Marqeta (NASDAQ:MQ) Releases Quarterly Earnings Results, Beats Expectations By $1.03 EPS

Marqeta (NASDAQ:MQ) posted its quarterly earnings results on Tuesday. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $0.06 by $1.03, FiscalAI reports. Marqeta had a net margin of 18.76% and a return on equity of 3.39%. The business had revenue of $176.18 million during the quarter, compared to analyst estimates of $175.40 million. During the same quarter in the previous year, the business posted ($0.01) EPS. The company’s quarterly revenue was up 7.9% compared to the same quarter last year.

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

• Third-quarter TPV rose 29% to $126 billion, surpassing an annualized $500 billion for the first time. Adjusted EBITDA increased 28%, with margin expanding to a record 32% of gross profit.
• Marqeta highlighted continued customer and product expansion, including Square’s credit card migration, Google Wallet for Kids, Satispay’s European debit launch, and new stablecoin, supplier-payment, and open-banking capabilities.
• Management reduced fourth-quarter net revenue growth guidance to 3%-5% and full-year guidance by one percentage point to 11%-12%, although gross profit expectations were maintained because bank and network fees are shifting off Marqeta’s revenue and cost lines without affecting gross profit.
• Cash App card new issuance slowed as expected, with little to no new issuance anticipated by year-end; management said this will create a larger headwind to growth in 2027 despite confidence in the underlying business.

Marqeta Price Performance

Marqeta stock traded down $0.34 during trading hours on Thursday, reaching $18.25. The stock had a trading volume of 480,731 shares, compared to its average volume of 987,297. The company has a market cap of $1.90 billion, a price-to-earnings ratio of 14.67 and a beta of 1.02. The business’s 50 day moving average price is $17.22 and its 200-day moving average price is $16.62. Marqeta has a 52 week low of $14.80 and a 52 week high of $22.28.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Keefe, Bruyette & Woods increased their price objective on shares of Marqeta from $18.00 to $19.00 and gave the company a “market perform” rating in a research note on Wednesday, August 5th. Weiss Ratings reissued a “sell (d+)” rating on shares of Marqeta in a research note on Tuesday. Susquehanna reissued a “positive” rating and issued a $25.00 price objective on shares of Marqeta in a research note on Wednesday. Finally, Zacks Research lowered Marqeta from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 13th. Two analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $20.43.

About Marqeta

Marqeta, Inc is a financial technology company that provides a modern card-issuing and payment-processing platform. Its infrastructure enables businesses to create, launch and manage physical, virtual and tokenized payment cards through application programming interfaces (APIs), without building a complete payments system internally.

The company’s platform supports card authorization and transaction processing, digital wallets, payment tokenization, fraud prevention and configurable spending controls.