Marqeta, Inc. Q4 FY2025 earnings call

• Mike highlighted Q4 results with TPV crossing $100B, net revenue growth, and adjusted EBITDA at an all-time high. • Emphasized growth through deepening customer relationships, geographic expansion, and onboarding new customers. • Mentioned leadership in lending/Buy Now, Pay Later, traction in Europe with TransactPay acquisition, and enhancements to real-time decisioning product. • Patti discussed strong TPV growth, gross profit factors, adjusted operating expenses, share repurchases, and 2025 performance. • Outlined 2026 expectations including TPV growth moderation, gross profit growth range, and quarterly cadence details.

Total processing volume (TPV) in Q4 was $109 billion, up 36% year-over-year. Q4 net revenue was $172 million, up 27% year-over-year. Gross profit was $120 million, up 22% year-over-year. Adjusted EBITDA was $31 million, an all-time high with an 18% margin. TPV in Europe grew more than twice as fast as the overall company in Q4. Value-added services contributed over 7% of gross profit in Q4 with 18 of top 20 customers using at least one.

• 2026 TPV growth expected to moderate to high 20s. • Gross profit growth expected 10%-12% with $481M-$490M range. • Impact from 2 large renewals and Block price tiering reducing growth by 7 points. • Cash App diversification expected to lower 2026 gross profit growth by 1.5-2 points. • 2026 net revenue growth expected 12%-14%, adjusted operating expenses mid-to-high single digits growth. • Adjusted EBITDA expected mid-20s growth, GAAP net income likely around $10M. • Quarterly cadence: Q1 gross profit growth 17%-19%, Q2 lower due to renewal, second half gross profit growth mid-single digits.

Q: About Cash App diversification and Block tiering, A: Mike discussed Cash App diversification with gradual new issuance in first half and none in second half, and Block tiering impact on 2026.

Q: Connor Allen asked about Patti joining and Mike on competition, A: Patti talked about her background and excitement, Mike said competitive environment relatively stable with more substantial deals.

Q: Darrin Peller on gross profit outlook and drivers, A: Mike said 7 points impact on gross profit, TPV growth, flips etc. are drivers.

Q: Sanjay Sakhrani on TPV growth moderation and value-added services/Europe, A: Mike said TPV growth moderation due to tough comps, Europe and value-added services have momentum.

Q: Craig Maurer on Visa and market, A: Mike said Visa has credibility but we have advantages.

Q: Michael Infante on BNPL mix shift and financial institutions, A: Mike said mix shift has sticky benefits, conversations with financial institutions are more frequent.

Q: Unknown Analyst on bank partnerships and value-add services, A: Mike talked about bank partnerships and value-add services uptake and future areas