Marqeta delivered a strong third quarter, with management attributing growth to accelerating payment volumes across a broad set of use cases, especially lending and Buy Now, Pay Later (BNPL) solutions. CEO and CFO Mike Milotich highlighted that total processing volume rose 33% year over year, fueled by both existing customers expanding into new geographies and the rapid adoption of flexible card credentials. The addition of new commercial programs and a significant acquisition in Europe further supported revenue and gross profit growth. Milotich noted, “This is our highest TPV growth rate since Q1 2024, despite the base we are growing over this quarter being almost 50% larger than the base we grew over in Q1 2024.”
Is now the time to buy MQ? Find out in our full research report (it’s free for active Edge members).
Marqeta (MQ) Q3 CY2025 Highlights:
- Revenue: $163.3 million vs analyst estimates of $148.8 million (27.6% year-on-year growth, 9.7% beat)
- EPS (GAAP): -$0.01 vs analyst estimates of -$0.02 (in line)
- Adjusted Operating Income: $23.29 million vs analyst estimates of -$17.4 million (14.3% margin, significant beat)
- Revenue Guidance for Q4 CY2025 is $167 million at the midpoint, above analyst estimates of $158.1 million
- Operating Margin: -6.4%, up from -33% in the same quarter last year
- Market Capitalization: $2.22 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Marqeta’s Q3 Earnings Call
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Bryan Keane (Citi) asked about the balance between new business from existing customers versus new clients, and how that impacts forecasting. CEO and CFO Mike Milotich explained that most growth comes from new programs with existing customers, especially as they expand products and geographies.
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Timothy Chiodo (UBS) inquired about the Klarna partnership’s expansion into 15 new markets, including volume and yield expectations. Milotich noted strong acceleration after initial migrations and clarified that yields in Europe are typically lower, but still healthy for growth.
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Darrin Peller (Wolfe Research) questioned the sustainability of recent growth and potential anomalies influencing results. Milotich identified BNPL adoption, SMB lending, and on-demand delivery as sustainable drivers, but highlighted upcoming customer renewals and one-off items as factors that may temper future growth.
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Tien-Tsin Huang (JPMorgan) sought clarity on Europe’s rapid TPV growth and its durability. Milotich explained that while 100% growth is unlikely to persist indefinitely, Europe should outpace the overall company due to new capabilities from TransactPay and ongoing client expansions.
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James Friedman (Susquehanna) asked about revenue yields across segments and the development of value-added services. Milotich said yields are mainly influenced by customer size and mix, with newer European offerings expected to improve profitability as value-added services gain traction.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be closely monitoring (1) the continued ramp of BNPL and lending volumes, especially as new geographic markets and flexible credentials are adopted; (2) the integration and customer pipeline impact of the TransactPay acquisition in Europe; and (3) the effects of major customer contract renewals and Cash App’s processor diversification on future growth. Progress in rolling out value-added services and new banking partnerships will also be critical to watch.
Marqeta currently trades at $5.08, up from $4.49 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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