Marqeta, Inc. Q3 FY2025 earnings call

• Marqeta's Q3 financial performance was strong with TPV, net revenue, and gross profit all growing. Adjusted EBITDA reached an all-time high. - Focused on expanding and deepening customer relationships, enabling innovative programs, and geographic expansion. - Significant growth in lending use cases, including Buy Now, Pay Later, with pay anywhere cards and Visa flexible credential support. - Acquired TransActPay in July 2025, driving customer interest and expanding TAM in Europe. - Adjusted operating expenses were lower than expected due to timing shifts in marketing initiatives. - Accounting policy change for network incentives impacted Q3 gross profit year-over-year comparison.

In the third quarter of 2025, Marqeta achieved strong financial performance. Total processing volume (TPV) was $98 billion, a 33% year-over-year increase. Net revenue was $163 million, up 28% year-over-year. Gross profit was $115 million, a 27% increase year-over-year. Adjusted EBITDA was $30 million, with a 19% margin. Lending use cases, including Buy Now, Pay Later, grew rapidly, outpacing overall company TPV growth. Europe TPV continued to grow over 100%. Commercial programs, particularly SMB platforms, also saw growth. Revenue contribution from various segments showed robust growth across broad use cases.

• Raised Q4 2025 net revenue and gross profit growth expectations by at least 5 points, and adjusted EBITDA margin by 2 points. - Expected Q4 2025 net revenue growth to be between 22% and 24%, and full-year 2025 net revenue growth to be approximately 22%. - Gross profit growth expected to be between 17% and 19% in Q4 2025 and approximately 23% for full-year 2025. - Adjusted EBITDA margin expected to be between 15% and 16% in Q4 2025 and approximately 17% for full-year 2025.

• Renewal negotiations with large customers could impact growth, with one renewal expected in Q4 2025 and another in early 2026. - Potential drag from Cash App diversifying new issuance. - Unusual items in Q3 2025, such as fee recoveries, may not continue. - Macro-economic uncertainty poses challenges to accurately guiding future growth.

Q: Bryan Keane asks about new business pipeline and guiding with outsized growth like BNPL.

A: Mike Milotich responds that new business is viewed by new programs from existing and new customers, with many growth areas from existing customers launching new programs. Forecasting is complex due to outsized growth in areas like BNPL but the company feels good about projecting forward.

Q: Timothy Chiodo asks about Kara Card relationship and volumes/yield.

A: Mike Milotich talks about Klarna's expansion with Visa flexible credential into 15 new markets, growth in existing migrated markets, and that Europe's yields are generally lower but still healthy.

Q: Darrin Peller asks about trajectory sustainability and renewals.

A: Mike Milotich mentions that the business trajectory is strong but expects changes like renewal impacts and future diversions from Cash App.

Q: Connor asks about Europe growth sustainability.

A: Mike Milotich says Europe's growth, over 100%, may slow but will still grow faster than overall company, driven by TransActPay and large customers in multiple use cases.

Q: Craig Maurer asks about Cross River Bank, renewals, and American Express.

A: Mike Milotich talks about Cross River Bank as a good partner for new business, renewal cadence delays, and ongoing opportunities with American Express.

Q: James Faucette asks about adding new markets for partners.

A: Mike Milotich says the company helps customers expand geographically, with many large customers already operating in multiple geographies and more potential for expansion due to market traction.

Q: Jamie Friedman asks about value-added services.

A: Mike Milotich discusses tokenization, risk products, and white label apps as growing value-added services, with more focus on full end-to-end solutions for embedded finance customers.