Marqeta (NASDAQ:MQ) reported fourth-quarter 2025 results marked by accelerating processing volume growth, record adjusted EBITDA, and a path toward GAAP profitability, while outlining a 2026 outlook shaped by contract renewals, Block pricing tier changes, and assumptions tied to Cash App issuance diversification.
Fourth-quarter results show record TPV and profitability gains
CEO Mike Milotich said the company’s fourth-quarter performance reflected “outstanding growth” and increased scale, alongside continued improvement in adjusted EBITDA as Marqeta trends toward GAAP profitability. Total processing volume (TPV) rose to $109 billion, up 36% year-over-year and above the $100 billion quarterly mark for the first time in company history. Management highlighted that this was the third consecutive quarter in which TPV growth accelerated by three percentage points from the prior quarter.
Kangwankij said Marqeta approached GAAP net income breakeven for the third quarter in a row. The company ended Q4 with approximately $770 million in cash and short-term investments.
Use case performance and customer dynamics
Management said three of Marqeta’s four major use cases delivered accelerated growth in the quarter. Kangwankij noted that non-Block TPV continued to grow more than twice as fast as Block TPV. Lending (including buy now, pay later) growth slowed from Q3 but remained “very robust,” growing just shy of 60% year-over-year. She attributed the moderation largely to lapping the Klarna migration in Europe executed in October 2024, while citing continued growth from flexible network credential usage and geographic expansion.
Expense management growth exceeded 40% and accelerated several points sequentially, while on-demand delivery accelerated and remained in the double digits, though below the company’s overall growth rate. Financial services TPV growth also accelerated sequentially but remained somewhat below the company average.
Block net revenue concentration was 44% in Q4, in line with the prior quarter. Kangwankij also said Marqeta’s gross profit take rate was 11 basis points, slightly lower than last quarter, largely due to the impact of a major renewal completed during the quarter.
Europe expansion and TransactPay integration
Milotich emphasized Europe as a key growth area, saying European TPV grew more than twice as fast as the company overall in Q4, though growth fell below 100% year-over-year for the first time in nearly two years due to a larger base. He said Q4 2025 European TPV was nearly 40% higher than Marqeta’s annual TPV in 2023 and now spans multiple use cases.
Marqeta completed its acquisition of TransactPay in Q3 2025, which management said enables an end-to-end offering in the U.K. and E.U. across processing, program management, and an EMI license, comparable to what the company offers in the U.S., Canada, and Australia. Kangwankij said TransactPay added 4 percentage points to Q4 gross profit growth, with some projects delivered ahead of expectations; she noted the contribution can fluctuate based on implementation fees.
Milotich highlighted a new U.K. program with Uber as an example of Marqeta’s expanded European capabilities. He said Marqeta is helping expand the Uber Pro Card use case to the U.K., enabling drivers to access funds immediately, earn rewards, and hold money in a high-yield savings account with a partner bank inside an Uber-branded app developed by Marqeta. The company described this as the first deployment of its white label app, using preconfigured flows for onboarding, account setup, transaction monitoring, and support.
Value-added services and enhanced risk capabilities
Marqeta said value-added services continue to expand. In Q4 2025, value-added services contributed over 7% of gross profit, and 18 of the top 20 customers used at least one value-added service. Milotich said value-added services more than doubled year-over-year exiting 2025, while remaining a relatively small portion of gross profit.
During Q4, Marqeta launched an enhanced version of its Real-Time Decisioning product for a long-standing customer, incorporating AI and machine learning for real-time risk evaluation in the authorization flow. Management said the models use transaction-level attributes and historical behavior patterns to predict risk with millisecond-level response times, and that the models are self-learning. Marqeta also signed two additional customers for the enhanced capability, with management describing demand from customers seeking flexibility across neobanking and lending use cases in multiple geographies.
2026 outlook shaped by renewals, Block pricing, and Cash App assumptions
For 2026, Marqeta expects TPV growth to moderate into the high 20s due to tougher comparisons, particularly in the second half, with an expected addition of $100 billion in TPV. The company guided to 10%–12% gross profit growth, implying $481 million–$490 million in gross profit dollars, and 12%–14% net revenue growth.
Kangwankij said two factors would pressure 2026 gross profit growth by a combined 7 percentage points, largely due to timing:
- Two large renewals expected to reduce 2026 growth by 4 points, with one shifting into 2026 after a delay that benefited 2025.
- Block pricing tier changes expected to reduce growth by 3 points, after Block reached a new tier in December 2025 and is expected to remain there throughout 2026.
In addition, the company assumed Cash App’s diversification of new issuance would reduce 2026 gross profit growth by approximately 1.5–2 points. Kangwankij said Marqeta’s updated assumption is that it would “gradually” receive less new issuance in the first half of 2026 and receive no new issuance in the second half. She said the company had not yet seen a “discernible impact” as of late February, but expects diversification to begin. On the longer-term outlook, she said it remains to be seen how diversification will evolve, but Marqeta believes it can remain Cash App’s primary partner, pointing to differentiated platform capabilities, a long-standing relationship, and the disruption involved in moving engaged users off the platform.
Marqeta expects adjusted operating expenses to grow in the mid-to-high single digits in 2026, with adjusted EBITDA projected to grow in the mid-20s. Kangwankij said the company expects to generate a modest amount of GAAP net income in 2026, “likely around $10 million,” with GAAP breakeven expected in the first two quarters and net income anticipated in the second half.
The company also disclosed ongoing share repurchases, citing a belief that its valuation does not reflect its value or opportunity. In Q4, Marqeta repurchased 20.2 million shares at an average price of $4.76. For full-year 2025, it repurchased 84.8 million shares at an average price of $4.59, reducing outstanding shares by nearly 17% versus 2024 year-end. As of December 31, the company had over $91 million remaining under its latest authorization.
About Marqeta (NASDAQ:MQ)
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.
