Free cash flow remains volatile, swinging from a 48.1% margin in 2025Q3 to a negative 2.8% in 2026Q1, while management continues to prioritize share repurchases, including $39.2 million in the most recent quarter.
| Cash from Operations | 149.27M | 162.62M | 58.17M | 21.1M | -12.97M | 56.97M | 50.27M | -15.43M |
| Operating CF Margin % | - | 26.02% | 11.47% | 3.12% | -1.73% | 11.02% | 17.32% | -10.77% |
| Operating CF Growth % | 1022.18% | 179.57% | 175.64% | 262.76% | -122.76% | 13.33% | 425.86% | - |
| Net Income | 2.17M | -13.93M | 27.29M | -222.96M | -184.78M | -163.93M | -47.7M | -58.2M |
| Depreciation & Amortization | 29.93M | 26.41M | 17.46M | 10.74M | 3.85M | 3.53M | 3.5M | 3.08M |
| Stock-Based Compensation | 98.89M | 104.79M | -8.05M | 180.74M | 107.53M | 142.66M | 28.21M | 21.76M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -37.75M | 2.82M | 193K | 31.2M | 50.15M | 6.39M | 4.5M | 2.36M |
| Working Capital Changes | 56.03M | 42.53M | 21.29M | 21.39M | 10.28M | 68.32M | 61.76M | 15.58M |
| Change in Receivables | -14.55M | -4.98M | -11.2M | -27.6M | -21.6M | -13.72M | -16.85M | -15.06M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 22.72M | 31.05M | -350K | 29.5M | 254K | 190K | -839K | 1.61M |
| Cash from Investing | 272.31M | 271.11M | 70.79M | 38.52M | 28.72M | -329.12M | -57.56M | -100.32M |
| Capital Expenditures | -9.72M | -1.83M | -2.42M | -762K | -2.32M | -2.74M | -2.38M | -4.91M |
| CapEx % of Revenue | 1.49% | 0.29% | 0.48% | 0.11% | 0.31% | 0.53% | 0.82% | 3.43% |
| Acquisitions | -45.66M | -45.66M | 0 | -135.78M | 25.73M | -20M | 0 | -750K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -22.29M | 201.22M | -18.79M | -11.89M | -1.6M | 0 | 0 | 0 |
| Cash from Financing | -304.89M | -347.32M | -186.91M | -261.79M | -79.49M | 1.3B | 167.38M | 139.05M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5M |
| Equity Issued (Net) | -278.87M | -387.6M | -154.43M | -190.42M | -78.14M | 1.32B | 166.94M | 142.99M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -319.26M | -391.37M | -154.43M | -190.42M | -78.14M | 0 | 0 | 0 |
| Other Financing | -26.02M | 40.28M | -32.49M | -71.37M | -1.35M | -20.51M | 436K | 1.06M |
| Net Change in Cash | 135.77M | 86.42M | -57.96M | -202.17M | -63.73M | 1.03B | 160.09M | 23.3M |
| Free Cash Flow | 112.35M | 160.79M | 55.75M | 8.45M | -16.89M | 54.23M | 47.9M | -20.34M |
| FCF Margin % | 17.24% | 25.73% | 11% | 1.25% | -2.26% | 10.49% | 16.5% | -14.19% |
| FCF Growth % | 145.89% | 188.4% | 559.55% | 150.06% | -131.14% | 13.22% | 335.53% | - |
| FCF per Share | 0.26 | 0.35 | 0.11 | 0.02 | -0.03 | 0.10 | 0.09 | -0.04 |
| FCF Conversion (FCF/Net Income) | 51.80x | -11.68x | 2.13x | -0.09x | 0.07x | -0.35x | -1.05x | 0.27x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 317K |
| Taxes Paid | 0 | 0 | 396K | 430K | 84K | 201K | 109K | 1K |
High client concentration dependency
As reported in recent financial filings, the persistent gap between net income and operating cash flow, highlighted by an OCF/NI ratio of -0.43 in 2026Q1, suggests that GAAP earnings are frequently decoupled from the actual cash-generative capacity of the underlying payment processing operations.
The frequent divergence between net income and operating cash flow indicates that non-cash items, particularly stock-based compensation, play a disproportionate role in the company's reported profitability metrics. Investors should monitor whether this disconnect narrows as the business matures, as current figures suggest that cash flow remains sensitive to working capital fluctuations rather than pure operational earnings.
Based on the provided quarterly data, Marqeta's free cash flow trajectory remains inconsistent, swinging from a peak margin of 48.1% in 2025Q3 to a negative 2.8% in 2026Q1, which reflects the inherent lumpiness of a transaction-based model reliant on large-scale client processing volumes.
The volatility in free cash flow suggests that the company has yet to establish a predictable cash-generation cadence, likely due to the timing of network incentive payments and variable interchange revenue. This instability warrants further investigation into whether the business can sustain positive cash flow without relying on favorable working capital timing shifts.
According to historical cash flow statements, working capital changes have been a primary driver of quarterly liquidity, with a significant $52.6 million inflow in 2025Q3 followed by a neutral position in 2026Q1, indicating that operational cash flow is highly susceptible to timing differences in settlement.
The reliance on working capital movements to bolster operating cash flow suggests that the company's core business model is sensitive to the settlement cycles of its major clients. Analysts should be cautious of interpreting these periodic inflows as permanent improvements in operational efficiency, as they appear to be transient in nature.
As indicated by recent SEC filings, Marqeta has prioritized substantial share repurchases, including $39.2 million in 2026Q1, despite the company's struggle to maintain consistent positive free cash flow, which may indicate a management focus on offsetting dilution rather than reinvesting in high-return organic growth initiatives.
The decision to deploy significant capital toward share repurchases while operating margins remain strained suggests a defensive capital allocation strategy aimed at managing the equity base. Investors should monitor whether this capital could be more effectively utilized to diversify the client base or enhance the platform's competitive moat.
Data from financial statements reveals that stock-based compensation remains a persistent and significant expense, consistently exceeding $20 million per quarter, which effectively masks the true cost of talent acquisition and retention required to maintain the company's modern card issuing infrastructure.
By excluding these substantial non-cash charges, the company's reported profitability metrics may appear more favorable than the underlying cash reality suggests. This practice warrants close scrutiny, as the ongoing dilution of shareholders represents a real economic cost that is not fully captured in traditional cash flow analysis.
Quick answers to the most common questions about buying MQ stock.
Marqeta, Inc. (MQ) generated $162.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Marqeta, Inc. (MQ) generated $160.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Marqeta, Inc. (MQ) spent $1.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Marqeta, Inc. (MQ) spent $391.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.