Marqeta (MQ) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 4.71M
• Price to Earnings (P/E): 56.6
• Beta (1Y): 0.65
• Revenue Growth: 17.47%
• EPS Growth: -544.72%
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 414,971,900
• 10 Day Avg. Volume: 3,422,176
• 30 Day Avg. Volume: 4,708,124
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -26.14
• 1Y Price Target: $6.75
• Price Target Upside: 6.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $6.50 ▲(2.20% Upside)

Marqeta's overall stock score is driven by a strong earnings call performance and positive technical indicators, suggesting growth potential. However, financial performance challenges, particularly in profitability and cash flow management, and a high valuation with a negative P/E ratio weigh down the score. The company's strategic focus on expanding services and improving financial health is crucial for future success.

Positive Factors

Acquisition

The acquisition of TransactPay gives Marqeta an incremental leg up in sales processes with larger customers by eliminating a third-party.

Earnings

Shares of Marqeta are up 15% following better-than-expected June-quarter results and raised 2025 guidance.

Financial Performance

Marqeta maintains a debt-free balance sheet with about $765 million of cash/investments (25% of market cap).

Negative Factors

Customer Concentration

Reported results are complicated by customer concentration (largest customer is 46% of revenue), contractual changes, business mix, and network incentive accounting changes.

Regulatory Impact

Regulatory pressures are moderating but remain a headwind, impacting stock performance due to delays in new card program launches.

Revenue Pressure

Launch delays, new program weakness, and select customers moving certain services in-house have pressured the company’s revenue and gross profit growth.

Marqeta Business Overview & Revenue Model

Company Description

Marqeta, 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 Money

Marqeta generates revenue primarily through its modern card issuing platform by charging its clients transaction-based fees. These fees are incurred whenever a card issued through Marqeta's platform is used for a transaction. Additionally, Marqeta earns revenue from service fees for providing card issuing and processing services, as well as through interchange fees shared with its clients. The company also benefits from strategic partnerships with major financial institutions and technology companies, which contribute to its revenue through collaboration on payment solutions and increased transaction volumes. Marqeta's business model is highly dependent on the growth of digital payments and the adoption of its platform by a diverse range of clients across different sectors.

Marqeta Financial Statement Overview

Summary

Marqeta's financial performance shows mixed results. While revenue growth is positive, profitability remains a challenge with negative margins. The balance sheet is strong with low leverage, providing a stable foundation. Cash flow management needs improvement to support future growth. Strategic focus on enhancing profitability and cash flow generation will be key to achieving sustainable financial health.

Income Statement

Marqeta's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 4.76%, indicating some recovery. However, the company is still facing profitability challenges with a negative EBIT margin and a net profit margin of -10.43%. Gross profit margin remains relatively strong at 49.09%, suggesting efficient cost management. The company needs to focus on improving its bottom line to enhance overall profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.012, indicating low leverage and financial stability. Return on equity is modest at 5.11%, showing some profitability improvement. The equity ratio is healthy, suggesting a solid capital structure. Continued focus on enhancing ROE will be beneficial for long-term growth.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -32.54% in the TTM period. The operating cash flow to net income ratio is below 1, indicating reliance on external financing. The free cash flow to net income ratio is relatively strong at 0.67, suggesting some efficiency in converting income to cash. Improving cash flow generation is crucial for financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	553.22M	507.00M	676.17M	748.21M	517.17M	290.29M
Gross Profit	391.07M	351.85M	329.51M	320.00M	231.71M	117.91M
EBITDA	-71.77M	-7.01M	-272.27M	-205.96M	-158.47M	-43.59M
Net Income	-64.67M	27.29M	-222.96M	-184.78M	-163.93M	-47.70M
Balance Sheet
Total Assets	1.21B	1.46B	1.59B	1.77B	1.83B	457.68M
Cash, Cash Equivalents and Short-Term Investments	821.59M	1.10B	1.25B	1.62B	1.70B	370.34M
Total Debt	14.46M	13.22M	16.93M	12.43M	12.43M	18.22M
Total Liabilities	371.16M	378.19M	346.30M	297.39M	256.95M	169.52M
Stockholders Equity	843.43M	1.09B	1.24B	1.47B	1.57B	288.16M
Cash Flow
Free Cash Flow	30.82M	55.75M	8.45M	-16.89M	52.60M	47.90M
Operating Cash Flow	54.57M	58.17M	21.10M	-12.97M	55.35M	50.27M
Investing Cash Flow	119.17M	70.79M	38.52M	28.72M	-329.12M	-57.56M
Financing Cash Flow	-365.75M	-186.91M	-261.79M	-79.49M	1.30B	167.38M

Marqeta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.36 is above the 20-day moving average (MA) of 6.19, above the 50-day MA of 5.96, and above the 200-day MA of 4.62, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MQ.

Marqeta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.28B	25.88	24.39%	1.36%	11.04%	18.70%
PAYO	77 Outperform	$2.50B	26.40	13.86%	―	13.02%	-2.57%
DOCN	70 Outperform	$2.97B	25.62	-41.63%	―	13.29%	79.98%
BASE	68 Neutral	$1.35B	―	-55.90%	―	12.76%	16.97%
AVPT	62 Neutral	$3.47B	―	-2.60%	―	24.41%	40.20%
Sector *	61 Neutral	$35.43B	7.71	-10.08%	1.88%	8.71%	-9.18%
MQ	61 Neutral	$2.85B	56.63	-6.51%	―	17.47%	-544.72%

Marqeta Corporate Events

Marqeta Stockholders Approve Key Proposals at Annual Meeting

On June 12, 2025, Marqeta, Inc. held its Annual Meeting of Stockholders where Class A and Class B stockholders voted on three key proposals. The stockholders elected three Class I directors to the Board, ratified KPMG LLP as the independent auditor for 2025, and approved the executive compensation plan on a non-binding advisory basis.