Marqeta Earnings Call: Record Volumes, Slower 2026 Growth

Marqeta, Inc. ((MQ)) has held its Q4 earnings call. Read on for the main highlights of the call.

Marqeta struck an upbeat tone on its latest earnings call, underscoring record payment volumes, expanding margins and a clear path to profitability despite signaling slower growth for 2026. Management framed the year as a turning point, with scale, efficiency and diversification in Europe and value‑added services more than offsetting near‑term headwinds from contract timing and pricing shifts.

Record TPV and Accelerating Volume Growth

Marqeta crossed a key milestone in Q4 as total processing volume hit $109 billion, its first quarter above the $100 billion mark and up 36% from a year earlier. It was also the third straight quarter of sequential acceleration, with TPV growth improving by about three percentage points each quarter, pointing to strong underlying demand across its platform.

Revenue and Gross Profit Expansion

Top‑line momentum remained solid, with Q4 net revenue rising 27% year over year to $172 million and gross profit up roughly 22% to about $120 million. For full‑year 2025, net revenue grew 23% and gross profit 24%, with gross profit growth in Q4 beating internal expectations by roughly four percentage points.

Record Adjusted EBITDA and Margin Improvement

Profitability metrics showed sharp progress as Q4 adjusted EBITDA reached $31 million, or 18% of net revenue and 26% of gross profit, more than doubling from the prior year. For 2025, adjusted EBITDA climbed to $110 million, more than three and a half times 2024 levels, putting the company on track to move from adjusted to GAAP profitability.

Strong European Traction and Strategic Acquisition

Europe has become a key growth engine, with Q4 TPV in the region growing at more than twice the company average and 2025 European TPV roughly eight times 2022 levels. The TransactPay acquisition, completed in Q3 2025, added an EMI license and a full UK and EU stack, helping Q4 Europe TPV nearly match 40% of Marqeta’s entire 2023 global volume.

Robust Growth in Lending and BNPL

Lending, including Buy‑Now‑Pay‑Later programs, grew just under 60% year over year in Q4 as Marqeta added new BNPL customers and conversions from rival providers. Management highlighted support for flexible credentials and digital wallets, which is broadening use cases and easing geographic expansion for lenders and merchants using its platform.

Value‑Added Services Momentum

Higher‑margin value‑added services are becoming an important growth lever, contributing more than 7% of Q4 gross profit and more than doubling versus the prior year. Eighteen of the company’s top 20 customers now use at least one such service, with rising penetration among major clients boosting stickiness and lifting overall margin potential.

Strong Balance Sheet and Share Repurchases

The company ended Q4 with about $770 million in cash and short‑term investments, providing ample flexibility for investment and capital returns. Marqeta repurchased 20.2 million shares in Q4 at an average price of $4.76, bringing 2025 buybacks to 84.8 million shares and shrinking the share count by roughly 17% versus the end of 2024.

Enterprise Wins and Larger Deal Size

Marqeta’s move upmarket is starting to pay off, as it signed three Fortune 500 customers in 2025 and lifted average deal size by more than 20% year over year. Over the past two years it has added about 40 new logos, and 14 of its top 15 customers have launched at least one additional program, signaling deeper, more multi‑product relationships.

Moderated 2026 Growth Guidance

Looking ahead, the company expects 2026 growth to cool from 2025’s breakneck pace, with TPV still rising in the high‑20s percent range and gross profit up 10% to 12%. The deceleration reflects tougher comparisons and known headwinds rather than a demand shock, as net revenue is still guided to grow 12% to 14% while profitability continues to improve.

Two Large Renewals Creating Near‑Term Headwind

Management explained that the timing of two major contract renewals, which had been favorable to 2025, will shave about four percentage points off gross profit growth in 2026. These shifts create tougher year‑over‑year comparisons but are tied to contract timing rather than lost customers, suggesting the pressure is temporary.

Block Pricing Tier Pressure

A key headwind is that Block, which represented roughly 44% of Q4 net revenue, hit a lower pricing tier in December 2025 that will weigh on 2026 growth by about three percentage points. The change underscores both the benefits and risks of customer concentration, pressuring take rates even as Block’s volume helps sustain overall TPV momentum.

Cash App New Issuance Diversification

Marqeta is also assuming that Cash App will diversify its new card issuance, which is expected to trim 1.5 to 2 percentage points from 2026 gross profit growth. The company’s guidance bakes in a gradual reduction in the first half and no new issuance in the second half, offering investors a conservative view of this particular risk.

Accounting Policy Change Impact

Comparisons are further complicated by a change in how Marqeta accounts for card network incentives starting in Q2 2025, which created about a five‑point headwind to Q4 gross profit growth. While this adjustment does not affect cash flow, it makes growth look slower on a reported basis and requires investors to look past the accounting noise.

Gross Profit Take Rate Slightly Softening

The company reported a Q4 gross profit take rate of 11 basis points, down about half a basis point from the prior quarter, reflecting impacts from a major renewal and business mix changes. While modest, the decline highlights ongoing pricing and mix dynamics that Marqeta must offset with higher‑margin services and operating efficiency.

Second‑Half 2026 Moderation and Tough Comparisons

Management cautioned that growth will slow notably in the second half of 2026, with gross profit expected to rise only in the high single digits. This reflects lapping the TransactPay acquisition, very strong 2025 BNPL growth, shifting incentive timing and the assumed loss of Cash App new issuance, all of which compress reported growth rates.

Longer Implementation Timelines for Enterprise Deals

As Marqeta increasingly targets large enterprise and embedded‑finance clients, sales cycles and onboarding timelines are lengthening, delaying revenue recognition even as the pipeline improves. Executives argued this trade‑off is worthwhile because these larger, stickier programs should support more durable growth and higher unit economics over time.

Guidance and Outlook for 2026

For 2026, Marqeta expects TPV to grow in the high‑20s percent range, adding roughly $100 billion of volume, with gross profit up 10% to 12% and net revenue up 12% to 14%. Adjusted operating expenses should rise in the mid‑ to high‑single digits, supporting mid‑20s percent growth in adjusted EBITDA and a swing to modestly positive GAAP net income, with profitability building in the second half.

Marqeta’s latest update paints a picture of a company scaling rapidly, expanding margins and tightening its capital structure while acknowledging a more measured growth year ahead. For investors, the story now hinges on whether new enterprise wins, European expansion and value‑added services can offset known pressures from major contracts and sustain the march toward durable profitability.