10 Best Small-Cap Stocks to Buy Now

4. Marqeta, Inc. (NASDAQ:MQ)

Analyst Upside: 36.61%

No. of Hedge Fund Holders: 37

Marqeta, Inc. (NASDAQ:MQ) is a leading global modern card issuing platform. The company offers virtual, physical, and tokenized credit and debit cards. It operates two business segments, Managed By Marqeta and Powered By Marqeta. Marqeta’s major clients include platforms such as Square, DoorDash, and Instacart. The company also offers Buy Now Pay Later (BNPL), neobanking, on-demand delivery, expense management, and crypto payment solutions.

Marqeta, Inc. (NASDAQ:MQ) has been facing increased regulatory scrutiny that has delayed program launches and impacted growth projections by 30% to 40%, with an average postponement of 70 days, affecting Q4 2024 and 2025 projections. To manage these short-term challenges, the company is focused on cost optimization and efficiency improvements. The company expects its adjusted EBITDA margin of 5% to 7% for Q4 2024 and approximately $50 million in 2025.

Despite the regulatory pressures, the company has done remarkably well, which indicates its strong growth potential. The company’s total processing volume (TPV) reached $74 billion in Q3 2024, a 30% year-over-year increase. The company posted a net revenue of $128 million in Q3, with a gross profit of $90 million, up by 25% from a year ago. For Q4 2024, the company projects its net revenue to grow between 10% to 12% and its gross profit margin between 13% to 15%.