Marqeta (MQ) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: N/A
• Average Volume (3M): 7.73M
• Price to Earnings (P/E): 58.2
• Beta (1Y): 0.54
• Revenue Growth: -8.44%
• EPS Growth: N/A
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.02
• Shares Outstanding: 434,975,920
• 10 Day Avg. Volume: 5,776,295
• 30 Day Avg. Volume: 7,728,258
• PEG Ratio: -0.24
• Price to Book (P/B): 5.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 176.71
• Enterprise Value/Market Cap: 6.03
• Enterprise Value/Revenue: 8.19
• Enterprise Value/Gross Profit: 63.07
• Enterprise Value/Ebitda: -743.75
• 1Y Price Target: $5.07
• Price Target Upside: -13.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $6.00 ▲(2.04%Upside)

The primary strengths are strong financial performance and technical indicators, suggesting growth potential. However, high valuation and some earnings call challenges pose risks.

Positive Factors

Financial Performance

Marqeta reported solid results highlighted by net revenue of $135.8mm, growing +14% year-over-year, above the Street's $132mm and guide of +10-12%.

Partnerships

Marqeta announced a partnership that will enable its customers to access American Express, which could help bring low-cost deposits and enhance its offerings.

Strategic Acquisitions

The acquisition of TransactPay is seen as a positive move to accelerate capabilities and simplify customer experiences in Europe.

Negative Factors

Implementation 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 Pressures

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

Revenue Expectations

Lowering top-line expectations due to delays in new programs paired with lower take rates from renewals.

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 shows strong revenue and gross profit margins but is challenged by negative net income and cash flow volatility. The balance sheet is robust with low leverage and strong equity.

Income Statement

Marqeta's TTM revenue shows slight growth, but the company struggles with profitability as indicated by negative EBIT. Gross profit margin remains strong, indicating good cost management, but the net profit margin is impacted by high operating expenses.

Balance Sheet

The company maintains a solid equity base with low leverage, as seen in the low debt-to-equity ratio. Stockholders' equity forms a significant portion of total assets, enhancing financial stability. However, the return on equity is impacted by negative net income in recent years.

Cash Flow

Operating cash flow is positive and has improved over the periods, but free cash flow shows volatility. The company's ability to generate cash relative to net income is solid, but financing cash flows reflect significant outflows, impacting overall cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	517.17M	507.00M	676.17M	748.21M	517.17M	290.29M
Gross Profit	231.71M	351.85M	329.51M	320.00M	231.71M	117.91M
EBITDA	-157.79M	-7.01M	-272.27M	-205.96M	-158.47M	-43.59M
Net Income	-163.93M	27.29M	-222.96M	-184.78M	-163.93M	-47.70M
Balance Sheet
Total Assets	1.77B	1.46B	1.59B	1.77B	1.83B	457.68M
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.10B	1.25B	1.62B	1.70B	370.34M
Total Debt	8.10M	13.22M	16.93M	12.43M	12.43M	18.22M
Total Liabilities	340.53M	378.19M	346.30M	297.39M	256.95M	169.52M
Stockholders Equity	1.43B	1.09B	1.24B	1.47B	1.57B	288.16M
Cash Flow
Free Cash Flow	52.60M	55.75M	8.45M	-16.89M	52.60M	47.90M
Operating Cash Flow	55.35M	58.17M	21.10M	-12.97M	55.35M	50.27M
Investing Cash Flow	-329.12M	70.79M	38.52M	28.72M	-329.12M	-57.56M
Financing Cash Flow	1.30B	-186.91M	-261.79M	-79.49M	1.30B	167.38M

Marqeta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5.88 is above the 20-day moving average (MA) of 5.53, above the 50-day MA of 4.90, and above the 200-day MA of 4.41, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 74.14 is Negative, neither overbought nor oversold. The STOCH value of 96.67 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	73 Outperform	$1.37B	28.48	24.36%	1.26%	4.90%	9.91%
Sector *	69 Neutral	¥231.71B	14.67	7.64%	2.70%	9.09%	8.55%
PAYO	69 Neutral	$2.44B	22.81	15.97%	―	14.86%	-0.94%
MQ	68 Neutral	$2.71B	58.23	5.01%	―	-8.44%	―
BASE	68 Neutral	$1.32B	―	-55.90%	―	12.76%	16.97%
DOCN	66 Neutral	$2.53B	25.53	-41.63%	―	13.21%	109.61%
AVPT	65 Neutral	$3.91B	―	-8.39%	―	21.70%	-67.95%

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.

The most recent analyst rating on (MQ) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Marqeta stock, see the MQ Stock Forecast page.

Marqeta Appoints New Board Members on April 18

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.