The payment technology firm Marqeta, Inc. (MQ) announced on Monday that it will formally execute a 1-for-4 reverse stock split, effective after market close on June 30, Eastern Time. Trading in the company's Class A common stock will begin on a split-adjusted basis when the market opens on July 1. The stock will continue to trade under the ticker symbol MQ, but will be assigned a new CUSIP number: 57142B203.
This plan received approval during the company's annual shareholder meeting held on June 10. Under the terms of the split, every four issued and outstanding shares of Class A common stock, Class B common stock, and preferred stock will be automatically combined and converted into one share. Based on the share count as of the meeting date, following the reverse split, the number of outstanding Class A common shares will be approximately 97 million, with Class B common shares around 8 million.
The reverse stock split will not alter shareholders' proportional ownership in the company. Concurrently, the number of authorized shares of undesignated preferred stock, Class A common stock, and Class B common stock will be proportionally reduced. All outstanding unvested restricted stock units, performance stock units, options, and other convertible securities will be proportionally adjusted. The company will not issue fractional shares; shareholders who would otherwise hold fractional shares will receive a cash payment in lieu.
Marqeta, Inc. stated that the primary goal of the reverse split is to reduce the number of shares outstanding. This is intended to enhance the comparability and clarity of key financial metrics, such as earnings per share. The company also anticipates the move may improve the stock's market liquidity and trading efficiency. Analysts note that a key practical effect of this action is to elevate the stock price away from the penny stock range, potentially increasing its appeal to institutional investors.
Marqeta, Inc. operates as a modern card issuing platform, processing nearly $400 billion in annual payment volume for 2025. The company's revenue for the trailing twelve months reached $652 million, reflecting a 23% year-over-year increase. Its recently reported first-quarter earnings showed revenue of $165.8 million, a 19.2% rise from the prior year, surpassing market expectations.
Comments