Marqeta surges on earnings beat as profitability accelerates
Payments platform posts 36% jump in processing volume and reaffirms double-digit growth guidance
Marqeta shares climbed on Tuesday after the financial technology company reported quarterly revenue that topped analyst expectations by 16%, signaling accelerating profitability in its payments processing platform.
The Oakland, California-based company posted fourth-quarter net revenue of $172 million, compared with the $148.4 million average estimate from analysts, according to data provided in the company's earnings announcement. The results represent a 27% increase from the same period last year.
Total Processing Volume reached $109 billion, jumping 36% year-over-year, as the company's card-issuing and transaction processing services gained traction with customers ranging from fintech startups to established financial institutions. Gross profit increased 22% to $120 million.
Perhaps most notably for investors who have watched the company navigate a path to profitability, Marqeta reported adjusted EBITDA of $31 million, surging 142% from the prior year. The company's net loss narrowed dramatically to $1 million from $27 million a year earlier, marking the smallest quarterly loss in its recent history.
The performance comes as Marqeta works to diversify beyond its reliance on early fintech clients and expand relationships with larger, more established customers. The company's cloud-based platform provides the infrastructure that enables businesses to issue payment cards and process transactions programmatically.
For the first quarter of fiscal 2026, Marqeta reaffirmed guidance calling for revenue growth of 17 to 19%. Full-year revenue growth is expected to range between 12 and 14%, suggesting continued expansion even as the company laps stronger growth periods from earlier in its public markets debut.
Marqeta's stock, which went public in 2021 amid heightened investor enthusiasm for fintech, has struggled to regain its initial valuation amid broader sector volatility. The shares are currently trading at $4.16, well below their 52-week high of $7.04 but above the yearly low of $3.48. The company's market capitalization stands at approximately $1.9 billion.
Analysts have maintained a cautious but optimistic stance on the stock, with an average target price of $5.55 according to market data. Of the 14 analysts covering the company, two rate it a strong buy and one recommends buying, while 10 advise holding shares.
The earnings beat underscores a broader trend in the fintech sector, where companies that once prioritized rapid growth at any cost are increasingly demonstrating sustainable profitability while maintaining expansion. Marqeta's ability to grow revenue while narrowing losses has been a key point of focus for institutional investors, who hold approximately 81% of outstanding shares.
The company's processing volume growth of 36% outpaced its revenue increase of 27%, reflecting the economics of Marqeta's business model, which earns fees based on transaction volume while facing pressure on pricing from competitive markets. The improving EBITDA margins suggest the company is achieving operating leverage as it scales its platform.