Marqeta (NASDAQ:MQ) Releases Quarterly Earnings Results

Key Points

• Marqeta reported Q1 GAAP profitability with $8M net income, adjusted EBITDA of $33M (20% margin), revenue of $165.8M (above estimates), gross profit up 19% and TPV up 33%.
• Management reaffirmed Q2 and full‑year guidance (Q2 net revenue/gross profit +14–16%; full‑year net revenue +12–14%, gross profit +10–12%), raised 2026 GAAP net income outlook to about $15M, and has roughly $52M available for share repurchases.
• Near‑term risks include a planned reduction in Block/Cash App issuances that could be a ~1.5 percentage point drag on gross profit, tougher BNPL comps and macro uncertainty; the stock trades near its 1‑year low and the consensus rating is “Reduce” with a $5.14 average price target.

Marqeta (NASDAQ:MQ - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $0.02 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $165.80 million for the quarter, compared to analyst estimates of $164.30 million. Marqeta had a negative net margin of 2.23% and a negative return on equity of 1.62%.

Here are the key takeaways from Marqeta's conference call:

• Marqeta delivered Q1 GAAP profitability with $8M net income, adjusted EBITDA of $33M (20% margin), gross profit up 19% and TPV up 33%.
• Management emphasized the competitive edge of Marqeta's platform — multi‑country issuing, an integrated debit‑to‑credit product continuum — supported by customer wins/expansions (Sezzle in Canada, Ramp international rollout, a large portfolio migration using Mastercard One Credential) and pilot work on stablecoin‑backed cards.
• Guidance was reaffirmed for Q2 and the year (Q2 net revenue/gross profit +14–16%; full‑year net revenue +12–14%, gross profit +10–12%), the company raised 2026 GAAP net income expectation to about $15M, and share repurchases remain active with ~$52M available.
• Risks include a planned reduction in Block/Cash App new issuances that now looks to be a ~1.5 percentage point headwind to gross profit growth, tougher BNPL comps in later quarters, and general macro uncertainty that could pressure back‑half performance.

Marqeta Price Performance

MQ stock traded down $0.04 during midday trading on Tuesday, reaching $4.48. The company had a trading volume of 6,981,742 shares, compared to its average volume of 3,686,231. Marqeta has a 1 year low of $3.70 and a 1 year high of $7.04. The company has a market capitalization of $1.91 billion, a P/E ratio of -149.33 and a beta of 1.35. The firm has a 50-day moving average price of $4.11 and a 200-day moving average price of $4.43.

Analysts Set New Price Targets

Several brokerages recently commented on MQ. UBS Group reduced their price objective on shares of Marqeta from $5.00 to $4.25 and set a "neutral" rating for the company in a research note on Wednesday, February 25th. Wolfe Research cut shares of Marqeta from an "outperform" rating to a "peer perform" rating in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Marqeta in a research note on Friday, March 27th. JPMorgan Chase & Co. began coverage on shares of Marqeta in a research note on Tuesday, February 17th. They set an "overweight" rating and a $6.00 price objective for the company. Finally, Morgan Stanley reduced their price objective on shares of Marqeta from $6.00 to $5.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 25th. One analyst has rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $5.14.

Insider Buying and Selling

In related news, Director Judson C. Linville purchased 25,570 shares of the business's stock in a transaction on Friday, February 27th. The stock was acquired at an average price of $3.93 per share, with a total value of $100,490.10. Following the purchase, the director directly owned 104,220 shares in the company, valued at approximately $409,584.60. This represents a 32.51% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Elaine Paul sold 17,452 shares of the company's stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $4.47, for a total value of $78,010.44. Following the completion of the transaction, the director owned 17,453 shares of the company's stock, valued at $78,014.91. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 12.61% of the stock is owned by insiders.

Institutional Trading of Marqeta

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Certuity LLC grew its position in Marqeta by 22.3% during the third quarter. Certuity LLC now owns 14,235 shares of the company's stock valued at $75,000 after acquiring an additional 2,596 shares during the last quarter. Mariner LLC lifted its holdings in shares of Marqeta by 4.2% in the 4th quarter. Mariner LLC now owns 66,765 shares of the company's stock worth $317,000 after acquiring an additional 2,670 shares during the last quarter. Victory Capital Management Inc. boosted its stake in shares of Marqeta by 2.7% in the 3rd quarter. Victory Capital Management Inc. now owns 101,567 shares of the company's stock valued at $536,000 after purchasing an additional 2,711 shares in the last quarter. DRW Securities LLC boosted its stake in shares of Marqeta by 8.1% in the 4th quarter. DRW Securities LLC now owns 41,224 shares of the company's stock valued at $196,000 after purchasing an additional 3,104 shares in the last quarter. Finally, Abel Hall LLC grew its holdings in shares of Marqeta by 33.2% during the 4th quarter. Abel Hall LLC now owns 14,097 shares of the company's stock valued at $67,000 after purchasing an additional 3,512 shares during the last quarter. Hedge funds and other institutional investors own 78.64% of the company's stock.

Marqeta Company Profile

Marqeta is a modern card issuing and payment processing platform that enables businesses to design, launch and manage customized payment cards. The company offers a fully programmable open API that allows clients to create virtual, physical and tokenized payment cards with real-time transaction controls and dynamic spend limits. By leveraging Marqeta's infrastructure, companies can streamline their payment operations, reduce time to market and deliver tailored payment experiences to end consumers.

Founded in 2010 and headquartered in Oakland, California, Marqeta was established by CEO Jason Gardner with the goal of transforming traditional card issuance through cloud-native technology.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.