That's why the stock price could languish until some clarity around Block arrives sure, the stock is cheap now, but if the company loses 69% of its revenue overnight, that changes everything around the stock. It's a complicated matter with a wide range of outcomes, including extending the deal at similar terms to the current contract, extending the contract at less favorable terms for Marqeta, or Block terminating the relationship if it were to build an in-house replacement for Marqeta's technology. At some point between now and then, investors will find out whether or not the two companies will extend their relationship. The two companies have an existing contract that expires in December 2024 for the Square part of Block's business and March 2024 for the Cash App side of the business. Block was 72% of revenue in Q2 2021, so although the concentration fell over the past year, it's still very high. Block contributed 69% of Marqeta's total net revenue in the second quarter, and this high concentration has been the case since the company went public. See, Marqeta does a ton of business with fintech player Block, the company behind the Square system for businesses, and Cash App, the money app for consumers. However, a potential dark cloud is hanging over the company that could muzzle the stock's upside until there is some clarity on the situation. It seems logical that Marqeta's stock could see a big bounce as the economic picture improves and investors warm up to growth stocks again. Continued abuse of our services will cause your IP address to be blocked indefinitely.But that's not the case the business has generated $24 million in free cash flow over the past year, so its cash is plenty to ride out a rough economy - meanwhile, Marqeta's card-issuing software powers some of the most innovative apps consumers use today. Please fill out the CAPTCHA below and then click the button to indicate that you agree to these terms. If you wish to be unblocked, you must agree that you will take immediate steps to rectify this issue. If you do not understand what is causing this behavior, please contact us here. If you promise to stop (by clicking the Agree button below), we'll unblock your connection for now, but we will immediately re-block it if we detect additional bad behavior.
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