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Marqeta: Marqeta's Q4 Results Exceed Expectations

Marqeta reported Q4 net revenue of $172 million, growing 27% year-over-year, driven by strong Total Processing Volume (TPV) growth across various use cases. The company's gross profit was approximately $120 million, with a 22% year-over-year growth, outpacing expectations. Adjusted EBITDA reached a record quarter, and the company approached GAAP net income breakeven for the third quarter in a row. The actual EPS came out at -$0.00302, beating estimates of -$0.01.

MQ

USD 3.86

-7.21%

A-Score: 4.6/10

Publication date: February 25, 2026

Author: Analystock.ai

📋 Highlights
  • Record Q4 TPV Reached $109 billion, a 36% YoY increase, marking the first quarter exceeding $100 billion for Marqeta.
  • Net Revenue Growth Q4 net revenue hit $172 million, up 27% YoY, driven by TPV expansion and customer diversification.
  • Europe's Accelerated Growth TPV in Europe surged over twice the company's overall growth rate, with Q4 2025 TPV up 40% compared to full-year 2023.
  • Value-Added Services Expansion Doubled in size during 2025, contributing to higher-margin revenue and stickier customer relationships.
  • 2026 Financial Outlook Anticipated TPV growth of 25-28% and gross profit growth of 10-12%, with GAAP net income projected at ~$10 million.

Strong Business Momentum

The company's TPV was $109 billion in Q4, crossing the $100 billion threshold for the first time, with a 36% year-over-year increase. This growth was driven by deepening existing customer relationships and onboarding new customers. Europe was a significant contributor, with TPV growth more than twice as fast as the overall company. The acquisition of TransactPay added 4 percentage points to gross profit growth, indicating a successful integration.

Guidance for 2026

Marqeta expects TPV growth to moderate to the high 20s in 2026, with gross profit growth projected to be 10% to 12%. The company anticipates a modest amount of GAAP net income, likely around $10 million. The guidance takes into account the expected impact of Cash App's diversification of new issuance, which is expected to lower gross profit growth by approximately 1.5 to 2 percentage points.

Valuation Metrics

With a P/S Ratio of 2.77 and an EV/EBITDA of -399.95, the market seems to be pricing in a significant growth trajectory. The company's ROE is -1.62%, and ROIC is -5.98%, indicating that the return on equity and invested capital is still negative. However, the Free Cash Flow Yield is 6.92%, suggesting that the company is generating cash. Analysts estimate next year's revenue growth at 18.1%, which is slightly lower than the current growth rate.

Growth Drivers

The company's growth is driven by various factors, including the increasing adoption of value-added services, growth in Europe, and the expansion of use cases such as Buy Now, Pay Later (BNPL) and on-demand delivery. The company's ability to offer a comprehensive solution to fintech customers is also driving growth. As Mike Milotich mentioned, "fintech customers are now more willing to take a comprehensive solution from us, rather than piece together best-in-class components." This shift in customer behavior is expected to continue driving growth in the future.

Marqeta's A-Score