Marqeta, Inc. Class A Common Stock FT Partners FinTech Conference

Good morning. For those of you who don't know me, I'm Craig Maurer. I'm Co-Director of Research here at FT Partners. We're very excited to have Patti Kangwankij Konkwenchitz I got it right?

Yeah. Yes, you got it.

Okay. Of Marqeta joining us this morning.

Thanks again for coming. Happy to be here.

So look, maybe you can start with an introduction of Marqeta for those in the room who might not know your business in detail. You are a public company, and you've been that for a number of years, but there's been some change over time, so maybe we can talk about that.

Marqeta is a modern card issuing platform, and we've been at the leading edge of the issuer processor for over a decade now. We have grown significantly in the past year, north of 30% in volume and are over $450 billion of volume on our platform run rate annually. We operate in 40 countries and on one single kind of modern platform. A lot of our customers are the big fintech leaders in the space, and we talk about our business in four use cases: buy now, pay later lending, which has the likes of Klarna, Affirm, Afterpay, and Sezzle; expense management with Ramp, BILL, and Expensify; on-demand delivery with DoorDash, Uber, and Instacart; and kind of the neobanks, which include Cash App and Square, Coinbase, OnePay, which is kind of Walmart's issuing arm.

We have built a really nice business over the last decade.

Mm-hmm. For the audience, we like to keep things casual, keep things flowing. If you have questions, don't wait for me to prompt them. Just raise your hand and we'll get to them. But before we go down the list of questions here Yes maybe you could talk through the transitions of senior leadership that have happened over the last few years because there have been some changes.

Mike, CEO, double duty as CFO for a while. So maybe talk about where you are today.

Yeah. We have a full leadership team today, so we're excited. We had our chief product officer join a couple of weeks ago. By background, I joined Marqeta about seven months ago as the CFO. Mike Milotich was named He has been the CFO for the past, I think, four years now. In the last year, he was playing double duty with CEO and CFO and he has built out the full leadership team. We hired a people officer, a technology officer, and a product officer, and we're really gelling and working through 2027 planning now.

That's great. Just to level set, maybe you can talk about highlights from this year and the guidance you've set. Your guidance runs through two large renewals, Block moving through its next pricing tier, moderation in Cash App new issuance. So maybe talk about the factors that have gone into guidance.

Yeah. Why don't I just start with those kind of moving pieces, then I'll go into some of maybe the growth factors longer-term. But yeah, so we guided towards 11%-12% gross profit growth for 2026. The three factors that you mentioned equate to about 7-8 percentage points of that growth impact. The first component was the renewals of two last deals that were negotiated in the fintech boom. So they had kind of a little bit of a higher price and we believed would have a material impact this year. That was worth about 3 percentage points. The second was the Cash App tiering on the pricing of the contract. So in 2023, when we renegotiated that contract, there was one tier which was about 2x the step down.

And at that time, we were thinking about this as when we reach this next level of growth and incentivizing Cash App to build with us. We said at that point we would reward them for this growth. And so there was a step down in pricing that hit at the end of 2025 that had a full year impact that was about 3 percentage points. And then the last item was the Cash App new issuance moderation. We've talked about that throughout the year, and that was worth about a percentage point and a half. If you add back maybe the first two items, which are unique to 2026 and won't happen after 2026, that's about 6 percentage points. And if you add that back to the 11-12, you get to the mid to high teens.

But when you think about the broader growth, I think we see still very broad-based growth across our customer base and our use cases. And in the markets that we operate in North America and where we're certified abroad, we're still only 2% of the overall market share, and we really feel strongly that we're in this wave of modernization that will continue for a long time.