Marqeta's Q1 2025: Contradictions Unveiled on AI Focus, European Expansion, and Macroeconomic Challenges

Agentic commerce and AI focus, TransactPay acquisition and European expansion, regulatory impact and visibility, customer commitment and program delays, impact of macroeconomic conditions on growth and guidance are the key contradictions discussed in Marqeta's latest 2025Q1 earnings call.



Revenue and Profitability Growth:
- Marqeta's Q1 net revenue was $139 million, growing 18% year-over-year.
- Gross profit was $99 million, showing a 17% increase versus Q1 2024, with a gross margin of 71%.
- This growth was driven by the diversity in use cases supported and efficiency gains.

Platform Breadth and Migration Capabilities:
- Total processing volume (TPV) increased to $84 billion, reflecting a 27% rise compared to the same period in 2024.
- Marqeta completed migrations for Klarna and began migrating programs for U.S. consumer credit and European crypto platforms.
- The company's ability to execute on platform modernization and migrations is enhancing its attractiveness to established brands looking for advanced capabilities and control.

Regional Expansion and Program Management:
- European TPV growth remained over 100% in Q1, driven by significant customer interest in program management services.
- Marqeta is acquiring TransactPay to deliver comprehensive program management solutions in Europe, anticipating a close by the end of Q3.
- The expansion into program management is expected to enhance Marqeta's offerings in Europe, attracting more customers and geographical expansion.

Non-block Revenue Growth:
- Non-block net revenue growth was over 10 points higher than block net revenue growth, fueled by strong performance among larger non-block customers and new programs launched since early 2024.
- The growth is attributed to the adoption of innovative solutions like UX Toolkit and the expansion into new geographies, supported by a strong pipeline of prospects expressing interest in migration and new program launches.