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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MQ

Marqeta, Inc.'s recent performance was negatively impacted by a consensus "Reduce" rating from analysts, citing concerns over growth prospects. The company's Q4 2025 earnings report revealed break-even quarterly earnings per share, beating the Zacks Consensus Estimate of a loss. Despite a 36% year-over-year increase in Total Processing Volume (TPV) and 27% growth in Net Revenue, insider selling by Director Jason Gardner may have raised concerns. A law firm, Halper Sadeh LLC, is investigating potential breaches of fiduciary duties by certain officers and directors.

1.c. Company Highlights

2. 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.

Publication Date: Feb -26

📋 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.

3. NewsRoom

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Reviewing Paysign (NASDAQ:PAYS) & Marqeta (NASDAQ:MQ)

Mar -08

Source: defenseworld.net

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Marqeta, Inc. (MQ) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -02

Source: seekingalpha.com

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Halper Sadeh LLC Encourages Marqeta, Inc. Shareholders to Contact the Firm to Discuss Their Rights

Feb -26

Source: prnewswire.com

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Marqeta (MQ) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -25

Source: zacks.com

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Marqeta, Inc. (MQ) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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Breakfast News: Why Axon Enterprise Is Soaring 15%

Feb -25

Source: fool.com

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Marqeta (MQ) Reports Break-Even Earnings for Q4

Feb -25

Source: zacks.com

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Marqeta Earnings Point to BNPL Growth and Embedded Finance Demand

Feb -25

Source: pymnts.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.94%)

6. Segments

Platform Services

Expected Growth: 12%

Marqeta's 12% growth in Platform Services is driven by increasing adoption of digital payments, rising demand for modern card issuing and processing, and expansion into new markets. Additionally, the company's innovative open-API platform, scalable infrastructure, and strategic partnerships with fintechs and banks contribute to its growth momentum.

Other Services

Expected Growth: 10%

Marqeta's Other Services segment growth is driven by increasing adoption of its digital banking and payment solutions, expansion into new markets, and strategic partnerships. The company's modern card issuing platform and open-API architecture enable fintechs and enterprises to innovate and scale, fueling growth. Additionally, the rising demand for real-time payment processing and card-based transactions contributes to the segment's rapid expansion.

7. Detailed Products

Card Issuance

Marqeta's card issuance platform enables businesses to issue physical or virtual cards, allowing for real-time funding, and instant card provisioning.

Payment Processing

Marqeta's payment processing platform enables businesses to process payments, manage transactions, and track spending in real-time.

Digital Wallets

Marqeta's digital wallet platform enables businesses to create custom digital wallets, allowing users to store and manage their payment methods.

Transaction Management

Marqeta's transaction management platform enables businesses to track, manage, and reconcile transactions in real-time.

Risk Management

Marqeta's risk management platform enables businesses to detect and prevent fraudulent transactions, ensuring secure and reliable payments.

Integrations and APIs

Marqeta's integrations and APIs enable businesses to integrate payment capabilities into their existing systems and applications.

8. Marqeta, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Marqeta's digital payment platform is highly customizable, making it difficult for substitutes to emerge. However, the fintech industry is rapidly evolving, and new technologies could potentially disrupt Marqeta's business model.

Bargaining Power Of Customers

Marqeta's customers are primarily large enterprises and financial institutions, which have limited bargaining power due to their reliance on Marqeta's technology and expertise.

Bargaining Power Of Suppliers

Marqeta's suppliers are primarily technology and infrastructure providers, which have limited bargaining power due to the competitive nature of the fintech industry.

Threat Of New Entrants

The fintech industry is highly competitive, and new entrants with innovative technologies and business models could potentially disrupt Marqeta's market share.

Intensity Of Rivalry

The fintech industry is highly competitive, with many established players and new entrants vying for market share. Marqeta faces intense competition from companies like Stripe, PayPal, and Square.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.34%
Debt Cost 3.95%
Equity Weight 98.66%
Equity Cost 13.01%
WACC 12.88%
Leverage 1.36%

11. Quality Control: Marqeta, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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DigitalOcean

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Growth: 9.2

Quality: 7.2

Yield: 0.0

Momentum: 7.5

Volatility: 2.0

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Marqeta

A-Score: 4.6/10

Value: 5.1

Growth: 7.4

Quality: 3.4

Yield: 0.0

Momentum: 8.0

Volatility: 3.7

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Value: 4.3

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Quality: 5.5

Yield: 0.0

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Volatility: 6.7

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Value: 4.2

Growth: 4.4

Quality: 3.7

Yield: 0.0

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A-Score: 3.5/10

Value: 3.8

Growth: 8.6

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.23$

Current Price

4.23$

Potential

-0.00%

Expected Cash-Flows