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Marqeta (MQ)
NASDAQ:MQ
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Marqeta
(NASDAQ:MQ)
67Neutral
Positive Factors
Acquisitions
The acquisition of TransactPay is seen as a positive move to accelerate capabilities and simplify customer experiences in Europe.
Financial Performance
Marqeta's net revenue rose 18%, surpassing guidance, benefiting from a more favorable business mix.
Strategic Partnerships
Marqeta announced a partnership that will enable its customers to access American Express, potentially enhancing its offerings.
Negative Factors
Program Delays
The delay of 15 implementation/setup programs with customers was a drag on Marqeta's performance, with programs behind schedule by an average of approximately 70 days.
Regulatory Challenges
Regulatory pressures remain a headwind, impacting stock performance due to delays in new card program launches.
Revenue Growth Challenges
Launch delays and customers moving services in-house have pressured Marqeta's revenue and gross profit growth.
Marqeta (MQ) vs. S&P 500 (SPY)
Market Cap
$1.83B
Dividend YieldN/A
Average Volume (3M)6.29M
Price to Earnings (P/E)82.8
Beta (1Y)0.48
Revenue Growth-8.44%
EPS GrowthN/A
CountryUS
Employees854
SectorTechnology
Sector Strength65
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.02
Shares Outstanding436,989,070
10 Day Avg. Volume5,414,502
30 Day Avg. Volume6,289,719
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)2.14
Price to Sales (P/S)0.00
P/FCF Ratio58.56
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit5.13
Enterprise Value/Ebitda-4.27
Forecast
1Y Price Target
$4.88Price Target Upside6.09% Upside
Rating ConsensusHold
Number of Analyst Covering10
Marqeta Business Overview & Revenue Model
Company DescriptionMarqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services to developers, technical product managers, and visionary entrepreneurs. It offers its solutions in various verticals, including commerce disruptors, digital banks, tech giants, and financial institutions. As of December 31, 2021, the company had approximately 200 customers. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.
How the Company Makes MoneyMarqeta makes money through its card issuing and processing services. The company generates revenue from interchange fees, which are small fees collected from merchants each time a payment card transaction is processed using Marqeta's platform. Additionally, Marqeta charges its clients for various services including setup fees, card production, and account management. The company also benefits from significant partnerships with major financial institutions and technology firms, further driving its revenue through collaborative ventures and expanded service offerings.
Marqeta Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, providing insight into which areas are driving growth and how diversified the company’s income streams are.
Highlights revenue from different business segments, providing insight into which areas are driving growth and how diversified the company’s income streams are.
Data provided by:
Main Street Data
Main Street DataMarqeta Financial Statement Overview
Summary
Marqeta shows a mixed financial performance. While the company has improved its net income position to a profit and maintains a strong equity ratio, its operational efficiency is challenged by negative EBIT margins. The cash flow position is stable, yet revenue fluctuations pose potential risks.Income Statement
Marqeta shows a mixed performance in its income statement. The company achieved a gross profit margin of approximately 69.4% in 2024, demonstrating strong revenue efficiency. However, the net profit margin is approximately 5.38%, indicating modest profitability amidst past losses. Despite a reduction in revenue from the previous year, the company has significantly improved its net income position from a loss to a profit, which is a positive trajectory. Nevertheless, the EBIT margin is negative, reflecting challenges in operational efficiency.65
Positive
Balance Sheet
Marqeta's balance sheet is strong, with a healthy equity ratio of 74.2% in 2024, indicating high financial stability and low reliance on debt. The debt-to-equity ratio is very low at 0.0008, suggesting minimal financial leverage. Return on equity is modest at 2.51%, showing limited efficiency in generating returns from shareholders' equity. Overall, the balance sheet reflects a robust financial position with substantial equity backing.70
Positive
Cash Flow
The cash flow statement for Marqeta reveals a positive trend in operating cash flow and free cash flow, with a significant improvement from previous losses. The free cash flow to net income ratio shows efficient cash conversion. However, the free cash flow growth rate from 2023 to 2024 was negative due to a decline in revenue, which impacts the overall cash flow strength. Despite this, the company maintains a strong liquidity position.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 507.00M | 676.17M | 748.21M | 517.17M | 290.29M |
| Gross Profit | ||||
| 351.85M | 329.51M | 320.00M | 231.71M | 117.91M |
| EBIT | ||||
| -24.47M | -283.01M | -209.81M | -162.01M | -47.09M |
| EBITDA | ||||
| -7.01M | -272.27M | -205.96M | -158.47M | -43.59M |
| Net Income Common Stockholders | ||||
| 27.29M | -222.96M | -184.78M | -163.93M | -47.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.10B | 1.25B | 1.62B | 1.70B | 370.34M |
| Total Assets | ||||
| 1.46B | 1.59B | 1.77B | 1.83B | 457.68M |
| Total Debt | ||||
| 13.22M | 16.93M | 12.43M | 12.43M | 18.22M |
| Net Debt | ||||
| -909.80M | -964.05M | -1.17B | -1.24B | -202.21M |
| Total Liabilities | ||||
| 378.19M | 346.30M | 297.39M | 256.95M | 169.52M |
| Stockholders Equity | ||||
| 1.09B | 1.24B | 1.47B | 1.57B | 288.16M |
| Cash Flow | Free Cash Flow | |||
| 55.75M | 8.45M | -16.89M | 52.60M | 47.90M |
| Operating Cash Flow | ||||
| 58.17M | 21.10M | -12.97M | 55.35M | 50.27M |
| Investing Cash Flow | ||||
| 70.79M | 38.52M | 28.72M | -329.12M | -57.56M |
| Financing Cash Flow | ||||
| -186.91M | -261.79M | -79.49M | 1.30B | 167.38M |
Marqeta Technical Analysis
Positive
4.60
Price Trends
4.08
Positive
3.93
Positive
4.38
Positive
Market Momentum
0.07
Negative
67.61
Neutral
81.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MQ, the sentiment is Positive. The current price of 4.6 is above the 20-day moving average (MA) of 4.00, above the 50-day MA of 4.08, and above the 200-day MA of 4.38, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 67.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MQ.
Marqeta Risk Analysis
Marqeta disclosed 47 risk factors in its most recent earnings report. Marqeta reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marqeta Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.26B | 24.89 | 24.36% | 1.40% | 4.90% | 9.91% | |
69 Neutral | $2.40B | 22.17 | 15.97% | ― | 14.86% | -0.94% | |
67 Neutral | $1.83B | 82.80 | 5.01% | ― | -8.44% | ― | |
65 Neutral | $3.83B | ― | -8.39% | ― | 21.70% | -67.95% | |
65 Neutral | $930.10M | ― | -57.86% | ― | 16.35% | 14.27% | |
60 Neutral | $10.96B | 10.27 | -6.73% | 2.97% | 7.73% | -11.60% | |
59 Neutral | $2.57B | 32.49 | -41.63% | ― | 13.21% | 109.61% |
* Technology Sector Average
Performance Comparison
MQ
Marqeta
4.60
-1.01
-18.00%
ATEN
A10 Networks
17.16
1.68
10.85%
AVPT
AvePoint
18.85
10.55
127.11%
PAYO
Payoneer
6.63
0.88
15.30%
DOCN
DigitalOcean Holdings
29.17
-8.50
-22.56%
BASE
Couchbase
17.76
-8.32
-31.90%
Marqeta Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 12.47%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong TPV and revenue growth, successful program migrations, and expansion in Europe. However, the termination of the Varo deal and revenue impact from a renegotiated partner agreement present challenges. Ultimately, the positive aspects, such as significant growth metrics and strategic achievements, outweigh the lowlights.Q1-2025 Updates
Positive Updates
Strong Total Processing Volume (TPV) Growth
TPV reached $84 billion in Q1, marking a 27% increase compared to the same quarter in 2024, despite a one-point growth headwind due to the leap year.
Net Revenue and Gross Profit Increase
Q1 net revenue of $139 million grew 18% year-over-year, and gross profit increased by 17% to $99 million, resulting in a gross margin of 71%.
Adjusted EBITDA Achievement
Adjusted EBITDA was $20 million in Q1, translating into a 14% margin, driven by gross profit growth and operating expense efficiency.
European Expansion
Significant growth in Europe with over 100% TPV growth in Q1, supported by the potential acquisition of TransactPay by Q3 end to enhance program management offerings.
Successful Migrations
Completed migrations for Klarna, Perpay, and Bitpanda, demonstrating capability in migrating complex programs efficiently.
Negative Updates
Termination of Varo Deal
The planned migration of Varo's program will no longer take place as Varo focuses on existing products, affecting anticipated growth in the second half of the year.
Revenue Impact from Platform Partner Agreement
Renegotiated a platform partner agreement that reduced net revenue growth by three points in Q1 due to reduced pricing, although it did not impact gross profit.
Company Guidance
During the call, Marqeta provided detailed guidance on their financial expectations for the second quarter and full year of 2025. For Q2, they anticipate net revenue growth between 11% and 13%, with gross profit growth expected to be in the range of 23% to 25%, influenced by an incentive accounting change. Adjusted EBITDA margin is projected to be between 10% and 11%. For the full year, they expect net revenue growth between 13% and 15%, despite a renegotiated platform partner agreement impacting revenue representation without affecting gross profit. Gross profit growth is expected to remain between 14% and 16%, with adjusted EBITDA margin revised upwards to 10% to 11% due to lower expenses and efficiency improvements. The company highlighted a strong start to 2025, with Q1 total processing volume reaching $84 billion, a 27% year-over-year increase, alongside an 18% growth in net revenue and a 17% increase in gross profit.Marqeta Corporate Events
Executive/Board ChangesShareholder Meetings
Marqeta Appoints New Board Members on April 18
Neutral
Apr 16, 2025
On April 10, 2025, Marqeta, Inc. announced the upcoming resignation of two board members, Godfrey Sullivan and Helen Riley, effective as of the Annual Meeting on June 12, 2025. Both resignations are not due to any disagreements with the company, and the board expressed gratitude for their years of service. Subsequently, on April 18, 2025, the board appointed Wendy Thomas and Elaine Paul as new members, with both joining the Audit Committee. Ms. Paul will also serve on the Nomination and Governance Committee, while Ms. Thomas will join the Payments Innovation Committee. There are no conflicts of interest or prior transactions involving the new appointees that require disclosure.
Spark’s Take on MQ Stock
According to Spark, TipRanks’ AI Analyst, MQ is a Neutral.
Marqeta’s stock is supported by a solid financial structure and positive momentum, but faces challenges in operational efficiency and valuation. The positive earnings call highlights growth and strategic initiatives, though leadership changes and program delays present risks. The overall score reflects these mixed factors, indicating moderate investment potential.
To see Spark’s full report on MQ stock, click here.
Executive/Board ChangesBusiness Operations and Strategy
Marqeta Appoints Mike Milotich as Interim CEO
Positive
Feb 26, 2025
On February 26, 2025, Marqeta announced the appointment of Mike Milotich as Interim CEO following the departure of Simon Khalaf. Milotich, who will continue as CFO, brings extensive experience from his previous roles at Visa, PayPal, and American Express. The Board has initiated a search for a permanent CEO, expressing confidence in Milotich’s leadership to guide Marqeta’s growth and strategic initiatives during this transition. This leadership change is seen as a strategic move to position Marqeta for future growth in the expanding embedded finance market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.