Payment technology company Marqeta (NASDAQ: MQ) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 27.6% year on year to $163.3 million. On top of that, next quarter’s revenue guidance ($167 million at the midpoint) was surprisingly good and 5.6% above what analysts were expecting. Its GAAP loss of $0.01 per share was in line with analysts’ consensus estimates.

Is now the time to buy MQ? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Marqeta delivered a strong third quarter, with management attributing growth to accelerating payment volumes across a broad set of use cases, especially lending and Buy Now, Pay Later (BNPL) solutions. CEO and CFO Mike Milotich highlighted that total processing volume rose 33% year over year, fueled by both existing customers expanding into new geographies and the rapid adoption of flexible card credentials. The addition of new commercial programs and a significant acquisition in Europe further supported revenue and gross profit growth. Milotich noted, “This is our highest TPV growth rate since Q1 2024, despite the base we are growing over this quarter being almost 50% larger than the base we grew over in Q1 2024.”

Looking forward, management’s upgraded guidance is based on continued strength in the BNPL segment, geographic expansion, and the integration of recently acquired capabilities in Europe. Milotich emphasized that the company expects robust growth in revenue and gross profit, although he cautioned that some exceptional items in the third quarter are not expected to recur. He also pointed to the ramping of new programs and the launch of additional banking partnerships as key contributors to future performance, stating, “We now expect net revenue to grow between 22% and 24% in Q4 and approximately 22% for the full year 2025.”

Key Insights from Management’s Remarks

Management linked Marqeta’s third-quarter outperformance primarily to accelerated volume growth in BNPL and on-demand delivery, enhanced bank partnerships, and the TransactPay acquisition.

• BNPL and Lending Acceleration: Marqeta continued to see remarkable growth in its lending use cases, particularly Buy Now, Pay Later, with TPV in this segment growing roughly twice as fast as the company average. This was driven by the rollout of flexible card credentials and expansion into new markets, enabling customers like Klarna to launch in additional geographies.

• TransactPay Acquisition Impact: The acquisition of TransactPay provided Marqeta with an e-money institution (EMI) license in both the U.K. and EU, allowing it to offer comprehensive program management and processing solutions. This removed a significant barrier for North American customers entering Europe and opened access to larger enterprise clients seeking a single provider.

• Commercial and SMB Programs: Growth in commercial payment programs, especially for small and medium-sized businesses (SMBs), was highlighted as a key contributor. Marqeta signed a Fortune 500 client to support electronic supplier payments, demonstrating the platform’s appeal for business-to-business use cases.

• Platform Flexibility and Bank Partnerships: The company’s new business integration platform, designed to rapidly onboard bank partners globally, reduces integration times and operational complexity. New partnerships with banks like Cross River Bank in the U.S. and Griffin Bank in the U.K. are expected to accelerate program launches.

• Geographic Diversification: European operations remained a major growth engine, with TPV growth over 100% year over year. The expanded product offering and seamless cross-Atlantic capabilities positioned Marqeta to serve multinational clients more effectively, capturing a larger share of the global payments market.

Drivers of Future Performance

Marqeta’s outlook is anchored by ongoing momentum in BNPL, commercial programs, and the scaling of new European capabilities, balanced against expected headwinds from customer contract renewals and accounting changes.

• Sustained BNPL and Lending Growth: Management expects continued momentum in BNPL and lending, driven by geographic expansion and adoption of flexible payment credentials. However, they acknowledge that exceptional third-quarter items, such as one-time fee recoveries, will not repeat, potentially moderating future growth rates.

• Impact of Contract Renewals and Customer Diversification: Renewals with two large customers are expected to create temporary growth headwinds, with one renewal reducing gross profit growth by about two points in the fourth quarter. Additionally, the diversification of Cash App’s new card issuance is anticipated to lower growth in 2026, as some volume shifts to a new processor.

• Enhanced European Offering: The integration of TransactPay enables Marqeta to target larger European enterprise clients and provide end-to-end solutions, which management believes will drive above-average growth rates in Europe. Improvements in gross profit take rates are expected as value-added services and program management are rolled out across the region.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be closely monitoring (1) the continued ramp of BNPL and lending volumes, especially as new geographic markets and flexible credentials are adopted; (2) the integration and customer pipeline impact of the TransactPay acquisition in Europe; and (3) the effects of major customer contract renewals and Cash App’s processor diversification on future growth. Progress in rolling out value-added services and new banking partnerships will also be critical to watch.

Marqeta currently trades at $5.27, up from $4.49 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).

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