Marqeta (MQ) Q2 2025: Non-Block TPV Growth Triples Block, BNPL and Europe Drive 29% Surge
Marqeta’s Q2 2025 marked a decisive inflection in both growth and profitability, as non-block processing volume grew nearly three times faster than block, led by buy now pay later (BNPL) and European expansion. Operating discipline, new value-added services, and the Transact Pay acquisition are deepening the platform’s reach and setting up a structurally more profitable model heading into 2026. Investors should watch for the ramp of embedded BNPL, further European leverage, and sustained margin gains as the company pivots from scale to platform monetization.
Summary
- BNPL and European Expansion Outpace Core: Lending and international use cases are now the main drivers of volume and growth.
- Value-Added Services Accelerate: New risk and fraud tools are doubling gross profit in this segment, pointing to durable margin upside.
- Profitability Trajectory Improves: Margin discipline and delayed investments move GAAP break-even forward to full-year 2026.
Performance Analysis
Q2 2025 delivered a step-change in both growth and profitability for Marqeta, with total processing volume (TPV) reaching $91 billion, up 29% year over year. This acceleration was driven by non-block TPV growing nearly three times faster than block, highlighting the platform’s broadening customer base beyond its largest client. Net revenue increased 20% year over year, gross profit climbed 31%, and gross margin rose to 69%, with adjusted EBITDA hitting an all-time high and approaching GAAP net income break-even.
Lending and BNPL use cases saw the most pronounced acceleration, with each of Marqeta’s top 10 customers in this segment posting faster growth than last quarter. European TPV continued to more than double, outpacing North America and led by neobanking, expense management, and BNPL. Value-added services, though still a small base, saw gross profit more than double, powered by adoption of real-time decisioning and risk tools. Operating expenses shrank 7% year over year, reflecting both timing delays in hiring and marketing and structural cost optimization, particularly in technology and organizational design.
- Non-Block Outperformance: Non-block TPV and revenue growth outpaced block by nearly 3x and 10 points respectively, signaling platform diversification.
- Value-Added Services Inflection: Gross profit from value-added services more than doubled, with 40+ customers now using real-time decisioning.
- Expense Discipline Drives Margin: Ongoing efficiency and investment delays combined to deliver a 19% adjusted EBITDA margin, a new high.
Underlying business growth was six points higher than forecast, with favorable business mix and a network rebate true-up boosting results. Marqeta’s ability to drive both scale and margin expansion sets up a structurally stronger model for the second half and into 2026.
Executive Commentary
"Our second quarter results demonstrate our ability to deliver strong growth while simultaneously increasing our EBITDA through efficiency and scale... Our focus this year has been on expanding and deepening our customer relationships while enabling their continued growth through innovative programs, value-added services, and seamless geographic expansions with consistent and effective execution."
Mike Miletic, Interim CEO & CFO
"Q2 was a very strong quarter, significantly outperforming our expectations... Q2 TPV growth accelerated by almost three points from Q1 to over 29%. Net revenue and gross profit growth outperformed our expectations by approximately seven points, driven by much higher volume and a more favorable business mix than we anticipated."
Mike Miletic, Interim CEO & CFO
Strategic Positioning
1. Platform Diversification Beyond Block
Non-block TPV and revenue growth now meaningfully outpace block, with non-block customers ramping nearly five times faster in neobanking and 10 points higher in revenue growth. This diversification reduces concentration risk and positions Marqeta to capture a broader array of use cases as fintech matures.
2. BNPL and Lending Innovation
BNPL volume and innovation are now at the core of Marqeta’s growth flywheel. The company’s early leadership in instant issuance and pay-anywhere cards has expanded to pioneering Visa flexible credentials and in-app BNPL choice, with launches for Klarna and others. The upcoming embedded BNPL solution, enabling users to access multiple offers at checkout via their debit card, is poised for a limited holiday release and broader 2026 rollout.
3. European Expansion and Transact Pay Acquisition
Europe is contributing outsized growth, with TPV more than doubling and broad-based adoption across neobanking, lending, and expense management. The completed Transact Pay acquisition adds program management and EMI license capabilities, unlocking access to larger customers and enabling a harmonized North America-Europe offering. This positions Marqeta to win multi-region deals and deepen wallet share.
4. Value-Added Services and Embedded Finance
Value-added services are emerging as a key margin lever, with real-time decisioning, risk, and tokenization tools seeing rapid adoption. These services create stickier, higher-margin relationships, especially as embedded finance clients increasingly demand holistic, full-stack solutions. Marqeta is investing in white-label apps, rewards, and risk capabilities to address this shift.
5. Operational Leverage and Cost Structure
Disciplined investment and process optimization are structurally lowering costs, with headcount, tech spend, and org design all contributing to margin gains. AI-driven efficiency and internal software capitalization are shifting more resources to new capability development, supporting both growth and profitability. The company expects these efficiencies to persist, supporting an improved GAAP profitability timeline.
Key Considerations
Q2’s results reflect a company in transition from scale to monetization, with strong signals that Marqeta’s platform is becoming more diversified, sticky, and profitable. The interplay between BNPL innovation, European leverage, and value-added services is reshaping the growth and margin profile.
Key Considerations:
- BNPL and Lending Growth Outpaces Core: Each of the top 10 BNPL customers accelerated TPV growth, signaling durable demand and product fit.
- European Market Now a Growth Engine: More than 100% TPV growth in Europe, with local and multi-regional clients expanding programs and geographies.
- Value-Added Services Gaining Traction: Real-time decisioning and risk tools now used by 40+ clients, contributing nearly 20% of non-block TPV and doubling gross profit in this segment.
- Transact Pay Acquisition Unlocks Larger Deals: Enables full program management and licensing in Europe, making Marqeta a one-stop solution for large customers.
- Margin Expansion from Operational Rigor: Ongoing cost discipline, tech optimization, and delayed investments are driving sustained EBITDA margin gains and faster time to GAAP break-even.
Risks
Macro uncertainty, particularly around employment and discretionary spend, remains a potential headwind, though Q2 saw no noticeable volume shifts. Regulatory changes, especially in Europe and with open banking, could alter cost structures or slow customer adoption. Customer concentration risk persists, though declining, and the pace of adoption for value-added services and embedded finance remains a watchpoint. Execution on Transact Pay integration and renewal timing also introduces forecasting complexity for the back half of 2025.
Forward Outlook
For Q3 and Q4 2025, Marqeta guided to:
- Net revenue growth of 15 to 17% per quarter
- Gross profit growth of 15 to 17% in Q3, with a three-point deceleration in Q4 due to accounting headwinds
- Adjusted EBITDA margin of 12 to 13% in Q3, rising one point in Q4
For full-year 2025, management raised guidance:
- Revenue growth of 17 to 18%
- Gross profit growth of 18 to 19%
- Adjusted EBITDA margin of 14 to 15% (over $85 million in EBITDA)
Management flagged:
- Transact Pay will lift revenue and gross profit growth by 1.5 to 2 points in H2
- Renewal timing and accounting policy shifts will create headwinds in Q4, but underlying volume and mix remain strong
Takeaways
Marqeta’s Q2 2025 results provide clear evidence of a business scaling beyond its legacy anchor, with BNPL, Europe, and value-added services propelling both growth and profitability. The platform’s diversification, operational leverage, and product innovation are converging to support a structurally more profitable model.
- Platform Diversification Reduces Concentration Risk: Non-block growth, European expansion, and new use cases are driving more balanced, sustainable growth.
- Margin Expansion Is Structural, Not Just Cyclical: Cost discipline and value-added services are resetting the profitability baseline, with GAAP break-even now expected for full-year 2026.
- Watch for Embedded BNPL and European Synergies: New product launches and Transact Pay integration will be key catalysts for further expansion and monetization.
Conclusion
Q2 2025 marks a turning point for Marqeta, as the company leverages BNPL innovation, European scale, and value-added services to drive both growth and margin expansion. The business is now positioned as a diversified, multi-vertical platform with a credible path to sustained profitability and deeper customer entrenchment.
Industry Read-Through
Marqeta’s results signal that the next phase of fintech infrastructure growth will be defined by platform breadth, product innovation, and regional expansion. BNPL’s migration from standalone apps to embedded card features is likely to accelerate, with flexible credentials and in-app choice setting a new standard for issuer processors. The rapid adoption of value-added services such as real-time risk and tokenization points to a future where margin is driven as much by software and data as by transaction volume. For peers, the ability to harmonize offerings across North America and Europe, and to serve both fintechs and embedded finance clients, will increasingly separate leaders from laggards as the sector matures.