Marqeta (NASDAQ:MQ) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Marqeta beat quarterly estimates: EPS was $0.07 versus the $0.01 consensus, while revenue reached $176 million, up 17% year over year. TPV increased 32% to $120 billion, and the company posted its second consecutive quarter of GAAP profitability.
• Growth is expected to slow in the second half: Management guided for Q3 revenue growth of 6%-8% and gross-profit growth of 5%-7%, citing tougher comparisons, slower BNPL growth, mix pressures and reduced new Cash App card issuance by Block.
• Profitability outlook improved: Marqeta raised its full-year adjusted EBITDA growth forecast to the low-30% range and expects GAAP net income in the high-$20 millions, supported by cost savings and operating leverage. Analysts remain cautious, with a consensus “Reduce” rating and a $20.12 price target.

Marqeta (NASDAQ:MQ - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.06, FiscalAI reports. Marqeta had a return on equity of 0.27% and a net margin of 0.33%.The firm had revenue of $176.00 million during the quarter, compared to analysts' expectations of $172.96 million. Marqeta's revenue was up 17.0% on a year-over-year basis.

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

• Q2 performance exceeded expectations: TPV rose 32% to $120 billion, gross profit increased 17%, adjusted EBITDA grew 31% with a 21% margin, and Marqeta delivered approximately $8 million in GAAP net income for its second consecutive profitable quarter.
• Non-Block TPV grew more than twice as fast as Block TPV, while expense-management volume increased over 50% and international volume rose over 40%, reaching 20% of total TPV. Average deal size increased more than 90% year over year, reflecting growing traction with large enterprises and embedded-finance customers.
• Management expects a significant second-half growth slowdown, guiding for Q3 revenue growth of 6%-8% and gross-profit growth of 5%-7%. The deceleration reflects tougher comparisons, the TransactPay acquisition anniversary, slower BNPL growth, an unfavorable on-demand-delivery mix, and reduced Cash App new issuance.
• Block began modestly reducing Cash App new card issuance in mid-June, with management estimating an eventual shift to little or no new issuance by year-end. Although the existing relationship remains strong and pricing tiers may cushion gross-profit effects, management said the impact could exceed two percentage points on a 2027 run-rate basis.
• Marqeta raised its full-year adjusted EBITDA growth outlook to the low 30% range and expects GAAP net income in the high-$20 millions, supported by vendor savings, cost discipline, and operating leverage. Longer-term growth opportunities include credit products, European program management, stablecoin-backed cards, non-card money movement, and value-added fraud services.

Marqeta Stock Performance

Marqeta stock traded up $0.09 during midday trading on Tuesday, hitting $17.94. 2,472,256 shares of the company were exchanged, compared to its average volume of 1,039,058. The business has a fifty day simple moving average of $16.38 and a two-hundred day simple moving average of $16.46. The firm has a market capitalization of $1.90 billion, a PE ratio of 446.25 and a beta of 1.30. Marqeta has a fifty-two week low of $14.80 and a fifty-two week high of $28.16.

Analyst Ratings Changes

Several equities analysts recently weighed in on MQ shares. Weiss Ratings reiterated a "sell (d)" rating on shares of Marqeta in a report on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Marqeta from $4.50 to $18.00 and gave the company a "hold" rating in a research note on Thursday, July 2nd. Finally, UBS Group increased their price objective on shares of Marqeta from $17.00 to $19.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. One research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Marqeta currently has a consensus rating of "Reduce" and a consensus price target of $20.12.

Insider Buying and Selling

In related news, Director Elaine Paul sold 4,537 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $15.20, for a total value of $68,962.40. Following the completion of the transaction, the director directly owned 8,900 shares in the company, valued at $135,280. The trade was a 33.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Todd Pollak sold 18,750 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $16.88, for a total transaction of $316,500.00. Following the sale, the executive directly owned 185,008 shares in the company, valued at $3,122,935.04. This trade represents a 9.20% 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. Insiders own 13.71% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. AQR Capital Management LLC purchased a new position in shares of Marqeta in the 1st quarter valued at about $57,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Marqeta by 3.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 279,103 shares of the company's stock valued at $1,150,000 after purchasing an additional 9,319 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Marqeta by 7.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 925,547 shares of the company's stock valued at $3,813,000 after buying an additional 65,313 shares in the last quarter. Intech Investment Management LLC increased its position in shares of Marqeta by 22.1% in the first quarter. Intech Investment Management LLC now owns 288,114 shares of the company's stock valued at $1,187,000 after buying an additional 52,219 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of Marqeta by 8.1% during the 2nd quarter. Invesco Ltd. now owns 6,268,848 shares of the company's stock worth $36,547,000 after buying an additional 471,631 shares during the period. Institutional investors and hedge funds own 78.64% of the company's stock.

About Marqeta

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.

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