the growth rate may not be sustainable at over 100%, the company expects TPV growth in Europe to continue at a materially faster rate than the overall company [62][66] Question: Are there any anomalies in the current growth trajectory? - Management noted that while the trajectory is strong, there are factors such as contract renewals and unusual items that may impact future growth [56][58]

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over three points from Q2 2025 [4][15]. - Net revenue for Q3 was $163 million, growing 28% year-over-year, while gross profit was $115 million, a 27% increase year-over-year [5][18]. - Adjusted EBITDA was $30 million, achieving a margin of 19%, marking another all-time high for adjusted EBITDA dollars [6][22]. Business Line Data and Key Metrics Changes - Lending use cases, including buy now, pay later (BNPL), saw TPV growth accelerate by 10 points versus Q2, with year-over-year growth rates about double that of the overall company [17]. - Expense management growth continued to outpace overall company growth, driven by customer acquisition of new end users [16]. - On-demand delivery growth accelerated into double digits, primarily fueled by merchant category expansion and geographic growth [16]. Market Data and Key Metrics Changes - Europe continued to deliver strong results, with TPV growth remaining over 100% year-over-year, although this rate may not be sustainable as the base grows [11][63]. - Non-Block TPV is now growing two and a half times faster than Block TPV, with significant contributions from Europe [16]. - The international business, particularly in Europe, now represents a high teens percentage of total TPV, up five percentage points from the previous year [63]. Company Strategy and Development Direction - The company aims to deepen customer relationships by enabling innovative programs and expanding geographically, while increasing bank supply [7][10]. - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][66]. - The company is focused on diversifying its business beyond debit and expanding its presence outside the U.S. to drive future growth [14][66]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's trajectory, noting that TPV growth has accelerated for two consecutive quarters, indicating strong underlying business performance [54]. - The company anticipates challenges in Q4 due to the timing of contract renewals and potential diversification of new issuance by Cash App [56][57]. - Management expects to finish the year strong, raising expectations for Q4 and the full year based on Q3 results [25][28]. Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [24]. - The GAAP net loss for Q3 was $3.6 million, influenced by interest income and a non-recurring litigation-related expense [23]. - The company ended the quarter with over $830 million in cash and short-term investments, driven by strong operating cash flows [23]. Q&A Session Summary Question: What does the pipeline for new business look like? - Management indicated that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [33]. Question: How significant is the TransactPay acquisition for European market expansion? - The acquisition facilitates easier transitions for customers between North America and Europe, allowing for a more seamless offering and access to larger enterprise customers [36]. Question: What is the sustainability of the 100% growth rate in Europe? - While the 100% growth rate may not be sustainable, TPV growth in Europe is expected to continue at a materially faster rate than the overall company due to the addition of TransactPay [66]. Question: What are the implications of the renewal cadence for large customers? - Management expects two significant renewals to be completed before current contracts expire, with one expected in Q4 and the other in early 2026 [75]. Question: How does the company plan to leverage its partnerships for market expansion? - The company is focusing on multinational customers who can benefit from its modern platform, which allows for easy market transitions [82].

Financial Data and Key Metrics Changes - Total Processing Volume (TPV) reached $98 billion in Q3 2025, representing a 33% increase year-over-year and an acceleration of over three points from Q2 2025 [4][16][18] - Net revenue for Q3 was $163 million, growing 28% year-over-year, with gross profit at $115 million, a 27% increase year-over-year [5][19] - Adjusted EBITDA was $30 million, achieving a 19% margin, marking another all-time high for adjusted EBITDA dollars [5][24] Business Line Data and Key Metrics Changes - Lending use cases, including buy now, pay later (BNPL), saw significant growth, with TPV growth accelerating 10 points versus Q2, and year-over-year growth about double the overall company rate [18][50] - Commercial programs, particularly those enabling SMBs, also experienced increased demand, highlighted by signing a Fortune 500 customer for electronic supplier payments [9][10] - Non-Block TPV is now growing two and a half times faster than Block TPV, with Europe TPV continuing to grow over 100% year-over-year [17][50] Market Data and Key Metrics Changes - Europe continues to deliver strong results, with TPV growth remaining over 100% year-over-year, driven by neobanking, lending, and BNPL use cases [11][50] - The international business now represents a high teens percentage of total TPV, up five percentage points from Q3 of the previous year [50] Company Strategy and Development Direction - The company aims to expand customer relationships by enabling innovative programs and seamless geographic expansion while increasing bank supply [6][10] - The acquisition of TransactPay is expected to enhance the company's ability to serve enterprise customers in Europe, providing a complete offering comparable to North America [12][36] - The company is focused on diversifying its business beyond debit and expanding internationally to drive future growth [15][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business trajectory, noting that TPV growth has accelerated for two consecutive quarters, with strong performance expected to continue [44][46] - The company raised its expectations for Q4 and the full year based on Q3 results, anticipating net revenue growth of 22%-24% in Q4 [27][29] - Management acknowledged potential headwinds from contract renewals and macroeconomic uncertainties but remains optimistic about growth prospects [47][48] Other Important Information - The company repurchased 3.2 million shares at an average price of $6.12 in Q3, with a total of 64.6 million shares repurchased year-to-date [26] - The GAAP net loss for Q3 was $3.6 million, influenced by interest income and a non-recurring litigation-related expense [25] Q&A Session Summary Question: Inquiry about new business and contract ramping - Management noted that much of the growth is driven by existing customers launching new programs, with new cohort business expected to contribute over $40 million in revenue in 2025 [31][33] Question: Sustainability of growth rates - Management indicated that while growth rates may not be sustainable at current levels, they expect continued strong performance, particularly in lending and on-demand delivery [44][50] Question: Impact of TransactPay on European market expansion - The acquisition facilitates easier transitions for customers between North America and Europe, allowing the company to compete in the premium market [36][52] Question: Details on card-to-card relationships and market expansion - Management highlighted the strong relationship with Klarna and the significant growth observed in existing markets, with expectations for continued expansion into new markets [40][41] Question: Revenue yield comparisons across different markets - Management explained that gross profit take rates are relatively consistent across use cases, with variations primarily due to customer size rather than fundamental pricing differences [63][65]