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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary presents a generally positive outlook, with strong international growth, especially in Europe, and a promising pipeline for credit products. Adjusted EBITDA margin guidance has improved, and the company anticipates GAAP breakeven by 2026. Although there are slight revenue guidance reductions, the overall financial health and strategic initiatives, such as the TransactPay acquisition and BNPL capabilities, are favorable. The market cap suggests moderate sensitivity to these developments, likely resulting in a positive stock price movement.
Total Processing Volume (TPV) $91 billion in Q2 2025, a 29% increase compared to Q2 2024. Growth driven by diverse use cases and customer expansion.
Net Revenue $150 million in Q2 2025, a 20% year-over-year increase. Growth attributed to higher TPV and favorable business mix.
Gross Profit $104 million in Q2 2025, a 31% increase year-over-year. Includes an 8.6% growth benefit from revised accounting policy for card network incentives.
Gross Margin 69% in Q2 2025, supported by strong TPV growth and favorable business mix.
Adjusted EBITDA $29 million in Q2 2025, translating to a 19% margin. Growth driven by gross profit increase and operating expense discipline.
Non-Block TPV Growth Nearly 3x faster than Block TPV growth, driven by diverse use cases like financial services, lending, and expense management.
Value-Added Services Gross Profit More than doubled year-over-year in Q2 2025, driven by real-time decisioning and other services.
European TPV Growth More than doubled year-over-year, driven by diverse use cases and customer expansion.
Adjusted Operating Expenses $76 million in Q2 2025, a 7% year-over-year decrease. Reduction due to investment timing delays, nonrecurring benefits, and efficiency initiatives.
GAAP Net Loss $0.6 million in Q2 2025, including $8 million of interest income.
Visa Flexible Credentials: Marqeta collaborated with partners to launch Visa Flexible Credentials in the U.S., becoming the first issuer processor to deliver this functionality. This enables flexible payment experiences for consumers.
KlarnaOne Card: Supported Klarna in launching the KlarnaOne Card, making them the second BNPL provider to offer flexible credential-enabled cards.
Real-time decisioning: Introduced real-time decisioning capabilities, allowing customers to manage transaction fraud with AI and machine learning. Over 40 customers, contributing 20% of non-Block TPV, are using this feature.
European market expansion: Klarna expanded from 3 to over 10 programs across multiple countries in Europe. A local customer plans to expand into 9 new markets, bringing their total to 26. A U.S.-based expense management customer is also expanding to Europe.
TransactPay acquisition: Completed the acquisition of TransactPay, enabling deeper engagement in Europe and standardizing offerings across geographies. This acquisition is expected to support larger customers and drive value through program management services.
TPV growth: Total processing volume (TPV) reached $91 billion in Q2 2025, a 29% increase year-over-year. Non-Block TPV grew nearly 3x faster than Block TPV.
Adjusted EBITDA: Achieved an all-time high adjusted EBITDA of $29 million in Q2, translating to a 19% margin. This was driven by gross profit growth and operating expense discipline.
Value-added services: Gross profit from value-added services more than doubled year-over-year, driven by offerings like real-time decisioning and AI-enhanced fraud detection.
Focus on BNPL innovation: Marqeta is building a new capability to embed BNPL options within apps, allowing consumers to pay with existing debit cards. A limited release is planned before the 2025 holiday season, with a broader launch in 2026.
Share repurchase program: Repurchased 35.2 million shares in Q2 at an average price of $4.62, reducing outstanding shares by over 12% year-to-date.
Regulatory Approvals: The acquisition of TransactPay required regulatory approvals, which could pose challenges in terms of compliance and delays in integration.
Macroeconomic Uncertainty: The company acknowledged ongoing macroeconomic uncertainty, which could impact TPV growth and overall financial performance.
Customer Contract Renewals: Delays in executing key customer contract renewals could impact revenue growth in Q4 and beyond.
Network Incentive Accounting Policy: The revised accounting policy for network incentives will shift from a tailwind in Q2 to a headwind in Q3 and Q4, potentially dragging down gross profit growth.
Competitive Pressures in BNPL: While Marqeta has been a leader in BNPL, competitive pressures from other providers catching up on instant issuance and other innovations could impact market share.
Dependence on Block: Block remains a significant contributor to revenue, and any slowdown in Block's growth could adversely affect Marqeta's financials.
Geographic Expansion Challenges: Expanding into new markets, particularly in Europe, involves complexities such as adapting to local regulations and operational hurdles.
Fraud and Transaction Risk: The company is enhancing real-time decisioning with AI and machine learning to combat fraud, but emerging threats could still pose risks.
Revenue Growth: Full year 2025 revenue growth is expected to be between 17% and 18%, with Q3 and Q4 net revenue growth projected between 15% and 17%.
Gross Profit Growth: Full year 2025 gross profit growth is expected to be between 18% and 19%. Q3 gross profit growth is projected to be 15% to 17%, with Q4 growth expected to be 3 points lower than Q3.
Adjusted EBITDA Margin: Full year 2025 adjusted EBITDA margin is expected to be between 14% and 15%, equating to over $85 million in adjusted EBITDA for the year. Q3 adjusted EBITDA margin is projected to be 12% to 13%, with Q4 expected to be 1 point higher than Q3.
TransactPay Acquisition Impact: The acquisition of TransactPay is expected to contribute 1.5 points to revenue and gross profit growth in Q3 and 2 points in Q4.
Network Incentive Accounting Policy Impact: The revised accounting policy for network incentives will shift from a tailwind in Q2 to a headwind in Q3 and Q4, with a 2-point drag on gross profit growth in Q3 and a 4-point drag in Q4.
Customer Contract Renewals: Two key customer contract renewals are anticipated later in the year, which will impact Q4 growth.
Platform Capabilities and Innovation Investments: Investments in platform capabilities and innovation will continue, with Q3 and Q4 adjusted operating expenses expected to grow in the mid-single digits.
Share Repurchase Activity: Our share repurchase activity remained ongoing, and we continue to believe the current valuation does not fairly represent the company's value or the market opportunity ahead of us. In Q2, we repurchased 35.2 million shares at an average price of $4.62. When combined with our Q1 repurchase activity, we have repurchased 61.5 million shares at an average price of $4.45 so far this year, which is more than a 12% reduction in the outstanding shares as of the 2024 year-end. As of June 30, we had $107 million remaining on our buyback authorization.
The earnings call summary and Q&A session highlight several positive developments, including strong revenue and gross profit growth, strategic acquisitions like TransactPay, and expansion into new markets with partners like Klarna. While there are some uncertainties, such as macroeconomic challenges and contract renewals, the overall sentiment is bolstered by the company's optimistic guidance, new business pipeline, and strategic initiatives. The company's market cap suggests a moderate reaction, resulting in a positive stock price prediction of 2% to 8%.
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