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

Marqeta (NASDAQ:MQ) announced 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 return on equity of 1.36% and a net margin of 1.53%. The business had revenue of $176.18 million during the quarter, compared to analysts’ expectations of $175.40 million. During the same quarter in the previous year, the business posted ($0.01) EPS. The firm’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 Stock Performance

Shares of NASDAQ MQ traded up $0.63 during mid-day trading on Wednesday, reaching $18.43. 180,788 shares of the company traded hands, compared to its average volume of 981,319. The company’s fifty day moving average is $17.17 and its two-hundred day moving average is $16.61. Marqeta has a fifty-two week low of $14.80 and a fifty-two week high of $22.28. The stock has a market cap of $1.92 billion, a PE ratio of 168.27 and a beta of 1.02.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on MQ. Zacks Research cut shares of Marqeta from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 13th. Susquehanna restated a “positive” rating on shares of Marqeta in a report on Wednesday. Weiss Ratings raised shares of Marqeta from a “sell (d)” rating to a “sell (d+)” rating in a research note on Thursday, August 6th. Finally, Keefe, Bruyette & Woods upped their price objective 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. Two analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Marqeta currently has an average rating of “Hold” and an average target price 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.