Marqeta Earnings Point to BNPL Growth and Embedded Finance Demand

Card issuing and embedded finance framed Marqeta’s fourth-quarter earnings call on Tuesday (Feb. 24).

Operationally, Marqeta delivered another quarter defined by scale milestones. Total processing volume reached $109 billion, marking the first time the company crossed the $100 billion threshold within a single quarter. Growth accelerated sequentially, supported by expansion across multiple issuing segments.

Lending, including buy now, pay later, remained the fastest-growing contributor, with volumes rising just shy of 60% year over year. Executives attributed that performance to flexible credential adoption and customers extending lending programs into additional markets.

Financial services, Marqeta’s largest use case, returned to growth rates above 30%, while on-demand delivery continued its gradual recovery into double-digit territory. Management emphasized that this expansion stemmed primarily from existing customers launching new programs rather than a surge of new client additions.

Enterprise Programs

Executives repeatedly underscored a shift toward enterprise customers seeking integrated issuing solutions. CEO Mike Milotich described a market producing fewer deals but materially larger programs, where clients arrive with established user bases and clearer economic models.

The company also highlighted that 14 of its top 15 customers added at least one new program over the past two years. That statistic signals a deliberate strategy focused on deeper integration rather than broader logo expansion.

“There are fewer deals, but they’re much more substantial in size. And they’re customers who already have a user base and a brand,” Milotich said.

He noted that these organizations are typically “looking to insert a card value proposition into an existing user base,” a distinction that materially alters both implementation dynamics and revenue durability.

Platform Stickiness

Embedded finance remained central to management’s strategic framing. Milotich described enterprise demand as focusing on integrated, multinational solutions capable of supporting rapid scaling.

Lending and BNPL continue to play an outsized role within that environment.

“Lending, including buy now, pay later, continues to be one of the most compelling and fastest growing use cases,” he told analysts.

Executives also highlighted the growing significance of consumer credentials within BNPL programs. Milotich pointed to the structural implications for card issuance economics.

“When you shift from a virtual card credential to a consumer credential, that’s going to be a much more sticky relationship,” the CEO said.

Operating Leverage

Topline performance reflected the company’s scaling trajectory. Net revenue grew 27% year over year to $171 million.

CFO Patti Kangwankij framed the results within the context of operational efficiency and platform economics.

“Both net revenue and gross profit growth were approximately four percentage points higher than expected due to the business momentum reflected in our TPV growth,” she told analysts.

Pricing Resets and Renewals

Forward guidance reflected a measured tone. Management projected moderation in gross profit growth for 2026, driven primarily by two large renewals and Block’s movement into a new pricing tier. Kangwankij characterized these pressures as timing-specific.

Shares were down about 3% in after-hours trading Tuesday.