Marqeta’s second quarter results were well received by the market, driven by strong execution across key growth areas and a significant beat on both revenue and adjusted profitability. Management attributed the positive performance to broad-based strength in total processing volume, particularly within lending and Buy Now, Pay Later (BNPL) use cases, as well as effective operating expense discipline. Interim CEO and CFO Michael Milotich noted, “Our focus this year has been on expanding and deepening our customer relationships while enabling their continued growth through innovative programs, value-added services and seamless geographic expansions with consistent and effective execution.”
Is now the time to buy MQ? Find out in our full research report (it’s free).
Marqeta (MQ) Q2 CY2025 Highlights:
- Revenue: $150.4 million vs analyst estimates of $140.5 million (20.1% year-on-year growth, 7.1% beat)
- Adjusted EPS: $0.01 vs analyst estimates of -$0.03 (significant beat)
- Adjusted Operating Income: $21.86 million vs analyst estimates of -$22.95 million (14.5% margin, significant beat)
- Revenue Guidance for Q3 CY2025 is $148.4 million at the midpoint, above analyst estimates of $145.8 million
- Operating Margin: -6.1%, down from 83.9% in the same quarter last year
- Market Capitalization: $2.88 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 Q2 Earnings Call
- Tien-Tsin Huang (JPMorgan) asked about improved business visibility and the role of value-added services in future growth. Interim CEO and CFO Michael Milotich confirmed increased visibility and emphasized value-added services as an emerging growth vector, especially for embedded finance clients.
- Ramsey Clark El-Assal (Barclays) questioned the drivers behind the higher adjusted EBITDA margin guidance. Milotich cited strong transaction volume, favorable business mix, and lower expenses from delayed hiring and operational efficiencies as key contributors.
- Timothy Edward Chiodo (UBS) inquired about Marqeta’s approach to BNPL via cards and the implications for interchange fees. Milotich explained flexible credential cards and clarified that interchange rates depend on payment type, with some transactions qualifying for credit interchange.
- Darrin David Peller (Wolfe Research) focused on international growth and the impact of the TransactPay acquisition. Milotich detailed how unified program management and expanded licensing will allow Marqeta to serve larger European clients and facilitate easier cross-regional expansion.
- Christopher Nathaniel Svensson (Deutsche Bank) asked about spending pattern shifts and new BNPL product launches. Milotich reported broad-based, non-discretionary use case growth and described the planned rollout of in-app, multi-provider BNPL features to boost partner and user engagement.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the rollout and adoption of Marqeta’s new BNPL features and flexible credential products, (2) the integration progress and revenue contributions from TransactPay in Europe, and (3) the trajectory of value-added services as a driver of both customer retention and margin improvement. Expansion into new markets and execution on key customer contract renewals will also be important signposts.
Marqeta currently trades at $6.30, up from $5.70 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
