Marqeta, Inc.

Ladies and gentlemen, welcome to the Marketo 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 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.

Thanks, Operator. Good afternoon, everyone, and welcome to Marketo's fourth quarter 2025 earnings call. Hosting today's call are Mike Miletic, Marquetta's CEO, and Patty Kong-Wong Keech, Marquetta'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 and 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. 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.

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. Patty is a proven finance executive with extensive experience across technology, financial services, and payments, and we're excited about the value she will add at Marketo. 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 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 as we reached 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 Marketas history. With a year-over-year increase of 36%, this was the third straight quarter in which our TPV growth has accelerated by three 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 PPP 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. This was fueled by strong gross profit growth and the benefit of our scale 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, 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 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. 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 Transact Bay, 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 longstanding Marketo customer. Our relationship started with enabling couriers for delivery in the US, which has since grown across many geographies. We then 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. Marketo'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 Marketo. 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 Marketta 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. This exemplifies the breadth and depth of the Marketta 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 Marketo 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. 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. The NPL started with Marketta enabling virtual cards for seamless payment experiences without costly and time-consuming backend integrations. The category has continued to evolve, and we've been at the forefront of enabling seamless geographic expansion and newer innovative solutions such as the Visa Flexible Credential and Pay Anywhere 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. For 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 Marketo. 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. 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 longstanding 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 decision and capability. Both customers were looking for a flexible solution to help meet the different needs for neobanking and lending use cases across multiple geographies as they scale, properly 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 am 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. 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. 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. 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 Marketo platform unique. 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 credentials 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 eight 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. 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 gap 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. Although we expect 2026 gross profit growth 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.