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Marqeta Inc. (NYSE:NASDAQ:MQ) released its Q1 2025 earnings presentation on May 7, 2025, revealing strong growth in total processing volume and significant improvement in profitability metrics. The fintech company’s stock rose 4.87% during regular trading hours to close at $4.09, with an additional 0.73% gain in after-hours trading.
Quarterly Performance Highlights
Marqeta reported substantial growth in its Total (EPA:TTEF) Processing Volume (TPV), which reached $84 billion in Q1 2025, representing a 27% year-over-year increase from $67 billion in Q1 2024. This metric, which measures the total dollar amount of payments processed through Marqeta’s platform, indicates continued strong adoption of the company’s payment solutions.
As shown in the following chart of quarterly TPV growth:
Net revenue for Q1 2025 came in at $139 million, an 18% increase compared to $118 million in the same quarter last year. The company has demonstrated consistent quarter-over-quarter revenue growth throughout the past year.
The following chart illustrates Marqeta’s steady revenue progression:
Detailed Financial Analysis
Marqeta’s gross profit grew to $99 million in Q1 2025, up 17% from $84 million in Q1 2024. The company maintained a stable gross profit margin of 71%, consistent with the year-ago quarter, though there was some fluctuation in the intervening quarters.
The company’s gross profit and margin trends are depicted in this chart:
Non-GAAP operating expenses increased modestly to $79 million in Q1 2025, representing a 5% increase from $75 million in Q1 2024. This relatively controlled expense growth, combined with stronger revenue performance, contributed to improved profitability metrics.
The operating expense trend is illustrated below:
The most notable improvement came in Adjusted EBITDA, which more than doubled to $20 million in Q1 2025 from $9 million in Q1 2024. The Adjusted EBITDA margin expanded significantly to 14% from 8% in the year-ago quarter, demonstrating Marqeta’s progress toward sustainable profitability.
The following chart shows the company’s Adjusted EBITDA and margin progression:
This performance continues the positive momentum seen in Marqeta’s Q4 2024 results, where the company reported revenue of $136 million and an Adjusted EBITDA of $13 million with a 9% margin. The Q1 2025 results represent sequential improvements in both absolute Adjusted EBITDA and margin.
Forward-Looking Statements
Marqeta provided guidance for both Q2 2025 and the full fiscal year 2025. For the second quarter, the company expects net revenue growth of 11-13% and gross profit growth of 23-25%, with an Adjusted EBITDA margin of 10-11%.
For the full fiscal year 2025, Marqeta projects net revenue growth of 13-15%, gross profit growth of 14-16%, and an Adjusted EBITDA margin of 10-11%.
The company’s financial guidance is summarized in the following slide:
While the projected Adjusted EBITDA margin for Q2 and full-year 2025 (10-11%) represents a slight decrease from the 14% achieved in Q1, it still indicates substantial improvement over most of 2024. The guidance suggests Marqeta expects to maintain the profitability gains achieved in recent quarters.
This outlook aligns with statements made during the Q4 2024 earnings call, where management indicated they were targeting GAAP profitability by the end of 2026 and highlighted the company’s leadership in flexible payment credentials and the growing embedded finance market.
Marqeta’s Q1 2025 results and forward guidance reflect the company’s continued execution of its growth strategy in the embedded finance market, with particular strength in processing volume growth and improving profitability metrics. Investors will likely focus on whether the company can maintain its growth trajectory while continuing to expand margins in the competitive fintech landscape.
Full presentation:
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