Company Reports

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.

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.

Marqeta generated its second consecutive quarter of GAAP profitability, reporting net income of $8 million while expanding its adjusted EBITDA margin to 21% from last year's 19%.

Marqeta achieved its first GAAP net income profitability in first-quarter 2026, with earnings per share coming in at $0.02. Net revenue rose 19% from last year to $166 million, thanks to a 33% increase in total processing volume to $112 billion.

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 Mike 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. This is good to see, and with the firm's improved financial discipline we expect the firm to report a modest profit in 2026.

Marqeta reported solid fourth-quarter earnings, thanks to strong transaction volume growth. Net revenue increased 27% from last year to $172.1 million, while gross profits rose 22% to $120 million.

Marqeta reported strong third-quarter earnings, with yet another quarter of sequential revenue growth acceleration. Net revenue increased 28% from last year to $163.3 million, while gross profits rose 27% to $114.6 million.

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.

Marqeta retained strong momentum in the second quarter, with another quarter of sequential revenue growth acceleration. Net revenue increased 20% from last year to $150.4 million while gross profits rose 31% to $104 million.

Marqeta had a good start to 2025, with first-quarter revenue growth accelerating to 18%, bringing net revenue to $139 million. Meanwhile, net losses narrowed to $8.2 million from $36 million last year.

Marqeta has recently enjoyed rapid revenue and volume growth that has led to improving margins, though the company is still unprofitable. Marqeta’s operating cost structure is mostly fixed, so higher processing volume on debit and credit cards issued on its platform naturally leads to better margins for the firm, creating a road map for profitability as volume grows. The Marqeta card-issuing platform provides its customers with the infrastructure and application programming interfaces, or APIs, needed to build and rapidly deploy innovative card payment systems without preexisting payment expertise. The unique capabilities and flexibility of Marqeta’s platform has allowed it to find success with fintech and technology companies, with buy now pay later firms and Block being the most notable. Marqeta continues to benefit from the high organic growth its customer base provides, and the transition to digital payments as digital card issuance and tokenization are among its strengths.

Marqeta reported solid fourth-quarter results with net revenue increasing 14% from last year to $135.8 million. Meanwhile, net losses narrowed to $27.1 million from $40.4 million. Marqeta also announced Simon Khalaf is stepping down as CEO and director, effective immediately.

Returning to no-moat-rated Marqeta after earnings, we are reducing our fair value to $6 from $7. The decrease comes from lower near- to medium-term revenue projections in alignment with the firm's lower guidance for the fourth quarter of 2024. The company's explanation for the weak guidance is that a stricter regulatory environment has increased the time to launch new programs, slowing down processing volume and revenue growth from new clients. Hypothetically, this is primarily an issue of timing, as slower program ramps mean lower growth in the second half of 2024 and 2025 but a recovery in 2026. However, the suddenness of the guidance change—as well as the firm's comments on some clients bringing elements of their card program management in-house—leads us to take a more cautious stance on our future projections, hence the decrease in our fair value estimate. Despite the decrease, we see Marqeta as undervalued following a severely negative reaction from the market to the firm's earnings and new guidance.

Marqeta has recently enjoyed rapid revenue and volume growth that has led to improving margins, though the company is still unprofitable. Marqeta’s operating cost structure is mostly fixed, so higher processing volume on debit and credit cards issued on its platform naturally leads to better margins for the firm, creating a road map for profitability as volume grows. The Marqeta card-issuing platform provides its customers with the infrastructure and application programming interfaces, or APIs, needed to build and rapidly deploy innovative card payment systems without preexisting payment expertise. The unique capabilities and flexibility of Marqeta’s platform has allowed it to find success with fintech and technology companies, with buy now pay later firms and Block being the most notable. Marqeta continues to benefit from the high organic growth its customer base provides, and the transition to digital payments as digital card issuance and tokenization are among its strengths.

No-moat-rated Marqeta reported weak third-quarter earnings as the firm’s revenue growth decelerates. Net revenue increased 18% from the previous year and 2% from the previous quarter to $128 million. Meanwhile, the firm’s net loss improved to $28.6 million from $55 million. These results were a bit weaker than we had expected, and Marqeta’s fourth-quarter guidance calls for further growth deceleration, with the firm looking for revenue growth between 10% and 12%. This is problematic as Marqeta has still not gained enough scale against its fixed costs to become profitable and needs to expand its business outside its contracts with Block to reduce its customer concentration problems.

Marqeta has recently enjoyed rapid revenue and volume growth that has led to improving margins, though the company is still unprofitable. Marqeta’s operating cost structure is mostly fixed, so higher processing volume on debit and credit cards issued on its platform naturally leads to better margins for the firm, creating a road map for profitability as volume grows. The Marqeta card-issuing platform provides its customers with the infrastructure and application programming interfaces, or APIs, needed to build and rapidly deploy innovative card payment systems without preexisting payment expertise. The unique capabilities and flexibility of Marqeta’s platform has allowed it to find success with fintech and technology companies, with buy now pay later firms and Block being the most notable. Marqeta continues to benefit from the high organic growth its customer base provides, and the transition to digital payments as digital card issuance and tokenization are among its strengths.

No-moat-rated Marqeta reported second-quarter results that were largely in line with our expectations. While net revenue decreased 46% from last year to $125.3 million, the intensity of the decline was exaggerated by Marqeta’s new revenue recognition methodology for its relationship with Block. Gross profit, which controls for this change decreased 6% from last year to $79.4 million. The decline was entirely due to weaker pricing from the agreements with Block, as underlying processing volume growth has been strong in the first half of 2024. On the other hand, earnings per share increased to $0.23 from a loss of $0.07, though the company’s profitability during the quarter can be entirely attributed to a $158 million one-time reversal of share-based compensation.

No-moat-rated Marqeta reported decent first-quarter earnings that were in line with our expectations. While net revenue decreased 46% from last year to $118 million, the intensity of this decline was exaggerated by Marqeta's new revenue recognition methodology for its relationship with Block. Gross profit, which controls for this change, decreased 6% from last year to $84.2 million. The decrease was entirely due to weaker pricing from the agreements with Block, as processing volume growth remained strong. As we incorporate these results, we do not plan to materially alter our $7 per share fair value estimate. We see the shares as modestly undervalued at current prices, although we would note our Very High Uncertainty Rating as Marqeta still suffers from severe customer concentration issues.

Marqeta has recently enjoyed rapid revenue and volume growth that has led to improving margins, though the company is still unprofitable. Marqeta’s operating cost structure is mostly fixed, so higher processing volume on debit and credit cards issued on its platform naturally leads to better margins for the firm, creating a road map for profitability as volume grows. The Marqeta card-issuing platform provides its customers with the infrastructure and application programming interfaces, or APIs, needed to build and rapidly deploy innovative card payment systems without preexisting payment expertise. The unique capabilities and flexibility of Marqeta’s platform has allowed it to find success with fintech and technology companies, with buy now pay later firms and Block being the most notable. Marqeta continues to benefit from the high organic growth its customer base provides, and the transition to digital payments as digital card issuance and tokenization are among its strengths.

No-moat-rated Marqeta reported decent fourth-quarter results as the impact from its new contracts with Block was partially mitigated by strong processing volume growth and improved cost management. Net revenue decreased 42% from last year to $118.8 million. However, the intensity of this decline is exaggerated by Marqeta’s new revenue recognition methodology for its relationship with Block. Gross profit, which controls for this change, decreased 4% from last year to $83.2 million. The decrease was entirely due to weaker pricing from the agreements with Block, as processing volume growth had another strong quarter. As we incorporate these results, we do not plan to materially alter our $7 fair value estimate. We see the shares as roughly fairly valued at the current price.