Marqeta, Inc. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the three-month period ended March 31, 2026. Marqeta, Inc. operates a modern card issuing platform providing issuer processor services, bank and network management, and program management to innovation leaders. The company operates as a single reporting segment.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Revenue | $165.8 million | $139.1 million |
| Gross Profit | $117.6 million | $98.7 million |
| Gross Margin | 71% | 71% |
| Operating Income | $2.1 million | ($18.5 million) loss |
| Net Income | $7.8 million | ($8.3 million) loss |
| Adjusted EBITDA | $33.3 million | $20.1 million |
| Total Processing Volume (TPV) | $112.4 billion | $84.5 billion |
| Cash & Equivalents | $674.8 million | $830.9 million |
| Short-term Investments | $37.3 million | $62.5 million |
| Restricted Cash | $280.4 million | $8.5 million |
Note: The significant increase in restricted cash is primarily due to customer funds held for TransactPay card and e-money wallet programs.
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 19% year-over-year, driven by an 18% increase in platform services revenue and a 33% increase in other services revenue.
- Volume Expansion: Total Processing Volume (TPV) grew 33% to $112.4 billion, fueled by strong performance in financial services, lending (including buy-now-pay-later), and expense management.
- Profitability: The company returned to profitability with $7.8 million in net income, compared to a net loss of $8.3 million in Q1 2025. Operating income improved from a loss of $18.5 million to a profit of $2.1 million.
- Expense Management: Total operating expenses decreased slightly by 1% to $115.5 million. Compensation and benefits expenses dropped 9% due to lower post-combination compensation costs and reduced share-based compensation ($20.0 million vs. $25.9 million).
- Share Repurchases: The company repurchased approximately 9.4 million shares for $39.1 million under the December 2025 Share Repurchase Program.
Guidance, Outlook, and Risks
- Outlook: Management believes current cash, cash equivalents, and short-term investments ($712.1 million total) are sufficient to fund operations for at least the next 12 months.
- Reverse Stock Split: The company filed a proxy statement for a proposed 1-for-4 reverse stock split to be voted on at the June 10, 2026 annual meeting. Management notes this may not achieve anticipated benefits and could negatively impact liquidity or market price.
- Legal Contingencies: A securities class action lawsuit was settled in principle for $13.0 million. The company has accrued this liability, with $9.4 million expected to be recovered via D&O insurance (subject to a $5.0 million self-insured retention).
- Customer Concentration: One customer (Block) accounted for 42% of net revenue in Q1 2026. Additionally, 61% of TPV was settled through a single issuing bank (Sutton Bank).
- Acquisition Integration: The company continues to integrate TransactPay (acquired July 2025). A $0.9 million gain was recognized in Q1 2026 from the remeasurement of the Digital Products Earn-out liability.
Investor Verification Checklist
- Verify the sustainability of the 33% TPV growth rate and the mix shift toward lower-margin processing-only programs.
- Confirm the final approval and implementation timeline of the proposed 1-for-4 reverse stock split.
- Monitor the status of the $13.0 million securities litigation settlement and the final insurance recovery amount.
- Assess the impact of the 42% revenue concentration from a single customer (Block) on future revenue stability.
- Review the utilization of the remaining $52.4 million in the December 2025 share repurchase program.