Marqeta (NASDAQ:MQ) Issues Earnings Results

Marqeta (NASDAQ:MQ) posted its quarterly earnings data on Tuesday. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.06, FiscalAI reports. Marqeta had a net margin of 0.33% and a return on equity of 0.27%. The business had revenue of $176.00 million for the quarter, compared to the consensus estimate of $172.96 million. The firm’s revenue was up 17.0% on a year-over-year basis.

Here are the key takeaways from Marqeta’s conference call:

• Q2 performance exceeded expectations: TPV rose 32% to $120 billion, gross profit increased 17%, adjusted EBITDA grew 31% with a 21% margin, and Marqeta delivered approximately $8 million in GAAP net income for its second consecutive profitable quarter.
• Non-Block TPV grew more than twice as fast as Block TPV, while expense-management volume increased over 50% and international volume rose over 40%, reaching 20% of total TPV. Average deal size increased more than 90% year over year, reflecting growing traction with large enterprises and embedded-finance customers.
• Management expects a significant second-half growth slowdown, guiding for Q3 revenue growth of 6%-8% and gross-profit growth of 5%-7%. The deceleration reflects tougher comparisons, the TransactPay acquisition anniversary, slower BNPL growth, an unfavorable on-demand-delivery mix, and reduced Cash App new issuance.
• Block began modestly reducing Cash App new card issuance in mid-June, with management estimating an eventual shift to little or no new issuance by year-end. Although the existing relationship remains strong and pricing tiers may cushion gross-profit effects, management said the impact could exceed two percentage points on a 2027 run-rate basis.
• Marqeta raised its full-year adjusted EBITDA growth outlook to the low 30% range and expects GAAP net income in the high-$20 millions, supported by vendor savings, cost discipline, and operating leverage. Longer-term growth opportunities include credit products, European program management, stablecoin-backed cards, non-card money movement, and value-added fraud services.

Marqeta Stock Performance

Shares of NASDAQ MQ traded up $0.09 during mid-day trading on Tuesday, reaching $17.94. The company’s stock had a trading volume of 2,472,256 shares, compared to its average volume of 1,039,058. The stock has a 50-day moving average of $16.38 and a two-hundred day moving average of $16.46. The stock has a market capitalization of $1.90 billion, a P/E ratio of 446.25 and a beta of 1.30. Marqeta has a 1-year low of $14.80 and a 1-year high of $28.16.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on MQ shares. Weiss Ratings restated a “sell (d)” rating on shares of Marqeta in a research report on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft lifted their price objective on Marqeta from $4.50 to $18.00 and gave the stock a “hold” rating in a report on Thursday, July 2nd. Finally, UBS Group boosted their price objective on Marqeta from $17.00 to $19.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Marqeta currently has a consensus rating of “Reduce” and an average price target of $20.12.

Insider Transactions at Marqeta

In other Marqeta news, Director Elaine Paul sold 4,537 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $15.20, for a total value of $68,962.40. Following the completion of the sale, the director owned 8,900 shares in the company, valued at approximately $135,280. This represents a 33.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Todd Pollak sold 18,750 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $16.88, for a total transaction of $316,500.00. Following the completion of the transaction, the executive directly owned 185,008 shares in the company, valued at $3,122,935.04. This trade represents a 9.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 13.71% of the company’s stock.

Institutional Investors Weigh In On Marqeta

Large investors have recently made changes to their positions in the stock. Quarry LP acquired a new stake in shares of Marqeta in the third quarter valued at approximately $26,000. EFG International AG acquired a new position in Marqeta during the fourth quarter worth $27,000. Amundi purchased a new stake in Marqeta in the 4th quarter valued at $48,000. Daiwa Securities Group Inc. purchased a new stake in Marqeta in the 2nd quarter valued at $66,000. Finally, Prelude Capital Management LLC acquired a new stake in shares of Marqeta in the 3rd quarter worth $62,000. 78.64% of the stock is currently owned by hedge funds and other institutional investors.

Marqeta Company Profile

Marqeta is a modern card issuing and payment processing platform that enables businesses to design, launch and manage customized payment cards. The company offers a fully programmable open API that allows clients to create virtual, physical and tokenized payment cards with real-time transaction controls and dynamic spend limits. By leveraging Marqeta’s infrastructure, companies can streamline their payment operations, reduce time to market and deliver tailored payment experiences to end consumers.

Founded in 2010 and headquartered in Oakland, California, Marqeta was established by CEO Jason Gardner with the goal of transforming traditional card issuance through cloud-native technology.