← Back

Marqeta: Marqeta's Q2 Earnings: Strong Growth and Margin Expansion

Marqeta's Q2 2025 earnings report showcased strong growth and margin expansion, with Total Payment Volume (TPV) increasing 29% year-over-year to $91 billion, and net revenue growing 20% to $150 million. Gross profit rose 31% to $104 million, resulting in a gross margin of 69%. Adjusted EBITDA was $29 million, representing a 19% margin. The company's focus on lending and Buy Now, Pay Later use cases has been a significant strength, with TPV growing over 100% year-over-year in Europe.

MQ

USD 4.865

0.93%

A-Score: 4.2/10

Publication date: August 7, 2025

Author: Analystock.ai

📋 Highlights
  • Q2 2025 Financial Performance: TPV reached $91 billion (+29% YoY), net revenue grew to $150 million (+20%), gross profit rose to $104 million (+31%), and adjusted EBITDA hit $29 million (19% margin).
  • Europe Growth Acceleration: TPV in Europe surged over 100% YoY in lending, BNPL, and expense management, with TransactPay acquisition enhancing program management capabilities.
  • Full-Year 2025 Guidance: Revenue growth raised to 17-18%, gross profit growth to 18-19%, and adjusted EBITDA margin to 14-15% ($85+ million EBITDA, +$30 million from prior guidance).
  • Value-Added Services Expansion: Revenue from value-added services more than doubled YoY, driven by BNPL, crypto solutions, and embedded finance offerings.
  • Cost Efficiency & Future Profitability: Adjusted operating expenses grew mid-single digits, delaying investments saved costs; GAAP breakeven expected by 2026 with lower OpEx by year-end 2026.

European Business Driving Growth

Marqeta's European business is diverse and driven by many use cases, with new banking, lending, and expense management use cases growing over 100% year-over-year. The acquisition of TransactPay will enable the company to deliver more program management services for customers operating throughout Europe. As Michael Milotich, Interim CEO and CFO, stated, "We're expanding and deepening customer relationships, enabling their growth through innovative programs, value-added services, and seamless geographic expansions."

Raised Expectations for Q3, Q4, and Full-Year 2025

Marqeta is raising expectations for Q3, Q4, and full-year 2025, with TPV growth remaining strong across all verticals. The company expects full-year 2025 revenue growth, gross profit growth, and adjusted EBITDA margin to each be 3 to 4 points higher than previously shared. Adjusted operating expenses are expected to grow in the mid-single digits in Q3 and Q4, resulting in over $85 million in adjusted EBITDA for the full year.

Valuation Metrics

With a P/E Ratio of 59.32, P/B Ratio of 3.31, and P/S Ratio of 5.37, Marqeta's valuation appears to be factoring in its strong growth prospects. The EV/EBITDA ratio of 50.68 suggests that the market is pricing in the company's ability to generate significant earnings growth. However, the ROIC of -13.81 and ROE of 5.11 indicate that the company still has room for improvement in terms of profitability and capital efficiency.

Marqeta's A-Score