Marqeta (MQ) UBS Global Technology and AI Conference summary

Insourcing trends and impact

• Recent insourcing by sophisticated customers is more concentrated due to regulatory pressures, impacting take rates and requiring significant compliance resources.

• Three main insourcing types: taking over bank relationships, internalizing risk services, and direct endpoint connections, each with unique challenges and limited scalability.

• Gross profit slowdown from insourcing in Q4 was about 250 basis points, or $2 million, annualizing to $8 million.

• Most customers still rely on program management and risk services, with larger clients more likely to insource.

• Insourcing is considered unusual and not expected to become widespread due to complexity and scale requirements.

Financial outlook and efficiency initiatives

• Confidence reiterated in achieving approximately $50 million EBITDA for 2025, requiring incremental expense discipline.

• Efficiency gains achieved by optimizing technology tool usage, renegotiating provider contracts, and expanding operations in Poland and Canada.

• Enhanced use of tools and processes has reduced manual work and improved employee productivity.

Product innovation and partnerships

• Early partner for Visa Flexible Credential, enabling multiple payment options on a single card, with strong interest from issuers.

• Flexible Credential expected to drive new customer conversations and future credit-building features.

• Marqeta Flex extends buy now, pay later to any debit card, offering issuers enhanced value and incremental spend capture.

• Flex simplifies integration for issuers and broadens distribution for buy now, pay later providers.