Marqeta, Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. Marqeta, Inc. operates a modern card issuing platform providing issuer processor services and card program management. The financial statements reflect a one-for-four reverse stock split effective June 30, 2026, applied retrospectively to all periods presented. The company operates as a single reporting segment.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Net Revenue | $176.0M | $150.4M | $341.8M | $289.5M |
| Total Processing Volume (TPV) | $120.4B | $91.4B | $232.8B | $175.9B |
| Gross Profit | $121.9M | $104.1M | $239.5M | $202.7M |
| Gross Margin | 69% | 69% | 70% | 70% |
| Net Income (Loss) | $7.6M | ($0.6M) | $15.4M | ($8.9M) |
| Adjusted EBITDA | $37.4M | $28.5M | $70.8M | $48.6M |
| Cash & Equivalents | $691.4M | Restricted Cash: $260.6M (Total Liquidity: $954.1M) | ||
| Short-term Investments | $9.5M |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 17% year-over-year (YoY) in Q2, driven by a 32% increase in TPV. Platform services revenue grew 14%, while other services revenue surged 70% due to higher card fulfillment volumes.
- Profitability: The company returned to profitability, reporting net income of $7.6M in Q2 2026 compared to a net loss of $0.6M in Q2 2025. Operating income improved from a loss of $9.2M to a profit of $3.6M.
- Expense Management: Total operating expenses increased slightly by 4% YoY. Notably, share-based compensation decreased 17% to $22.4M, while depreciation and amortization rose 46% due to capitalized software and intangible assets from the TransactPay acquisition.
- Customer Concentration: Revenue concentration remains high, with the largest customer (Block) accounting for 41% of Q2 2026 revenue (down from 46% in Q2 2025).
Outlook, Risks, and Unusual Items
- Share Repurchases: The company completed its $100M December 2025 repurchase program. On August 3, 2026, the Board authorized a new $150M share repurchase program.
- Legal Contingencies: A securities class action lawsuit was settled in principle for $13.0M. The company has accrued this liability, with an expected insurance recovery of $9.5M (subject to a $5.0M self-insured retention).
- Acquisition Integration: The TransactPay acquisition (closed July 2025) continues to impact amortization expenses. Contingent consideration earn-outs totaling $2.7M were settled in April 2026.
- Risks: Management cites macroeconomic uncertainty, geopolitical conflicts, and reliance on a single Issuing Bank (Sutton Bank, processing 58% of Q2 volume) as key risks. The company maintains a full valuation allowance against U.S. deferred tax assets.
Investor Verification Checklist
- Customer Concentration: Verify the stability of the relationship with Block, which generated 41% of Q2 revenue.
- Legal Settlement Finalization: Confirm the judicial approval of the $13.0M securities litigation settlement and the final insurance recovery amount.
- Share Repurchase Execution: Monitor the pace of the new $150M repurchase program authorized in August 2026.
- TPV Mix Shifts: Assess the impact of the shift toward processing-only programs (lower margin) on future gross margins.
- Restricted Cash: Note that $260.6M of cash is restricted for customer fund safeguarding and not available for general operations.