Marqeta, Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
MQ$18.59+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001522540-26-000063
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001522540-26-000077
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 118 current paragraphs.
65 unchanged; 35 reworded; 18 added; 7 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
We expect cash taxes to remain below book income tax expense as we utilize net operating loss and tax credit carryforwards, subject to applicable limitations. We will continue to assess all available evidence each reporting period. Our judgment regarding the need for a valuation allowance may change due to the level of tax profitability we achieve, changes in enacted tax law, or other factors.
Current report
Other services revenue increased by $2.9 million, or 39%, for the three months ended September 30, 2026, compared to the same period in 2025, primarily driven by higher card-related fulfillment, including card replacements and increased customer card shipments.
Current report
Marketing and advertising expenses remained relatively flat for the three months ended September 30, 2026, compared to the same period in 2025.
Current report
Other operating expenses decreased by $4.6 million, or 53%, for the three months ended September 30, 2026 compared to the same period in 2025. This decrease was primarily due to $4.3 million of legal contingency expense recognized in the three months ended September 30, 2025 associated with the securities class action lawsuit.
Current report
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Current report
Income tax benefit was $104.4 million for the three months ended September 30, 2026, compared to an income tax expense of $0.5 million for the three months ended September 30, 2025. The year-over-year change was mainly attributable to a $106.6 million benefit from the release of a significant portion of the valuation allowance on our U.S. federal and certain states’ deferred tax assets during the three months ended September 30, 2026, partially offset by income tax expense from current period activity. The release of the valuation allowance was recorded as a discrete tax benefit and resulted in the recognition of certain deferred tax assets and a corresponding increase to net income for the three months ended September 30, 2026.
Current report
Comparison of the Nine Months Ended September 30, 2026 and 2025
Current report
Professional services expenses decreased by $1.1 million, or 7%, for the nine months ended September 30, 2026, compared to the same period in 2025 primarily driven by lower legal and professional fees.
Current report
Other operating expenses decreased by $3.8 million, or 24%, for the nine months ended September 30, 2026, compared to the same period in 2025 primarily due to $4.3 million of legal contingency expense recognized in the nine months ended September 30, 2025 associated with the securities class action lawsuit, partially offset by $0.9 million non-cash impairment charges related to certain internally developed software recorded during the nine months ended September 30, 2026.
Current report
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Current report
Income tax benefit was $103.7 million for the nine months ended September 30, 2026, compared to an income tax expense of $0.9 million for the nine months ended September 30, 2025. The year-over-year change was mainly attributable to a $106.6 million benefit from the release of a significant portion of the valuation allowance on our U.S. federal and certain states’ deferred tax assets during the nine months ended September 30, 2026, partially offset by income tax expense from current period activity. The release of the valuation allowance was recorded as a discrete tax benefit and resulted in the recognition of certain deferred tax assets and a corresponding increase to net income for the nine months ended September 30, 2026.
Current report
(3) Non-recurring litigation expense includes a legal contingency expense related to the Securities Actions recorded during the three and nine months ended September 30, 2025.
Current report
(4) The income tax benefit recorded during the three and nine months ended September 30, 2026 was primarily due to the release of valuation allowances related to U.S. federal and certain states’ deferred tax assets, partially offset by the income tax expense from current period activity.
Current report
The release of the valuation allowance against our U.S. federal and certain states’ deferred tax assets during the three and nine months ended September 30, 2026 was a non-cash item and did not affect our cash, cash equivalents, or short-term investments. Cash taxes paid may increase over time as net operating loss and tax credit carryforwards are utilized or become limited.
Current report
Income Taxes
Current report
We evaluate the realizability of our deferred tax assets based on positive and negative evidence, including historical results, projections of future taxable income, and other factors. This assessment requires significant management judgment and can change as new information becomes available or actual results differ from projections. Adjustments to the valuation allowance are recorded through the income tax provision and can materially affect our results of operations.
Current report
We had cumulative U.S. pre-tax book income, adjusted for permanent book-tax differences, over the twelve-quarter period ended September 30, 2026, and expect to continue to sustain this profitability for the foreseeable future. This cumulative profitability represents objective and verifiable positive evidence that carries significant weight. After evaluating all available positive and negative evidence, including anticipated future earnings, we concluded that it is more-likely-than-not that the U.S. federal and certain states’ deferred tax assets are realizable. Accordingly, we released $106.6 million of valuation allowance during the three and nine-months ended September 30, 2026, primarily related to U.S. federal and state operating losses, federal tax credit carryforwards, and capitalized R&D expenditures. We continue to maintain a valuation allowance of $11.0 million against our California R&D credits, as we believe it is more-likely-than-not that these deferred tax assets will not be realizable. For additional information, see Note 13 to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report.
Current report
Our assessment of the realizability of deferred tax assets is sensitive to changes in projected taxable income. A sustained decline in profitability or a significant reduction in projected future taxable income could result in the need to re-establish a valuation allowance against some or all of the deferred tax assets for which the allowance was released. We will continue to evaluate the realizability of our deferred tax assets based on all available evidence each reporting period.
Removed paragraphs (7)
Previous report
Other services revenue increased by $5.1 million, or 70%, for the three months ended June 30, 2026, compared to the same period in 2025, primarily driven by higher card-related fulfillment, including card replacements and increased customer card shipments.
Previous report
Other operating expenses increased by $1.1 million, or 34%, for the three months ended June 30, 2026 compared to the same period in 2025. This increase was primarily due to a $0.7 million non-cash impairment charge related to certain internally developed software.
Previous report
Income tax expense increased by $0.3 million, or 145%, for the three months ended June 30, 2026 compared to the same period in 2025 due to an increase in state income tax expense.
Previous report
Comparison of the Six Months Ended June 30, 2026 and 2025
Previous report
Professional services expenses remained relatively flat for the six months ended June 30, 2026, compared to the same period in 2025.
Previous report
Other operating expenses increased by $0.8 million, or 10%, for the six months ended June 30, 2026, compared to the same period in 2025 primarily due to a $0.7 million non-cash impairment charge related to certain internally developed software.
Previous report
Income tax expense increased by $0.3 million, or 58%, for the six months ended June 30, 2026 compared to the same period in 2025 due to an increase in state income tax expense.
Reworded paragraphs (35)
Previous wording
Adjusted EBITDA -Adjusted EBITDA is a non-GAAP financial measure that is calculated as Net income (loss) adjusted, as applicable, to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; restructuring and other one-time costs; acquisition related expenses which consist of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions and cash and non-cash postcombination compensation expenses; non-recurring litigation expense; income tax expense; and other income, net, which consists primarily of interest income from our short-term investments and cash deposits, impairment of financial instruments and realized foreign currency gains and losses. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our Board of Directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of our annual employee bonus plans and performance-based restricted stock units. See the section below titled “Use of Non-GAAP Financial Measures” for a discussion of the use of non-GAAP measures, a change in presentation, and a reconciliation of Net income (loss) to Adjusted EBITDA.
Current wording
Adjusted EBITDA -Adjusted EBITDA is a non-GAAP financial measure that is calculated as Net income (loss) adjusted, as applicable, to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; restructuring and other one-time costs; acquisition related expenses which consist of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions and cash and non-cash postcombination compensation expenses; non-recurring litigation expense; income tax (benefit) expense; and other income, net, which consists primarily of interest income from our short-term investments and cash deposits, impairment of financial instruments and realized foreign currency gains and losses. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our Board of Directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of our annual employee bonus plans and performance-based restricted stock units. See the section below titled “Use of Non-GAAP Financial Measures” for a discussion of the use of non-GAAP measures, and a reconciliation of Net income (loss) to Adjusted EBITDA.
Previous wording
Adjusted Operating Expenses -Adjusted operating expenses is a non-GAAP financial measure that is calculated as Total operating expenses adjusted, as applicable, to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; restructuring and other one-time costs; non-recurring litigation expense; and acquisition-related expenses which consists of due diligence costs, transaction cost and integration costs related to potential or successful acquisitions, and cash and non-cash postcombination compensation expenses. We believe that adjusted operating expenses is an important measure of operating performance because it allows management and our Board of Directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. See the section below titled “Use of Non-GAAP Financial Measures” for a discussion of the use of non-GAAP measures, a change in presentation, and a reconciliation of total operating expenses to adjusted operating expenses.
Current wording
Adjusted Operating Expenses -Adjusted operating expenses is a non-GAAP financial measure that is calculated as Total operating expenses adjusted, as applicable, to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; restructuring and other one-time costs; non-recurring litigation expense; and acquisition-related expenses which consists of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and cash and non-cash postcombination compensation expenses. We believe that adjusted operating expenses is an important measure of operating performance because it allows management and our Board of Directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. See the section below titled “Use of Non-GAAP Financial Measures” for a discussion of the use of non-GAAP measures, a change in presentation, and a reconciliation of total operating expenses to adjusted operating expenses.
Previous wording
Income tax expense consists of U.S. federal and state income taxes, and income taxes related to certain foreign jurisdictions. We maintain a full valuation allowance against our U.S. federal and state net deferred tax assets as we have concluded that it is not more likely than not that we will realize our net deferred tax assets.
Current wording
Income tax expense generally consists of U.S. federal and state income taxes, and income taxes related to certain foreign jurisdictions. We regularly assess the need for a valuation allowance on our deferred tax assets. We had cumulative U.S. pre-tax book income, adjusted for permanent book-tax differences, over the twelve-quarter period ended September 30, 2026, and expect to continue to sustain this profitability position for the foreseeable future. This cumulative profitability represents objective and verifiable positive evidence that carries significant weight that supported the realization of the U.S. federal and certain states’ deferred tax assets as of September 30, 2026. After evaluating all available positive and negative evidence, including this cumulative profitability and anticipated future earnings, we concluded that it is more-likely-than-not that the U.S. federal and certain states’ deferred tax assets are realizable as of September 30, 2026. As a result, we released a significant portion of our valuation allowance on the deferred tax assets in the U.S., resulting in the recognition of deferred tax assets and income tax benefit of $106.6 million during the three and nine months ended September 30, 2026, which was partially offset by income tax expense from current period activity. The release resulted in a discrete, non-cash increase in GAAP income tax benefit, and a corresponding increase in GAAP net income and GAAP earnings per share for the three and nine months ended September 30, 2026.
Previous wording
Total platform services, net revenue increased by $20.5 million, or 14%, for the three months ended June 30, 2026, compared to the same period in 2025. The overall increase in platform services revenue was primarily driven by a 32% increase in TPV, partially offset by unfavorable shifts in our card program mix, particularly the expansion of programs where we provide processing services with minimal or no program management.
Current wording
Total platform services, net revenue increased by $10.0 million, or 6%, for the three months ended September 30, 2026, compared to the same period in 2025. The overall increase in platform services revenue was primarily driven by a 29% increase in TPV, partially offset by unfavorable shifts in our card program mix, particularly the expansion of programs where we provide processing services with minimal or no program management.
Previous wording
The increase in TPV was driven by strong performance across all our major use cases, particularly financial services, lending including buy-now-pay later, and expense management. TPV for our top five customers, based on their individual processing volumes in each respective period, increased 26%, in the three months ended June 30, 2026, compared to the same period in 2025 while TPV from all other customers, as a group, grew 49%, over the same period. Note that the composition of the top five customers may differ between the two periods.
Current wording
The increase in TPV was driven by strong performance across all our major use cases, particularly financial services, lending including buy-now-pay later, and expense management. TPV for our top five customers, based on their individual processing volumes in each respective period, increased 24%, in the three months ended September 30, 2026, compared to the same period in 2025 while TPV from all other customers, as a group, grew 43%, over the same period. Note that the composition of the top five customers may differ between the two periods.
Previous wording
Costs of revenue increased by $7.8 million, or 17%, for the three months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher Card Network and Issuing Bank fees associated with the increase in TPV. In addition, we recognized higher costs related to card-related fulfillment, including card replacements and increased customer card shipments.
Current wording
Costs of revenue increased by $5.3 million, or 11%, for the three months ended September 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher Card Network and Issuing Bank fees associated with the increase in TPV. In addition, we recognized higher costs related to card-related fulfillment, including card replacements and increased customer card shipments.
Previous wording
As the increase in cost of revenue was outpaced by the net revenue growth discussed above, gross profit increased by $36.7 million, or 18%, while gross margin remained flat for the six months ended June 30, 2026, compared to the same period in 2025.
Current wording
As the increase in costs of revenue was outpaced by the net revenue growth discussed above, gross profit increased by $7.5 million, or 7%, while gross margin remained relatively stable, declining by only 1 percentage point year over year.
Previous wording
Salaries, bonus, benefits, and payroll taxes increased by $1.6 million, or 3%, for the three months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by a year-over-year increase in salaries, bonus, and contractor expenses as a result of an increase in headcount during the three months ended June 30, 2026, compared to the same period in 2025. The increase was partially offset by lower post-combination compensation expenses for former Power Finance employees, higher capitalized salaries, bonus, and benefits costs related to internal-use software development, and lower year-over-year severance and one-time retention bonuses awarded to certain key employees in the prior year.
Current wording
Salaries, bonus, benefits, and payroll taxes decreased by $3.3 million, or 6%, for the three months ended September 30, 2026, compared to the same period in 2025. This decrease was primarily driven by lower postcombination compensation expenses for former Power Finance employees and lower year-over-year severance and one-time retention bonuses awarded to certain key employees during the three months ended September 30, 2026, compared to the same period in 2025. The decrease was partially offset by higher wages as a result of higher headcount.
Previous wording
Share-based compensation decreased by $4.7 million, or 17%, for the three months ended June 30, 2026, compared to the same period in 2025. This decrease was primarily driven by the full vesting of higher grant-date fair value awards issued in prior years. These older awards are being replaced by new awards granted in more recent periods that carry lower grant-date fair values.
Current wording
Share-based compensation decreased by $4.2 million, or 16%, for the three months ended September 30, 2026, compared to the same period in 2025. This decrease was primarily driven by the full vesting of higher grant-date fair value awards issued in prior years. These older awards are being replaced by new awards granted in more recent periods that carry lower grant-date fair values.
Previous wording
Technology expenses increased by $2.3 million, or 14%, for the three months ended June 30, 2026, compared to the same period in 2025. This increase was mainly driven by higher software licenses and hosting costs to support system and tool implementations amid ongoing business growth.
Current wording
Technology expenses increased by $1.1 million, or 6%, for the three months ended September 30, 2026, compared to the same period in 2025. This increase was mainly driven by higher software licenses to support system and tool implementations amid ongoing business growth.
Previous wording
Depreciation and amortization expense increased by $3.0 million, or 46%, for the three months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher amortization of internally developed software as additional projects were capitalized and placed into service, as well as amortization of the customer relationships intangible asset acquired from TransactPay in the third quarter of 2025.
Current wording
Depreciation and amortization expense increased by $3.2 million, or 46%, for the three months ended September 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher amortization of internally developed software as additional projects were capitalized and placed into service.
Previous wording
Professional services expenses increased by $1.4 million, or 33%, for the three months ended June 30, 2026, compared to the same period in 2025 primarily driven by higher legal and professional fees.
Current wording
Professional services expenses decreased by $1.4 million, or 25%, for the three months ended September 30, 2026, compared to the same period in 2025 primarily driven by lower legal and professional fees.
Previous wording
Other income, net decreased by $4.4 million, or 50%, for the three months ended June 30, 2026, compared to the same period in 2025. This decrease was primarily driven by lower interest income from our short-term investment portfolio and cash balances, as average balances were lower due to share repurchases completed in 2025 and the first half of 2026. We also realized lower average yields during the second quarter of 2026 compared to the same period in 2025.
Current wording
Other income, net decreased by $2.5 million, or 34%, for the three months ended September 30, 2026, compared to the same period in 2025. This decrease was primarily driven by lower interest income from our short-term investment portfolio and cash balances, as average balances were lower due to share repurchases completed in 2025 and through the nine months ended September 30, 2026. We also realized lower average yields during the third quarter of 2026 compared to the same period in 2025.
Previous wording
We generated 41% and 46% of our net revenue from our largest customer, Block, during the three months ended June 30, 2026 and 2025, respectively.
Current wording
We generated 41% and 44% of our net revenue from our largest customer, Block, during the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Total platform services, net revenue increased by $44.9 million, or 16%, for the six months ended June 30, 2026, compared to the same period in 2025. The overall increase in platform services revenue was primarily driven by a 32% increase in TPV, partially offset by unfavorable shifts in our card program mix, particularly the expansion of programs where we provide processing services with minimal or no program management.
Current wording
Total platform services, net revenue increased by $54.9 million, or 13%, for the nine months ended September 30, 2026, compared to the same period in 2025. The overall increase in platform services revenue was primarily driven by a 31% increase in TPV, partially offset by unfavorable shifts in our card program mix, particularly the expansion of programs where we provide processing services with minimal or no program management.
Previous wording
Other services revenue increased $7.4 million, or 51% in the six months ended June 30, 2026, compared to the same period in 2025, driven by higher card-related fulfillment, including card replacements and increased customer card shipments and professional services rendered for a certain network integration project that was completed in the first quarter of 2026.
Current wording
Other services revenue increased by $10.3 million, or 47% in the nine months ended September 30, 2026, compared to the same period in 2025, driven by higher card-related fulfillment, including card replacements and increased customer card shipments and professional services rendered for a certain network integration project that was completed in the first quarter of 2026.
Previous wording
The TPV increase was driven by robust growth across all major use cases, particularly financial services, lending including buy-now-pay later, and expense management. TPV for our top five customers, based on their individual processing volumes in each respective period, grew by 25% for the six months ended June 30, 2026, compared to the same period in 2025. TPV from all other customers, as a group, increased by 53% in the six months ended June 30, 2026, compared to the same period in 2025. Note that the composition of the top five customers may differ between the two periods.
Current wording
The TPV increase was driven by robust growth across all major use cases, particularly financial services, lending including buy-now-pay later, and expense management. TPV for our top five customers, based on their individual processing volumes in each respective period, grew by 25% for the nine months ended September 30, 2026, compared to the same period in 2025. TPV from all other customers, as a group, increased by 50% in the nine months ended September 30, 2026, compared to the same period in 2025. Note that the composition of the top five customers may differ between the two periods.
Previous wording
Costs of revenue increased by $15.6 million, or 18%, for the six months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher Card Network and Issuing Bank fees associated with the increase in TPV. The remaining increase was driven by costs related to higher card-related fulfillment, including card replacements and increased customer card shipments.
Current wording
Costs of revenue increased by $20.9 million, or 15%, for the nine months ended September 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher Card Network and Issuing Bank fees associated with the increase in TPV. The remaining increase was driven by costs related to higher card-related fulfillment, including card replacements and increased customer card shipments.
Previous wording
As the increase in costs of revenue was outpaced by the net revenue growth discussed above, gross profit increased by $17.8 million, or 17%, while gross margin remained flat for the three months ended June 30, 2026, compared to the same period in 2025.
Current wording
As the increase in costs of revenue was outpaced by the net revenue growth discussed above, gross profit increased by $44.3 million, or 14%, while gross margin remained flat for the nine months ended September 30, 2026, compared to the same period in 2025.
Previous wording
Salaries, bonus, benefits, and payroll taxes remained relatively flat for the six months ended June 30, 2026, compared to the same period in 2025. This slight decrease was primarily driven by lower post-combination compensation expenses for former Power Finance employees, higher capitalized salaries, bonuses, and benefits costs related to internal-use software development and lower year-over-year severance and one-time retention bonuses awarded to certain key employees. These savings were mostly offset by higher salaries, bonuses, and contractor expenses due to increased in headcount.
Current wording
Salaries, bonus, benefits, and payroll taxes decreased by $3.9 million, or 2%, for the nine months ended September 30, 2026, compared to the same period in 2025. This decrease was primarily driven by lower postcombination compensation expenses for former Power Finance employees, higher capitalized salaries, bonuses, and benefits costs related to internal-use software development and lower year-over-year severance and one-time retention bonuses awarded to certain key employees. These savings were mostly offset by higher salaries and contractor expenses due to an increase in headcount.
Previous wording
Share-based compensation decreased by $10.6 million, 20%, for the six months ended June 30, 2026, compared to the same period in 2025. This decrease was primarily driven by the fully vesting of higher grant-date fair value awards issued in prior years. These older awards are being replaced by new awards granted in more recent periods that carry lower grant-date fair values.
Current wording
Share-based compensation decreased by $14.9 million, or 19%, for the nine months ended September 30, 2026, compared to the same period in 2025. This decrease was primarily driven by the full vesting of higher grant-date fair value awards issued in prior years. These older awards are being replaced by new awards granted in more recent periods that carry lower grant-date fair values.
Previous wording
Technology expenses increased by $5.6 million, or 18%, for the six months ended June 30, 2026, compared to the same period in 2025, mainly driven by higher licensing and hosting costs to support system and tool implementations amid ongoing business growth.
Current wording
Technology expenses increased by $6.7 million, or 14%, for the nine months ended September 30, 2026, compared to the same period in 2025, mainly driven by higher licensing and hosting costs to support system and tool implementations amid ongoing business growth.
Previous wording
Depreciation and amortization increased by $6.6 million, or 55%, for the six months ended June 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher amortization of internally developed software as additional projects were capitalized and placed into service, as well as amortization of the customer relationships intangible asset acquired from TransactPay in the third quarter of 2025
Current wording
Depreciation and amortization increased by $9.8 million, or 52%, for the nine months ended September 30, 2026, compared to the same period in 2025. This increase was primarily driven by higher amortization of internally developed software as additional projects were capitalized and placed into service, as well as amortization of the customer relationships intangible asset acquired from TransactPay in the third quarter of 2025.
Previous wording
Marketing and advertising expenses increased by $0.5 million, or 73%, for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to increased spending on brand campaigns and continued investment in marketing and advertising initiatives.
Current wording
Marketing and advertising expenses increased by $1.3 million, or 62%, for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to increased spending on brand campaigns and continued investment in marketing and advertising initiatives.
Previous wording
Occupancy expense remained relatively flat for the six months ended June 30, 2026, compared to the same period in 2025.
Current wording
Occupancy expense remained relatively flat for the nine months ended September 30, 2026, compared to the same period in 2025.
Previous wording
Other income, net decreased by $8.9 million, or 46%, for the six months ended June 30, 2026, compared to the same period in 2025. This decrease was primarily driven by lower interest income from our short-term investment portfolio and cash balances, as average balances were lower due to share repurchases completed during 2025 and the six months ended June 30, 2026. We also realized lower average yields during the six months ended June 30, 2026 compared to the same period in 2025.
Current wording
Other income, net decreased by $11.4 million, or 43%, for the nine months ended September 30, 2026, compared to the same period in 2025. This decrease was primarily driven by lower interest income from our short-term investment portfolio and cash balances, as average balances were lower due to share repurchases completed during 2025 and the nine months ended September 30, 2026. We also realized lower average yields during the nine months ended September 30, 2026 compared to the same period in 2025.
Previous wording
We generated 42% and 45% of our net revenue from our largest customer, Block, during the six months ended June 30, 2026 and 2025, respectively.
Current wording
We generated 42% and 45% of our net revenue from our largest customer, Block, during the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
As of June 30, 2026, our primary sources of liquidity consisted of cash, cash equivalents, and short-term investments totaling $700.9 million, held primarily for working capital purposes. Our cash equivalents and short-term investments consisted primarily of bank deposits, money market funds, U.S. treasury bills, U.S. treasury securities, asset-backed securities, commercial paper, certificates of deposit, and corporate debt securities. We have historically incurred significant operating losses, as reflected in our accumulated deficit. We believe our existing cash and cash equivalents and our short-term investments will be sufficient to meet our working capital and capital expenditure needs for more than the next 12 months. As of the date of filing this Quarterly Report on Form 10-Q, we have access to and control over all our cash, cash equivalents, and short-term investments, with the exception of restricted cash. The majority of our restricted cash amounts are held solely for safeguarding customer funds in connection with TransactPay’s card and e-money wallet programs, and are not available for our general corporate purposes or operations.
Current wording
As of September 30, 2026, our primary sources of liquidity consisted of cash, cash equivalents, and short-term investments totaling $698.2 million, held primarily for working capital purposes. Our cash equivalents and short-term investments consisted primarily of bank deposits, money market funds, U.S. treasury bills, U.S. treasury securities, asset-backed securities, commercial paper, certificates of deposit, and corporate debt securities. We have historically incurred significant operating losses, as reflected in our accumulated deficit. As of the date of filing this Quarterly Report on Form 10-Q, we have access to and control over all our cash, cash equivalents, and short-term investments, with the exception of restricted cash. The majority of our restricted cash amounts are held solely for safeguarding customer funds in connection with TransactPay’s card and e-money wallet programs, and are not available for our general corporate purposes or operations.
Previous wording
Our Board of Directors has periodically authorized share repurchase programs for repurchases of shares of our Class A common stock. Most recently, on August 3, 2026, our Board of Directors authorized an additional share repurchase program authorizing the Company to purchase up to an aggregate of $150 million of the Company’s Class A common stock (the “August 2026 Share Repurchase Program”). This August 2026 Share Repurchase Program is distinct from the existing December 2025 Share Repurchase Program, which, as of the date of this filing, has been fully completed with no authorization remaining. Under the August 2026 Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, in privately negotiated transactions, or by other means, in accordance with applicable federal securities laws, including through trading plans under Rule 10b5-1 of the Exchange Act. The timing and total amount of any stock repurchases will be determined at management's discretion and depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. The execution of the repurchase program will be consistent with the Company's capital allocation strategy, which prioritizes investments to grow the business. The August 2026 Share Repurchase Program has no set expiration date, and does not obligate Marqeta to acquire a specific number of shares of Class A common stock and may be canceled or suspended at any time without notice.
Current wording
Our Board of Directors has periodically authorized share repurchase programs for repurchases of shares of our Class A common stock. Most recently, on August 3, 2026, our Board of Directors authorized an additional share repurchase program authorizing the Company to purchase up to an aggregate of $150 million of the Company’s Class A common stock (the “August 2026 Share Repurchase Program”). Under the August 2026 Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, in privately negotiated transactions, or by other means, in accordance with applicable federal securities laws, including through trading plans under Rule 10b5-1 of the Exchange Act. The timing and total amount of any stock repurchases will be determined at management's discretion and depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations. The execution of the repurchase program will be consistent with the Company's capital allocation strategy, which prioritizes investments to grow the business. The August 2026 Share Repurchase Program has no set expiration date, and does not obligate Marqeta to acquire a specific number of shares of Class A common stock and may be canceled or suspended at any time without notice. As of September 30, 2026, $140.3 million remained available for future share repurchases under the August 2026 Share Repurchase Program.
Previous wording
We believe our existing cash and cash equivalents, and short-term investments of $700.9 million as of June 30, 2026, will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. As of the date of filing this Quarterly Report on Form 10-Q, we maintain full access to and control over all our cash, cash equivalents and short-term investments, except amounts held as restricted cash. Our future capital requirements will depend on many factors, such as continued investment in product development, platform infrastructure, share repurchases, potential strategic acquisitions, capital expenditures, and global expansion. We plan to allocate cash to support ongoing business investments, infrastructure enhancements, and non-cancellable purchase commitments with cloud-computing service providers and certain Issuing Banks.
Current wording
We believe our existing cash and cash equivalents, and short-term investments of $698.2 million as of September 30, 2026, will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. As of the date of filing this Quarterly Report on Form 10-Q, we maintain full access to and control over all our cash, cash equivalents and short-term investments, except amounts held as restricted cash. Our future capital requirements will depend on many factors, such as continued investment in product development, platform infrastructure, share repurchases, potential strategic acquisitions, capital expenditures, and global expansion. We plan to allocate cash to support ongoing business investments, infrastructure enhancements, and non-cancellable purchase commitments with cloud-computing service providers and certain Issuing Banks.
Previous wording
As of June 30, 2026, we had $262.6 million in restricted cash, of which $260.4 million is related to the cash and cash equivalents held by TransactPay on behalf of its customers related to card and e-money wallet programs.
Current wording
As of September 30, 2026, we had $267.5 million in restricted cash, of which $265.3 million is related to the cash and cash equivalents held by TransactPay on behalf of its customers related to card and e-money wallet programs.
Previous wording
Net cash provided by operating activities was $59.8 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $22.5 million for the same period in 2025. The year-over-year change was primarily driven by higher gross profit and favorable working capital timing, particularly related to network incentive receivables, partially offset by higher operating expenses.
Current wording
Net cash provided by operating activities was $86.2 million for the nine months ended September 30, 2026, compared to $109.3 million for the same period in 2025. The year-over-year change was primarily driven by unfavorable working capital timing, particularly related to accrued expenses and other liabilities, revenue share payable, network incentive receivables, and settlement receivables, partially offset by higher gross profit and lower operating expenses.
Previous wording
Net cash provided by investing activities decreased by $40.5 million to $35.3 million for the six months ended June 30, 2026, from $75.7 million in the same period in 2025. This decrease was primarily due to fewer maturities of short-term investments and higher capitalization of internal-use software.
Current wording
Net cash provided by investing activities decreased by $223.0 million to $35.3 million for the nine months ended September 30, 2026, from $258.2 million in the same period in 2025. This decrease was primarily due to restricted cash acquired in the TransactPay acquisition in the prior year, and fewer maturities of short-term investments, partially offset by $44.6 million in net cash used for the TransactPay acquisition during the third quarter of 2025.
Previous wording
Net cash used in financing activities decreased to $158.9 million for the six months ended June 30, 2026, from $288.5 million in the same period in 2025. The decrease was primarily due to lower repurchases of our Class A common stock, partially offset by a $2.7 million contingent consideration payment related to the TransactPay acquisition.
Current wording
Net cash used in financing activities decreased to $174.3 million for the nine months ended September 30, 2026, from $316.4 million in the same period in 2025. The decrease was primarily due to lower repurchases of our Class A common stock, partially offset by changes in funds payable and amounts due to customers and $5.0 million contingent and holdback consideration payments related to the TransactPay acquisition.
Previous wording
There have been no material changes to our critical accounting policies and estimates described in “Management's Discussion and Analysis of Financial Condition and Results of Operations” set forth in our 2025 Annual Report.
Current wording
There have been no material changes to our critical accounting policies and estimates described in “Management's Discussion and Analysis of Financial Condition and Results of Operations” set forth in our 2025 Annual Report, other than the income taxes described below.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Marketing and advertising expenses increased by $1.2 million, or 103%, for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to increased spending on brand campaigns and continued investment in marketing and advertising initiatives.