Executive Summary

Q2 2025 delivered accelerating growth and profitability: Net Revenue $150.4M (+20% YoY), Gross Profit $104.1M (+31% YoY; +22% normalized), TPV $91.4B (+29% YoY), Adjusted EBITDA $28.5M (19% margin), and near GAAP breakeven (Net Loss $0.6M). Growth outperformance was driven by stronger TPV, favorable mix, and lower adjusted OpEx; Gross Profit benefited from a one-time 8.6ppt accounting tailwind on network incentives .
Wall Street estimates were beaten: Revenue beat by ~$10.1M ($150.4M vs $140.2M*), and EPS swung to ~$0.00 vs -$0.031*; Adjusted EBITDA of $28.5M far surpassed the company’s prior margin outlook (10–11%) and is supported by stronger volume and disciplined costs . Values retrieved from S&P Global*.
Guidance raised materially: Q3 Net Revenue growth to 15–17%, FY 2025 Net Revenue growth to 17–18%, FY Gross Profit growth to 18–19%, and FY Adjusted EBITDA margin to 14–15% (vs 10–11% prior). Headwinds include a reversal of the network incentive accounting tailwind (2ppt drag in Q3; 4ppt in Q4) and timing of customer renewals; TransactPay adds 1.5ppt to Q3 and 2ppt to Q4 growth .
Stock narrative catalysts: BNPL momentum with Visa Flexible Credential (Klarna OneCard), European expansion accelerated by TransactPay acquisition, and sustained margin improvement from cost optimization and value-added services traction .

What Went Well and What Went Wrong

What Went Well

BNPL and lending use cases accelerated: top-10 BNPL customers saw TPV growth acceleration; flexible credentials enable pay-anywhere and improved adoption; Klarna OneCard supported by Marqeta and Visa Flexible Credential .
Europe is a major growth engine: TPV more than doubled YoY; TransactPay acquired (closed Jul 31) to deliver program management and EMI license support across UK/EU, enabling larger opportunities and uniform offerings vs North America .
Profitability inflection: Adjusted EBITDA reached an all-time high ($28.5M; 19% margin) with lower adjusted OpEx (-7% YoY) driven by optimization, investment timing, and one-off tax benefits; GAAP Net Loss ~$0.6M with $8M interest income .

What Went Wrong

Accounting tailwind reverses near term: the revised accrual method for network incentives added 8.6ppt to Q2 Gross Profit growth but will subtract ~2ppt in Q3 and ~4ppt in Q4, weighing on reported growth optics despite underlying strength .
Mix impact: higher TPV from larger non-Block customers moved pricing into lower tiers, modestly compressing gross profit take rate (>11bps, down 0.3bps QoQ) and Gross Margin (69% vs 71% in Q1), even as overall profits improved .
Ongoing bank partner pace/regulatory digestion: operational tempo is improving but remains slower than ideal; embedded finance sales cycles are longer than initially expected, pushing some launches later .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Net Revenue ($USD Millions)	$135.8	$139.1	$150.4
Gross Profit ($USD Millions)	$98.2	$98.7	$104.1
Gross Margin (%)	72%	71%	69%
GAAP Net (Loss) Income ($USD Millions)	$(27.1)	$(8.3)	$(0.6)
Diluted EPS ($USD)	$(0.05)	$(0.02)	$(0.00)
Adjusted EBITDA ($USD Millions)	$12.7	$20.1	$28.5
Adjusted EBITDA Margin (%)	9%	14%	19%
Total Processing Volume (TPV) ($USD Billions)	$79.9	$84.5	$91.4

Q2 2025 vs Estimates	Q2 2025
Revenue Consensus Mean ($USD Millions)*	140.25*
Actual Net Revenue ($USD Millions)	$150.39
Primary EPS Consensus Mean ($USD)*	-$0.031*
Actual Diluted EPS ($USD)	$(0.00)

Values retrieved from S&P Global*.

KPIs (Q2 2025)

KPI	Q2 2025
TPV ($USD Billions)	$91.4
Net Revenue Take Rate (bps)	~16 bps (in line with Q1)
Gross Margin (%)	69%
Gross Profit Take Rate (bps)	>11 bps; down 0.3bps QoQ
Adjusted Operating Expenses ($USD Millions)	$75.6
Block Net Revenue Concentration (%)	~46% (down 1ppt YoY)
Shares Repurchased (Q2)	35.2M at $4.62 avg; 61.5M YTD at $4.45 avg
Cash & Short-term Investments ($USD Millions)	Cash $732.7; ST Investments $88.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue Growth	Q3 2025	N/A	15% – 17%	New
Gross Profit Growth	Q3 2025	N/A	15% – 17%	New
Adjusted EBITDA Margin	Q3 2025	N/A	12% – 13%	New
Net Revenue Growth	FY 2025	13% – 15%	17% – 18%	Raised
Gross Profit Growth	FY 2025	14% – 16%	18% – 19%	Raised
Adjusted EBITDA Margin	FY 2025	10% – 11%	14% – 15%	Raised

Guidance context: Accounting change for network incentives shifts from +8.6ppt tailwind in Q2 to a ~2ppt drag in Q3 and ~4ppt drag in Q4; TransactPay contributes ~1.5ppt to Q3 and ~2ppt to Q4 growth; two large customer renewals expected later in 2025 (timing benefits Q3) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
BNPL & Visa Flexible Credential	Announced platform leadership; migrations and launches incl. Bitpanda card; Perpay credit migration pipeline	BNPL growth accelerated across top-10 customers; launch of Klarna OneCard with Visa Flexible Credential; flexible pre-purchase mechanics and intermittent credit interchange eligibility	Accelerating adoption
Europe Expansion & Program Management	Agreement to acquire TransactPay; program management capability planned; Q4 wins in Europe	TransactPay closed (Jul 31); Europe TPV >100% YoY; expanded program management and EMI licenses enable larger customers and uniform NA/EU offering	Scaling rapidly
Value-Added Services (Risk/Decisioning)	Building full-stack to serve embedded finance; investing in money movement, white-label app	VAS gross profit more than doubled YoY; 40+ customers using real-time decisioning (~20% of non-Block TPV); ML embedded to improve fraud detection	Growing from small base
Credit Platform & Networks	Added AmEx network option; first consumer credit co-brand signed	AmEx integration near certification; Perpay migration ~97% complete; dynamic rewards proposition differentiates co-brand offering	Execution milestones
Embedded Finance	Opportunity acknowledged; longer cycles than expected	Large embedded finance win slated to launch later in 2025; focus on full-stack solution (banking/money movement + app)	Pipeline building; slower timing
Regulatory/Macro	2024 macro/regulatory caution noted	Bank partner tempo improving modestly; limited direct upside from regulatory shifts	Gradual normalization

Management Commentary

“Our second quarter results demonstrate our ability to deliver strong growth while simultaneously increasing our adjusted EBITDA through efficiency and scale.”
“Q2 net revenue and gross profit growth outperformed our expectations by approximately seven points, driven by much higher volume and a more favorable business mix.”
“We are actively enhancing [real-time decisioning] with artificial intelligence and machine learning…with millisecond level response times…we expect machine learning to continuously improve fraud detection.”
“Europe remains a strong driver of our growth, where TPV continues to more than double year over year…With the acquisition of TransactPay…we will have a more uniform program management offering across North America and Europe.”
“We now expect full year 2025 revenue growth, gross profit growth and adjusted EBITDA margin to each be three to four points higher than what we shared last quarter.”

Q&A Highlights

Visibility and BNPL momentum: TPV growth accelerated by ~3pts vs Q1; BNPL/lending customers broadly accelerating; pipeline supports H2 launches, reinforcing raised outlook .
Value-added services priority: Though small, VAS is scaling with embedded finance preference for holistic solutions; investments in risk, tokenization, rewards, and white-label app drive future growth .
EBITDA drivers: Upside primarily from TPV-led gross profit; favorable mix; and lower OpEx from timing and structural efficiencies (including AI-enabled productivity and higher software capitalization) .
BNPL mechanics and interchange: Greater emphasis on pre-purchase flows and flexible debit/credit toggles via Visa Flexible Credential; some transactions qualify for credit interchange .
Europe/TransactPay strategy: Program management enables larger deals and one-stop solution (processing + program management + license), improving cross-Atlantic scalability and customer capture .
OpEx sustainability: Roughly half of Q2 OpEx savings were timing; the structural improvements (org shape, geographic diversification, tech cost efficiency) support better run-rate into 2026 .
Embedded finance: Full-stack approach is resonating; cycles longer than fintech, but a large embedded finance customer expected to launch later this year .
Open banking data fees: Minimal direct impact to Marqeta today; could raise costs for some customers’ use cases (verification/underwriting) if broadly adopted by banks .

Estimates Context

Q2 2025 Revenue beat: $150.39M actual vs $140.25M consensus*, reflecting stronger TPV and favorable mix . Values retrieved from S&P Global*.
Q2 2025 EPS beat: $(0.00) actual vs -$0.031 consensus*, aided by higher gross profit and lower adjusted OpEx . Values retrieved from S&P Global*.
FY 2025 outlook implies Street recalibration higher across Revenue, Gross Profit, and EBITDA margins given raised guidance ranges and identified headwinds/tailwinds (network incentives accounting, renewals timing, TransactPay boost) .
Target Price consensus stands near ~$6.18*, indicating modest upside potential contingent on sustained execution and mix/pricing dynamics. Values retrieved from S&P Global*.

Key Takeaways for Investors

Beat-and-raise quarter: Revenue/EPS beats and a material guidance raise should support estimate revisions and near-term positive sentiment, though reported GP growth will face accounting-related drags in H2 .
BNPL leadership is durable: Flexible credentials and pay-anywhere adoption are expanding use cases and distribution; watch for holiday-season limited release of in-app multi-provider BNPL and broader rollout in 2026 .
Europe is a multi-year growth driver: With TransactPay, Marqeta can serve larger, license-requiring customers and offer uniform NA/EU solutions—expect mix shift toward program management revenues .
Margin trajectory improving: Structural cost efficiencies plus scale drive higher adjusted EBITDA margins; monitor gross profit take rate as larger customers ramp and pricing tiers adjust .
Mix and renewals matter: Non-Block growth outpaces Block; timing of renewals aids Q3 but may pressure Q4; underlying TPV strength offsets pricing tier effects .
Capital returns signal confidence: Ongoing buybacks (~12% share reduction YTD from 2024 year-end base) underscore management view that current valuation under-reflects opportunity .
Watch embedded finance execution: Longer sales cycles but high-value wins; the full-stack product strategy positions Marqeta well as these programs launch .

Appendix: Additional Data and Notes

Network incentive accounting change: +8.6ppt benefit to Q2 Gross Profit growth due to accrual approach; expected to be a headwind in Q3/Q4 (approx. -2ppt, -4ppt, respectively) .
Segment/use-case commentary: Financial services steady, expense management >30% YoY growth, BNPL/lending faster than company overall, on-demand delivery single-digit growth .
Cash and liquidity: Quarter-end cash and cash equivalents $732.7M; short-term investments $88.9M .

Marqeta, Inc. (MQ)·Q2 2025 Earnings Summary