Skip to content
    MQ
    Earnings call· Jun 2026(Q2 FY26)

    Marqeta Q2 FY26 earnings call MQ

    Aug 4, 2026 Source

    Executive summary

    Marqeta Q2 FY26 — Strong Profitability and Strategic Expansion Despite Headwinds

    Marqeta delivered a strong Q2 FY26, achieving its second consecutive quarter of GAAP profitability and exceeding adjusted EBITDA expectations, driven by robust TPV growth and disciplined cost management. The company is strategically expanding its platform capabilities across geographies and product suites, including stablecoin-backed cards and enhanced fraud solutions, while successfully shifting towards larger enterprise deals. Despite anticipated top-line growth deceleration in the second half due to specific customer dynamics and tough comparisons, management remains confident in sustaining profitable growth through operating leverage and continued innovation.

    Highlights

    5

    • TPV grew 32% year-over-year to $120 billion, marking the fourth consecutive quarter above 30% growth.

    • Adjusted EBITDA grew 31% year-over-year, achieving a 21% margin, well above guidance.

    • Achieved GAAP net income of $8 million, marking the second consecutive quarter of GAAP profitability.

    • Average deal size signed in Q2 was up over 90% year-over-year, reflecting a shift to larger enterprise customers.

    • International TPV grew over 40% year-over-year, now representing 20% of total TPV.

    Concerns

    5

    • Net revenue and gross profit growth decelerated to 17% year-over-year, with a further substantial step down expected in Q3.

    • Expected 2-3 point drag on Q3 gross profit growth from a large renewal timing shift to Q3.

    • Expected 2 point drag on Q3 gross profit growth from the diversification of Cash App new issuance.

    • Impact from BNPL customer load balancing single-use virtual card TPV, which was unexpected and contributes to lower Q3 guidance.

    • Shift in on-demand delivery customer mix driving lower gross profit take rate within that use case.

    Guidance & targets

    9
    CategoryTargetConfidence
    Q3 Net Revenue Growth
    6% to 8%
    high materiality
    High
    Q3 Gross Profit Growth
    5% to 7%
    high materiality
    High
    Q3 Adjusted Operating Expenses Growth
    nearly flat
    medium materiality
    High
    Q3 Adjusted EBITDA Growth
    20% to 25%
    high materiality
    High
    Q3 GAAP Net Income
    low- to mid-single-digit millions
    medium materiality
    High
    Full Year Net Revenue Growth
    12% to 13%
    high materiality
    High
    Full Year Gross Profit Growth
    11% to 12%
    high materiality
    High
    Full Year Adjusted EBITDA Growth
    low 30s
    high materiality
    High
    Full Year GAAP Net Income
    high 20 millions
    high materiality
    High

    Operational metrics

    22
    Total Processing Volume (TPV)
    $120 billion32% YoY growth
    Q2 FY26
    Gross Profit
    $122 million17% YoY growth
    Q2 FY26
    Adjusted EBITDA
    31% growthYoY
    Q2 FY26

    Well above guide.

    GAAP Net Income
    $8 million
    Q2 FY26

    Exceeded expectations.

    Net Revenue
    $176 million17% YoY growth
    Q2 FY26
    Block Net Revenue Concentration
    41%1 point lower QoQ, 5 points lower YoY
    Q2 FY26

    Despite Block programs growing well on our platform.

    Adjusted Operating Expenses
    $84 million12% YoY growth
    Q2 FY26

    Lower than expected due to active negotiation of third-party vendor contracts and continued cost discipline.

    Shares Repurchased
    3.2 millionconsiderably more than last quarter
    Q2 FY26

    Company believes current valuation does not fairly represent its value or market opportunity.

    Cash and Short-Term Investments
    $700 million
    Q2 FY26 end

    Operating cash flow offset share repurchases.

    Non-Block TPV Growth
    more than 2x fastervs Block TPV
    Q2 FY26
    Lending (BNPL) TPV Growth
    over 40%YoY
    Q2 FY26

    Still very strong against a tougher comparison.

    Expense Management TPV Growth
    over 50%YoY
    Q2 FY26

    Robust growth reflects fast-growing customers taking share.

    On-Demand Delivery TPV Growth
    double digitYoY
    Q2 FY26

    Below the company's overall growth rate, as this is the most mature use case.

    International TPV Growth
    over 40%YoY
    Q2 FY26
    International TPV as % of Total
    20%
    Q2 FY26

    Hit a milestone this quarter.

    Value-Added Services as % of Gross Profit
    7%
    today

    Still relatively small, but expected to be a major contributor in the future.

    Fraud Solution Gross Profit Growth
    over 80%
    H1 FY26

    Delivered by the real-time decisioning fraud offering.

    Average Deal Size Signed
    up over 90%YoY
    Q2 FY26

    Reflects traction with large enterprises and a shift upmarket.

    Cash App New Issuance Decline
    10%
    mid-June

    Estimated decline of what Marqeta would have gotten otherwise; stepped up in July; expect little to no new issuance by year-end.

    Full Year Volume
    north of $450 billion
    FY26

    Current volume scale.

    GAAP EPS
    $0.07
    Q2 FY26
    Lending (BNPL) TPV Growth Outlook
    over 30%
    H2 FY26

    Expected despite very tough year-over-year comparisons and customer-specific load balancing.

    Industry KPIs

    2
    MetricValueDetails
    Capital returns$150MUSD
    Net revenue yield take rate10 bpsbps

    Product announcements

    4
    ProductTypeDetails
    Stablecoin-backed card solutionslaunch
    OpenUSD participationmilestone
    Non-card money movement optionsexpansion
    Enhanced fraud offering (real-time decisioning)update

    Deals & partnerships

    6
    Banking CircleExpands bank partnership, account, and money movement offering into 30 additional European countries.

    This new bank partnership, combined with Marqeta's TransactPay EMI license, provides a single foundation for integrating card issuing, multi-currency account functionality, and European payment rails.

    ZeroHashStrategic partnership for stablecoin-backed card solutions.

    Together with Marqeta, they will enable stablecoin-backed card solutions that link directly to existing card rails, making stablecoins spendable anywhere a card is accepted.

    BVNKStrategic partnership for stablecoin-backed card solutions.

    Together with Marqeta, they will enable stablecoin-backed card solutions that link directly to existing card rails, making stablecoins spendable anywhere a card is accepted.

    ExpensifyExisting customer expanding from the US into Europe leveraging Marqeta's expanded capabilities.

    Utilizing Marqeta's expanded capabilities to bring its expense management card offering to the UK and EU, enabled by a single integration.

    Fortune 500 customerSigned a second program with an existing customer initially signed in Q3 last year.

    The new program powers a stored value account with a linked debit card for individuals in payroll programs with SMBs, funded via ACH, real-time payments, and mobile check deposits. The account is owned by the individual, not tied to a specific employer.

    Leading payments and expense management platformSigned a deal to flip an existing program for a platform serving film and television production companies.

    This customer will migrate their current volume to Marqeta for increased flexibility to run a tailored program and access innovative solutions.

    Risks & headwinds

    6
    Cash App new issuance diversificationH2 FY26

    Expected to result in little to no new issuance by year-end; ~2 point drag on Q3 gross profit growth.

    Mitigation: Relationship with Block remains strong, expanding with new programs and services; existing large Cash App user base on Marqeta's platform; pricing tiers protect against volume changes.

    BNPL customer load balancingH2 FY26

    Unexpected impact on single-use virtual card TPV; contributes to lower Q3 guidance.

    Mitigation: Marqeta retains the 'stickier, faster-growing part' of the business with flexible credentials; Lending (BNPL) TPV growth still expected to be over 30% in H2.

    On-demand delivery customer mix shiftH2 FY26

    Driving lower gross profit take rate within that use case.

    Mitigation: Customers continue to expand their business, but mix is shifting towards segments with less favorable economics.

    Tougher year-over-year comparisonsH2 FY26

    Leading to a substantial step down in top-line growth in H2.

    Mitigation: Operating leverage and efficient investments are expected to sustain profitable growth despite lower top-line growth.

    Renewal timing shiftQ3 FY26

    A large renewal expected to sign in Q3, causing a 2-3 point drag on Q3 gross profit growth.

    Mitigation: This is a timing issue, not a loss of business; the renewal is expected to be signed in Q3.

    TransactPay acquisition lappingQ3 FY26

    ~2-3 point drag on Q3 gross profit growth.

    Mitigation: This is a comparison effect from the acquisition closing in July 2025.

    What to watch in Q3 FY26

    5

    Cash App New Issuance Stabilization

    Q4 FY26
    CurrentDecline started mid-June, stepped up in July
    TargetLittle to no new issuance by year-end

    Why it matters

    This will confirm the full impact of Block's diversification strategy and its effect on Marqeta's volume.

    by the end of the year, us receiving sort of little to no new issuance at that point.

    Q&A highlights

    7

    Clarification on the mechanics of Cash App new issuance decline and an early estimate of its potential impact in 2027, similar to prior guidance.

    Management confirmed a decline in new issuance started mid-June (approx. 10%), stepping up in July, expecting little to no new issuance by year-end across both long-standing and flexible credential programs. For 2027, the true run-rate impact would be 'a little bit more' than the previously guided 2-point growth impact. The relationship with Block remains strong, with ongoing new programs, and diversification is a normal industry practice. Existing Cash App users on Marqeta's platform are extensive, and pricing tiers protect against volume changes.

    “on a true run rate basis, if we were to continue to not receive new issuance, it would be a little bit more. more than that in 2027.”

    asked by Timothy Chiodo · answered by Unknown Speaker

    2 min read5 chapters

    Detailed Narrative

    01

    Platform Differentiation and Expansion

    Marqeta emphasizes its unique platform breadth and configurability, spanning debit and credit, consumer and commercial, across over 40 countries. This differentiation is driving growth through multinational card issuing, broadening product suite (stablecoin-backed cards, non-card money movement, enhanced fraud), and expanding customer base to large enterprises. The company's partnership with Banking Circle expands its European offering into 30 additional countries, leveraging its TransactPay EMI license for integrated card issuing and multi-currency functionality.

    02

    Strategic Product Development

    The company is introducing stablecoin-backed card solutions through partnerships with ZeroHash and BVNK, aiming to make digital dollars spendable via existing card rails. Marqeta is also extending money movement options beyond cards to include ACH, real-time payments, and wires for B2B customers, providing a unified platform. Fraud detection is being enhanced with third-party data sources (Audion, Riskified, Signified) to reduce fraudulent transactions and increase authorization rates, which delivered over 80% gross profit growth in H1.

    03

    Customer Acquisition and Diversification

    Marqeta is seeing real momentum with large enterprises, with the average deal size signed in Q2 up over 90% year-over-year. This includes expanding existing relationships, such as a Fortune 500 customer adding a second program for payroll-linked debit cards, and winning new sophisticated customers like a film/TV expense management platform migrating to Marqeta for increased flexibility. The company acknowledges the expected diversification of Block's Cash App new issuance, noting it's a standard risk management practice, but emphasizes the continued strength and expansion of the overall Block relationship with new programs.

    04

    Operating Leverage and Profitability

    The company's increasing scale and disciplined execution are driving significant operating leverage. Adjusted operating expenses grew only 12% year-over-year in Q2, lower than expected, due to active renegotiation of third-party vendor contracts and continued cost discipline, including efficiency gains from AI. This led to adjusted EBITDA growth of 31% and a 21% margin, contributing to the second consecutive quarter of GAAP net income. Management expects flat-ish OpEx growth in H2, further supporting profitability.

    05

    Credit and European Growth Vectors

    Marqeta is making progress in its credit offering, with three new credit programs (consumer co-brand, consumer secured credit, commercial charge card) launching in the next couple of quarters. The company remains bullish on European expansion, particularly with the addition of program management capabilities, which are expected to improve take rates. Value-added services, currently 7% of gross profit, are also seen as a significant growth vector, especially for enterprise customers seeking holistic solutions.

    AI-generated summary of the company’s earnings call. Not investment advice.