Marqeta 2025 Q2 Earnings Net Loss Widens Despite 20% Revenue Growth

Marqeta (MQ) reported fiscal 2025 Q2 earnings on August 6, 2025. The company exceeded revenue expectations but fell short on profitability. The report included an upward revision to full-year guidance, reflecting confidence in future growth and operational improvements.

Revenue

Marqeta’s total revenue for Q2 2025 rose 20.1% year-over-year to $150.39 million, driven primarily by its core platform services. Platform services revenue, net, accounted for the bulk of the increase, reaching $143.13 million. Complementing this were other services, which added $7.26 million to the company’s net revenue.

Earnings/Net Income

The company reported a net loss of $647,000 in Q2 2025, a significant decline from a net income of $119.11 million in the same period the previous year, representing a 100.5% deterioration. Despite a stable EPS of $0.00, the widening net loss and the company's sustained losses for the past six years indicate ongoing financial challenges.

Price Action

Marqeta's stock edged up 1.07% during the latest trading day but declined 0.18% over the past week and 4.38% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

A post-earnings trading strategy of buying MQ when it beat expectations and holding for 30 days proved highly ineffective. The strategy returned -62.03%, significantly underperforming the benchmark by 95.82%. It recorded a maximum drawdown of 0.00% and a Sharpe ratio of -0.86, underscoring the high-risk profile and poor risk-adjusted returns.

CEO Commentary

Michael Milotich, Interim CEO, highlighted a strong Q2 with a 29% year-over-year increase in total processed volume (TPV) to $91 billion and a 20% rise in net revenue. The company is focusing on innovation in lending and BNPL, including pay-anywhere card solutions and Visa Flexible Credentials. Strategic priorities include expanding value-added services, leveraging AI/ML for real-time decisioning, and geographic expansion, particularly in Europe, supported by the TransactPay acquisition. Milotich noted operational efficiencies and disciplined cost management contributed to a record adjusted EBITDA of $29 million and expressed optimism about the path to GAAP breakeven in 2026.

Guidance

Marqeta raised its full-year 2025 guidance, now expecting net revenue growth of 17-18%, gross profit growth of 18-19%, and adjusted EBITDA margins of 14-15%. For Q3 and Q4, the company forecasts net revenue growth of 15-17%, with adjusted EBITDA margins of 12-13% and 13%, respectively. The revised network incentive accounting is expected to reduce gross profit growth by 2 and 4 percentage points in Q3 and Q4, while the TransactPay acquisition is projected to add 1.5 and 2 points to growth during those periods. The company now anticipates $85 million in adjusted EBITDA for 2025, up from prior estimates.

Additional News

On August 7, 2025, Marqeta released Q2 2025 slides highlighting a 29% surge in total processed volume. The slides, made publicly available, indicated strong performance across core metrics. Notably, the company is advancing its product innovations in lending and buy now, pay later (BNPL) services, including pay-anywhere card solutions and Visa Flexible Credentials. The TransactPay acquisition is a key component of Marqeta’s European expansion strategy. The slides emphasized the company’s commitment to leveraging artificial intelligence and machine learning for real-time decisioning. These strategic moves, combined with operational efficiency and disciplined cost management, are central to Marqeta’s vision for future profitability and market expansion.