Marqeta’s fourth-quarter earnings call on Tuesday, Feb. 24, highlighted the company’s continued growth in card issuing and embedded finance, with total processing volume surpassing $100 billion in a single quarter for the first time. The modern card issuing platform reported net revenue of $171 million, reflecting a 27% year-over-year increase as the company expanded its presence across multiple issuing segments. Executives emphasized a strategic shift toward larger enterprise customers seeking integrated card issuing solutions rather than pursuing broad client acquisition.
According to the company’s earnings report, Marqeta delivered total processing volume of $109 billion during the quarter, marking a significant operational milestone. Growth accelerated sequentially, with expansion occurring across multiple issuing segments and existing customers driving the majority of new program launches.
Lending and BNPL Drive Card Issuing Growth
Lending, including buy now, pay later programs, remained the fastest-growing contributor to Marqeta’s business, with volumes rising just below 60% year over year. Executives attributed this performance to flexible credential adoption and customers extending lending programs into additional markets. The shift from virtual card credentials to consumer credentials within BNPL programs signals a structural change in card issuance economics, according to management.
Meanwhile, financial services, which represents Marqeta’s largest use case, returned to growth rates above 30%. On-demand delivery continued its gradual recovery into double-digit territory, demonstrating broad-based strength across the platform’s various verticals.
Enterprise Focus Reshapes Strategy
CEO Mike Milotich described a market shift producing fewer deals but materially larger programs, where clients arrive with established user bases and clearer economic models. This represents a departure from traditional platform expansion strategies that prioritize logo acquisition over deepening existing relationships.
Additionally, the company highlighted that 14 of its top 15 customers added at least one new program over the past two years. This statistic underscores a deliberate strategy focused on deeper integration within existing client relationships rather than broader market 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 during the call. He noted that these organizations typically seek to insert a card value proposition into an existing user base, a distinction that materially alters both implementation dynamics and revenue durability.
Embedded Finance Drives Platform Stickiness
Embedded finance remained central to management’s strategic positioning, with enterprise demand focusing on integrated, multinational solutions capable of supporting rapid scaling. Milotich emphasized that lending and BNPL continue to represent one of the most compelling and fastest-growing use cases within the embedded finance ecosystem.
However, the structural implications of consumer credentials extend beyond simple transaction volume. “When you shift from a virtual card credential to a consumer credential, that’s going to be a much more sticky relationship,” the CEO explained. This transition suggests longer customer lifecycles and more predictable revenue streams for card issuing platforms.
Financial Performance and Operational Efficiency
CFO Patti Kangwankij framed the quarterly 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 during the call.
In contrast to the strong fourth-quarter performance, forward guidance reflected a more 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, according to Kangwankij.
Marqeta shares declined approximately 3% in after-hours trading Tuesday following the earnings announcement. The market response suggests investors are weighing the company’s impressive volume milestones against anticipated pricing pressures and the timing of major client renewals in the coming year.
