Marqeta Offers Strong Growth, but Its Reliance on Block Remains a Serious Concern

Marqeta suffered a sharp reduction in growth in 2023 after making concessions to Block during their contract renewal process. However, since then, Marqeta has seen improved performance under Miike Milotich, its CFO who was also named interim CEO in February 2025. Marqeta's revenue growth has reaccelerated, offsetting the lost income from weaker pricing, though the company is still unprofitable. Marqeta’s operating cost structure is mostly fixed, so higher processing volumes on debit and credit cards issued on its platform naturally lead to better margins for the firm, creating a roadmap for profitability as volume grows. Additionally, Marqeta has had impressive success in controlling its cost structure in 2025 without sacrificing growth. With the firm's improved financial discipline, we now expect the firm to break even by the end of 2026, well ahead of our initial projections.