Marqeta (NASDAQ:MQ) Announces Earnings Results

Marqeta (NASDAQ:MQ) released its quarterly earnings data on Tuesday. The company reported $1.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $1.03, FiscalAI reports. Marqeta had a return on equity of 1.36% and a net margin of 1.53%. The business had revenue of $176.18 million for the quarter, compared to the consensus estimate of $175.40 million. During the same quarter in the previous year, the company posted ($0.01) EPS. The company’s 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 Stock Down 4.4%

MQ stock traded down $0.82 during trading on Tuesday, hitting $17.80. The company had a trading volume of 1,084,381 shares, compared to its average volume of 985,190. The firm has a market capitalization of $1.85 billion, a P/E ratio of 161.82 and a beta of 1.21. Marqeta has a 52-week low of $14.80 and a 52-week high of $22.28. The company has a 50 day simple moving average of $17.14 and a 200-day simple moving average of $16.61.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Weiss Ratings raised Marqeta from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, August 6th. Keefe, Bruyette & Woods raised their target price on shares of Marqeta from $18.00 to $19.00 and gave the stock a “market perform” rating in a report on Wednesday, August 5th. Finally, Zacks Research lowered shares of Marqeta from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 13th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $19.67.

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.