Marqeta 2025 Q1 Earnings Strong Performance as Net Loss Narrows 77%

Marqeta (MQ) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Marqeta exceeded expectations for the first quarter of 2025, demonstrating a robust financial performance. The company raised its guidance for net revenue growth, projecting an increase of 11% to 13% for Q2 and 13% to 15% for the fiscal year. Marqeta also anticipates a gross profit growth of 23% to 25% for the next quarter, while forecasting an adjusted EBITDA margin of 10% to 11% for both the second quarter and the entire fiscal year 2025. These projections underscore Marqeta's strategic position in the payments industry and its commitment to financial improvement.

Revenue
Marqeta's total revenue grew by 17.9% in 2025 Q1, reaching $139.07 million compared to $117.97 million in 2024 Q1. The platform services segment was the primary contributor, generating $131.87 million, while other services added $7.21 million, culminating in a total net revenue of $139.07 million. This growth reflects Marqeta’s successful execution of its strategic initiatives.

Earnings/Net Income
Marqeta reported a significant reduction in its net loss for 2025 Q1, narrowing it to $-8.26 million, a notable improvement of 77.1% from the previous year's $-36.06 million. The loss per share also improved, decreasing from $0.07 per share in 2024 Q1 to $0.02 per share in 2025 Q1, marking a 71.4% enhancement. Despite ongoing losses, the reduced EPS reflects a positive trend in Marqeta's financial health.

Price Action
The stock price of Marqeta climbed 3.28% during the latest trading day, edged down 2.15% in the most recent full trading week, and jumped 10.24% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Marqeta shares following a quarter with decreased revenue and holding for 30 days has proven significantly detrimental, with a staggering return of -85.64% over the past five years. In stark contrast, the benchmark return stood at 29.85%, resulting in an excess return of -115.49%. This approach demonstrated a Sharpe ratio of -0.55, indicating poor risk-adjusted returns. Additionally, the strategy faced a maximum drawdown of -87.91%, underscoring its high risk and substantial financial losses.

CEO Commentary
"Our Q1 results demonstrate our ability to execute our growth plans while simultaneously increasing our level of profitability," said Mike Milotich, Interim CEO and CFO of Marqeta. The company reported a Total Processing Volume (TPV) of $84 billion, a 27% year-over-year increase, alongside Net Revenue of $139 million and Gross Profit of $99 million, reflecting growth of 18% and 17%, respectively. Milotich emphasized the expansion of Marqeta's customer portfolio across diverse use cases and geographies, strengthening its leadership in the payments industry and its success in migrating programs to its modern platform.

Guidance
Marqeta anticipates Net Revenue growth of 11% to 13% for Q2 2025 and 13% to 15% for the fiscal year 2025. The company projects Gross Profit growth of 23% to 25% for the second quarter and 14% to 16% for the fiscal year. Additionally, the Adjusted EBITDA Margin is forecasted to be in the range of 10% to 11% for both the second quarter and fiscal year 2025.

Additional News
In recent weeks, Marqeta has been actively enhancing its international footprint and product offerings. The company successfully migrated and launched the Bitpanda Card, a debit card supporting cryptocurrencies and fiat currencies, across 26 European countries, marking Marqeta's first live program in Europe for 2025. Furthermore, Marqeta is collaborating with Perpay to migrate the Perpay Credit Card program, an unsecured credit card aimed at automating payments directly from a paycheck. These initiatives underscore Marqeta's strategic focus on offering diverse, innovative financial solutions worldwide.