Marqeta Sees Strong Volume 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 its new CEO, Mike Milotich. The company's processing volume growth has remained strong, offsetting the lost income from weaker pricing, although the company has only recently scaled into profitability. 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 expanding profitability as volume grows. Additionally, Marqeta has had impressive success in controlling its cost structure in 2025 without sacrificing growth. This is good to see, and with the firm's improved financial discipline we expect the firm to enjoy better financial performance over time.