Marqeta Beats Expectations and Launches a $150 Million Buyback, but Can It Outrun Its Block Problem?

Shares of Marqeta surged 18.6% to $19.80 after the card-issuing platform delivered a Q2 that quieted profitability skeptics — at least for now. Total processing volume grew 32% year-over-year to $120 billion, marking the fourth consecutive quarter of over 30% growth. Combined with a new $150 million share buyback and the company's second straight quarter of GAAP profit, the results handed investors a rare triple catalyst.

A Profit Story That's Starting to Stick. Net revenue of $176 million rose 17% year-over-year, while gross profit climbed 17% to $122 million.

Adjusted EBITDA hit $37 million — up 31% — yielding a 21% margin, and GAAP net income reached $8 million. For a company that posted a $14 million net loss in full-year 2025, back-to-back profitable quarters mark a genuine turning point in operating discipline. Management raised full-year profitability targets, now expecting GAAP net income in the high $20 million range and adjusted EBITDA growth in the low 30s.

The Buyback Signals Confidence — and a Floor. The board authorized $150 million in new repurchases on August 3, distinct from a prior $100 million program that was fully completed. At today's price, that's roughly 7.5 million shares — meaningful for a company with a market cap around $10 billion. It tells the market that management believes the stock is undervalued and has the cash flow to back it up.

Block Dependency Is Shrinking — but Not Gone. Block's share of net revenue fell to 41%, down from 46% a year ago, while non-Block payment volume grew more than twice as fast. That diversification is encouraging. But Cash App new card issuance began declining in late Q2 and is expected to fall to near zero by year-end — a headwind that could shave growth as Marqeta's largest customer spreads its business across multiple providers.

The Second Half Could Test Investor Patience. Management guided Q3 gross profit growth to just 5%–7%, roughly 10 points below Q2's pace , citing tougher comparisons and the fading boost from a prior acquisition. Offsetting that: expense management volume surged over 50%, lending/buy-now-pay-later volume grew over 40%, and international processing — now 20% of total volume — climbed more than 40%.

The bottom line: Marqeta proved it can turn a profit at scale, and it's putting cash behind its conviction. But with its biggest customer pulling back and growth set to decelerate, the stock's next leg depends on whether newer business lines can fill the gap fast enough.