Marqeta, Inc. Q3 FY2026 earnings call

• Strong Financial Execution: TPV reached $126 billion (29% growth), marking the first quarter with annualized TPV exceeding $500 billion. Adjusted EBITDA grew 28%, outperforming guidance.
• Strategic Customer Expansions: Deepened partnership with Block, enabling the Square credit card on the American Express network via Marketa’s platform, consolidating debit and credit under one issuer processor. Launched Google Wallet for Kids and expanded into Europe with Satispay.
• Platform Modernization & Migrations: Successfully executed portfolio migrations, reducing complexity for customers moving from legacy systems. The Square migration is the fourth major migration in 24 months, highlighting Marketa’s ability to handle complex data mapping and cryptography without disrupting cardholder experience.
• Product Innovation: Enhanced end-to-end platform with stablecoin-backed card solutions (partnerships with Coinbase, BB&K, ZeroHash), straight-through processing for supplier payments, and open banking integrations (MasterCard Open Finance, Plaid) for seamless onboarding.
• Use Case Growth: Lending/BNPL grew nearly 40% YoY. Expense management volume grew in the high 50s. On-demand delivery grew in the high single digits. Cash App new issuance slowed as expected, with little to no new issuance projected by year-end.

The transcript does not break down financial performance by specific product segments (e.g., debit vs. credit). However, it highlights that TPV grew 29% to $126 billion. Net revenue was $176 million (up 8% YoY), with Block accounting for 41% of net revenue (down from 44% YoY). Gross profit was $122 million (up 7% YoY). Adjusted EBITDA was $39 million (up 28% YoY) with a margin of 22% based on net revenue and 32% based on gross profit.

• Q4 2026 Net Revenue: Revised downward; expects growth between 3% and 5% (previously higher), due to a customer contracting directly with an issuing bank rather than through Marketa, which reduces pass-through revenue but does not impact gross profit.
• Q4 2026 Gross Profit: Expects growth between 5% and 7%, consistent with Q3.
• Q4 2026 Adjusted EBITDA: Expects growth in the mid-20s.
• Full Year 2026 Net Revenue: Reduced by one percentage point; now expects growth between 11% and 12%.
• Full Year 2026 Gross Profit: Maintaining expectations of 11% to 12% growth.
• Full Year 2026 Adjusted EBITDA: Raised expectations from low 30s to low-to-mid 30s growth.
• Full Year 2026 GAAP Net Income: Expects $135–$140 million, including a $107 million non-cash tax benefit.

• Revenue Structure Changes: Customers may choose to contract directly with banks/networks, causing net revenue declines even if gross profit remains stable, creating 'noise' in top-line metrics.
• Cash App Issuance Slowdown: New issuance for Cash App has slowed significantly, with expectations of little to no new issuance by December 2026, impacting near-term growth dynamics.
• Legacy Platform Dependency: Over 90% of card volume still runs on legacy platforms; while migration demand is growing, the transition process carries inherent complexity and risk.
• Agentic Payment Uncertainty: The market for AI-driven agentic commerce is unsettled, particularly regarding fraud liability and authorization protocols, which could impact adoption of virtual card solutions.

Q: Analyst asked about the strategic significance of the Square credit card win on Amex and future interest. / A: CEO highlighted that Marketa’s platform offers optionality, allowing customers like Square to consolidate disparate debit/credit programs across different banks/networks onto one infrastructure. This migration validates Marketa’s ability to handle complex modernizations, driving further interest from enterprises seeking to simplify their payment stack.

Q: Analyst asked about the shift in win rates for migrations versus de novo programs and the long-term growth trajectory. / A: CEO noted that over 90% of volume remains on legacy platforms, fueling a wave of modernization. As Marketa executes more successful migrations (four in 24 months), barriers to entry lower, making clients more receptive to migrating off old systems. This positions Marketa strongly against incumbents unable to compete with fintech agility.

Q: Analyst questioned the recent net revenue revision, asking if the economics changed for the affected customer. / A: CFO explained that for one large customer, the change was structural: they contracted directly with an issuing bank instead of through Marketa. While this reduced pass-through revenue, gross profit remained unchanged. This underscores why Marketa emphasizes gross profit over net revenue, as the core value add and profitability are intact.

Q: Analyst asked about Cash App’s role across traditional cards, post-purchase BNPL, and pre-purchase BNPL. / A: CEO clarified that Marketa supports both the traditional Cash App card and the newer flexible credential product integrating Afterpay. Most volume remains on the traditional program. Direct lending agreements outside the card experience do not affect Marketa’s business, though the flexible credential allows easier integration of installment lending into the cardholder journey.

Q: Analyst asked about limitations of single-use virtual cards for agentic AI transactions and Marketa’s positioning. / A: CEO argued that single-use cards disconnect the issuer from the transaction, masking the true cardholder and increasing fraud risk. Marketa believes issuers must play a larger role in agentic commerce to leverage existing KYC/KYB data and trust. They are building solutions using persistent virtual cards with tight controls, prioritizing deliberate fraud management over rapid, untested experimentation.