Q4 2025 Marqeta Inc Earnings Call

February 24, 2026

Speaker #1: Ladies and gentlemen, welcome to the Marquetta Fourth Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal recorded.

Mike Milotich: Ladies and gentlemen, welcome to the Marqeta Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Maria Grazier, Director of Investor Relations. Please go ahead.

Operator: Ladies and gentlemen, welcome to the Marqeta Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Maria Grazier, Director of Investor Relations. Please go ahead.

Speaker #1: It is now my pleasure to introduce your host, Maria Greiser, Director of Investor Relations. Please go ahead.

Speaker #2: Thanks, Operator. Good afternoon, everyone, and welcome to Marqeta's fourth quarter 2025 earnings call. Hosting today's call are Mike Milotich, Marqeta's CEO, and Patty Kung Wong Keach, Marqeta's CFO.

Maria Graizer: Thanks, operator. Good afternoon, everyone, welcome to Marqeta's Q4 2025 Earnings Call. Hosting today's call are Mike Milotich, Marqeta's CEO, and Patti Kangwankij, Marqeta's CFO. Before we begin, I would like to remind everyone that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our investor relations website, including our annual report on Form 10-K and our subsequent periodic filings with the SEC. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of the time of this call, the company does not assume any obligation or intent to update them, except as required by law. In addition, today's call includes non-GAAP financial measures.

Speaker #2: Before we begin, I would like to remind everyone that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC.

Speaker #2: These are available on our Investor Relations website, including our annual report on Form 10-K and our subsequent periodic filings with the SEC. Actual results may differ materially from any forward-looking statements we make today.

Maria Graizer: Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of the time of this call, the company does not assume any obligation or intent to update them, except as required by law. In addition, today's call includes non-GAAP financial measures.

Speaker #2: These forward-looking statements speak only as of the time of this call and the company does not assume any obligation or intent to update them except as required by law.

Speaker #2: In addition, today's call includes non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures.

Maria Graizer: These measures should be considered as a supplement to, and not a substitute for, GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in today's earnings press release or earnings release supplemental materials, which are available on our investor relations website. With that, I'd like to turn the call over for Mike to begin.

Speaker #2: Reconciliations to the most directly comparable GAAP measures can be found in today's earnings press release or earnings release supplemental materials, which are available on our Investor Relations website.

Speaker #2: With that, I'd like to turn the call over for Mike to begin.

Speaker #3: Thank you, Maria. And thank you for joining us for Marquetta's Fourth Quarter 2025 earnings call. I'm excited to be joined on this call by Patty, our new CFO, who started on February 9th.

Mike Milotich: Thank you, Maria, thank you for joining us for Marqeta's Q4 2025 earnings call. I'm excited to be joined on this call by Patti, our new CFO, who started on 9 February. Patti is a proven finance executive with extensive experience across technology, financial services, and payments, we're excited about the value she will add at Marqeta. To start our call, I will briefly touch on our Q4 results, followed by a few Q4 highlights of the growth in our business across use cases, geographies, and value-added services. I will turn it over to Patti, who will cover the details of our Q4 financial results and our expectations for 2026. Our Q4 results were once again demonstrating our outstanding growth as we reach new levels of scale while continuing to increase our Adjusted EBITDA as we trend towards GAAP profitability.

Speaker #3: Patty is a proven finance executive with extensive experience across technology, financial services, and payments, and we're excited about the values she will add at Marqeta.

Speaker #3: To start our call, I will briefly touch on our Q4 results, followed by a few Q4 highlights of the growth in our business across use cases, geographies, and value-added services.

Mike Milotich: To start our call, I will briefly touch on our Q4 results, followed by a few Q4 highlights of the growth in our business across use cases, geographies, and value-added services. I will turn it over to Patti, who will cover the details of our Q4 financial results and our expectations for 2026. Our Q4 results were once again demonstrating our outstanding growth as we reach new levels of scale while continuing to increase our Adjusted EBITDA as we trend towards GAAP profitability.

Speaker #3: I will then turn it over to Patty, who will cover the details of our Q4 financial results, and our expectations for 2026. Our Fourth Quarter results were once again demonstrating our outstanding growth.

Speaker #3: As we reach new levels of scale while continuing to increase our adjusted EBITDA as we trend towards GAAP profitability. Total processing volume, or TPV, was $109 billion in the fourth quarter, crossing the $100 billion threshold in a quarter for the first time in Marqeta's history.

Mike Milotich: Total processing volume, or TPV, was $109 billion in Q4, crossing the $100 billion threshold in a quarter for the first time in Marqeta's history. With a year-over-year increase of 36%, this was the third straight quarter in which our TPV growth has accelerated by 3 points from the previous quarter, demonstrating our strong business momentum as we exit 2025. Q4 net revenue of $172 million grew 27% year-over-year, driven by strong TPV growth across the use cases we enable. Q4 gross profit growth was $120 million, a 22% year-over-year increase, exceeding our expectations by several points. Our Adjusted EBITDA was $31 million in the quarter, which was another all-time high, translating into an 18% margin and more than doubling the dollars on a year-over-year basis.

Speaker #3: With a year-over-year increase of 36%, this was the third straight quarter in which our TPV growth has accelerated by 3 points from the previous quarter.

Speaker #3: Demonstrating our strong business momentum as we exit 2025. Q4 net revenue of $172 million grew 27% year-over-year, driven by strong TPV growth across the use cases we enable.

Mike Milotich: Q4 net revenue of $172 million grew 27% year-over-year, driven by strong TPV growth across the use cases we enable. Q4 gross profit growth was $120 million, a 22% year-over-year increase, exceeding our expectations by several points. Our Adjusted EBITDA was $31 million in the quarter, which was another all-time high, translating into an 18% margin and more than doubling the dollars on a year-over-year basis.

Speaker #3: Q4 gross profit growth was $120 million, a 22% year-over-year increase, exceeding our expectations by several points. Our adjusted EBITDA was $31 million in the quarter, which was another all-time high, translating into an 18% margin and more than doubling the dollars on a year-over-year basis.

Speaker #3: This was fueled by strong gross profit growth and the benefit of our scaled platform and efficiency initiatives. This quarter and throughout 2025, we drove significant growth by deepening our existing customer relationships through seamless geographic, use case, and value-added service expansion.

Mike Milotich: This was fueled by strong gross profit growth and the benefit of our scale platform and efficiency initiatives. This Q4 and throughout 2025, we drove significant growth by deepening our existing customer relationships through seamless geographic, use case, and value-added service expansion, while also successfully onboarding and ramping new customers. Our leadership and expertise powering innovative offerings continues to attract established brands seeking a proven partner to drive growth and user engagement by leveraging card programs. One area we highlighted throughout 2025 is the growth and traction we are seeing in Europe. TPV in Europe grew more than twice as fast as the overall company in the Q4, which is the first quarter in nearly 2 years that the growth has been below 100% on a year-over-year basis due to the rapidly expanding base.

Speaker #3: While also successfully onboarding and ramping new customers. Our leadership and expertise powering innovative offerings continues to attract established brands seeking a proven partner to drive growth and user engagement by leveraging card programs.

Mike Milotich: Our leadership and expertise powering innovative offerings continues to attract established brands seeking a proven partner to drive growth and user engagement by leveraging card programs. One area we highlighted throughout 2025 is the growth and traction we are seeing in Europe. TPV in Europe grew more than twice as fast as the overall company in the Q4, which is the first quarter in nearly 2 years that the growth has been below 100% on a year-over-year basis due to the rapidly expanding base.

Speaker #3: One area we highlighted throughout 2025 is the growth and traction we are seeing in Europe. TPV in Europe grew more than twice as fast as the overall company in the fourth quarter, which is the first quarter in nearly two years that the growth has been below 100% on a year-over-year basis due to the rapidly expanding base.

Speaker #3: As a testament to the scale we have achieved in Europe in a relatively short period of time, the TPV in Q4 2025 was nearly 40% higher than our annual TPV in 2023.

Mike Milotich: As a testament to the scale we have achieved in Europe in a relatively short period of time, the TPV in Q4 2025 was nearly 40% higher than our annual TPV in 2023 and spans the breadth of the use cases we serve. In Q3 2025, we completed the acquisition of TransactPay, which enables us to deliver a complete offering in the UK and the EU across processing, program management, and the EMI license, comparable to what we offer in the US, Canada, and Australia. The ability to offer an end-to-end solution across geographies is becoming increasingly important in serving enterprise customers, whether they are large Fintechs or embedded finance multinationals. One such customer is Uber, a long-standing Marqeta customer. Our relationship started with enabling couriers for delivery in the US, which has since grown across many geographies.

Speaker #3: And spans the breadth of the use cases we serve. In Q3, 2025, we completed the acquisition of TransactBay, which enables us to deliver a complete offering in the UK and the EU across processing, program management, and the EMI license, comparable to what we offer in the US, Canada, and Australia.

Speaker #3: The ability to offer an end-to-end solution across geographies is becoming increasingly important in serving enterprise customers, whether they are large fintechs or embedded finance multinationals.

Mike Milotich: The ability to offer an end-to-end solution across geographies is becoming increasingly important in serving enterprise customers, whether they are large Fintechs or embedded finance multinationals. One such customer is Uber, a long-standing Marqeta customer. Our relationship started with enabling couriers for delivery in the US, which has since grown across many geographies.

Speaker #3: One such customer is Uber, a longstanding Marquetta customer. Our relationship started with enabling couriers for delivery in the US, which has since grown across many geographies.

Speaker #3: We then expanded into new use cases such as the Uber ProCard to support the financial needs of Uber drivers, which we are now helping to expand geographically to the UK.

Mike Milotich: We expanded into new use cases, such as the Uber Pro Card, to support the financial needs of Uber drivers, which we are now helping to expand geographically to the UK. Marqeta's solution, now live, allows Uber drivers in the UK to access their funds immediately, get rewards, and keep their money in a high-yield savings account with a partner bank. All within an Uber branded app developed by Marqeta. Last year, we highlighted our work on a white label app designed to give customers a fully branded, out-of-the-box solution managed by Marqeta that accelerates customer time to market. This program is the first to deploy the white label app, utilizing the pre-configured flows for onboarding, account setup, transaction monitoring, and support, all of which reflect Uber's brand.

Speaker #3: Marquetta's solution now live allows Uber drivers in the UK to access their funds immediately, get rewards, and keep their money in a high-yield savings account with a partner bank, all within an Uber-branded app developed by Marquetta.

Mike Milotich: All within an Uber branded app developed by Marqeta. Last year, we highlighted our work on a white label app designed to give customers a fully branded, out-of-the-box solution managed by Marqeta that accelerates customer time to market. This program is the first to deploy the white label app, utilizing the pre-configured flows for onboarding, account setup, transaction monitoring, and support, all of which reflect Uber's brand.

Speaker #3: Last year, we highlighted our work on a white-label app designed to give customers a fully branded, out-of-the-box solution managed by Marqeta, that accelerates customer time-to-market.

Speaker #3: This program is the first to deploy the white-label app utilizing the pre-configured flows for onboarding, account setup, transaction monitoring, and support, all of which reflect Uber's brand.

Speaker #3: This exemplifies the breadth and depth of the Marquetta offering by delivering the full spectrum of processing, program management, and value-added services. This includes banking and money movement with seamless integration with our banking partner in the UK, processing, fraud monitoring, real-time decisioning, risk management, and our white-label app.

Mike Milotich: This exemplifies the breadth and depth of the Marqeta offering by delivering the full spectrum of processing, program management, and value-added services. This includes banking and money movement with seamless integration with our banking partner in the UK, processing, fraud monitoring, real-time decisioning, risk management, and our white label app. The holistic approach enables Uber to work with one partner to deliver a robust solution with full banking functionality. This expansion also highlights the confidence and trust that a discerning customer like Uber has in Marqeta to deliver a scalable and comprehensive product to their target market. This solution showcases our ability to offer a complete end-to-end solution, which is important for enterprise and embedded finance customers who are looking for a single best-in-class provider operating at scale with a full offering across geographies.

Speaker #3: The holistic approach enabled Uber to work with one partner to deliver a robust solution with full banking functionality. This expansion also highlights the confidence and trust that a discerning customer like Uber has in Marquetta, to deliver a scalable and comprehensive product to their target market.

Mike Milotich: The holistic approach enables Uber to work with one partner to deliver a robust solution with full banking functionality. This expansion also highlights the confidence and trust that a discerning customer like Uber has in Marqeta to deliver a scalable and comprehensive product to their target market. This solution showcases our ability to offer a complete end-to-end solution, which is important for enterprise and embedded finance customers who are looking for a single best-in-class provider operating at scale with a full offering across geographies.

Speaker #3: This solution showcases our ability to offer a complete end-to-end solution which is important for enterprise and embedded finance customers who are looking for a single best-in-class provider operating at scale with a full offering across geographies.

Speaker #3: Lending, including buy now pay later, continues to be one of the most compelling and fastest-growing use cases. We continue to see strong growth and demand in Q4, which is driven by our ability to support customers with innovation at scale across many geographies.

Mike Milotich: Lending, including Buy Now, Pay Later, continues to be one of the most compelling and fastest-growing use cases. We continue to see strong growth and demand in Q4, which is driven by our ability to support customers with innovation at scale across many geographies. BNPL started with Marqeta enabling virtual cards for seamless payment experiences without costly and time-consuming back-end integrations. The category has continued to evolve, and we have been at the forefront of enabling seamless geographic expansion and newer innovative solutions, such as the Visa Flexible Credential and Payoneer cards, which allow our customers to deliver a better value proposition that is clearly resonating with their users. In a testament to our leadership in BNPL and the unique combination of capabilities we enable globally, in Q4, we added yet another BNPL customer who will be flipping an established program to our platform.

Speaker #3: The MPL started with Marqeta enabling virtual cards for seamless payment experiences without costly and time-consuming back-end integrations. The category has continued to evolve, and we have been at the forefront of enabling seamless geographic expansion and newer innovative solutions such as the Visa Flexible Credential and Pay Your New Work cards.

Mike Milotich: The category has continued to evolve, and we have been at the forefront of enabling seamless geographic expansion and newer innovative solutions, such as the Visa Flexible Credential and Payoneer cards, which allow our customers to deliver a better value proposition that is clearly resonating with their users. In a testament to our leadership in BNPL and the unique combination of capabilities we enable globally, in Q4, we added yet another BNPL customer who will be flipping an established program to our platform.

Speaker #3: Which allow our customers to deliver a better value proposition that is clearly resonating with their users. In a testament to our leadership in BNPL and the unique combination of capabilities we enable globally, in Q4 we added yet another BNPL customer, who will be flipping an established program to our platform.

Speaker #3: Four technologies, a BNPL provider that allows shoppers to split online purchases into four payments, was looking for a tech-forward partner with a proven track record and the expertise to support their ambitious growth goals.

Mike Milotich: Four Technologies, a BNPL provider that allows shoppers to split online purchases into four payments, was looking for a tech-forward partner with a proven track record and the expertise to support their ambitious growth goals. As a result, they are moving their business to Marqeta. In addition to helping existing customers expand into geographies and use cases with new programs, we continue to strengthen our offering by delivering additional value-added services, which helps create more durable relationships and bolster the economics of our business. In Q4 2025, value-added services contributed over 7% of our gross profit, with 18 of our top 20 customers utilizing at least one of our value-added services.

Speaker #3: As a result, they are moving their business to Marqeta. In addition to helping existing customers expand into geographies and use cases with new programs, we continue to strengthen our offering by delivering additional value-added services.

Mike Milotich: As a result, they are moving their business to Marqeta. In addition to helping existing customers expand into geographies and use cases with new programs, we continue to strengthen our offering by delivering additional value-added services, which helps create more durable relationships and bolster the economics of our business. In Q4 2025, value-added services contributed over 7% of our gross profit, with 18 of our top 20 customers utilizing at least one of our value-added services.

Speaker #3: This helps create more durable relationships and bolster the economics of our business. In Q4 2025, value-added services contributed over 7% of our gross profit, with 18 of our top 20 customers utilizing at least one of our value-added services.

Speaker #3: As we have highlighted in the past, our real-time decisioning product within our suite of risk services was built to be issuer-centric and allow customers to create rules and controls to manage transaction fraud by leveraging actual transaction data.

Mike Milotich: As we have highlighted in the past, our real-time decisioning product within our suite of risk services was built to be issuer-centric and allow customers to create rules and controls to manage transaction fraud by leveraging actual transaction data. In Q4, we launched an enhanced version of this product with a long-standing customer, using artificial intelligence and machine learning capabilities for real-time risk evaluation during the authorization process. Our enhanced model uses many transaction-level attributes and historical behavior patterns to predict risk at the time of the transaction, all with millisecond-level response times. We sought the input of several of our existing customers to create these models, which are self-learning and will work to continuously improve fraud detection and adapt to emerging threats. In Q4, we also signed two additional customers for this enhanced real-time decisioning capability.

Speaker #3: In Q4, we launched an enhanced version of this product with a longstanding customer, using artificial intelligence and machine learning capabilities for real-time risk evaluation during the authorization process.

Speaker #3: Our enhanced model uses many transaction-level attributes and historical behavior patterns to predict risk at the time of the transaction, all with millisecond-level response times.

Mike Milotich: Our enhanced model uses many transaction-level attributes and historical behavior patterns to predict risk at the time of the transaction, all with millisecond-level response times. We sought the input of several of our existing customers to create these models, which are self-learning and will work to continuously improve fraud detection and adapt to emerging threats. In Q4, we also signed two additional customers for this enhanced real-time decisioning capability.

Speaker #3: We sought the input of several of our existing customers to create these models which are self-learning and will work to continuously improve fraud detection and adapt to emerging threats.

Speaker #3: In Q4, we also signed two additional customers for this enhanced real-time decisioning capability. Both customers were looking for a flexible solution to help meet the differing needs for neobanking and lending use cases across multiple geographies as they scale.

Mike Milotich: Both customers were looking for a flexible solution to help meet the differing needs for neobanking and lending use cases across multiple geographies as they scale, appropriately balancing the expansion of their target audience and credit lines with fraud mitigation. By embedding AI-powered controls and advanced machine learning into the authorization process, we enable customers to expand confidently while also strengthening their fraud defense as they scale. To wrap up, as I reflect on our many accomplishments in 2025 and the efforts that are currently underway, I'm excited about our business momentum as we look forward into 2026 and beyond. First, given the long lead times in onboarding new business and the time it takes for new programs to ramp up, deal activity provides good insight into business momentum that takes time to impact the P&L.

Speaker #3: Appropriately balancing the expansion of their target audience and credit lines with fraud mitigation. By embedding ARI-powered controls and advanced machine learning into the authorization process, we enable customers to expand confidently while also strengthening their fraud defense as they scale.

Mike Milotich: By embedding AI-powered controls and advanced machine learning into the authorization process, we enable customers to expand confidently while also strengthening their fraud defense as they scale. To wrap up, as I reflect on our many accomplishments in 2025 and the efforts that are currently underway, I'm excited about our business momentum as we look forward into 2026 and beyond. First, given the long lead times in onboarding new business and the time it takes for new programs to ramp up, deal activity provides good insight into business momentum that takes time to impact the P&L.

Speaker #3: To wrap up, as I reflect on our many accomplishments in 2025 and the efforts that are currently underway, I am excited about our business momentum as we look forward into 2026 and beyond.

Speaker #3: First, given the long lead times in onboarding new business and the time it takes for new programs to ramp up, deal activity provides good insight into business momentum that takes time to impact the P&L.

Speaker #3: We are successfully shifting to targeting enterprise customers with embedded finance use cases, signing three Fortune 500 customers in 2025, and the average deal size increased over 20% year over year.

Mike Milotich: We are successfully shifting to targeting enterprise customers with embedded finance use cases, signing 3 Fortune 500 customers in 2025, and the average deal size increased over 20% year-over-year. We also executed a flip in each quarter, both credit and debit products, demonstrating our competitive differentiation. Over the past two years, we have signed approximately 40 new logos, while our top 15 customers are adding over 30 programs to our platform, with 14 of our top 15 customers adding at least one. Second, our leadership in lending and Buy Now, Pay Later use cases continues to be a source of strength as commerce continues to shift toward these payment methods. Our success in lending and BNPL clearly illustrates what makes the Marqeta platform unique.

Speaker #3: We also executed a flip in each quarter, both credit and debit products, demonstrating our competitive differentiation. And over the past two years, we have signed approximately 40 new logos, while our top 15 customers are adding over 30 programs to our platform, with 14 of our top 15 customers adding at least one.

Mike Milotich: Over the past two years, we have signed approximately 40 new logos, while our top 15 customers are adding over 30 programs to our platform, with 14 of our top 15 customers adding at least one. Second, our leadership in lending and Buy Now, Pay Later use cases continues to be a source of strength as commerce continues to shift toward these payment methods. Our success in lending and BNPL clearly illustrates what makes the Marqeta platform unique.

Speaker #3: Second, our leadership in lending and buy now pay later use cases continues to be a source of strength as commerce continues to shift toward these payment methods.

Speaker #3: Our success in lending in BNPL clearly illustrates what makes the Marqeta platform unique—modern, flexible processing that can support a wide range of value propositions, from anywhere card distribution through wallets and virtual card solutions.

Mike Milotich: Modern, flexible processing that can support a wide range of value proposition from anywhere cards, distribution through wallets, and virtual card solutions. We enable innovation for our customers, such as being the first to support Flexible Credential in the US and Europe. Multinational reach that enables geographic expansion and reliability at scale to handle rapid growth, even among very large programs. Third, our traction in Europe, where 2025 TPV was 8 times the size of 2022 and should continue to be a source of strong growth. The addition of TransactPay significantly enhances our offering, enable us to deliver a full solution set in Europe, aligned with US, Canada, and Australia. The launch of the Uber UK program this past quarter is just the beginning.

Speaker #3: We enable innovation for our customers, such as being the first to support flexible credentials in the US and Europe. We have a multinational reach that enables geographic expansion and reliability at scale to handle rapid growth, even among very large programs.

Speaker #3: Third, our traction in Europe, where 2025 TPV was eight times the size of 2022, should continue to be a source of strong growth.

Mike Milotich: Third, our traction in Europe, where 2025 TPV was 8 times the size of 2022 and should continue to be a source of strong growth. The addition of TransactPay significantly enhances our offering, enable us to deliver a full solution set in Europe, aligned with US, Canada, and Australia. The launch of the Uber UK program this past quarter is just the beginning.

Speaker #3: The addition of Transact Pay significantly enhances our offering and enables us to deliver a full solution set in Europe, aligned with the US, Canada, and Australia.

Speaker #3: The launch of the Uber UK program this past quarter is just the beginning. Lastly, we continue to expand and enhance the solutions we offer both within program management and value-added services increasing the value we deliver for customers and strengthening our customer relationships.

Mike Milotich: Lastly, we continue to expand and enhance the solutions we offer, both within program management and value-added services, increasing the value we deliver for customers and strengthening our customer relationships. This should continue to be a growth factor for us going forward, particularly value-added services, which are still only 7% of gross profit, exiting 2025, but more than doubled year-over-year. Our financial performance in 2025 demonstrates what can be delivered when the business is firing on all cylinders. Our 24% gross profit growth and 26% Adjusted EBITDA margin on gross profit has us on the cusp of GAAP profitability. We believe the market is evolving in favor of modern multinational processors operating at scale, which is reflected in our recent deals and our sales pipeline.

Speaker #3: This should continue to be a growth factor for us going forward, particularly value-added services which are still only 7% of gross profit exiting 2025, but more than doubled year over year.

Mike Milotich: Our financial performance in 2025 demonstrates what can be delivered when the business is firing on all cylinders. Our 24% gross profit growth and 26% Adjusted EBITDA margin on gross profit has us on the cusp of GAAP profitability. We believe the market is evolving in favor of modern multinational processors operating at scale, which is reflected in our recent deals and our sales pipeline.

Speaker #3: Our financial performance in 2025 demonstrates what can be delivered when the business is firing on all cylinders. Our 24% gross profit growth and 26% adjusted EBITDA margin on gross profit has us on the cusp of gap profitability.

Speaker #3: We believe the market is evolving in favor of modern multinational processors operating at scale, which is reflected in our recent deals and our sales pipeline.

Speaker #3: Although we expected 2020 although we expect 2026 gross profit growth, it to be impacted by two specific factors whose timing really weighs on 2026, make no mistake that the structural components of our business remain strong.

Mike Milotich: We expect 2026 gross profit growth is to be impacted by two specific factors whose timing really weighs on 2026, make no mistake that the structural components of our business remain strong as we look to reach larger milestones in the years to come. With that, I'll turn the call over to Patty to discuss our Q4 financial results and 2026 guidance in more detail.

Speaker #3: As we look to reach larger milestones in the years to come, with that, I’ll turn the call over to Patty to discuss our Q4 financial results and 2026 guidance in more detail.

Speaker #1: Thank you, Mike, and good afternoon, everyone. I look forward to getting to know all of you moving forward. I'm excited to be stepping into this role at a time when Marquetta is building the business for scale and on the cusp of gap profitability.

Patti Kangwankij: Thank you, Mike, and good afternoon, everyone. I look forward to getting to know all of you moving forward. I'm excited to be stepping into this role at a time when Marqeta is building the business for scale and on the cusp of GAAP profitability. Our financial results for Q4 reflect another great quarter and an even stronger than expected finish to the year. Both net revenue and gross profit growth were approximately 4 percentage points higher than expected due to the business momentum reflected in our TPV growth. For the third straight quarter, TPV growth accelerated by 36% on a sequential basis, reaching 36% in Q4. With adjusted operating expenses roughly in line with our expectations, the higher gross profit led to another record quarter for Adjusted EBITDA, and we approached GAAP net income break even for the third quarter in a row.

Speaker #1: Our financial results for Q4 reflect another great quarter and an even stronger-than-expected finish to the year. Both net revenue and gross profit growth were approximately 4 percentage points higher than expected due to the business momentum reflected in our TPV growth.

Patti Kangwankij: Both net revenue and gross profit growth were approximately 4 percentage points higher than expected due to the business momentum reflected in our TPV growth. For the third straight quarter, TPV growth accelerated by 36% on a sequential basis, reaching 36% in Q4. With adjusted operating expenses roughly in line with our expectations, the higher gross profit led to another record quarter for Adjusted EBITDA, and we approached GAAP net income break even for the third quarter in a row.

Speaker #1: For the third straight quarter, TPV growth accelerated by 3 percentage points on a sequential basis, reaching 36% in Q4. With adjusted operating expenses roughly in line with our expectations, the higher gross profit led to another record quarter for adjusted EBITDA and we approached gap net income breakeven for the third quarter in a row.

Speaker #1: Let me start by providing some color on our incredibly strong TPV, which was $109 billion in Q4, growing 36% year over year, with three of our four major use cases delivering accelerated growth.

Patti Kangwankij: Let me start by providing some color on our incredibly strong TPV, which was $109 billion in Q4, growing 36% year-over-year, with 3 of our 4 major use cases delivering accelerated growth. Non-Block TPV continues to grow over 2 times faster than Block TPV. The growth rate within our financial services use case accelerated from last quarter, and the growth rate continued to be a little slower than the overall company. Lending, including buy now, pay later growth, slowed from Q3, but remained very robust, growing just shy of 60% on a year-over-year basis, mostly due to the growth in Flexible Network Credential usage and our customers' continued geographic expansion on our platform. The growth slowed versus Q3 because we lapped the Klarna migration in Europe, which was executed in October 2024.

Speaker #1: Non-block TPV continues to grow over two times faster than block TPV. Growth within our financial services use case accelerated from last quarter, and the growth rate continued to be a little slower than the overall company.

Speaker #1: Lending, including Buy Now, Pay Later growth, slowed from Q3 but remained very robust, growing just shy of 60% on a year-over-year basis, mostly due to the growth in flexible network credential usage and our customers' continued geographic expansion on our platform.

Patti Kangwankij: Lending, including buy now, pay later growth, slowed from Q3, but remained very robust, growing just shy of 60% on a year-over-year basis, mostly due to the growth in Flexible Network Credential usage and our customers' continued geographic expansion on our platform. The growth slowed versus Q3 because we lapped the Klarna migration in Europe, which was executed in October 2024.

Speaker #1: The growth slowed versus Q3 because we lapped the corner migration in Europe, which was executed in October of 2024. Expense management growth accelerated several points from last quarter.

Patti Kangwankij: Expense management growth accelerated several points from last quarter, with growth exceeding 40%. This performance is driven by customers continuing to acquire new end users as their platforms gain share while utilizing our uniquely configurable capabilities. On-demand delivery growth also accelerated and continues to be in the double digits, below the company's overall growth rate. Q4 net revenue was $172 million, growing 27% year-over-year. Block net revenue concentration was 44% in Q4, in line with last quarter. Q4 gross profit was about $120 million. The 22% year-over-year growth was approximately 4 percentage points higher than we expected, primarily driven by two factors. First, TPV growth outpaced expectations across all use cases. Second, the addition of TransactPay added 4 percentage points to gross profit growth, which was 1 percentage point higher than expected.

Speaker #1: With growth exceeding 40%, this performance is driven by customers continuing to acquire new end users as their platforms gain share, while utilizing our uniquely configurable capabilities.

Speaker #1: On-demand delivery growth also accelerated and continues to be in the double digits, but below the company's overall growth rate. Q4 net revenue was $172 million, growing 27% year over year.

Speaker #1: Block net revenue concentration was 44% in Q4, in line with last quarter. Q4 gross profit was about $120 million. The 22% year-over-year growth was approximately 4 points higher than we expected, primarily driven by two factors.

Patti Kangwankij: Block net revenue concentration was 44% in Q4, in line with last quarter. Q4 gross profit was about $120 million. The 22% year-over-year growth was approximately 4 percentage points higher than we expected, primarily driven by two factors. First, TPV growth outpaced expectations across all use cases. Second, the addition of TransactPay added 4 percentage points to gross profit growth, which was 1 percentage point higher than expected.

Speaker #1: First, TPV growth outpaced expectations across all use cases. Second, the addition of transact pay added 4 percentage points to gross profit growth, which was 1 percentage point higher than expected.

Speaker #1: Transact pay contribution can fluctuate from quarter to quarter based on implementation fees and several projects were delivered in Q4 ahead of expectations. As a reminder, we revised our accounting policy for estimating and recognizing card network incentives starting in Q2 of 2025.

Patti Kangwankij: TransactPay contribution can fluctuate from quarter to quarter based on implementation fees, and several projects were delivered in Q4 ahead of expectations. As a reminder, we revised our accounting policy for estimating and recognizing card network incentives starting in Q2 of 2025. As a result, Q4 gross profit growth had a headwind of 5 percentage points due to the difference in methodologies for the year-over-year comparison. Our gross profit take rate was 11 basis points, a little bit more than half a basis point lower than last quarter, largely due to the impact of the major renewal completed in the quarter. Q4 adjusted operating expenses was $89 million, growing 4% year-over-year, in line with our expectations. We continue to remain focused on operating efficiency and are realizing the benefit from the increased scale of our platform.

Speaker #1: As a result, Q4 gross profit growth had a headwind of 5 percentage points due to the difference in methodologies for the year-over-year comparison. Our gross profit take rate was 11 basis points, a little bit more than half a basis point lower than last quarter, largely due to the impact of the major renewal completed in the quarter.

Patti Kangwankij: Our gross profit take rate was 11 basis points, a little bit more than half a basis point lower than last quarter, largely due to the impact of the major renewal completed in the quarter. Q4 adjusted operating expenses was $89 million, growing 4% year-over-year, in line with our expectations. We continue to remain focused on operating efficiency and are realizing the benefit from the increased scale of our platform.

Speaker #1: Q4 adjusted operating expenses were $89 million, growing 4% year over year, in line with our expectations. We continue to remain focused on operating efficiency and are realizing the benefit from the increased scale of our platform.

Speaker #1: Q4 adjusted EBITDA was $31 million, with a margin of 18% based on net revenue. Adjusted EBITDA margin based on gross profit was 26% and illustrates the profitability potential of our business.

Patti Kangwankij: Q4 Adjusted EBITDA was $31 million, a margin of 18% based on net revenue. Adjusted EBITDA margin based on gross profit was 26%, and illustrates the profitability potential of our business. Our Q4 GAAP net loss was just over $1 million, which included $7 million of interest income. We ended the quarter with approximately $770 million in cash and short-term investments. Our share repurchase activity remains ongoing as we continue to believe the current valuation does not fairly represent the company's value or the market opportunity ahead of us. In Q4, we repurchased 20.2 million shares at an average price of $4.76.

Speaker #1: Our Q4 GAAP net loss was just over $1 million, which included $7 million of interest income. We ended the quarter with approximately $770 million in cash and short-term investments.

Speaker #1: Our share repurchase activity remains ongoing as we continue to believe the current valuation does not fairly represent the company's value or the market opportunity ahead of us.

Patti Kangwankij: Our share repurchase activity remains ongoing as we continue to believe the current valuation does not fairly represent the company's value or the market opportunity ahead of us. In Q4, we repurchased 20.2 million shares at an average price of $4.76.

Speaker #1: In Q4, we repurchased 20.2 million shares at an average price of $4.76. For the full year 2025, we repurchased 84.8 million shares at an average price of $4.59.

Patti Kangwankij: For the full year 2025, we repurchased 84.8 million shares at an average price of $4.59, which is a reduction of nearly 17% of the outstanding shares as of 2024 year-end. As of 31 December, we had over $91 million remaining on our latest buyback authorization. Let me briefly summarize our full year 2025 performance, which was a fantastic year. TPV growth was 31%, adding over $90 billion of volume versus 2024. Net revenue grew 23% and gross profit grew 24% on a year-over-year basis, fueled by strong TPV growth, the delay of two major contract renewals, and a significant increase in the adoption of our value-added services starting in Q1.

Speaker #1: Which is a reduction of nearly 17% of the outstanding shares as of 2024 year-end. As of December 31st, we had over $91 million remaining on our latest buyback authorization.

Speaker #1: Let me briefly summarize our full year 2025 performance, which was a fantastic year. TPV growth was 31%, adding over $90 billion of volume versus 2024.

Patti Kangwankij: TPV growth was 31%, adding over $90 billion of volume versus 2024. Net revenue grew 23% and gross profit grew 24% on a year-over-year basis, fueled by strong TPV growth, the delay of two major contract renewals, and a significant increase in the adoption of our value-added services starting in Q1.

Speaker #1: Net revenue grew 23% and gross profit grew 24% on a year-over-year basis, fueled by strong TPV growth, the delay of two major contract renewals, and a significant increase in the adoption of our value-added services starting in Q1.

Speaker #1: Gross profit growth was 8 percentage points higher than the high end of our expectations at the start of the year, primarily for three reasons.

Patti Kangwankij: Gross profit growth was 8 percentage points higher than the high end of our expectations at the start of the year, primarily for 3 reasons. First, we had spoken all year about 2 major renewals that we expected to be completed mid-2025. Both renewals were delayed as we engaged in discussions around additional opportunities as part of the contracts, which added 2 percentage points to gross profit growth. Ultimately, 1 was completed in Q4, while the other is shifting to 2026. Second, we had non-recurring benefits in each quarter except for Q4, which added approximately 1.5 percentage points to growth. The remaining upside was driven by stronger TPV growth across multiple use cases, particularly lending, including BNPL. Adjusted EBITDA was $110 million for the year, which is more than 3.5x what we delivered in 2024.

Speaker #1: First, we had spoken all year about two major renewals that we expected to be completed mid-2025. Both renewals were delayed as we engaged in discussions around additional opportunities as part of the contracts.

Speaker #1: Which added 2 percentage points to gross profit growth. Ultimately, one was completed in Q4, while the other is shifting to 2026. Second, we had non-recurring benefits in each quarter except for Q4, which added approximately 1.5 percentage points to growth.

Patti Kangwankij: Ultimately, 1 was completed in Q4, while the other is shifting to 2026. Second, we had non-recurring benefits in each quarter except for Q4, which added approximately 1.5 percentage points to growth. The remaining upside was driven by stronger TPV growth across multiple use cases, particularly lending, including BNPL. Adjusted EBITDA was $110 million for the year, which is more than 3.5x what we delivered in 2024.

Speaker #1: The remaining upside was driven by stronger TPV growth across multiple use cases, particularly lending, including BNPL. Adjusted EBITDA was $110 million for the year, which is more than 3.5 times what we delivered in 2024.

Speaker #1: Our strong gross profit growth was paired with adjusted operating expense growth of only 1.5% due to success in our efficiency initiatives increase platform economies of scales and investment delays in the first half of transition in Q1.

Patti Kangwankij: Our strong gross profit growth was paired with adjusted operating expense growth of only 1.5% due to success in our efficiency initiatives, increased platform economies of scale, and investment delays in the first half of the year following the CEO transition in Q1. Now let's transition to our expectations for 2026. I will start with our full year 2026 expectations before sharing more details on the quarterly cadence. Let's start with TPV. In 2026, we expect the growth to moderate into the high 20s due to increasingly tough comps, particularly in the second half. This growth is expected to add $100 billion in TPV. We expect 2026 gross profit growth between 10% to 12%, with an implied gross profit dollar range of $481 to $490 million.

Patti Kangwankij: Now let's transition to our expectations for 2026. I will start with our full year 2026 expectations before sharing more details on the quarterly cadence. Let's start with TPV. In 2026, we expect the growth to moderate into the high 20s due to increasingly tough comps, particularly in the second half. This growth is expected to add $100 billion in TPV. We expect 2026 gross profit growth between 10% to 12%, with an implied gross profit dollar range of $481 to $490 million.

Speaker #1: Now let's transition to our expectations for 2026. I will start with our full year 2026 expectations before sharing more details on the quarterly cadence.

Speaker #1: Let's start with TPV. In 2026, we expect the growth to moderate into the high 20s due to increasingly tough comps, particularly in the second half.

Speaker #1: This growth is expected to have added $100 billion in TPV. We expect 2026 gross profit growth between 10 to 12 percent, with an implied gross profit dollar range of $481 to $490 million.

Speaker #1: There are two specific factors that uniquely pressure gross profit growth by 7 percentage points combined, with their impact amplified by their timing. First, the two large renewals we have been discussing for the last year are expected to reduce our growth by 4 percentage points in 2026.

Patti Kangwankij: There are two specific factors that uniquely pressure gross profit growth by 7 percentage points combined, with their impact amplified by their timing. First, the two large renewals we have been discussing for the last year are expected to reduce our growth by 4 percentage points in 2026. The delay in these renewals benefited 2025, but increases the grow over impact in 2026. As a reminder, these are the last two renewals where we expect to meaningfully adjust our pricing coming out of the fintech boom a few years ago. Second, based on the level of Block TPV exiting 2025, we expect them to shift to the next pricing tier in their contract, reducing growth by 3 percentage points.

Speaker #1: The delay in these renewals benefited 2025, but increases the grow-over impact in 2026. As a reminder, these are the last two renewals where we expect to meaningfully adjust our pricing coming out of the fintech boom a few years ago.

Patti Kangwankij: As a reminder, these are the last two renewals where we expect to meaningfully adjust our pricing coming out of the fintech boom a few years ago. Second, based on the level of Block TPV exiting 2025, we expect them to shift to the next pricing tier in their contract, reducing growth by 3 percentage points.

Speaker #1: Second, based on the level of block TPV exiting 2025, we expect them to shift to the next pricing tier in their contract, reducing growth by 3 percentage points.

Speaker #1: At the time of the block contract renewal in the second half of 2023, we agreed on the next level of scale for their business on our platform.

Patti Kangwankij: At the time of the Block contract renewal in the second half of 2023, we agreed on the next level of scale for their business on our platform. To incentivize their growth, we included a price tier that steps down 2 times the size of other pricing tiers in the contract. Block just reached that tier in December 2025. We expect them to remain there for all of 2026, creating an unfavorable year-over-year comparison. Those two factors weigh on 2026 growth because of their timing. We don't expect them to be impactful to our growth trajectory in 2027 and beyond. In addition, Cash App's diversification of new issuance is expected to lower our 2026 gross profit growth by approximately 1.5 to 2 percentage points.

Speaker #1: To incentivize their growth, we included a price tier that steps down two times the size of other pricing tiers in the contract. Block just reached that tier in December 2025, and we expect them to remain there for all of 2026, creating an unfavorable year-over-year comparison.

Patti Kangwankij: Block just reached that tier in December 2025. We expect them to remain there for all of 2026, creating an unfavorable year-over-year comparison. Those two factors weigh on 2026 growth because of their timing. We don't expect them to be impactful to our growth trajectory in 2027 and beyond. In addition, Cash App's diversification of new issuance is expected to lower our 2026 gross profit growth by approximately 1.5 to 2 percentage points.

Speaker #1: Those two factors weigh on 2026 growth because of their timing, but we don't expect them to be impactful to our growth trajectory in 2027 and beyond.

Speaker #1: In addition, Cash App's diversification of new issuance is expected to lower our 2026 gross profit growth by approximately 1.5 to 2 percentage points. This assumes we gradually lose new issuance in the first half of the year and receive no new issuance in the second half.

Patti Kangwankij: This assumes we gradually lose new issuance in the first half of the year and receive no new issuance in the second half. Before moving on, let's take a step back. At the start of 2025, we expected gross profit growth to be 14% to 16% in 2025, and in the low twenties for 2026. We outperformed in 2025 with 24% gross profit growth. The key factors driving the outperformance in 2025, such as the TPV growth momentum and the timing of the renewals, one-time items, and the jump in adoption of our value-based, value-added services in Q1 2025, are some of the same reasons that gross profit growth in 2026 is lower.

Speaker #1: Before moving on, let's take a step back. At the start of 2025, we expected gross profit growth to be 14 to 16 percent in 2025, and in the low 20s for 2026.

Speaker #1: We outperformed in 2025 with 24% gross profit growth. The key factors driving the outperformance in 2025, such as the TPV growth momentum and the timing of the renewals, one-time items, and the jump in adoption of our value-based value-added services in Q1 2025, are some of the same reasons that gross profit growth in 2026 is lower.

Patti Kangwankij: The key factors driving the outperformance in 2025, such as the TPV growth momentum and the timing of the renewals, one-time items, and the jump in adoption of our value-based, value-added services in Q1 2025, are some of the same reasons that gross profit growth in 2026 is lower.

Speaker #1: However, the two-year expected CAGR from 2024 to 2026 of 17 to 18 percent and the absolute dollar amount of 2026 gross profit have not changed.

Patti Kangwankij: However, the two-year expected CAGR from 2024 to 2026 of 17% to 18% and the absolute dollar amount of 2026 gross profit have not changed. Coupled with the strong execution of our efficiency efforts and platform scale, we now expect both Adjusted EBITDA and GAAP net income to be ahead of our projections from the start of last year. Full year 2026 net revenue growth is expected to be 12% to 14%. 2026 adjusted operating expenses are expected to grow in the mid to high single digits. We remain disciplined with our investments in growth initiatives and continue to benefit from efficiency and platform scale. Investment delays that materially lowered our first half of 2025 expenses are lifting our growth rate in 2026.

Speaker #1: Coupled with the strong execution of our efficiency efforts and platform scale, we now expect both adjusted EBITDA and GAAP net income to be ahead of our projections for the start of last year.

Speaker #1: From the start of last year. Full year 2026 net revenue growth is expected to be 12 to 14 percent. 2026 adjusted operating expenses are expected to grow in the mid to high single digits.

Patti Kangwankij: Full year 2026 net revenue growth is expected to be 12% to 14%. 2026 adjusted operating expenses are expected to grow in the mid to high single digits. We remain disciplined with our investments in growth initiatives and continue to benefit from efficiency and platform scale. Investment delays that materially lowered our first half of 2025 expenses are lifting our growth rate in 2026.

Speaker #1: We remain disciplined with our investments in growth initiatives and continue to benefit from efficiency and platform scale. Investment delays that materially lowered our first half of 2025 expenses are lifting our growth rate in 2026.

Speaker #1: Therefore, we expect full year 2026 adjusted EBITDA to grow in the mid-20s, more than twice our gross profit growth rate. As a result, we now expect to generate a modest amount of GAAP net income in 2026, likely around $10 million.

Patti Kangwankij: Therefore, we expect full year 2026 Adjusted EBITDA to grow in the mid-20s, more than twice our gross profit growth rate. As a result, we now expect to generate a modest amount of GAAP net income in 2026, likely around $10 million. Let's now turn to the quarterly cadence. TPV growth is expected to be in the low 30s in the first half of 2026, moderating and exiting Q4 2026 in the healthy mid-20s as we grow over strong year-over-year comps. For Q1, we expect gross profit to grow between 17% to 19%, representing approximately a 4 percentage point step down from Q4 2025. This is primarily driven by a 3 percentage point headwind from Block price tiering and a 1 percentage point lower contribution to growth from TransactPay.

Speaker #1: Let's now turn to the quarterly cadence. TPV growth is expected to be in the low 30s in the first half of 2026, then moderating and exiting Q4 2026 in the healthy mid-20s as we grow over strong year-over-year comps.

Patti Kangwankij: TPV growth is expected to be in the low 30s in the first half of 2026, moderating and exiting Q4 2026 in the healthy mid-20s as we grow over strong year-over-year comps. For Q1, we expect gross profit to grow between 17% to 19%, representing approximately a 4 percentage point step down from Q4 2025. This is primarily driven by a 3 percentage point headwind from Block price tiering and a 1 percentage point lower contribution to growth from TransactPay.

Speaker #1: For Q1, we expect gross profit to grow between 17 to 19 percent, representing approximately a 4 percentage point step down from Q4 2025. This is primarily driven by a 3 percentage point headwind from block price tiering and a 1 percentage point lower contribution to growth from transact pay.

Speaker #1: Q2 gross profit growth is expected to be approximately 3 percentage points lower than Q1, mostly due to the second major renewal going into effect.

Patti Kangwankij: Q2 gross profit growth is expected to be approximately 3 percentage points lower than Q1, mostly due to the second major renewal going into effect. We expect gross profit growth in the second half of the year to moderate to the high single digits, slowing from Q2, primarily driven by 4 factors. Lapping the inclusion of TransactPay will lower growth by 3 points. Lapping the strong growth in our lending, including BNPL use cases in the second half of 2025, will lower growth by approximately 1 point. Incentive timing is benefiting the first half and decreasing second half growth by approximately 1 point. The assumed loss of Cash App new issuance will reduce growth by 2 to 3 points. Q1 net revenue growth is expected to be 17% to 19%.

Speaker #1: We expect gross profit growth in the second half of the year to moderate to the high single digits slowing from Q2, primarily driven by four factors.

Speaker #1: Lapping the inclusion of transact pay will lower growth by three points. Lapping the strong growth in our lending including BNPL use cases in the second half of 2025 will lower growth by approximately one point.

Patti Kangwankij: Lapping the inclusion of TransactPay will lower growth by 3 points. Lapping the strong growth in our lending, including BNPL use cases in the second half of 2025, will lower growth by approximately 1 point. Incentive timing is benefiting the first half and decreasing second half growth by approximately 1 point. The assumed loss of Cash App new issuance will reduce growth by 2 to 3 points. Q1 net revenue growth is expected to be 17% to 19%.

Speaker #1: Incentive timing is benefiting the first half and decreasing second half growth by approximately one point. The assumed loss of Cash App new issuance will reduce growth by two to three points.

Speaker #1: Q1 net revenue growth is expected to be 17 to 19 percent. Q2 net revenue is expected to be approximately 3 percentage points lower than Q1, in line with gross profit, and in the low double digits for the second half of the year.

Patti Kangwankij: Q2 net revenue is expected to be approximately three percentage points lower than Q1, in line with gross profit and in the low double digits for the second half of the year. Our 2026 investments are primarily focused on technology and product innovation, as well as increasing our go-to-market and compliance resources to meet growing demand. Q1 adjusted operating expenses are expected to grow in the low double digits before jumping into the high teens in Q2, due to a tough comparison from investment delays in 2025. As you may recall, the Q2 2025 expenses were uncharacteristically low. Growth in the second half is expected to be in the low to mid-single digits as we grow over the inclusion of TransactPay and more typical investment levels. Q1 Adjusted EBITDA growth is expected to be 45% to 50%.

Speaker #1: Our 2026 investments are primarily focused on technology and product innovation, as well as increasing our go-to-market and compliance resources to meet growing demands. Q1 adjusted operating expenses are expected to grow in the low double digits before jumping into the high teens in Q2 due to a tough comparison from investment delays in 2025.

Patti Kangwankij: As you may recall, the Q2 2025 expenses were uncharacteristically low. Growth in the second half is expected to be in the low to mid-single digits as we grow over the inclusion of TransactPay and more typical investment levels. Q1 Adjusted EBITDA growth is expected to be 45% to 50%.

Speaker #1: As you may recall, the Q2 2025 expenses were uncharacteristically low. Growth in the second half is expected to be in the low to mid single digits as we grow over the inclusion of transact pay and more typical investment levels.

Speaker #1: Q1 adjusted EBITDA growth is expected to be 45 to 50 percent. We expect Q2 growth to be approximately 10 to 15 percent due to the tough expense comparison, while the second half should grow 20 to 25 percent.

Patti Kangwankij: We expect Q2 growth to be approximately 10% to 15% due to the tough expense comparison, while the second half should grow 20% to 25%. Lastly, we expect to be approximately GAAP breakeven in the first two quarters of the year and then start generating net income in the second half. In conclusion, our achievements in 2025 have built a strong foundation for continued success in 2026 and beyond. Our ability to migrate customers in both credit and debit and flip several portfolios helps accelerate time to value and translates to gross profit and bottom line growth. We have great traction in Europe, and we are already seeing increased demand and bookings with the acquisition of TransactPay and our ability to now offer a full end-to-end solution in Europe.

Speaker #1: Lastly, we expect to be approximately GAAP breakeven in the first two quarters of the year and then start generating net income in the second half.

Speaker #1: In conclusion, our achievements in 2025 have built a strong foundation for continued success in 2026 and beyond. Our ability to migrate customers in both credit and debit and flip several portfolios helps accelerate time-to-value and translates to gross profit and bottom-line growth.

Patti Kangwankij: Our ability to migrate customers in both credit and debit and flip several portfolios helps accelerate time to value and translates to gross profit and bottom line growth. We have great traction in Europe, and we are already seeing increased demand and bookings with the acquisition of TransactPay and our ability to now offer a full end-to-end solution in Europe.

Speaker #1: We have great traction in Europe and we are already seeing increased demand and bookings with the acquisition of transact pay and our ability to now offer a full end-to-end solution in Europe.

Speaker #1: Not only does this increase our pipeline and opportunities for growth, but we expect this to help bolster our gross profit take rate. Lastly, the traction we are seeing with value-added services not only helps create stickier customer relationships but also helps gross profit.

Patti Kangwankij: Not only does this increase our pipeline and opportunities for growth, but we expect this to help bolster our gross profit take rate. Lastly, the traction we are seeing with value-added services not only helps create stickier customer relationships, but also helps gross profit. As we head into 2026, we are excited about the momentum of our business. Our deep expertise and ability to enable innovation at scale are paying off, and these growth areas, coupled with our scale, position us to achieve GAAP net income profitability in 2026, a pivotal milestone that launches our next phase of value creation. I will now turn it back over to the operator for questions.

Speaker #1: As we head into 2026, we are excited about the momentum of our business. Our deep expertise and ability to enable innovation at scale are paying off, and these growth areas coupled with our scale position us to achieve GAAP net income profitability in 2026.

Patti Kangwankij: Our deep expertise and ability to enable innovation at scale are paying off, and these growth areas, coupled with our scale, position us to achieve GAAP net income profitability in 2026, a pivotal milestone that launches our next phase of value creation. I will now turn it back over to the operator for questions.

Speaker #1: A pivotal milestone that launches our next phase of value creation. I will now turn it back over to the operator for questions. Thank you.

Speaker #1: We'll now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Operator: Thank you. We'll now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. In the interest of time, we ask that participants limit themselves to 1 question and 1 follow-up. 1 moment, please, while we poll for questions. Thank you. Our first question is from Timothy Chiodo with UBS.

Speaker #1: You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Speaker #1: In the interest of time, we ask that participants limit themselves to one question and one follow-up. One moment, please, while we pull for questions.

Speaker #1: Thank you. Our first question is from Timothy Chiodo with UBS.

Speaker #2: Great. Thank you for taking the question and Patty, great to be on this call with you. The cash app topic, so I apologize for just getting right at this, but I did notice a little bit of a change there.

Timothy Chiodo: Great. Thank you for taking the question. Patti, great to be on this call with you. The Cash App topic. I apologize for just getting right at this, but I did notice a little bit of a change there. Gradual on the new issuance in first half, and then turning off the new issuance in the second half. I was wondering if there was any update you could provide investors around maybe the longer-term messaging around to what extent this diversification might persist? Would it persist into 2027, 2028, 2029? Will there be some kind of a limit to it where we hit a happy medium across the various providers that Cash App is using?

Speaker #2: So, gradual on the new issuance in the first half and then turning off in the second half. I was wondering if there was any update you could provide investors around maybe the longer-term messaging, around to what extent this diversification might persist?

Speaker #2: Would it persist into 2027, '28, '29? Will there be some kind of a limit to it where we hit a happy medium across the various providers that cash app is using?

Speaker #2: And then related to that, I also noticed that you mentioned the tiering that block is hitting this year, and you expect them to be at that tier for the entirety of the year, which somewhat implies that the second half lack of new issuance isn't overly material to 2026 numbers as you've previously guided.

Timothy Chiodo: Related to that, I also noticed that you mentioned the tiering that Block is hitting this year, and you expect them to be at that tier for the entirety of the year, which somewhat implies that the second half lack of new issuance isn't overly material to 2026 numbers, as you've previously guided. The follow-up question is that if that lack of new issuance starts to catch up to the Block volumes next year, does Block potentially slip back into a lower tier, and therefore, your take rate with Block returns to norms rather than the headwind that it sees this year?

Speaker #2: But the follow-up question is that if that lack of new issuance starts to catch up to the block volumes next year, does block potentially slip back into a lower tier and therefore your take rate with block returns to norms rather than the headwind that it sees this year?

Speaker #3: Next, I'll try to cover you covered a lot of ground there, so let me kind of dive in. So yes, we have changed our assumptions a little bit on the impact of them diversifying their new issuance.

Mike Milotich: Thanks, Tim. I'll try to cover... You covered a lot of ground there, let me kind of dive in. Yes, we have changed our assumptions a little bit on the impact of them diversifying their new issuance. Up until this point, and, you know, we're almost at the end of February, we see no discernible impact on the new issuance we're receiving. At this point, it's minimal to, you know, really not being able to see anything. We do expect them to be getting started. What we've assumed now is that through the first half, it'll sort of gradually, we'll be receiving less new issuance, by the second half, we will no longer see any new issuance.

Speaker #3: Up until this point, and we're almost at the end of February, we see no discernible impact on the new issuance we're receiving. So at this point, it's minimal to really not being able to see anything.

Mike Milotich: At this point, it's minimal to, you know, really not being able to see anything. We do expect them to be getting started. What we've assumed now is that through the first half, it'll sort of gradually, we'll be receiving less new issuance, by the second half, we will no longer see any new issuance.

Speaker #3: And so what we do expect them to be getting started. So what we've assumed now is that through the first half, it'll sort of gradually we'll be receiving less new issuance, but then by the second half, we will no longer see any new issuance.

Speaker #3: In terms of the second part of your question, in terms of the longer-term impact of diversification, as you know, Tim, in payments, a lot of people have—well, they see multiple providers, but they tend to have a primary provider, right, where you have 80 to 90 percent of your volume, and then you have a second provider who you really use for diversification purposes.

Mike Milotich: In terms of the second part of your question, in terms of the longer-term impact of diversification, you know, in, as you know, Tim, in payments, a lot of people have, well, they see multiple providers, but they tend to have a primary provider, right? Where you have 80% to 90% of your volume, and then you have a second provider, who you really use for diversification purposes. You know, how that plays out for us with Cash App remains to be seen, but we feel really good about our ability to remain their primary partner. One, we feel that our platform capabilities are quite differentiated in terms of what we can do and what we can provide them.

Speaker #3: And how that plays out for us with Cash App remains to be seen, but we feel really good about our ability to remain their primary partner.

Mike Milotich: You know, how that plays out for us with Cash App remains to be seen, but we feel really good about our ability to remain their primary partner. One, we feel that our platform capabilities are quite differentiated in terms of what we can do and what we can provide them.

Speaker #3: One, we feel that our platform capabilities are quite differentiated in terms of what we can do and what we can provide them. The second thing is that our relationship goes very deep and goes back very many years.

Mike Milotich: The second thing is that our relationship is goes very deep and goes back very many years. We have, we're accustomed to working together and have just a very deep relationship and are quite responsive in terms of how we work with them. Finally, and maybe most importantly, you know, there's a lot of very engaged users that remain on our platform and would be quite disruptive for them to, you know, to look to maybe move those off of our platform. When you look at the contribution to the spend from those users, it, we feel that's really going to benefit us to remain the primary partner.

Speaker #3: And so we have—we're accustomed to working together and have just a very deep relationship and are quite responsive in terms of how we work with them.

Speaker #3: And then finally, and maybe most importantly, there's a lot of very engaged users that remain on our platform, and it would be quite disruptive for them to look to maybe move those off of our platform.

Mike Milotich: Finally, and maybe most importantly, you know, there's a lot of very engaged users that remain on our platform and would be quite disruptive for them to, you know, to look to maybe move those off of our platform. When you look at the contribution to the spend from those users, it, we feel that's really going to benefit us to remain the primary partner.

Speaker #3: And when you look at the contribution to the spend from those users, we feel that's really going to benefit us to remain the primary partner.

Speaker #3: And we continue to also provide option value. So it'd be very easy for them to consider international expansion, for example, or move into more of a traditional credit card product on our platform that maybe more difficult to do with the partners they're using for diversification purposes.

Mike Milotich: You know, we continue to also provide option value. It'd be very easy for them to consider international expansion, for example, or move into more of a traditional credit card product on our platform that may be more difficult to do with, you know, the partners they're using for diversification purposes. We, you know, it remains to be seen, Tim, but we feel good that, you know, we have a very strong relationship and we continue to add value and, you know, we'll just have to continue to assess it as we get through this year. In terms of your second question on the tiering, yes, you're correct.

Speaker #3: So it remains to be seen, Tim, but we feel good that we have a very strong relationship and we continue to add value and we'll just have to continue to assess it as we get through this year.

Mike Milotich: We, you know, it remains to be seen, Tim, but we feel good that, you know, we have a very strong relationship and we continue to add value and, you know, we'll just have to continue to assess it as we get through this year. In terms of your second question on the tiering, yes, you're correct.

Speaker #3: In terms of your second question on the tiering, so yes, you're correct. I mean, if you go back to the renewal three years ago, what really we set out to do at that time was together with cash app and the negotiation, we said, "Okay, when does the business hit sort of the next level of scale?

Mike Milotich: I mean, if you go back to the renewal three years ago, what really we set out to do at that time was, together with Cash App in the negotiation, we said, Okay, when does the business hit sort of like, the next level of scale? Like, truly get to even a completely different level of operating. At that point, we should maybe have a little bit of a price adjustment to reflect that, you know, that new kind of level of scale they've achieved. They just moved into that in December. The tiers are relatively big. Just given the size of the business, there are more than 10 tiers in the contract, but the blocks of volume are relatively good size.

Speaker #3: Truly get to even a completely different level of operating?" And at that point, we should maybe have a little bit of a price adjustment to reflect that new kind of level of scale they've achieved.

Mike Milotich: Like, truly get to even a completely different level of operating. At that point, we should maybe have a little bit of a price adjustment to reflect that, you know, that new kind of level of scale they've achieved. They just moved into that in December. The tiers are relatively big. Just given the size of the business, there are more than 10 tiers in the contract, but the blocks of volume are relatively good size.

Speaker #3: And they just moved into that in December. And so, but the tiers are relatively big. So just to give them the size of the business, and there are more than 10 tiers in the contract, but the blocks of volume are relatively good size.

Speaker #3: So there's a lot of room in there for them to remain in that tier, but you're right that even with losing some new issuance, we still expect some growth, and they would remain in that tier for the year.

Mike Milotich: There's a lot of room in there for them to remain in that tier. You're right that even with losing some new issuance, we still expect some growth, and they would remain in that tier for the year. If they were really to start diversifying away more significantly, then that's the benefit of price tiering. It would start to get more expensive, and that would be the cost of diversification on their side. You know, we'll see how it plays out, but, you know, we feel good about our relationship and our ability to continue to add value there.

Speaker #3: And if they were really to start diversifying away more significantly, then that's the benefit of price tiering; it would start to get more expensive, and that would be the cost of diversification on their side.

Speaker #3: So we'll see how it plays out, but we feel good about our relationship and our ability to continue to add value there.

Speaker #2: Thank you.

Speaker #4: Thank you. Our next question is from Connor Allen with JPMorgan.

Timothy Chiodo: Thank you.

Operator: Thank you. Our next question is from Connor Allen with JP Morgan.

Speaker #5: Hi, Mike and Patty. Thanks for taking my questions. Patty, congrats on your role. Maybe a question for you if you don't mind. Could you talk a little bit more about your choice to join Marquetta?

Connor Allen: Hi, Mike and Patti. Thanks for taking my questions. Patti, congrats on your role. Maybe a question for you, if you don't mind. Could you talk a little bit more about your choice to join Marqeta? I'm curious, considering your background across cards and payments, just what stood out for you in your diligence? What makes you the most excited here?

Speaker #5: I'm curious considering your background across cards and payments, just what stood out for you in your diligence? What makes you the most excited here?

Speaker #6: Yeah. No. Well, thanks, Connor. And it's nice to meet you. So I've been in and around payments for over a decade now across, as you mentioned, across acquiring issuing and banking.

Mike Milotich: Yeah. No, well, thanks, Connor, and it's nice to meet you. I've been in and around payments for over a decade now, across, as you mentioned, across acquiring, issuing, and banking, and, you know, across, you know, a bigger kind of like, within a bank as well as kind of Stripe, and then subsequently, you know, at Roofstock, which I was trying to implement fine embedded finance within that. I've known about Marqeta for years. I was at Stripe when they launched issuing and, you know, really recognized Marqeta as a category creator at that time. When the call came in-

Patti Kangwankij: Yeah. No, well, thanks, Connor, and it's nice to meet you. I've been in and around payments for over a decade now, across, as you mentioned, across acquiring, issuing, and banking, and, you know, across, you know, a bigger kind of like, within a bank as well as kind of Stripe, and then subsequently, you know, at Roofstock, which I was trying to implement fine embedded finance within that. I've known about Marqeta for years. I was at Stripe when they launched issuing and, you know, really recognized Marqeta as a category creator at that time. When the call came in-

Speaker #6: And across a bigger kind of within a bank as well as kind of Stripe, and then subsequently at Roofstock, which I was trying to implement fine embedded finance within that.

Speaker #6: So, I’ve known about Marqeta for years. And I was at Stripe when they launched Issuing and really recognized Marqeta as a category creator at that time.

Speaker #6: So, when the call came in, I spent some time with Mike and the board and the leadership team, and I got very excited about the combination of the team I'd be working with.

Patti Kangwankij: I spent some time with Mike and the board and the leadership team. You know, I got very excited about the combination of kind of the team I'd be working with, but also kind of listened to a lot of their track record in 2025 and kind of the growth they've been seeing and on kind of all the opportunities ahead. Also, you know, the customers that they worked with. DoorDash, Klarna, Uber, Block. You know, having worked with these customers across different organizations, you know, they don't take these decisions lightly. Really, you know, it kind of validated what's been built here. As you know, payment platforms are kind of complex and hard to build, so they require deep relationships.

Speaker #6: But also kind of listened to a lot of their track record in 2025 and kind of the growth they've been seeing and kind of all the opportunities ahead.

Speaker #6: And then also the customers that they worked with. So DoorDash, Klarna, Uber, Block, having worked with these customers across different organizations, they don't take these decisions lightly.

Patti Kangwankij: DoorDash, Klarna, Uber, Block. You know, having worked with these customers across different organizations, you know, they don't take these decisions lightly. Really, you know, it kind of validated what's been built here. As you know, payment platforms are kind of complex and hard to build, so they require deep relationships.

Speaker #6: And really, it kind of validated what's been built here. And so as you know, payment platforms are kind of complex and hard to build.

Speaker #6: So and they require deep relationships. And so I just felt like my experience was especially relevant and at a time and place where there was just a lot of growth and investment ahead.

Patti Kangwankij: I just felt like my experience was especially relevant and at a time and place where there was just a lot of growth and investment ahead. I'm excited to be here today to join the team.

Speaker #6: And so I'm excited to be here today to join the team.

Speaker #4: Great. Thank you. Appreciate that. And share the same view on our side. Maybe one for you, Mike, if you don't mind. I wanted to ask a little bit about competition.

Connor Allen: Great. Thank you. Appreciate that. Share the same view on our side. Maybe one for you, Mike, if you don't mind. I wanted to ask a little bit about competition. There's been some discussion in the market about newer entrants competing for larger deals. I mean, we gather that it's not necessarily happening where Marqeta typically participates, but I'm just curious, at a high level, if you've seen any shift in the competitive environment, new faces in RFPs, et cetera?

Speaker #4: There's been some discussion in the market about newer entrants competing for larger deals. I mean, we gather that it's not necessarily happening where Marquetta typically participates.

Speaker #4: But I'm just curious at a high level if you've seen any shift in the competitive environment, new faces in RFPs, etc.?

Speaker #3: We are not seeing any significant change in the competitive environment. I would say it's relatively stable. I think what is more changing from our perspective is a few years ago, in the fintech boom times, right, there were a lot more deals, a lot more uncertainty where you were making bets on customers and whether they would succeed.

Mike Milotich: We are not seeing any significant change in the competitive environment. I would say it's relatively stable. I think what is more changing from our perspective is, you know, a few years ago, in the, you know, the fintech boom times, right, there were a lot more deals, a lot more uncertainty where you were making bets on customers and whether they would succeed. That was a big part of the sort of process. Not only are you bidding for the business, but you're also trying to assess the chances of success.

Speaker #3: That was a big part of the sort of process, not only are you bidding for the business, but you're also trying to assess the chances of success.

Speaker #3: What's now happening is there are fewer deals, but they're much more substantial in size. And their customers who already have a user base and a brand.

Mike Milotich: What's now happening is there are fewer deals, but they're much more substantial in size, and they're customers who, you know, already have a user base and a brand, and so from our perspective, have a much higher likelihood of success because they're really just looking to insert a card value proposition into an existing user base. The fact that then they're more established companies has changed a little bit, the dynamics of who we see, because, you know, usually they're only gonna include players who have, you know, more substantial scale.

Speaker #3: And so from our perspective, have a much higher likelihood of success because they're really just looking to insert a card value proposition into an existing user base.

Speaker #3: And so the fact that then there are more established companies has changed a little bit the dynamics of who we see because usually they're only going to include players who have more substantial scale.

Mike Milotich: The fact that then they're more established companies has changed a little bit, the dynamics of who we see, because, you know, usually they're only gonna include players who have, you know, more substantial scale.

Speaker #3: And that's a much bigger part of the decision-making process because they're confident they're going to reach several billions of volume or maybe even to double-digit billions of volume annually.

Mike Milotich: That's a much bigger part of the decision-making process because they're confident they're gonna reach, you know, several billions of volume or maybe even to, you know, double-digit billions of volume annually, and who has the platforms and the experience and track record of delivering on that kind of scale. So, you know, it's mostly stable, but there is a slight change as we move upmarket, so to speak.

Speaker #3: And who has the platforms and the experience and track record of delivering on that kind of scale? And so it's mostly stable, but there is a slight change as we move up market, so to speak.

Speaker #4: Makes sense. Thank you both. Our next question is from Darren Peller with Wolf Research.

Connor Allen: Makes sense. Thank you both.

Operator: Our next question is from Darrin Peller with Wolfe Research.

Speaker #7: Hey, guys. Thanks. Patty, nice to connect and congrats also. Nice to connect again. I guess when I just think about the underlying trajectory of the business, Mike, I know we talked about seven points of impact to your gross profit outlook.

Darrin Peller: Hey, guys. Thanks. Patty, nice to connect, and congrats also.

Patti Kangwankij: Thank you.

Darrin Peller: Nice to connect again. I guess when I just think about the underlying trajectory of the business, you know, Mike, I know we talked about seven points of impact to your gross profit outlook, really associated with the items that you discussed on Block, as well as the renewals. I guess there's another few points on pricing, which I think is a little bit more newer to us, just given the scale of Cash App. The combination, you're really still growing your Cash App by somewhere over 20% when you look at your guide and those variables. A, is that how you want us to think about the trajectory? B, if that's true, maybe remind us of what you're seeing as the top drivers. I mean, you're talking about flips in the business. Where are you seeing the most strength?

Speaker #7: Really associated with the items that you discussed on Block, as well as the renewals. And I guess there's another few points on pricing, which I think is a little bit newer to us just given the scale of Cash App.

Speaker #7: And so the combination, you're really still growing your Cash App by somewhere over 20% when you look at your guide and those variables. A, is that how you want us to think about the trajectory?

Darrin Peller: The combination, you're really still growing your Cash App by somewhere over 20% when you look at your guide and those variables. A, is that how you want us to think about the trajectory? B, if that's true, maybe remind us of what you're seeing as the top drivers. I mean, you're talking about flips in the business. Where are you seeing the most strength?

Speaker #7: And B, if that's true, maybe remind us of what you're seeing as the top drivers. I mean, you're talking about flips in the business.

Speaker #7: Where are you seeing the most strength? Just rank the top few strengths you're seeing driving that 20% plus algorithm. Thanks, guys.

Darrin Peller: Just rank the top few strengths you're seeing driving that 20% plus algorithm. Thanks, guys.

Speaker #3: Sure. Yeah. No, thanks, Darren. And you're exactly right. There's the two impacts we called out that are seven points. The renewals and the Cash App tiering.

Mike Milotich: Sure. Yeah, no, thanks, Darrin. You're exactly right. There's the two impacts we called out that are 7 points, the renewals and the Cash App tiering. Those, to us, are very timing specific. It's almost like they're almost perfectly lining up to hit our 2026 growth. In a way, if the timing was a little different, these impacts would be spreaded out, and our growth wouldn't be, you know, kind of where it is in the lower double digits. Those two things we really think are very specific to timing and therefore go away. We have a little bit of 1.5 to 2 points of the Cash App diversification. Just in general, the TPV growth is just moderating, right?

Speaker #3: Those, to us, are very timing-specific. It's almost like they're almost perfectly lining up to hit our 2026 growth in a way if they were the timing was a little different, these impacts would be spread out.

Speaker #3: And our growth wouldn't be kind of where it is in the lower double digits. So those two things, we really think are very specific to timing.

Mike Milotich: Those two things we really think are very specific to timing and therefore go away. We have a little bit of 1.5 to 2 points of the Cash App diversification. Just in general, the TPV growth is just moderating, right?

Speaker #3: And therefore, go away. And then we have a little bit at one and a half to two points of the Cash App diversification. And then just in general, the TPV growth is just moderating, right?

Speaker #3: The second half, our growth has really been particularly impressive given our scale. And we still expect it to be strong, but not growing over 30%.

Mike Milotich: The second half, our growth has really been particularly impressive given our scale, and we still expect it to be strong, but not, you know, growing over 30%. You put all those things together, and there's sort of 7 points of timing and call it 4 to 5 points of other factors. I think when we look at what is, you know, what's exciting to us, I would put it in a few different areas. There's four things where we really have strong momentum. The TPV growth, again, is very impressive, particularly Buy Now, Pay Later, and we just think that's gonna be a growing use case. It's just gonna continue to get wider adoption.

Speaker #3: And so you put all those things together, and there's sort of seven points of timing and call it four to five points of other factors.

Speaker #3: I think when you look at what is what's exciting to us, I would put it in a few different areas. There's four things where we really have strong momentum.

Speaker #3: The TPV growth, again, is very impressive, particularly buy now, pay later. And we just think that's going to be a growing use case. It's just going to continue to get wider adoption.

Speaker #3: Europe is not only fast-growing, but we've added capabilities there with TPL just in the last six months. Our value-added services, the size of that business doubled in 2025.

Mike Milotich: Europe is not only fast growing, we've added capabilities there with TransactPay just in the last 6 months. You know, our value-added services, the size of that business doubled in 2025, that tends to be a stickier, higher margin business. You know, the new cohorts, the new customers we're bringing on, as I mentioned, 40 new logos, 14 of our 15 top customers have done a new program with us in the last 2 years. You know, our existing customers are expanding with us. Those are all the things that make us feel confident of just the underlying momentum in the business. When you combine that with some things that are more on the come.

Speaker #3: And that tends to be a stickier, higher margin business. And then the new cohorts, the new customers we're bringing on, as I mentioned, 40 new logos, 14 of our 15 top customers have done a new program with us in the last two years.

Speaker #3: So our existing customers are expanding with us. And so those are all the things that make us feel confident of just the underlying momentum in the business.

Mike Milotich: You know, our existing customers are expanding with us. Those are all the things that make us feel confident of just the underlying momentum in the business. When you combine that with some things that are more on the come.

Speaker #3: And then when you combine that with some things that are more on the come, a pipeline that's full of enterprise customers who are looking to move into card payments and looking for established scale players.

Mike Milotich: You know, a pipeline that's full of enterprise customers who are looking to move into card payments and looking for established scale players. You know, we have innovative new products that we're experimenting with, and we're hoping we'll get some traction in 2026. Of course, credit is something that we've been, you know, taking our time with, making sure we do it the right way, but, you know, we're gonna start leaning in more and more in kind of the next year or 2. Those are all things that I consider to be on the come. The last piece I would just highlight is the beneficial mix.

Speaker #3: We have innovative new products that we're experimenting with, and we're hoping we'll get some traction in 2026. And then, of course, credit is something that we've been taking our time with, making sure we do it the right way, but we're going to start leaning in more and more in kind of the next year or two.

Speaker #3: So those are all things that I consider to be on the come. And then the last piece I would just highlight is the beneficial mix.

Speaker #3: As Europe and value-added services—which are growing much faster than the company, and we think will continue to do so—as they gain share of gross profit, it will lift the overall gross profit growth rate.

Mike Milotich: As Europe and value-added services, which are growing much faster than the company, and we think will continue to do so, as they gain share of gross profit, it will lift the overall gross profit growth rate. You know, that's why I mentioned in my comments, I think the growth we're seeing in 2026 is very specific. We think that actually the underlying components and structural elements of the business are actually quite strong and on a good trajectory. You know, we feel good about, you know, the path that the business is on.

Speaker #3: So that's why I mentioned in my comments I think the growth we're seeing in 2026 is very specific. We think that actually the underlying components and structural elements of the business are actually quite strong and on a good trajectory.

Speaker #3: And we feel good about the path that the business is on.

Speaker #7: Yeah. Okay. Hey, guys, just one quick follow-up. Would be to double-check that you've reviewed the portfolio. And don't feel any risk of incremental renewals, large renewals.

Darrin Peller: Yeah. Okay. Hey, guys, just one quick follow-up would be to double check that you've reviewed the portfolio and don't feel any risk of incremental renewals, large renewals. Just wanna see if there's anything else we should just keep an eye out for the year that would impact maybe guidance even into the next year. It may be too early to know the end of the year. Anything you see where your transparency is? Thanks.

Speaker #7: Just want to see if there's anything else we should just keep an eye out for the year that would impact maybe guidance, even into the next year, maybe too early to know the end of the year, but anything you see.

Speaker #7: Where are your transparency is? Thanks.

Speaker #6: Yeah. I think it's probably a little too early to be talking about 2027, but I think, yeah, we do on a normal way basis have renewals all the time.

Patti Kangwankij: Yeah, I think it's probably a little too early to be talking about 2027, but I think, yeah, we do, you know, on a normal way basis, have renewals all the time. Really, these two that we're highlighting here are the two remaining from coming out of the fintech boom. I think you'll always see, you know, as we're kind of growing with these users and you would naturally see some pricing step down as they grow with us. That's, again, to incentivize them to grow with us.

Speaker #6: But really, these two that we're highlighting here are the two remaining from coming out of the fintech boom. But I think you'll always see as we're kind of growing with these users and you would see you would naturally see some pricing step down as they grow with us.

Speaker #6: But that's, again, to incentivize them to grow with us.

Speaker #3: Yeah. I would say, Darren, we have pretty good Darren, we have pretty good visibility. And I think we've been as Patty just said, I mean, we've included sort of the BAU things that we would expect to see.

Mike Milotich: Yeah, I would say, Dan, we have pretty good visibility.

Patti Kangwankij: Yeah.

Mike Milotich: I think we've, as Patty just said, I mean, we've included sort of the BAU things that we would expect to see.

Speaker #3: So we feel pretty good that we've incorporated everything.

Speaker #6: Yeah.

Darrin Peller: Right.

Mike Milotich: We feel pretty good that we've incorporated everything.

Speaker #7: Great. Great. Great. Okay. Thanks, guys.

Patti Kangwankij: Yeah.

Darrin Peller: Great. Great. Okay, thanks, guys.

Speaker #8: Our next question is from Sanjay Sakrani with KBW.

Operator: Our next question is from Sanjay Sakhrani with KBW.

Speaker #9: Thank you. And welcome, Patty. I'm just curious I know Mike, you talked a little bit about the expectations for moderating TPV growth in the second half.

Sanjay Sakhrani: Thank you, and welcome, Patti. I'm just curious, I know, Mike, you talked a little bit about the expectations for moderating TPV growth in the second half. Obviously, you're growing over some difficult comparisons. Curious, is that sort of conservative, given, you know, you have the pipeline and then obviously BNPL is doing well? Or do you feel like there will be a little bit of a scale back in terms of issuance there?

Speaker #9: Obviously, you're growing over some difficult comparisons. But curious, is that sort of conservative given you have the pipeline and then obviously BNPL is doing well?

Speaker #9: Or do you feel like there will be a little bit of a scale back in terms of issuance?

Speaker #3: There. Yeah, it's a great question, Sanjay. I think the performance we're seeing in this past quarter, I would say, is just pretty remarkable. When you just step back a minute, lending and buy now, pay later use case is growing almost 60%.

Mike Milotich: Yeah, it's a great question, Sanjay. I think the, you know, the performance we're seeing in this past quarter, I would say, is pretty remarkable. Like, when you just to step back a minute, you know, in lending and buy now, pay later use case is growing almost 60%, and that's despite us lapping the conversion with Klarna that we executed in October 2024. We're growing almost 60% with, like, a tougher comp. You know, expense management is growing over 40%. That's a pretty big use case for us. That's the first time it's grown over 40% in 3 years.

Speaker #3: And that's despite us lapping the conversion with Klarna. That started that we executed in October of '24. So we're growing almost 60% with a tougher comp.

Speaker #3: Expense management is growing over 40%. That's a pretty big use case for us. So that's the first time it's grown over 40% in three years.

Speaker #3: Financial services, which is by far our largest use case, is growing over 30%. In Q4, and it hasn't that's the first time that's happened in 2025 on, again, a very large base.

Mike Milotich: You know, financial services, which is by far our largest use case, is growing over 30% in Q4. That's the first time that's happened in 2025 on, again, a very large base. Even on-demand delivery, which, you know, for the last couple of years has been more of a single-digit grower, is now, you know, double-digits the last couple of quarters and accelerated. We really are seeing, you know, incredible performance. We've tried to be reasonable. As we said, you know, we think in the first half our growth will remain over 30%, as there's just so much momentum.

Speaker #3: And even on-demand delivery, which for the last couple of years has been more of a single-digit grower, is now double-digits the last couple of quarters and accelerated.

Speaker #3: So we really are seeing incredible performance. We've tried to be reasonable as we said we think in the first half our growth will remain over 30%.

Speaker #3: As there's just so much momentum. But as we get to the second half, it's just we have really tough comps. And if some of these things can keep rolling at that level, obviously, that would be great for the business.

Mike Milotich: As we get to the second half, it's just we have really tough comps, and if, you know, some of these things can keep rolling at that level, obviously that would be great for the business, but that's not what we've assumed for now. We think those tougher comps will slow the growth a little bit. You know, growing in kind of the mid to high 20s, on a, you know, a base of almost $400 billion of volume, we feel, you know, pretty good about the growth of the business.

Speaker #3: But that's not what we've assumed for now. We think those tougher comps will slow the growth a little bit. But growing in kind of the mid to high 20s on a base of almost 400 billion of volume, we feel pretty good about the growth of the business.

Speaker #9: Thank you. And then just to follow up on value-added services and Europe, I guess when we think about the growth there, can you just maybe help us dimensionalize sort of what you're expecting this year versus last year?

Sanjay Sakhrani: Thank you. Just to follow up on value-added services and Europe, I guess when we think about the growth there, can you just maybe help us dimensionalize sort of what you're expecting this year versus last year? You know, what maybe the broader product rollouts are that could actually maybe accelerate the growth there as well?

Speaker #9: And what may be the broader product rollouts are that could actually maybe accelerate the growth there as well?

Speaker #3: Sure. So let me start in Europe. The Europe is now I don't know about a little bit maybe a little bit more than mid-teens of our TPV.

Mike Milotich: Sure. Let me start in Europe. The, you know, Europe is now, you know, I don't know, about a little bit, maybe a little bit more than mid-teens of our TPV. This is the first quarter in a couple of years that it hasn't grown over 100%, just as that base is growing. As I mentioned in my comments, you know, 2025 is 8 times the size of 2022, in terms of our business in Europe. We have a lot of momentum there, and that was all done with a relatively limited value proposition of just our. You know, we have great processing, and of course, you know, we're quite proud of our processing capabilities, but we didn't really have many other services around that capability.

Speaker #3: And this is the first quarter in a couple of years that it hasn't grown over 100% just as that base is growing. As I mentioned in my comments, 2025 is eight times the size of 2022.

Speaker #3: In terms of our business in Europe. So we have a lot of momentum there. And that was all done with a relatively limited value proposition of just our we have great processing.

Mike Milotich: We have a lot of momentum there, and that was all done with a relatively limited value proposition of just our. You know, we have great processing, and of course, you know, we're quite proud of our processing capabilities, but we didn't really have many other services around that capability.

Speaker #3: And of course, we're quite proud of our processing capabilities. But we didn't really have many other services around that capability. And with the transact pay acquisition, we now have a much more robust value proposition to sell and market.

Mike Milotich: With the TransactPay acquisition, we now have a much more robust value proposition to sell and market. We're expecting Europe to still meaningfully outpace the overall company, both in terms of TPV growth as well as gross profit growth. So we expect that to be a pretty major contributor. In terms of value-added services, you know, we continue to add new capabilities, and more and more customers are looking for scaled solutions. I would say the growth, we think, will moderate a little bit in 2026, only because we really had a pretty significant step up in 2025. We had a few of our largest customers adopt offerings from us, which then meant that the gross profit doubled in 2025 versus 2024.

Speaker #3: And so we're expecting Europe to still meaningfully outpace the overall company, both in terms of TPV growth as well as gross profit growth. So we expect that to be a pretty major contributor.

Mike Milotich: So we expect that to be a pretty major contributor. In terms of value-added services, you know, we continue to add new capabilities, and more and more customers are looking for scaled solutions. I would say the growth, we think, will moderate a little bit in 2026, only because we really had a pretty significant step up in 2025. We had a few of our largest customers adopt offerings from us, which then meant that the gross profit doubled in 2025 versus 2024.

Speaker #3: In terms of value-added services, we continue to add new capabilities, and more and more customers are looking for scaled solutions. I would say the growth, we think, will moderate a little bit in 2026, only because we really had a pretty significant step up in 2025.

Speaker #3: We had a few of our largest customers adopt offerings from us, which then meant that the gross profit doubled. In 2025 versus 2024. And although we think it will keep growing at a nice clip faster than the company, it's not going to keep up that pace.

Mike Milotich: Although we think it will keep growing at a nice clip, faster than the company, it's not gonna keep up that pace. We do think it will be a meaningful contributor, and typically, those are, you know, higher margin products, and they, you know, increase the stickiness with the customer as well. You know, we're quite excited about kind of our expanding portfolio and the increased penetration that we have with those products into our customer base.

Speaker #3: But we do think it will be a meaningful contributor. And typically, those are higher-margin products. And they increase the stickiness. With the customer as well.

Speaker #3: So, we're quite excited about our expanding portfolio and the increased penetration that we have with those products into our customer base.

Speaker #9: Perfect. Thank you.

Operator: Perfect. Thank you. Our next question is from Craig Maurer with FT Partners.

Speaker #8: Our next question is from Craig Mauer with FT Partners.

Speaker #10: Yeah. Thanks. And welcome, Patty. I wanted to put a finer point on Tim's question earlier concerning a lot of what I had has already been asked and answered.

Craig Maurer: Yeah, thanks, and welcome, Patti. I wanted to put a finer point on Tim's question earlier, considering a lot of what I had has already been asked and answered. You know, Visa was pointed on their call to call out the win in cash for Cash App. They've been putting a lot of emphasis on their issuer services business. I was wondering what you're seeing differently from them. Are they increasing their presence in the market in terms of what they're doing for Fintechs? How is this changing how you're looking at the market, if at all?

Speaker #10: Visa was pointed on their call to call out the win in cash for cash app. They've been putting a lot of emphasis on their issuer services business.

Craig Maurer: They've been putting a lot of emphasis on their issuer services business. I was wondering what you're seeing differently from them. Are they increasing their presence in the market in terms of what they're doing for Fintechs? How is this changing how you're looking at the market, if at all?

Speaker #10: So I was wondering what you're seeing differently from them. Are they increasing their presence in the market in terms of what they're doing for fintechs?

Speaker #10: How is this changing how you're looking at the market, if at all?

Speaker #3: Sure. Obviously, I don't know exactly I can only see what Visa says publicly. But in my view, what Visa DPS particularly offers is obviously, they have a lot of credibility to say they can handle your business at scale with great reliability, right?

Mike Milotich: Sure. You know, obviously, I don't know exactly. I can only see what Visa says publicly. In my view, you know, what Visa DPS particularly offers is, you know, obviously, they have a lot of credibility to say they can handle your business at scale with great reliability, right? When you've gotten to that size, then they become an option. They're used to managing customers of that size. Just because of, you know, the size of their platform and how long it's been around, you know, my perception would be they're probably just not quite as flexible. You know, catching customers earlier in their life cycle is probably not, you know, kind of prime hunting ground for them.

Speaker #3: So when you've gotten to that size, then they become an option. And they're used to managing customers of that size. And just because of the size of their platform and how long it's been around, my perception would be they're probably just not quite as flexible.

Mike Milotich: They're used to managing customers of that size. Just because of, you know, the size of their platform and how long it's been around, you know, my perception would be they're probably just not quite as flexible. You know, catching customers earlier in their life cycle is probably not, you know, kind of prime hunting ground for them.

Speaker #3: So catching customers earlier in their life cycle is probably not kind of prime hunting ground for them. But talking to or talking to prospects who have already achieved a lot of scale and have a lot of maturity, that's a good match for them.

Mike Milotich: Talking to, or, you know, talking to prospects who have already achieved a lot of scale and have a lot of maturity, you know, that's a good match for them. Where their strengths, it sort of plays into their strengths, so to speak. I would say, you know, I think they have made platform improvements. I have no doubt they have more capabilities than they did a few years ago. I think there's still a relatively small group of people that kinda have that kind of scale that they would target.

Speaker #3: And where their strengths—it sort of plays into their strengths, so to speak. So I would say I think they have made platform improvements.

Speaker #3: I have no doubt they have more capabilities than they did a few years ago. But I think there's still a relatively small group of people that kind of have that kind of scale.

Speaker #3: That they would target. I think we would still have big advantages, I think, in terms of nimbleness. And thinking of more creative solutions to solve very specific problems for customers as opposed to something that's pretty stable processing and they know what they want.

Mike Milotich: I think, you know, we would still have big advantages, I think, in terms of nimbleness, and thinking of, you know, more creative solutions to solve very specific problems for customers, as opposed to something that's, you know, pretty stable processing, and they know what they want. We may see them a little bit more. A couple of years ago, we didn't really see them much. I think as we go after bigger and bigger business, then that would be maybe a competitor we'll see a little more frequently.

Speaker #3: And so we may see them a little bit more a couple of years ago. We didn't really see them much. And I think as we go after bigger and bigger business, then that would be maybe a competitor we'll see a little more frequently.

Speaker #3: But we still feel very good that our value proposition is that we also can support a lot of scale and have programs that are quite big, but we still have a lot of agility and a lot of unique capability.

Mike Milotich: We still feel very good that our value proposition is that we also can support a lot of scale and have programs that are quite big, but we still have a lot of agility, and a lot of unique capability and configurability that allows people to do things that are a little bit different and differentiate themselves in the market. That's really what sets Marqeta apart.

Speaker #3: And configurability that allows people to do things that are a little bit different and differentiate themselves in the market. And that's really what sets Marketo apart.

Speaker #8: Excellent. Our next question is from James Fawcett with Morgan Stanley.

Craig Maurer: Thanks a lot.

Operator: Our next question is from James Faucette with Morgan Stanley.

Speaker #11: Hi, guys. It's Michael in Farm Tab for James. Thanks for taking our question. Mike, I'd be curious to hear how you're thinking about the mix shift we're seeing in BNPL broadly, with respect to a larger percentage of volume originating on flex credential cards, as well as within digital wallets.

James Faucette: Hi, guys. It's Michael in for James. Thanks for taking our question. Mike, I'd be curious to hear how you're thinking about the mix shift we're seeing in BNPL broadly with respect to a larger percentage of volume originating on flex credential cards as well as within digital wallets. As that mix shift continues, what's the impact on your unit economics, if at all?

Michael Cyprys: Hi, guys. It's Michael in for James. Thanks for taking our question. Mike, I'd be curious to hear how you're thinking about the mix shift we're seeing in BNPL broadly with respect to a larger percentage of volume originating on flex credential cards as well as within digital wallets. As that mix shift continues, what's the impact on your unit economics, if at all?

Speaker #11: So as that mix shift continues, what's the impact on your unit economics, if at all?

Speaker #3: Yeah, I would say not a big impact on our unit economics. I would say they're relatively similar. I would say typically, more of a consumer value proposition is going to have a little bit of a premium.

Mike Milotich: Yeah, I would say, not a big impact on our unit economics. I would say they're relatively similar. I would say typically more of a consumer value proposition is gonna have a little bit of a premium versus a single-use virtual card. At least at this point, the people, the first movers with the Flexible Credential are quite, you know, large players who, you know, have a lot of volume. I would say that the economics are relatively similar. The big difference is the lack of, I don't know, maybe I'll just say stickiness that comes when you shift from a virtual credential to a consumer credential.

Speaker #3: Versus a single-use virtual card. But at least at this point, the people the first movers with the flexible credentials are quite large players who have a lot of volume.

Speaker #3: So I would say the economics are relatively similar. But the big difference is the lack of I don't know. Maybe I'll just say stickiness that comes when you shift from a virtual credential to a consumer credential.

Speaker #3: That's going to be much more sticky relationship, harder to diversify. Because there isn't a lot of precedent for people trying to run a single program on multiple stacks.

Mike Milotich: That's gonna be much more sticky relationship, harder to diversify because, you know, there isn't a lot of precedent for people trying to run a single program on multiple stacks. Versus in virtual card, you know, every transaction that occurs, you could send it to a different platform if you wanted. I think the real benefit to us, in addition to just having leadership in this space and being able to handle consumer value propositions, which, you know, some of our competitors don't have a lot of experience with. In that shift to something that's more consumer-oriented, it also becomes a little bit of a stickier business for us and a little bit more challenging for customers to diversify, which, you know, should be good for us, given our early leadership here.

Speaker #3: And versus in virtual card, every transaction that occurs, you could send it to a different platform if you wanted. And so I think the real benefit to us, in addition to just having leadership in this space and being able to handle consumer value propositions, which some of our competitors don't have a lot of experience with, but in that shift to something that's more consumer-oriented, it also becomes a little bit of a stickier business for us and a little bit more challenging for customers to diversify, which should be good for us given our early leadership here.

Mike Milotich: I think the real benefit to us, in addition to just having leadership in this space and being able to handle consumer value propositions, which, you know, some of our competitors don't have a lot of experience with. In that shift to something that's more consumer-oriented, it also becomes a little bit of a stickier business for us and a little bit more challenging for customers to diversify, which, you know, should be good for us, given our early leadership here.

Speaker #11: It's helpful, Mike. And then maybe just secondly, any quick update you can share just on the nature of your conversations with some of the larger financial institutions and in the areas that they're diligent in.

James Faucette: That's helpful, Mike. Maybe just secondly, and any quick update you can share just on the nature of your conversations with some of the larger financial institutions and any areas that they're diligencing? Thanks, guys.

Michael Cyprys: That's helpful, Mike. Maybe just secondly, and any quick update you can share just on the nature of your conversations with some of the larger financial institutions and any areas that they're diligencing? Thanks, guys.

Speaker #11: Thanks, guys.

Speaker #3: Sure. I would say our conversations with financial institutions, I would say, are more frequent and substantive now than they were a couple of years ago.

Mike Milotich: Sure. I would say Our conversations with financial institutions, I would say, are more frequent and substantive now than they were a couple of years ago. I think there's a real shift in the market towards people really looking at modernization. I think the, you know, as we've said before, you know, the Fintech winners have been crowned, and they're becoming big businesses. What I think maybe a few years ago, maybe people saw as growing the pie, are now starting to become real competitive threats and real competition for the banks, for not only deposits, but also spending, both consumer and commercial.

Speaker #3: I think there's a real shift in the market towards people really looking at modernization. I think that, as we've said before, the fintech winners have been crowned, and they're becoming big businesses.

Speaker #3: And so what I think maybe a few years ago, maybe people saw as growing the pie, are now starting to become real competitive threats and real competition for the banks for not only deposits, but also spending, both consumer and commercial.

Mike Milotich: What I think maybe a few years ago, maybe people saw as growing the pie, are now starting to become real competitive threats and real competition for the banks, for not only deposits, but also spending, both consumer and commercial.

Speaker #3: And so I think there's a broader recognition that to successfully compete with some of those value propositions, you're probably going to need a little bit more sophisticated technology and more ability to be flexible and configurable.

Mike Milotich: I think there's, you know, broader recognition that, you know, to successfully compete with some of those value propositions, you're probably gonna need a little bit more sophisticated technology and more, you know, more ability to be flexible and configurable. We are having, you know, more and more conversations. We still believe, though, that, you know, these are inherently cautious organizations, and we're likely to break in still with a specific use case. I would say the two, probably at the top of the list from our standpoint, would be something in commercial, just given our success and proven track record at supporting many of the disruptors.

Speaker #3: And so we are having more and more conversations we still believe, though, that these are inherently cautious organizations and we're likely to break in still with a specific use case.

Mike Milotich: We still believe, though, that, you know, these are inherently cautious organizations, and we're likely to break in still with a specific use case. I would say the two, probably at the top of the list from our standpoint, would be something in commercial, just given our success and proven track record at supporting many of the disruptors.

Speaker #3: And I would say the two probably at the top of the list from our standpoint would be something in commercial, just given our success and proven track record at supporting many of the disruptors.

Speaker #3: And then also in some sort of lending, buy now, pay later use case, where a lot of banks also are interested in providing that kind of capability on their cards. And we clearly, again, have established leadership and track record and ability, again, to support big scale.

Mike Milotich: Then also in some sort of lending Buy Now, Pay Later use case, where a lot of banks also are interested in providing that kind of capability on their cards. We clearly, again, have established leadership and track record and ability, again, to support big scale. You know, we're, you know, we're working to get our foot in the door, and I would say the conversations are. There's a lot more promising than maybe 2 years ago, where it felt like it was still pretty far off.

Speaker #3: So we're working to get our foot in the door and I would say the conversations there's a lot more promising than maybe a couple of years ago where it felt like it was still pretty far off.

Speaker #11: Thanks, Mike.

Speaker #3: Yep.

James Faucette: Thanks, Mike. Yep.

Speaker #8: Our next question is from Andrew Schmidt with Citi.

Operator: Our next question is from Andrew Schmidt with Citi.

Speaker #12: Hey, Mike. Welcome, Patty. Thanks for taking my questions. So I just wanted to dig in on the implementation timeframes and partner bank diversification, maybe you could just give us an update there.

Andrew Schmidt: Hey, Mike. Welcome, Patty. Thanks for taking my questions. I just wanted to dig in on the implementation time frames and partner bank diversification. Maybe you could just give us an update there. For the enterprise customers for embedded use cases, if you could just elaborate on what implementation time frame looks like for that type of customer, that would be helpful. Thanks so much.

Speaker #12: And then for the enterprise customers for embedded use cases, if you could just elaborate on one implementation timeframe looks like for that type of customer, that would be helpful.

Speaker #12: Thanks so much.

Speaker #3: Sure. So in terms of new bank partnerships, we added a new well, a new US bank and then a UK bank last year. We're in the process of implementing another US bank and a European bank in the first half of this year.

Mike Milotich: Sure. In terms of new bank partnerships, you know, we added a new US bank and then a UK bank last year. We're in the process of implementing another US bank and a European bank in the first half of this year. You know, we are diversifying our bank offering. In Europe, it's purely because now we have the capability to sort of offer a combined value proposition, so those are new. In the US, the diversification more is targeting two things. Either it's a use case, not all of the banks are comfortable with all the types of use cases that we can serve. Some of it is about as our business diversifies, we might need different partners. Some of it is also capability, right?

Speaker #3: So, we are diversifying our bank offering in Europe. It's purely because now we have the capability to sort of offer a combined value proposition.

Speaker #3: So those are new. And in the US, the diversification more is targeting two things. Either it's a use case, not all of the banks are comfortable with all the types of use cases that we can serve.

Mike Milotich: In the US, the diversification more is targeting two things. Either it's a use case, not all of the banks are comfortable with all the types of use cases that we can serve. Some of it is about as our business diversifies, we might need different partners. Some of it is also capability, right?

Speaker #3: So some of it is about as our business diversifies, we might need different partners. And then some of it is also capability, right? Some of these banks have been investing and have some unique capabilities that we think pairs well with ours to meet a customer need.

Mike Milotich: Some of these banks have been investing and have some unique capabilities that we think pairs well with ours to meet a customer need. That's why we're expanding our bank kind of portfolio. In terms of the implementation time, I think we've gotten to a good place there, where we have solidified the processes. We've taken out a lot of the, you know, the challenges we had with things moving slower, and I think also we've done a good job educating customers about the impact of changes that they make along the way and what that can do to timeline. I think we've stabilized that pretty well. Maybe what you're signaling in the second part of your question is true.

Speaker #3: So that's why we're expanding our bank kind of portfolio in terms of the implementation times. I think we've gotten to a good place there where we have solidified the processes.

Speaker #3: We've taken out a lot of the challenges we had with things moving slower. And I think also we've done a good job educating customers about the impact of changes that they make along the way and what that can do to timelines.

Mike Milotich: We've taken out a lot of the, you know, the challenges we had with things moving slower, and I think also we've done a good job educating customers about the impact of changes that they make along the way and what that can do to timeline. I think we've stabilized that pretty well. Maybe what you're signaling in the second part of your question is true.

Speaker #3: So I think we've stabilized that pretty well. But maybe what you're signaling in the second part of your question is true. As we're moving into more enterprise deals, they do move a little slower.

Mike Milotich: As we're moving into more enterprise deals, they do move a little slower, right, than our previous customer base, who, you know, a lot of times our value proposition or the card they were doing with us was critical to their business and what they're trying to achieve. They're ready and willing to move very fast, and it's one of the top priorities going on at the entire company. When you're dealing with a much larger organization, you know, there's just more complex decision hierarchy. Even just the kind of scrutiny that we get in terms of, you know, tech and security and all these things, it just takes a little more time. I would say in general, they're moving a little slower.

Speaker #3: Right? Then our previous customer base who a lot of times our value proposition or the card they were doing with us was critical to their business and what they're trying to achieve.

Speaker #3: So they're ready and willing to move very fast, and it's one of the top priorities going on at the entire company. When you're dealing with a much larger organization, there's just a more complex decision hierarchy there.

Mike Milotich: They're ready and willing to move very fast, and it's one of the top priorities going on at the entire company. When you're dealing with a much larger organization, you know, there's just more complex decision hierarchy. Even just the kind of scrutiny that we get in terms of, you know, tech and security and all these things, it just takes a little more time. I would say in general, they're moving a little slower.

Speaker #3: Even just the kind of scrutiny that we get in terms of tech and security and all these things, it just takes a little more time.

Speaker #3: So I would say in general, they're moving a little slower. But as I mentioned earlier, we're okay with that trade-off because we feel the probability of success is much higher and their ability to hit the ground running is also much higher given they're going to be bringing this value proposition into an already established very large user base.

Mike Milotich: As I mentioned earlier, we're okay with that trade-off because we feel the probability of success is much higher, and their ability to hit the ground running is also much higher, given they're gonna be bringing this value proposition into an already established, very large user base, as opposed to, you know, a few years ago, when it was a new Fintech, they were gonna be building it mostly from scratch.

Speaker #3: As opposed to a few years ago when it was a new fintech, they were going to be building it mostly from scratch.

Speaker #12: Got it. Thanks for that, Mike. I appreciate those comments. And then maybe you could just chat on value-added services for a moment. It's good to see the uptake on the enhanced risk product.

Andrew Schmidt: Got it. Thanks for that, Mike. I appreciate those comments. Maybe you could just chat on value-added services for a moment. It's good to see the uptake on the enhanced risk product. Can you just talk about just, you know, expectations for attach there, you know, monetization? That would be helpful. Obviously, you know, more important point of all this is just the pipeline. For other value-add services, it's important to keep iterating these. Maybe talk about kind of what you're sort of targeting, what types of areas in the future? Thanks so much.

Speaker #12: Can you just talk about just expectations for attached there? Monetization, that would be helpful. And then obviously, more important point of all this is just the pipeline.

Andrew Schmidt: That would be helpful. Obviously, you know, more important point of all this is just the pipeline. For other value-add services, it's important to keep iterating these. Maybe talk about kind of what you're sort of targeting, what types of areas in the future? Thanks so much.

Speaker #12: For other value-added services, it's important to keep iterating these. Maybe you talk about kind of what your sort of targeting, what types of areas in the future.

Speaker #12: Thanks so much.

Speaker #3: Sure. I think the biggest change that we're seeing is that, again, with the fintech customer base, they almost prided themselves in piecing together kind of best-in-class solutions, right?

Mike Milotich: Sure. I think the biggest change that we're seeing is that, again, with the fintech customer base, they almost prided themselves in we're piecing together kind of best-in-class solutions, right? They viewed it as their modern tech stacks. They're going to take best in breed and pull it together to something that's quite unique in the market and best in class. You know, they were a little bit willing to choose à la carte. I think as we're talking to more and more enterprise customers, if you've got a good solution, they're happy to take it from you. Like, they don't want to connect to five different people to push, to, you know, pull together their value proposition.

Speaker #3: They viewed it as their modern tech stacks. They're going to take best-in-breed and pull it together to something that's quite unique in the market and best-in-class.

Mike Milotich: They're going to take best in breed and pull it together to something that's quite unique in the market and best in class. You know, they were a little bit willing to choose à la carte. I think as we're talking to more and more enterprise customers, if you've got a good solution, they're happy to take it from you. Like, they don't want to connect to five different people to push, to, you know, pull together their value proposition.

Speaker #3: And so they were a little bit willing to choose à la carte. I think as we're talking to more and more enterprise customers, if you've got a good solution, they're happy to take it from you.

Speaker #3: They don't want to connect to five different people to push to pull together their value proposition. So if you have a good offering to make, and you're going to be the prosper and program manager, they are, I see what we see are more inclined to take that solution from you just to make their life a little bit easier.

Mike Milotich: If you have a good offering to make and you're going to be the processor and program manager, they are what we see are more inclined to take that solution from you just to make their life a little bit easier and to be able to move faster. That's really the difference that we're seeing in the uptake. In terms of the areas, I think, you know, our strength is clearly in tokenization. We have capabilities there that we think are very differentiated and then in our risk services. Those are the two areas, you know, anyone in issuing is going to have to do some level of fraud management and fraud monitoring, right?

Speaker #3: And to be able to move faster. And so that's really the difference that we're seeing in the uptake. And in terms of the areas, I think our strength is clearly in tokenization.

Mike Milotich: That's really the difference that we're seeing in the uptake. In terms of the areas, I think, you know, our strength is clearly in tokenization. We have capabilities there that we think are very differentiated and then in our risk services. Those are the two areas, you know, anyone in issuing is going to have to do some level of fraud management and fraud monitoring, right?

Speaker #3: We have capabilities there that we think are very differentiated. And then in our risk services. Those are the two areas anyone in issuing is going to want is going to have to do some level of fraud management and fraud monitoring, right?

Speaker #3: And so those are the two areas that I think we're going to continue to invest and make sure we remain strong. But we are moving into new areas related to rewards.

Mike Milotich: Those are the two areas that I think we're going to continue to invest and make sure we remain strong. We are moving into new areas related to, you know, rewards, our white label app, more kind of data and analytics services as we continue to, you know, get bigger and have more scale. Those are some of the things that are relatively small now, but we think, you know, have a lot of potential to be larger in the future.

Speaker #3: Our white label app, more kind of data and analytics services as we continue to get bigger and have more scale. And so those are some of the things that are relatively small now, but we think have a lot of potential to be larger in the future.

Speaker #12: Got it. Thank you so much.

Andrew Schmidt: Got it. Thank you so much.

Sanjay Sakhrani: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you again for your participation.

Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you again for your participation.

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