Marqeta shares surge 14.5% as revenue beats, guidance impresses

Published 26/02/2025, 23:52
Marqeta shares surge 14.5% as revenue beats, guidance impresses

OAKLAND, Calif. - Marqeta , Inc. (NASDAQ:MQ) saw its shares jump 14.5% after the modern card issuing platform reported fourth-quarter revenue that beat analyst expectations and provided upbeat guidance for the first quarter of 2025.

The company reported Q4 revenue of $135.79 million, surpassing the consensus estimate of $132.31 million. Revenue grew 14% YoY, driven by a 29% increase in total processing volume to $80 billion. Adjusted earnings per share came in at -$0.05, in line with analyst projections.

For Q1 2025, Marqeta forecasts net revenue growth of 14-16%, above Wall Street estimates. The company also announced plans to acquire TransactPay to strengthen its program management capabilities in Europe.

"In 2024, we empowered our customers to achieve significant growth and scale, maintaining both stability and compliance," said Mike Milotich, Interim CEO at Marqeta. "Entering 2025, our strengthened platform uniquely positions us to serve fintechs and embedded finance with comprehensive debit, credit, and money movement solutions."

Gross profit for Q4 rose 18% YoY to $98 million, with gross margin expanding to 72% from 70% a year ago. The company reported a net loss of $27 million for the quarter, an improvement from the $40 million loss in Q4 2023.

Marqeta highlighted several business updates, including signing its first consumer credit co-brand partnership and entering an agreement to add American Express (NYSE:AXP) as a new network option on its platform.

The strong results and positive outlook appear to have resonated with investors, as reflected in the stock’s sharp rise following the earnings release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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