Marqeta (NASDAQ:MQ) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Marqeta (NASDAQ:MQ) announced its quarterly earnings results on Tuesday. The company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates 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 company had revenue of $176.00 million for the quarter, compared to analysts’ expectations of $172.96 million. The firm’s revenue was up 17.0% compared to the same quarter last year.

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 Price Performance

MQ stock traded up $0.09 during midday trading on Tuesday, reaching $17.94. The company had a trading volume of 2,472,256 shares, compared to its average volume of 1,039,058. Marqeta has a 1 year low of $14.80 and a 1 year high of $28.16. The company has a market capitalization of $1.90 billion, a P/E ratio of 448.61 and a beta of 1.30. The firm has a 50-day moving average price of $16.38 and a 200-day moving average price of $16.46.

Analysts Set New Price Targets

MQ has been the topic of a number of analyst reports. Weiss Ratings reiterated a “sell (d)” rating on shares of Marqeta in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Marqeta from $4.50 to $18.00 and gave the company a “hold” rating in a research report on Thursday, July 2nd. Finally, UBS Group lifted their price objective on Marqeta from $17.00 to $19.00 and gave the company 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 issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Marqeta has a consensus rating of “Reduce” and an average target price of $20.12.

Insider Buying and Selling at Marqeta

In related news, CRO Todd Pollak sold 18,750 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $16.88, for a total value of $316,500.00. Following the completion of the transaction, the executive directly owned 185,008 shares in the company, valued at approximately $3,122,935.04. The trade was a 9.20% decrease in their ownership of the stock. The sale 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, Director Elaine Paul sold 4,537 shares of the stock in a transaction on 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 transaction, the director directly owned 8,900 shares in the company, valued at approximately $135,280. This represents a 33.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 13.71% of the company’s stock.

Institutional Investors Weigh In On Marqeta

Hedge funds have recently added to or reduced their stakes in the company. Abel Hall LLC increased its holdings in shares of Marqeta by 33.2% in the fourth quarter. Abel Hall LLC now owns 14,097 shares of the company’s stock worth $67,000 after buying an additional 3,512 shares during the period. Advisors Asset Management Inc. lifted its stake in shares of Marqeta by 50.2% in the 4th quarter. Advisors Asset Management Inc. now owns 16,610 shares of the company’s stock valued at $79,000 after acquiring an additional 5,551 shares during the last quarter. Cibc World Markets Corp purchased a new stake in Marqeta during the 4th quarter valued at about $115,000. CIBC Asset Management Inc boosted its holdings in Marqeta by 36.5% during the 4th quarter. CIBC Asset Management Inc now owns 19,673 shares of the company’s stock valued at $93,000 after acquiring an additional 5,258 shares during the period. Finally, Certuity LLC grew its position in Marqeta by 22.3% during the 3rd quarter. Certuity LLC now owns 14,235 shares of the company’s stock worth $75,000 after acquiring an additional 2,596 shares during the last quarter. Institutional investors own 78.64% of the company’s stock.

About Marqeta

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.