Marqeta Q3 2026 Earnings: TPV Growth Outpaces Revenue

Marqeta (NASDAQ: MQ) reported Q3 2026 net revenue of $176.2 million, up 8% from $163.3 million, while diluted EPS rose to $1.09 from a loss of $0.03. Total Processing Volume grew much faster than revenue, and adjusted EBITDA margin reached 22%, while GAAP net income benefited from a $107 million non-cash tax item.

Core Financial Results

Transaction activity remained the main growth driver: TPV increased 29% to $126.5 billion. Net revenue rose only 8%, however, because programs where Marqeta provides processing with minimal or no program management grew faster than other programs, creating an unfavorable revenue mix.

Profitability improved at the operating level. Gross profit increased 7%, total operating expenses declined 7%, and operating income turned positive. Adjusted EBITDA grew 28% as higher gross profit was accompanied by a 1% reduction in adjusted operating expenses.

Historical per-share figures were retroactively adjusted for Marqeta’s one-for-four reverse stock split, which became effective on June 30, 2026.

Faster Processing-Only Growth Dilutes TPV Monetization

The quarter’s central operating issue was the widening gap between payment volume and revenue growth. Programs for which Marqeta mainly supplies processing generate less revenue per dollar of TPV than relationships that include broader program-management services. Faster growth in those processing-focused programs therefore allowed TPV to rise 29% while net revenue and gross profit increased by 8% and 7%, respectively.

Expense discipline provided an offset. Compensation and benefits expense declined 9% to $77.3 million, while other operating expenses fell 53% to $4.0 million. Technology expense increased 6% to $18.0 million, and depreciation and amortization rose 46% to $10.2 million. The net result was positive GAAP operating income and a three-point expansion in adjusted EBITDA margin despite the less favorable revenue mix.

Business and Platform Developments

Marqeta highlighted several recent program launches and partnerships, although it did not quantify their revenue contributions:

• Marqeta began supporting the Square Credit Card on the American Express Network, its first program on that network. Square migrated existing accounts and card credentials to Marqeta’s platform.
• The company expanded its Google relationship to support Google Wallet for kids, using tokenization and spending controls that allow parents to set limits and monitor activity.
• Italy-based Satispay launched a consumer debit card program through Marqeta. Satispay has more than 6.5 million users and 450,000 merchants.
• Marqeta expanded its Coinbase relationship to help enterprise customers develop payment products spanning fiat and digital assets, including multinational stablecoin-backed cards.

These programs broaden Marqeta’s use cases and network relationships, but the financial effect will depend on transaction growth and the service mix attached to each program.

Profitability, Cash Flow, and Balance Sheet

The $115.4 million of GAAP net income should not be viewed as entirely recurring operating profit. It included a $107 million discrete, non-cash income tax benefit from releasing valuation allowances on certain deferred tax assets. Income before taxes was $11.0 million, providing a clearer view of profitability before the tax benefit.

For the first nine months of 2026, operating cash flow was $86.2 million, down about 21% from $109.3 million a year earlier. The cash-flow reconciliation shows that the $104.3 million deferred-tax benefit was non-cash, while changes in accrued expenses and other liabilities used $37.3 million of cash.

Marqeta ended September with $697.5 million in cash and cash equivalents, $265.4 million in restricted cash, and $0.7 million in short-term investments. During the first nine months, the company spent $105.1 million repurchasing common stock and $26.4 million on internal-use software and property and equipment.

Guidance

Marqeta expects Q4 net revenue growth to moderate from the third quarter’s 8% rate. Gross profit is projected to grow faster than net revenue in Q4, while adjusted EBITDA is expected to maintain a considerably higher growth rate.

Adjusted EBITDA guidance refers to year-over-year growth, not margin.

Management Perspective

CEO Mike Milotich emphasized that TPV exceeded a $500 billion annualized run rate for the first time and that adjusted EBITDA margin reached a company high. Management also pointed to the third consecutive quarter of GAAP profitability and presented the Square, Google, Satispay, and Coinbase programs as evidence of the platform’s range across credit, debit, digital wallets, and stablecoin-related payments.

Recent Insider Transactions

Among the latest ten supplied insider records, five contained a clear sale action, price, and reported value. The remaining records did not specify a transaction action or value and are omitted; the disclosed sales alone do not establish insiders’ views about Marqeta’s outlook.

Risks Investors Should Watch

• Revenue mix: Continued faster growth in processing programs with minimal or no program management could keep revenue and gross-profit growth well below TPV growth.
• Slower Q4 top-line growth: Guidance for 3%-5% net revenue growth points to further moderation from Q3’s 8% increase.
• Tax-driven GAAP earnings: The non-cash tax benefit accounted for most of quarterly net income, making the headline profit and EPS less representative of underlying operating performance.
• Cash conversion: Nine-month operating cash flow declined even as the company became profitable, reflecting the non-cash tax benefit and working-capital movements.

Conclusion

Marqeta’s third quarter combined rapid payment-volume growth with better expense control and record adjusted EBITDA margin. The main constraint was mix: faster growth in processing-focused programs limited the conversion of TPV into revenue and gross profit. Investors’ next focus will be whether Marqeta can maintain margin progress as Q4 revenue growth moderates and whether newer programs develop into broader, higher-monetization customer relationships.